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What Consultants are needed

By Antonis Loizou, FRICS
Antonis Loizou & Associates Ltd
Chartered Surveyors
Property Valuers - Project Managers

2 March 2008

This article is written with the home/building owners in mind and we will attempt to advice them on the necessary consultants that one should use, in the building process. We are aware that many foreign people in particular try to cut-corners in order to save costs, but at the end of the day a substantial percentage ends up having serious problems (some of which are surfaced in our Q+A column), which, at the end, cost considerably more than the originally envisaged savings, whereas others are met with problems which cannot be resolved.

  • Buying the plot: Get a valuation done by a registered valuer who will inform you in addition to the property’s market value, the available building density, any zoning restrictions, possible affects on proposed Governmental and other plans, which affect the property etc. For a plot of approximately £200.000 a reasonable fee is around £200+V.A.T.

  • The Architect: Once you buy the plot, you must appoint an architect registered as such with the Technical Chamber (ETEK). Do not cut-corners on this major consultant and do not appoint the neighbor’s son, who “has a talent” in architecture. Ordinary architect’s fee is 4%-5% on the total building cost, but you can negotiate a flat fee. Make sure that whatever amount you agree, you split 30% design (split 20% on completion of the agreed design, 5% on issue of planning permit and 5% on issue of building permit), 50% supervision, 10% on delivery and 10% on securing the certificate of final approval.

  • The Civil Engineer: The consultant who will design the structural members of the building, including any externals (retaining walls etc). Ordinary fee 1% on the total cost or a flat fee as before. We suggest 40% on design, 10% upon the issue of the building permit and 50% for supervision.

  • The Electrical & Mechanical Engineer: Average fee 3%-4% on the E/M cost. Make sure that the cost refers to his own work only. So if he is not involved in the pool design, this should be excluded. Water irrigation for the garden etc must also be considered. Alternatively agree on a flat fee. Similarly agree on a 30% design, 60% supervision and 10% on completion and commissioning. Make sure that you understand what this consultant is suggesting to you because sometimes these consultants go over board in costly fixtures.

  • Quantity Surveyor: A must in a building. He is the person who will measure the Bill of Quantities on which the tenders will be sought. Bear in mind that most contractors will not quote without a B.O.Q. or if they do, their bid might be excessive. For any claims/extras/savings etc, he is the person to look after your side. He should also be able to advice you on the legal matters of a building contract, so that you are not met with surprises of “claims” at the end. Expected cost 1% on the total cost or a flat fee. Method of payment is 50% on preparation of the bill, 20% on award of tenders and the rest 30% for the issue of payment certificates.

  • Gardener: Useful to have if you have a large garden. Avoid plant selling firms whose priority job is to sell their plants regardless. Use a horticulturist who must suggest local plants/trees using limited water quantities. Bear in mind always that trees grow and may intrude in the neighbor’s plot.

  • Project Manager: If your investment is large, appoint a project manager, whose job is to coordinate all the above, suppliers and all contractors and sub-contractors you appoint. He is “your man” looking after everything including quality, time, delivery and constant updating. Cost around £1.000-£2.000 p.m. depending on the size. If a large complex he may appoint a resident engineer at an extra cost. He is the man who will make sure that the architect, civil engineer and others respond on time, so that no claims will follow and the person who will push you for timely decisions and coordinate the others involved in the building process (financiers, any local authorities, public services etc).

On a total cost for an ordinary house of around £250.000 you should anticipate the following cost:

  • Valuation £200

  • Architect £11.000

  • Civil engineer £2.500

  • E/M £1.500

  • Gardener £1.000

  • Quantity Surveyor £2.500

  • Project Manager (12 months) [£12.000 large projects]

  • Others (??) say £1.000

           Total +- £20.000 + V.A.T. at 15% = £23.000

The above cost represents approximately 8% on the total cost, not a small amount, but a necessary one. So should you decide which one you will miss out, you must compare the cost saving with the risks involved.

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