Building a Sustainable Home Starts with the Right PAC Process
The Problem with Traditional Tendering
It feels like everyone in the building industry is obsessed with the traditional tender process. Why do builders and clients still rely on a method that's clearly outdated? We think it's time to talk about a better way of doing things (we have actually been talking about this for 10 years). The traditional tender process is a bit like a blind date; you get a fancy drawing and a budget, but you have no idea if the person on the other end is a good fit. This process often pits builders against each other, with everyone racing to the bottom on price just to win the job. You might think you're getting a good deal, but you could end up paying for it later with poor-quality work or unforeseen issues. If you’re looking to build a Passive House in Melbourne, this process just won’t work.
It's a process that's just set up for failure. We've seen it time and again where builders receive a full set of documents and are asked to provide a price with a tight turnaround. This forces builders to guess and assume things, often leading to huge price blowouts and disagreements down the line. It's also why many builders are not willing to provide their full attention and expertise to a project until the contract is signed.
Unfortunately, many builders are still comfortable with this approach, but it doesn't give them the confidence to discuss costs, flag potential risks, or suggest a better and cheaper way to build something. The traditional tender process is simply a race to the bottom, where the cheapest quote wins, and clients are often left with a home that isn't built to a high standard. We have so much Passive House building knowledge that we can share, which prevents problems before they happen, and if we follow a tender process, this advice simply can’t be passed on. And what happens when we know the answer to the problem already, but the plans are drawn a certain way, you as the client end up paying for a variation.
The Negotiated Tender and Pre-Construction (PAC) Process
We believe the negotiated tender and PAC process is the new kid on the block for a reason. It's a process that's been fine-tuned over 10 years of being involved, constantly reviewing and improving it to make it better for our clients. This approach brings the builder and client together early in the design stage, which is crucial for a successful project. Think of it like a band getting together for practice before they start recording an album; everyone has a role to play, and the magic happens when all the musicians are in sync, jamming together from the very first note.
The PAC process is about being involved, not just being there. We are comfortable discussing costs, even when they're difficult, and flagging potential budget risks before they become major issues. We work with you and your design team to create a realistic construction cost estimate to align your budget with the desired scope of work. We value our time and knowledge and want to give you the confidence to make a huge commitment. Use our experiance as industry leaders in Passive House and sustainable construction, becuase we know building well, and we have so much information we can pass on that will just work to your advantage.
The Benefits for You
The PAC/Pre Construction process means you get to work with a team of experts from the very beginning. As Passive House building experts in Melbourne, we can provide our expertise and insights from the concept stage, which helps ensure the project is on track from the start. We can also suggest better and cheaper ways to build something that will achieve the same outcome. This means you get a home that is built to a high standard, that is a sustainable home, with no hidden surprises, and a team that is genuinely invested in your project. Ultimately, the negotiated tender and PAC process is about transparency, communication, and collaboration. It's about building a partnership with you and your design team, ensuring we're all working towards the same goal: creating a home that just feels better. At the end of the day, we all want the same result, so lets work together.
Why Our Process Works
The negotiated tender and PAC process is a much better alternative to traditional competitive tendering. It's not a race to the bottom, and it doesn't drive up construction costs. In fact, it enables us to do our best to control them. This process brings the builder and client together early in the design stage, which is crucial for a successful project. By getting involved at the concept stage, we can provide real information and insights into the feasibility of your project and its potential costs, helping you align your budget with the desired scope of work.
While people often think competitive tenders mean competitive pricing, the reality is that they often lead to a race to the bottom. Builders are forced to provide a quote with limited time and information, which leads to assumptions, guesswork, and huge price blowouts down the line. A negotiated tender, on the other hand, is still priced competitively, but it's done with transparency and honesty. We are comfortable discussing costs, even when they're difficult, and flagging potential budget risks before they become major issues. We don't believe in hiding anything from our clients.
Our experience as Passive House builders has taught us that to truly make a difference, we need a deeper understanding and the willingness to participate actively. This means being comfortable discussing difficult costs and flagging potential budget risks before they become major issues. We're not here to dictate design choices, but we are confident in discussing the numbers and guiding you through the financial aspects of the project. We're also not gatekeepers of information and are happy to share what we've learned over the years.
Our process as a sustainable builder in Melbourne is all about transparency, communication, and genuine involvement. We've found that this is the best way to ensure a sustainable build and a sustainable home, and more importantly, a lasting partnership with our clients.