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Home Owner Warranty – Tender Review

Sergon Building Consultants were appointed to complete a Tender Review for a large and complex residential strata loss. This recent case study shows how with collaboration between Sergon's various service offerings and expertise, Sergon were able to provide an impressive and successful outcome.

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Sergon first completed a ‘Scope of Works’ upon receipt of defects being claimed under our Clients Home Owner Warranty (HOW) policy. Tender requests were sent to multiple builders to complete associated remedial works.

  • The Challenge

    Complications were identified during the emergency works phase completed by ‘Builder One’. Further investigations during this phase revealed additional issues arising from the accepted defect items which totaled to 204 items, impacting on the initial scope.

    Builder One’s revised quote came in at a significant sum of $2.3M. A further two quotes were also obtained from a second and third builder, coming in at $2.1M and $1.3M respectively.

  • The Solution

    Through the appointment of Sergon’s Quantity Surveying expertise, a review of the Scope of Work was conducted and a theoretical estimate for the remedial works was calculated by Sergon’s experts at $1.1M, less than all the estimates provided.

    It was clear that the complex nature of the claim had resulted in some misunderstanding of work required and in consultation with the respective builders, builder number 2 was able to provide a reduction of approx $500K to $1.5M, however this was still more than the most competitive quote submitted.

    By working closely with the Client (Insurer), Sergon were able to appoint Builder 3 with their competitive quote of $1.3M to complete the work in line with the scope, a great result given the highest quote was $2.3M, providing a possible saving of $1M. In addition, Sergon’s Building Consultant was specifically requested to project manage the repair works through to completion.

    This is one of many examples that shows how through collaboration between Sergon’s various service offerings and expertise, as well as the strength in working closely with our clients and suppliers, we are able to provide a valuable and successful outcome for all stakeholders.

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