Package Suppliers: Choosing a Company

ABOVE: John Head and Karin Skanberg used Border Oak to design their new home and supply their oak frame/SIPs package. “The frame and SIPs were completed in just over four weeks, with the remaining work taking five months,” says John. Read more about this project.

Build construction system: Your decision might be influenced by the construction system that the package company uses. In simple terms, if you want an oak frame, chances are you’ll need to use a package company who specialises in these systems; likewise with structural insulated panels (SIPs), timber frame (open or closed panel), and so on. If you’re particularly keen on using one of these systems, you should choose a company with experience in them.

Design service: Your decision might be influenced by the design service or styles offered by a particular company. Potton, one of the UK’s leading timber frame package suppliers, has recently launched a range of very impressive off-the-shelf contemporarystyle homes – Zenit – which might prove attractive (it also now offers a bespoke design service). As in-house or freelance house designers employed by the package companies become better known, they serve to attract clients with the design rather than the traditionally more appealing ‘service’ factor. There might also be an attraction because of the oak frame element of the design or, in the case of certain European timber frame manufacturers, the wholehouse eco principles.

Choice of materials: At some level, ultimately package suppliers will tie you into choosing materials from them as part of their package. Whilst some package suppliers permit you to simply buy a timber frame off them, many will want you to sign up to it supplying at least some of the materials — typically joinery and exterior coverings (bricks and roof tiles, for instance). You’ll want to make your choice based on how flexible you want to be and how much control you want to have over specifying what you want in your house. Before you sign up, research what kind of choice you will enjoy when it comes to those critical decisions and whether you like the materials on offer — and if you feel there isn’t enough choice, move on.

Experience and customer service: As with any service you employ as a self-builder, you will want to make the relevant checks on the levels of customer service you might expect. So ask the company for references and speak to former clients — preferably visit their homes. What was the project manage ment experience like? What would they do differently? This more than the product-driven areas of self-build is a service-led decision, so you need to ensure that the service you get will be second to none.

Potential pitfalls

What if I don’t like the design? The designs that the package company draws up for you remain its copyright and you won’t be able to engage the company for the design stage, terminate the service and take the plans elsewhere to be built. Hence, you will need to do your research beforehand on what kind of design you might expect to receive. You should, however, expect to be able to amend the plans and work with the company’s designer to get them to a stage you are happy with.

Paying big sums upfront and cash flow: Because you’re ordering lots of bespoke work and materials upfront which can’t be sold on – particularly in the case of timber frame kits – package suppliers will often ask for a significant settlement upfront, in advance of delivery. Indeed, it was this arrangement that was the spark behind the advance/accelerator self-build mortgage schemes offered by BuildStore and Selfbuilder. com. However – particularly in the current climate – many self-builders will be justifiably reluctant to pay large sums upfront. The answer, according to self-build finance expert Mary Riley of Mary Riley Solutions, Consulting Director to Selfbuilder, is to recognise that you need to protect yourself, and your package company will probably want to do likewise — after all, you’re at as much chance of losing your job as they are of going out of business. “Discuss the payment terms at an early stage. Provide your material suppliers with the assurances that they will be paid. I would strongly suggest that you obtain a credit reference on your suppliers as this will also give you assurances. You may wish to consider sharing your lending facility with your suppliers (if applicable). Another option is to ask your solicitor to facilitate making payments to your suppliers. In effect, monies will be lodged into a solicitor account. After a satisfactory interim valuation has been obtained, funds may be paid to the suppliers via a solicitor’s account. This method of payment will provide your lender, your supplier and yourself with the knowledge that all parties are better protected. The hesitancy in making payments in advance in this current economic climate is obvious — however, your supplier will require concrete docum - entation confirming, subject to a satisfactory build, that payment will be made.”

Conflicts and poor service: The main reason why things occasionally go wrong when self-builder and package company meet is because of poor communication.

Expectations and reality don’t always meet. Most often this is due to dissatisfaction with the company’s levels of service – not being on the end of the phone to answer questions, delay in delivering materials to site when required, etc. – or occasionally down to a flaw in the project management arrangement. Check out how the arrangement works with your company and ask what happens if things go wrong — and make sure that you are able to communicate with the team.

Fees: How It Works

You’ll need access to a bit of cash to pay upfront fees if you’re using a package company. Gone are the days when package companies can get away with claiming to offer ‘free’ design services, but they still do undoubtedly offer bespoke design at very good value. Potton has over 30 years’ experience in self-build packages and its fee structure is typical of what you might expect:

• free initial consultation
• £600 fee for design drawings
• extra £1,900 (plus application fees) to take the drawings through planning and Building Regulations approvals
• this £2,500 total increases to £4,500 for its bespoke design service, which is recommended in sensitive planning cases Having been through this stage, the self-builder then pays a 20% deposit on the kit, the remainder payable on delivery.

ABOVE, clockwise from top left: Design & Materials; Border Oak; Scandia Hus; Deck House; Oakwrights; Border Oak

"I design for package companies"

H&R Design Expert Pete Tonks runs his own design practice (pjtdesign.co.uk)as well as being the man Potton and TJ Crump Oakwrights turn to when they need a bespoke design. He always meets self-builders going down the package route on site to kick-start the process. “I establish a build cost immediately with the self-builder — that influences everything, and I think with the experience I’ve got and working closely with the package companies, we can closely marry the budget and the design. It’s important for me to recognise that building a new home is often people’s lifetime ambition, and the design is everything. Sometimes people come to me with a pretty fixed idea of what they want – in which case I make it workable – and other times I have a much freer reign. I think people use packages because it gives them more security and a more realistic chance of building to a budget, but I’d also like to think the increased emphasis placed on bespoke design means they are not missing out on the creative side of things too.”
Read Pete's blog.

Further reading:

• Package Suppliers: What are the benefits
• Constructions Systems: Package Building
• A Scandinavian Kit House

Find Package Suppliers in the Homebuilding Directory