Whether building from scratch or renovating your home, having any construction work done is a major investment. Not just financially, but emotionally and physically as well, especially if this is your first time
Jeremy Johnson is principal of Horizons Architecture and is an experienced architectural designer. He shares his knowledge and experience about everything you need to know and prepare for before embarking on any residential building project.
Before you build or renovate a home, who should you speak with first?
If you require a loan, it will be the bank. They will want to talk about your assets, liabilities, debts, age, job security, total income and the asset you want to build or renovate. They will also discuss how you plan to deal with the financing. Ultimately this meeting should culminate in you understanding what they are willing to loan you, and under what conditions.
Then, you need to engage a team, which will include an architect or designer, and an experienced contractor. It may also include an appraiser, a structural engineer, a surveyor and, for more complex building projects, a project manager.
What is the procedure for obtaining planning permission to build or renovate a residential property?
By law, all building and renovation projects require approval from the Department of Planning (Planning).
The process varies depending on the size, location, zoning, use and condition of the site. Other factors could also include the proposed location and extent of the development, as well as neighbouring conditions like existing densities, encroachments, public roads or protected zones.
I recommend retaining your architect to develop a scheme. They will use this to engage Planning on an initial consultancy to determine viability and the ideal process it should go through to gain the necessary approvals.
Once the application process has been determined, drawings will be developed in accordance with Planning’s recommendation. Submission happens via the architect. Planning vet the application and then send out the invoice for payment. Once paid, signage is issued notifying of the intent to develop. These bright red signs must be posted on the site for 14 days. Two pictures of these signs must be issued to Planning to show their location and context.
A comprehensive set of drawings will prevent a multitude of potential issues. Correspondence and drawing revisions go to and fro between the architect and the planner until both are satisfied with the result. The drawings are stamped off and the client has the green light to commence the works on site.
What are some common planning issues that arise when an owner is building or renovating?
The three most common planning issues I come across are, firstly, the client needs to create and register a CSS (Customer Self Service) account with Planning. This can be done at https://planning.gov.bm/index.php/ customer-self-service/.
Secondly, finding the owner of neighbouring properties when a Neighbour’s Acknowledgement Form is required can sometimes prove difficult. Thirdly, if price increases occur over the approval period, this can make commencement of the works challenging.
Are there any additional planning requirements to consider when renovating or building to accommodate vacation rentals?
This is a bit of a grey area. What I do know is that if the lodgings become the primary use of the property, the owner must apply for a ‘change of use’. If the tourist accommodations are not the principle use of the property, the house will remain as residential use.
What obligations does a property owner have towards their neighbours?
Where works take place within the setback to a common boundary line, there is an obligation to get the neighbour affected to sign a Neighbour’s Acknowledgement form.
The neighbour has the right to view the drawings before they sign and they have the right to abstain from signing. Signing does not constitute agreement. If a signature cannot be obtained, the applicant must send a registered letter to the neighbour. The registered receipt, and the proof of collection from the post office, must be submitted to Planning to show that adequate effort was made to acquire the signature.
When budgeting, how much ‘extra’ do you advise owners to set aside for unforeseen building issues?
The bank requires that 20 percent be added to the requested amount for the protection of the project. This is a good gauge because it means that in their experience, this is a safe number to understand how much over budget a project can go.
In addition to making timely repayments, what other obligations must owners fulfil when borrowing money from a bank in order to build or renovate?
The bank requires a project manager to qualify payments during construction. This does not have to be someone who is intimately acquainted with all of your finishes. They just need to be able to state to the bank that the payment request from the contractor or client is reasonable and is going toward the construction of the project.
What are some common mistakes people make when embarking on a building or renovation project?
The one that hits home for me the most is when people choose the cheapest design service they can find. Although I understand why they do this, it may not save money in the longer term. This is because good design matters. If a building or renovation project does not function well, or does not speak to you personally, you are stuck with it.
What other advice would you give to residential property owners before embarking on a residential building project?
Don’t skimp on quality. Use a good designer, employ the best contractor you can, and buy good quality products, because Bermuda is a brutal environment. Building and renovation will always cost more than you expect, but it will cost a lot more in the long run if you cut corners.
It’s also important to listen to advice from the experts and those who have built or renovated before. I still listen to advice because there is always something to learn.
For the full list of residential building requirements and regulations, visit planning.gov.bm.
