Comparing building quotes is not an easy thing to do. Each Builder will provide you with different levels of details and use different structures for their quote layouts. So let’s break things down and take a look at how to compare them fairly.
If you simply look at the bottom line and compare the total cost, you are about to make a big mistake. By looking at price only, you are assuming that each Builder has covered the same scope, will build using the same standard of quality products and does not have any hidden costs.
1. If a quote seems unrealistically low, it is usually a cause for concern. If in doubt, leave it out.
2. If you are provided a verbal quote it could be a sign the builder has not spent enough time going through your plans to get an accurate build cost, what is included, what isn’t included, have they based this price off a m2 rate? Which leads me into question 3
3. Does the building quote lack detail? For example, if you are building a new home and you receive a one page quote, this is a major red flag. Everything listed on your plans and listed in your selections must be included in the quote. If the quote does not include everything requested, then proceed very carefully. If items specifically listed are not listed in the quote, then chances are they have not been costed into the final price.
The two or three similarly priced quotes will usually signify a builder that has taken the time to carefully read the plans, understand your design, your inclusions and is serious about winning your work. These are the builders you should be talking to.
4. How large are the building companies that you’re talking to? Large building companies may tender a competitive price, be able to service your region, but have they the skill and understanding to build a custom design home?
5. If the builder is very small will they be able to deliver the personal service that a client such as you may require. Will he have the resources to communicate, keep on top of your request and properly manage changes that you ask for?
6. Are the builders that you are comparing technologically minded, have a web presence and easily contactable by email?
7. As well as comparing your building quotes’ inclusions it is equally important to know what items have been excluded. Are these obvious in the quotation tendered?
Did you know we offer a free comparison service. Simply provide the quote in plain format (delete the cost, delete the brand name) and we will simply point out if we have or haven’t included anything your other quote has. Its that last piece of mind before making a costly mistake.
In doing the above we have saved a number of clients the hidden surprise of having large items not included in quotations.