What’s included in a builder’s quote?
If you’re in the process of planning your home renovation or extension, then you’ll soon be in need of a builder to turn your dream into a reality.
Reaching out to a builder for a quote is a bit more complex than receiving one estimated price of the entire renovation. It is important to understand what to expect, and why the quotes are set out this way.
1. A clear scope of works
Every building project should include a scope of works, which outlines exactly what is being priced. This is usually in a categorised list, such as:
- Demolition works
- Structural work (foundations and framing)
- Windows & Cladding
- Painting
- Tiling and plumbing
Tip: If something is missing from the scope of work, do not assume it will be included in the cost or the build. Always ask before accepting the quote if you are unsure of exactly what is priced.
2. A categorised list of Prime Cost (PC) items
When planning your build, you may not be able to choose all your items before the project starts. Think specific tapware, appliances, door handles etc. that haven’t been chosen yet.
That’s why ‘prime costs’ are added to your building quote, to allow for those items to be included, but not chosen. The prime cost is an approximate price allowance per item that will be sorted during the build.
Tip: Be cautious when a builder has put an unrealistically low allowance for a prime cost item in the quote, as this may simply be a tactic to win the project and you may be hit with a bigger cost during the build.
3. A categorised list of Provisional Sums (PS)
It is important to understand the difference between prime costs and provisional sums. While a prime cost covers the items, provisional sums is an allowance for an undefined scope of work, including both materials and the labour associated.
For example, it may not be reasonable to quote a fixed price for bricklaying prior to the renovation starting, so a provisional sum allowance is included in the quote to explain what it will cover and how it will be calculated (e.g., hourly rate for the labour). During the build, this will be presented to you as an ‘adjustment’, where you will be able to review the actual costs of the work.
4. Inclusions and Exclusions
Within the scope of works mentioned above, the quote should clearly state what work is included and excluded in the project. For example, the client might prefer to supply the tapware for the bathroom, so the builder would not have to source these. This should be stated in the scope of work of the quote so you know what the cost does and doesn’t cover.
5. The Variation Process
Renovations are well-known as dealing with the unknown, as you never know what issues you may come across once you start peeling back the layers of a house. That’s why it is important to understand each builder’s variation process.
Variations are set up when unexpected work comes up during a build, such as plumbing issues being discovered during the foundations work. These are presented to the client as a variation to the contract, as it wasn’t priced in the quote. However it should be noted in the quote of that builder’s variation process, such as how they will be priced, whether approval is required in writing and what margin the builder will apply to complete the work.
Tip: Variations aren’t just for problems, if you choose to change different features of the build during the project, it is important to understand the process of getting a variation and how much it might cost you to do it (e.g., variations can come with admin fees).
6. Length of build
Once all of the building stages are outlined in the scope of works, the quote should include the total length of time that the builder estimates the project can be completed in. This is to give you a rough expectation of how long the job will take, and is dependent on how detailed the design is and the types of materials used.
For example, a renovation that uses both timber and steel framing may mean that particular stage of the build will take longer to complete, which will impact the overall length of the project.
7. Terms and Conditions
Most quotes will have a Terms and Conditions section that outlines things such as how long the quote will be valid for. This is to protect the costs that have been estimated, as prices of products change over time. A quote from two years ago may not be reasonable in the present as the price of items may have increased. A standard timeframe is 30 days for a quote to be accepted or rejected.
Ready to create your dream home?
If it’s time for you to take the next step towards improving your home, we’d love to hear from you.
We specialise in premium house renovations and alterations across Melbourne that are customised to each client. To ensure your vision can be made a reality, we encourage contacting us early on in the process so we can build from the foundations up.