Is my builder’s quote fair?

A guide from Costd. Read time 4 minutes.

A building quote is not one number. It is a total sitting on top of allowances, exclusions and assumptions, and the cheapest quote on the table is often the one with the most of them. Here is what a builder looks at before deciding whether a quote is fair.

1. Count the provisional sums

A provisional sum is an allowance for work the builder could not price yet, like excavation into unknown ground. The contract lets it move. If the site has rock, an $8,000 allowance can become $30,000 and the difference is yours. Count them, ask why each one is provisional, and add a realistic amount to the total before comparing quotes.

2. Read the prime cost items

A PC item is an allowance for something you have not chosen yet: tapware, tiles, appliances, lights. A low allowance makes the quote look cheaper and guarantees a variation later. Check each allowance against what you actually want to buy.

3. Price the exclusions

Site works, service connections, driveways, fencing, landscaping, window furnishings and appliances are routinely excluded. On a typical new build the excluded items run to tens of thousands of dollars. Put a number beside every exclusion so the total you compare is the total you will pay.

4. Check the stage payments

Victorian new home contracts set percentages a builder can claim at each stage: deposit 5%, base 10%, frame 15%, lock-up 35%, fixing 25%, completion 10%. A front-loaded schedule shifts risk onto you. If the numbers look different, ask why before you sign.

5. Compare like for like

Two quotes are only comparable once the gaps are filled. Fill the silent items in each, add the allowances at realistic values, and compare the adjusted totals. It is common for the cheapest quote on paper to be the most expensive once it is made like for like.

What we do

Our quote check prices your job from the same drawings, then lays the quote against it line by line: what is thin, what is heavy, what is missing, and the questions to ask your builder. Fixed fee, back in 48 hours. See the owner products or start a quote check.

This guide is general information from a registered builder, not legal or financial advice. More guides · Pricing