Building your house is a lifetime project and an exciting opportunity to have your own home. However, complex projects, such as building a house from scratch, can go wrong in many ways. Finding a reliable builder can make or break your house building project. Therefore, assessing the builders quote is just a first step in choosing a reliable builder.
A builder quote or construction quote can be defined as an initial cost estimation to build a residential property. This is the first cost estimation you’ll receive from the builder, and based on that you’ll be able to plan your house building costs. Quotes for building a house can vary in a great extent given the design and architectural preferences, number of square meters, flooring, and location. A house building or renovating quote should include all costs directly related to the house building or renovation projects, such as but not limited to the labour and material costs, and costs for compliance requirements.
The builder or construction quote is the initial estimation you will get for your building or home renovation project. If the quote the builder sends you seems reasonable, the next step is receiving the tender or contract.
A tender package is a set of plans and documents whose purpose is to inform the builder about the construction project, what it includes, and the details of the building. The tender package is usually prepared with the help of architects and designers, to provide clarity and proper information. The tender package usually includes:
Choosing the right builder has a huge impact on the success of your project. Therefore, comparing the construction quotes can take some time and effort. What you can do is:
Finding a reliable builder is of crucial importance to your building or renovation project. Therefore, we can advise on a few things:
In selecting the right builder, what you need to do is to perform a detailed check by following the comprehensive checklist we created below to ask your developers:
Generally speaking, no. Once you sign a fixed-price contract with a builder, the builder agrees to bear the additional cost that is beyond the agreed contract amount. For example, if the cost of materials increases during the building process, the builder doesn’t have the right to increase the price to cover the additional material cost. If the increased building cost is the result of the client’s additional design requests, then the client will have to pay for it.
However, in cost-plus building contracts, the estimated cost base can be adjusted to match actual project expanses.
You can try to negotiate the initial price, as some builders may be open to a certain amount of negotiation. However, price negotiation shouldn’t negatively impact the quality of the project, as quality is always more important than price.
Some inexperienced companies give quotes for free, while others can charge a small amount. Although it might seem like an unnecessary expense, paying a small sum for a quote can help you assess different offers from early on.
However, the price of the quote usually depends on the size and scope of the project. Typically, the cost for a quote can easily be justified since it helps to eliminate unreliable builders before the project has begun.
We advise against signing a contract with the very first builder who sent you the quote. A general rule of thumb would be to compare at least three quotes for the same construction project. By doing that, you will have enough info to make comparisons and choose the best contractors for your construction project.
Builders will require house plans and diagrams. Also, some generic advice would be to be as specific as possible, reflect your specifications and include all types of materials that you want to use. It’s best to include all you have in mind about the project to reduce miscommunication issues with your contractor.
Some questions that are important to ask:
With more than 20 years of industry experience, we would be more than happy to offer our help in your next construction project. If you need help in estimating your overall project costs, or an expert building consultancy, you can reach out here.