“I’ve got a cheaper quote from another builder”
Why choosing the cheapest option may not be the best?
Let’s put it this way, have you ever bought a cheap pair of shoes and compared them to a Branded pair such as a pair of Nike’s? Which one fits best? Which one was more comfortable? And which lasted longer? The Nike’s, right? The same thing goes with building your house.
The cheapest option might not be exactly what you want, it might not have fit all your needs but it was cheaper. However, you could get exactly what you wanted or more from another builder’s quote that is still within your budget.
This is why choosing the cheapest option could result in poor consequences.
What should you look out for in a Quote?
- A lack of detailed explanation for prices
- Hidden costs within the quote
- Consistency between quotes – Are you comparing apples with apples?
- Major price difference between quotes
- Are there provisional Sums estimated and provided?
- Have all costs been included?
- Does the quote factor in all the relevant specifications i.e. site works, certifier and approval fees, structural steel?
- Do the items detailed in the quote meet your lifestyle, needs and budgets?
- Are all prime cost allowances sufficient for the item that needs to be purchased? i.e. can you buy the type of flooring you want for the dollar per meter square allocated?
Why do some quotes have a large difference in price?
Many quotes vary in price but the quotes you should look out for are the ones that have bigger price differences, as they could potentially have hidden costs. A good reason to always ask the builder if there are any areas of the build that have not been added to the quote.
So, what are hidden costs?
Hidden costs are costs that may not been included in quotes or discussed between you and the builder. Some hidden costs could be:
- Site Preparation
- Certification and Approval Fees
- Electrical works
- Temporary Site requirements such as Temporary fence and toilet hire
- Nature and classifications of the site
- Retaining walls
- Waste/Water management systems
- Bush Fire attack levels
- Building envelope requirements
- Environmental Impact Regulations
So how do you know you’ve picked the right builder to give you a quote?
When looking for a builder, it is best to look for a specialist who does custom designed homes, like Kotari, and asking questions is the only way to determine if the builder is right for you.
To begin with, some major red flags to look out for would be how interactive they are. Do they answer the phone or return calls? Do they inform you of any issues/suggestions? How long does it take them to answer emails or texts?
If they don’t interact promptly or alert of you to possible issues, don’t waste your time chasing them.
Another red flag is when a builder agrees to reduce the price or agrees to any request. This could be the builder overpromising in desperation to have you sign a contract. These builders could either under deliver or worse, be on the verge of folding. Asking a few business related questions will help sift out the builders in trouble.
Professional builders will give you advice and suggestions on how to improve your home and building plans/process. They will be completely honest about schedules and how long your home will take to build, the process involved in your build, advice on your budgets and any delays that can occur.
To find out the other questions you must ask a builder before signing a building contract, download our free guide revealing all of the critical questions.
Writer: April Measures
Date: 24th April 2018