Comparing building quotes: look beyond the total.

Receiving several building quotes can feel reassuring, until you realise they are difficult to compare. One includes more detail. Another contains allowances. A third has a lower total but a longer list of exclusions.

The useful question is: what exactly will each price deliver?

Give each builder the same starting point

Consumer Affairs Victoria recommends comparing at least three written quotes for the same plans and specifications. If one builder prices an earlier drawing or assumes a different finish, the totals will not be directly comparable.

Make a scope comparison

Create a simple table listing the major parts of your project. For each quote, mark whether an item is included, excluded, allowed for or unclear. Ask about site preparation, demolition, services, finishes and external works where relevant. Do not assume an item is covered because it appears in a picture.

Understand what is still an allowance

A quote may include amounts for items that have not been fully selected or defined. Ask what each allowance covers, what assumptions support it and how the final cost will be worked out. Request an explanation of any prime cost or provisional sum items before comparing totals.

For example, if one quote includes an allowance for a finish and another specifies the actual product you want, ask both builders to clarify the same selection. This is a comparison exercise, not an estimate of what that selection should cost.

Ask about changes and communication

Discuss how questions, revised selections and changes to scope will be documented. Ask who your day-to-day contact will be and how you will receive updates. Clear communication is part of evaluating the offer.

Read the documents together

Check that the proposed contract, drawings, specifications and quote describe the same work. Consumer Affairs Victoria recommends detailing fixtures, fittings and finishes, and making clear who supplies them. Seek independent advice on contractual terms you do not understand before signing.

A lower price may be appropriate. First make sure you understand the scope and assumptions behind it.