When looking at multiple construction quotes, the cheapest option might be tempting.
But not all quotes are created equal. And choosing the lowest quote now might result in costly surprises later.
In this article, we shed light on the construction quotes, focusing on five reasons why the seemingly cheapest options usually end up being the most expensive.
That way, when building your new home, you can make informed decisions that’ll save you money. And headaches.
Reason #1: Calculations and Presentation Can Vary Wildly
When choosing a builder, you want to get as much bang for your buck as possible. So it makes sense to shop around.
The thing is, if you put a dozen quotes on the table in front of you, no two would line up for an easy comparison.
In other words, quoting isn’t standardised in the construction industry. Builders calculate and present their costs in different ways.
Where Builder 1 uses one type of measurement, Builder 2 might use a different method entirely.
Where Builder 3 breaks their costs down into comprehensive lists, Builder 4 might lump them into categories, and vague ones at that.
The names and descriptions for each step in the project can vary wildly between builders, too.
Reason #2: That Low, Low Price Could Be an Illusion
Some builders try to lure you in with the illusion of a low price.
They slim down the quote by omitting costs and understating allowances for certain project steps (like site preparation). Then, once the project is underway, they slap you with hidden costs.
Unless you know exactly what you’re looking for, the “budget-friendly” option could end up the most expensive of them all.
Reason #3: The True Value Could Be Buried in Nonsense
Consider flooring material. Prices can cost up to 5x more for premium materials compared to basic materials. This same degree of variability applies to everything — fittings, fixtures, appliances, and so on.
Some builders use technical jargon and intentionally present their quotes in confusing ways to bury information about material quality, making it hard to assess the true value of the quote.
The same is true for labour costs.
Some builders will hire cheaper, less experienced, and potentially unlicensed subcontractors to maintain profit margins.
This can significantly impact the quality of your home, as well as the costs of future upgrades and repairs.
You could even run into legal issues, especially if your builder didn’t follow local building codes.
Overall, when looking at quotes, it’s important to consider value and lifecycle costs, not just the initial price tag.
Reason #4: Their Business Could Sink, and Take You With It
Some builders — especially if they underquote to win jobs — may face financial instability halfway through a project. It could even be enough to sink their business.
And where would that leave you?
Well, you’d have to hire another contractor to finish the job. And this would likely be at a higher rate because they’d have to pick up where another team left off assuming you can even find someone to take on the project. (as no builder likes this kind of job).
They could also find flaws in the existing work (especially if your previous builder cut corners) and charge extra to fix them.
Reason #5: Without a Fixed Price, You’re at Risk of Future Surprises
A good construction quote includes detailed specifications for every part of the build, from the site management plan to the tiniest fittings and fixtures.
A great construction quote comes with a fixed-price contract, avoiding variable costs like prime cost and provisional sum allowances.
With detailed project specs and a fixed price, you can get a sense of the true value of a quote and construction team, and avoid costly surprises down the track.
If one of the quotes you’re considering isn’t ticking either of these boxes, it might be best to set that one aside.
Today’s Decisions Can Impact Your Life for Years To Come
There’s much more to choosing the right builder for your home than finding the cheapest quote.
You need the know-how to secure a fixed-price contract, a keen eye to assess the true value of each quote, and the experience to accurately compare quotes that have been presented in entirely different ways.
Typically, the middle-range quotes provide the most bang for your buck.
But this is your home, your investment, and the decisions you make now will impact your life for years to come. So it’s important you choose the right builder for you.
That’s why we put together this comprehensive guide for you to download.
Build With Confidence — Discover our 10 Tips for Choosing the Right Builder
It’s completely free, and goes beyond assessing quotes to provide a total of 10 high-impact tips that’ll help you secure a home that truly reflects your desires and lifestyle.