Why Builder Quotes Differ So Much for the Same Job

You send the same plans to three builders and get back $180,000, $215,000 and $260,000. It is tempting to assume the cheapest is efficient and the dearest is greedy. Usually neither is true.

The gap is almost always scope

The single biggest cause of quote variation is that the three builders have priced three different jobs.

One included the driveway, one did not. One allowed for a new switchboard, one assumed the existing one was fine. One priced the flooring throughout, one only in the new section. None of them are lying. They read an incomplete brief differently.

The fix is a detailed scope of works. If the plans do not specify it, builders must assume, and assumptions diverge.

Provisional sums hide a lot

A provisional sum is an allowance for something that cannot be priced accurately yet. Tiling at $60 per square metre supply is a provisional sum. So is $8,000 for a kitchen.

Set them low and the headline quote looks great. Then you choose actual tiles and the variation arrives. This is the most common mechanism by which a cheap quote becomes an expensive job.

When comparing quotes, look at the provisional sums first. If one builder allowed $8,000 for a kitchen and another allowed $25,000, that $17,000 explains a chunk of your gap and tells you nothing about their workmanship.

Prime cost items and inclusions

Ask specifically about:

• Tapware, sanitaryware and appliances
• Floor coverings
• Painting, internal and external
• Landscaping and make-good after works
• Temporary fencing, site toilet and waste removal
• Council and certifier fees

Any of these being in or out moves the number substantially.

Legitimate reasons for a higher price

Some builders genuinely cost more, and sometimes for good reasons:

Better subcontractors. Good trades charge more and are worth it. Realistic programming. A builder who allows enough time is not padding, they are being honest about how long it takes. Proper insurance and compliance. Licensed, insured, HBCF cover arranged correctly. This is not optional and it is not free. Contingency for the unknown. On renovation work, a builder who has done a lot of it knows what turns up behind old walls.

Warning signs on a low quote

• No itemisation, just a single lump figure
• Vague or missing provisional sums
• No written program or start date
• Reluctance to provide a licence number
• A large deposit requested up front, above the statutory limit
• Pressure to sign quickly

In NSW the maximum deposit on residential building work over $20,000 is 5% of the contract price. Anyone asking for 20% up front is telling you something.

How to compare properly

Put the three quotes side by side and normalise them. Add the missing scope back into the cheaper ones. Equalise the provisional sums. Then look at the numbers again.

Nine times out of ten the gap shrinks to something small, and you can choose on the thing that actually matters, which is whether you trust the person to run the job.

We provide itemised written quotes with provisional sums clearly marked, because it is the only way you can compare us fairly against anyone else.