What should be included in a building quote?

By Alessandro Tarzia · Builder & Director, Ottimo Homes · 15+ years' industry experience · ACT Builder Licence 20121515

Start with the same information

A meaningful quote should be prepared from a clear and consistent set of documents. These normally include architectural drawings, engineering information, an inclusions schedule and enough detail about fixtures, finishes and external work for the builder to understand the intended result.

If one builder has priced a complete design and another has priced an early concept, the totals cannot be compared fairly. Missing information does not make the work disappear. It usually returns later as an allowance, an exclusion or a variation. The more decisions that are resolved before pricing, the more useful the comparison becomes.

Inclusions and exclusions

The quote should state what is included in plain language. This may cover site preparation, structure, windows, insulation, internal finishes, joinery, plumbing fixtures, electrical work, heating and cooling, painting, flooring and the external elements shown on the plans. Brand names, models, quantities and finish levels should be recorded where they are known.

Exclusions should be just as visible. Common areas that need clarification include demolition, rock excavation, retaining walls, landscaping, driveways, fencing, service authority charges, window coverings and work outside the site boundary. The important point is not that every quote must include every item. It is that you understand who is responsible and what still needs to be funded.

Prime cost items and provisional sums

A prime cost item is an allowance for an item that has not been selected, or whose exact purchase price is not known, when the contract is prepared. Tiles, taps, appliances and light fittings are common examples. If your final selection costs more than the allowance, you pay the difference.

A provisional sum is an allowance for work or materials whose extent cannot be precisely determined at the time of contract. Site excavation and possible rock are common examples. These allowances should be reasonable for the project. An unrealistically low allowance can make the opening price look attractive while leaving a larger amount to be paid later.

Variations, payments and timing

The quote and proposed contract should explain how changes will be handled. A variation should describe the change, its effect on price and any effect on time, with written approval obtained before the changed work proceeds. Clear documentation protects both the owner and the builder.

Progress payments should be linked to defined stages of completed work. The contract should also identify the parties, the site, the plans and specifications, the contract price, the expected start and completion arrangements and the responsibilities for approvals and certification. Independent legal and financial advice can help you understand the commitment before signing.

Look for clarity, not just a low total

A good quote should reduce questions rather than create them. It should let you understand the home being priced, the standard of finish, the assumptions made and the items that could still change. It should also give you a basis for an honest conversation with the builder before either party commits.

At Ottimo Homes, the goal is to price from complete information and explain the detail directly. If something is not known, it should be identified early and discussed openly. Our guide to choosing the right builder for your Canberra project includes further questions worth asking before you decide, and the custom home builder in Canberra page explains how this approach applies from first enquiry through to contract.