Is my quote reasonable?
Getting quotes is a time-consuming but necessary part of your project. Unless you have an established working relationship and past experience with a contractor, accepting the first price you get from a general builder is risky and there are several good reasons why their prices can vary.
So how exactly can you be confident that the numbers you are getting back are both accurate and fair? And how do you compare them?
WHAT to ask for: Estimate or Quote
First things first, let’s clarify the terminology here.
An estimate is an educated guess. It is not binding and intended to give you an indication of what your work could cost. The estimate can be for your whole project, for example if you are at an early stage, or for parts of your project that are hard to put a precise number to – for example renovation works or re-wiring.
A formal quote, however, is a fixed price figure based on the accurate and detailed information on your drawings and specifications, with accompanying terms and conditions. If nothing changes (I’m going to level with you, it will), then this is the final sum you can expect to pay.
So I said that things will change. This is a fact of life –
You specify a type of flooring but it is discontinued when it comes to ordering it and you need to find an alternative.
The Conservation Officer wants to see a particular detail that isn’t quite so straightforward to deliver.
The non-structural wall turns out to be integral to holding your 200 year old house together (not by design).
You go away for a weekend to a fancy pants hotel and realise that actually you don’t want a bath in your bedroom after all…or that blackout blinds in the kids room are a must have.
But, part of your formal quote should include information on how these changes will be dealt with and charged. Which keeps you in the drivers seat.
The most important consideration is how you manage and monitor these decisions throughout your project.
WHEN to ask for a quote
If you are not yet committed to a project and just looking at potential, get an estimate early, for design & application fees as well as construction work. This will give you a steer towards what to budget for.
Remember – your budget it what you are willing to spend, and the construction cost is what the work you’ve asked for actually costs.
If you are working with a designer, I also recommend getting estimates at key stages during a design process, to keep tabs on what your dream could cost and make adjustments along the way.
This will avoid a lengthy and often disheartening process we call ‘value engineering’ 😭 when you get the tenders back in a brown envelope…in a tense ‘Deal or No Deal’ style scenario.
There are two ways to do this:
1. Build a relationship with a builder that you want to work with and ask them to give you input on the work involved in your design.
Ask them to visit your home and get a feel for the quality of your existing house.
Remember though, there is a lot of work involved with putting together accurate prices, so if they are not confident that they will win the work the effort they put in will be reflective of that.
Tyre kicking is prevalent in the industry and particularly small contractors cannot afford to chase projects that go to someone else every time, so if you are going to approach a company for this kind of early input, choose someone who is aligned with your standards that you actually want to work with.
2. The second option is to hire a Quantity Surveyor (QS).
This consultant is specially trained to provide an independent valuation of the work you want to do. Look for a QSi or RICS professional body membership (you can search for one near you on their website here).
If you have checked in on likely costs as you go, then the final full tender return (based on all the detailed information laid out in your tender pack) should be a confirmation of specifics, not a ‘do we or don’t we build’ moment.
It may still not be 100% aligned with your hopes, but you’re unlikely to have to put the whole project on the bench or give up holidays forever.
HOW to ask for a quote
It’s as simple as this. The more detail and information you give, the more accurate your quote will be. This is relevant for whatever stage you are at.
If you are at concept stage, gather images of as many aspects of your build and sketch some floorplans to give indicative sizes and illustrate your ideas. A lot can be lost in communication with just words.
What you call ‘average quality’ can be wildly different to what Contractor A and Contractor B consider run of the mill. And their estimates will reflect that; it doesn’t mean either is over/underpriced or ‘wrong’.
At tender stage, when you have your details drawn up, being clear on your finishes, fittings and particular suppliers you want to use (like Farrow & Ball paint vs Crown or Dulux) can have a significant influence on the price.
Of course, starting premium with these items gives you room to adjust your bottom line without redesign, but it can upset your programme.
For high quality or complex work, find a designer or QS/Project Manager who is a good fit for you to help specify your plans to an appropriate level for you first time round.
Like building quotes, many people feel shocked by design fees.
But consider how much time that designer has allowed to work through these details with you, and how much support they can offer to get the proposals right alongside you.
This is my focus for example and I really enjoy being present as a design buddy to my clients. I reflect this value in the time allowed for in my fees.
How to compare prices
Ask for a few quotes and make sure that they have the same basis for quoting.
Be clear on when you want your quotes returned by (first check with the contractors what their availability & timescales are) and the format that you would like it back in.
Comparing a phone call, a one liner email and a four page spreadsheet is not exactly conducive to easy decision making!
I prepare my specifications in an excel spreadsheet that I send out, broken down by ‘packages’ (like external works, walls, floors, decorations, hardware etc) and I ask the contractors to put their itemised prices into my spreadsheet so I can compare them line for line.
If you are describing the work yourself and not sure where to start, check out my Project Budget Workbook which is perfect for this.
It has helpful line items for all types of work and I have added in 2020/2021 benchmark costs* in the notes as a guide too.
*Just take this column out if you use the document to tender from!
The Bottom Line
Remember that the lowest price is rarely the best price. And look out for discrepancies between returned tenders.
No one works for free and if they are not making a profit they will likely look for ways to claw back some money, or they might have missed something and there will be a surprise later. Which you really won’t enjoy!
You are also dealing with people and, particularly with independent businesses, your project is not only their passion but also their livelihood.
It is worth remembering that, if you get your house built within the budget you’ve set and to the quality standards you require with the support you need, you are not being cheated if others make a profit from it.
Ultimately, you will have the home you want at the price you wanted to pay for it – which is good value, and the chances are it will already be worth a good deal more than it cost to construct. 🥳
Wow - you made it all the way to here!
Thank you for reading, and cheers to that! Hopefully you found this helpful.
If you did, please share on social media and shout about my blog and resources to anyone you know in need of a bit of support (or just cheering up whilst the building dust flurries around them - I get it!).