Building Quote Terms Explained for Australian Home Buyers

3rd July 2023

Finance & Budgeting Pre-Construction Design & Trends

Comparing builder quotes in Australia? Learn what base price, turnkey, site costs and price protection mean, and what to check before choosing a builder.

Common building quote terms explained for Australian home buyers

Two builders can quote on the same floor plan and come back with very different prices. One quote might include a driveway and fencing, while the other leaves both for you to organise after handover. The first step is to work out what each price covers.

In this episode of the Home Building Hub podcast, Colin Bischof and Darren Brennan unpack the terms you're likely to see when comparing new home building quotes in Australia, from base prices and turnkey packages to site costs and price protection.

Base price, standard inclusions and turnkey packages

The base price is the starting price for a home design with a standard façade and a specified set of inclusions. Site works, estate requirements and upgrades can change the total. Ask the builder to show any promotional discounts separately so you can see how they affect the quoted price.

Standard inclusions are the materials, fixtures and finishes that come with that price. Ask for the written specifications and compare them side by side. If you liked the kitchen or exterior at a display home, ask which features are standard and what the displayed upgrades would add to your quote.

A façade is the front appearance of the home. The same floor plan may be offered with several façades. Ask which one is priced and how much your preferred option would add.

A turnkey package is intended to provide a home you can move into at handover. The hosts give examples such as front and rear landscaping, a driveway, fencing, a letterbox, a clothesline, cooling and blinds. Ask which of these are listed in writing and whether any come with limits. For example, check how much driveway paving is included and whether landscaping covers both the front and rear yards.

What are site costs in a building quote?

Site costs cover work needed to prepare and build on your specific block. They can include the slab, foundation piers and other site requirements such as temporary fencing. Two neighbours building the same home can have different site costs because their blocks have different ground conditions or levels.

Ask the builder to identify which site costs are fixed and which are still estimates. If the soil report, survey or engineering is pending, ask what could change once those details are available.

Check how the home fits your block

Estate design guidelines can influence your façade, roof pitch, external materials, driveway and landscaping. Ask the builder to identify any changes needed for your estate and show their cost in the quote.

A wall on boundary, sometimes described in quotes as a zero lot line, is a wall designed to sit on the lot boundary. This may help a design fit on a narrow block. Ask the builder to show the wall, gutter and setbacks on the site plan and identify any extra cost.

Orientation describes how the block and home sit in relation to north, south, east and west. It affects where sunlight enters the home and can influence energy performance. Find the north arrow on the plan of subdivision, then check which way the living areas and main windows face on the builder's site plan.

How long is your building quote price protected?

A price protection period is the window during which the builder offers to hold the quoted price, subject to the written terms. The episode focuses on the time allowed for construction to start, which matters if you're buying land that is yet to title.

Some builders use contingency to describe an extra charge if the project runs beyond that period. The hosts discuss fixed monthly amounts, percentage-based charges and repricing as possible approaches. Ask for the dates, amounts and conditions that apply to your quote.

• When does price protection start and end?
• What milestone must be reached by the end date?
• How would a land title or finance delay affect the price?
• If a charge applies, how is it calculated and when could the quote be repriced?

Building surveyor and private building inspector

In Victoria, a building surveyor deals with the building permit and checks compliance with building regulations at required stages. An independent building consultant, often called a private building inspector, can assess workmanship and check it against the agreed specifications. Consumer Affairs Victoria guidance on building plans and permits

If you plan to arrange private inspections, ask the consultant which stages their fee covers and ask the builder how inspections and reports fit into the construction schedule.

Quick glossary for comparing builder quotes

Term What it means What to check in your quote

• Fill - Soil added above the original ground level. Ask whether the builder has allowed for any extra foundation work associated with fill.
• Fall - The difference in ground level across the block. Ask what earthworks and retaining walls the quote covers.
• Piering - Supports that extend below the slab to transfer loads to suitable ground. Check whether piering is included, separately priced or subject to further investigation.
• Retaining wall - A wall that holds back soil where ground levels differ. Check which walls are included and who is responsible for any others.
• Soil classification - A site classification that helps inform the foundation design. Ask whether the quote reflects the soil report and site survey for your block.
• Term Plain - English meaning Building square A unit of floor area equal to about 9.29 square metres. A 22-square home is about 204 square metres.
• Siting - The proposed position of the house on the block, usually shown on a site plan.
• Setback - The distance between a building and a lot boundary or another reference line.
• Land title - The official record of ownership of a parcel of land. When buyers talk about a lot being yet to title, they generally mean its separate title has yet to be registered.

Frequently asked questions

What is the difference between a base price and a turnkey price?

The base price covers a standard home design and its listed inclusions. A turnkey price is intended to cover a move-in-ready home and may include extras such as blinds, fencing and a driveway. Compare the written specifications and site costs before comparing totals.

Does a fixed site cost cover every expense on my block?

Check the scope in writing. If the quote lists a fixed amount for site costs, ask whether that amount covers piering, earthworks and retaining walls, or whether any of these are priced separately.

How do I compare the size of two new homes?

Convert both figures to square metres and ask each builder what the measurement includes. Check whether the garage, porch and alfresco are included, especially if you're trying to compare indoor living space.

Key Takeaways

• Compare written inclusions and exclusions so you can see what each builder's total covers.
• Check whether the site costs reflect your block's soil report, levels and foundation requirements.
• Ask how estate guidelines, setbacks and orientation affect the quoted design.
• Confirm when price protection ends and what a delay could add to the quote.

Watch or listen to Common Building Quote Terms Explained on YouTube

About the Home Building Hub Podcast: The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips. Explore more episodes at http://www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer: This article was generated by AI based on a transcript of our podcast episode and may contain inaccuracies or omissions. Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.