Common items found in building quotes

29th May 2023

Finance & Budgeting Pre-Construction Design & Trends

In this episode, we provide a summary to you outlining and explaining the most common items found in building quotes. We also share some insights into what makes up a good building quote and finish off with 4 common mistakes we see homebuyers make during the quoting process.

Common Items Found in Building Quotes

Welcome to the Home Building Hub podcast! In this episode, Colin Bischof and Darren Brennan delve into the components that make up a building quote. They explain the common items included, why quotes differ between builders, and the key mistakes home buyers often make when evaluating quotes. If you’re embarking on your building journey, this guide will help you navigate the complexities of quotes with confidence.

What Makes Up a Building Quote?

A building quote is made up of several components, and understanding these can help you make informed decisions. Here are the key elements:

1. Base Price:

2. • Represents the cost of the home design with the builder’s standard inclusions.

   • Varies between builders due to differences in inclusion levels. Some base prices might include minimal features, while others offer upgraded inclusions.

3. Site Costs:

4. • Covers the preparation and foundation work required for your block of land.

   • It varies, but they can includes elements like excavation, retaining walls, and slab requirements.

   • Site costs can be bundled into a single figure or broken down into specific items.

5. Council and Estate Requirements:

6. • Includes costs for council compliance and estate covenants, such as recycled water systems, facade guidelines, and landscaping requirements.

7. Facade Choices:

8. • Standard facades are typically included, but upgrades with premium materials or architectural features may incur additional costs.

9. Promotions:

10. • Builders often include promotional packages with discounts or bonus features, such as upgraded kitchens, flooring, or appliances.

11. Bushfire Attack Level (BAL):

12. • Applicable if your land is in a bushfire-prone area.

    • Requirements include specific construction materials and measures to meet safety standards.

13. Upgrades and Customizations:

14. • Optional features such as higher ceilings, upgraded benchtops, or additional storage.

    • Structural changes, like adding a bathroom or altering room layouts, should be clearly outlined in the quote.

15. Colour and Electrical Allowances:

16. • Some builders include allowances for colour selections and electrical upgrades, giving buyers flexibility during their design appointments.

17. Price Protection or Contingency Fees:

18. • For untitled land, builders may include a contingency fee to cover potential price increases if the build is delayed.

Why Are Quotes Not the Same?

Building quotes can vary significantly due to several factors:

• Inclusion Levels: Some builders include high-end features in their base price, while others charge extra.
• Site Cost Calculation: Builders may present site costs as a single figure or break them down into detailed components. Some builders may include a higher level of concrete slab in their standard inclusions, which should see their site costs figure be generally lower than builders that only include the basic slab in their standard inclusions. Site costs are not 'apples to apples', making it difficult for the everyday home buyer to truly compare or understand quote differences.
• Promotions: Bonus offers or discounts can alter the overall price. They are often confusing and difficult to compare due to different builders having different promotions.
• Warranty and Validity Periods: Builders offering extended warranties or longer fixed-price periods may charge more upfront.

Pro Tip: Focus on the total price and ensure the quote includes all your needs and wants rather than getting caught up in itemized cost differences.

What Makes a Good Building Quote?

A comprehensive and transparent quote includes:

• All items from your wish list, especially structural changes.
• Specific details about upgrades, promotions, and allowances.
• Accurate estimates for site costs and compliance with estate covenants.
• Clarity on optional features and how they affect the price.
• Proper documentation of structural changes to avoid delays or additional costs later.

Pro Tip: Ensure any discounts or bonus offers are explicitly mentioned in the quote.

Common Mistakes When Evaluating Quotes

1. Focusing Too Much on Individual Items:

2. • Avoid overanalyzing individual costs (e.g., garage doors or site costs). Instead, focus on the overall price and whether the quote meets your needs.

3. Choosing Based on Price Alone:

4. • The cheapest quote isn’t the best, in fact, we suggest to steer well clear of it. Let's be practical here... a cheaper price upfront means less money to pay the trades and suppliers to build your home, so theres only one way to go - use cheaper materials and cheaper trades. This decision could end up costing you a lot more down the track. Trustworthy builders with transparent processes may charge more but offer better value and a smoother journey.

5. Relying on Online Reviews or Uncle Garry's Opinion Alone:

6. • While reviews and family member opinions are thought to be helpful, from our experience they can be one-sided or can often lack context. By all means, take that information into consideration, but don't let it be the sole driver of your purchase decision. We suggest supplement your research by talking to past customers or visiting display homes and speaking with the sales consultant in more detail. Then, make your decision for yourself.

7. Not Asking Questions:

8. • If something in the quote is unclear, ask for clarification. Understanding every component will help you avoid surprises later.

Key Takeaways

• Building quotes consist of base prices, site costs, council requirements, promotions, and optional upgrades.
• Variations in quotes stem from differing inclusions, warranties, and pricing strategies.
• A good quote should clearly outline all items, including structural changes, promotions, and allowances.
• Avoid common mistakes by focusing on the total price, choosing quality over the lowest cost, and seeking clarity when needed.

Listen to the Full Episode

For more insights and tips, listen to the full episode: Common Items Found in Building Quotes.

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

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.