Homeowner’s biggest mistake when it comes to builder’s quotes

Have you had the opportunity to request and receive builder’s quotes? Let’s face it, it’s not often easy to get the quotes in, and when you do get them, it can be pretty much a free for all, right? Not all quotes are the same, the information is often completely different and the amount of information you receive is varied. On their own, they can be hard to decipher, but when you’re trying to compare… it’s almost impossible.

And it is at this moment that many soon-to-be homeowners make a critical error. In this key moment where you need to pull the trigger on the builder who is going to hold your hand through the building journey, many people are so focused on the details of what is included in the builder’s quotes… that they forget to check the details that are NOT included.

And these details matter! Far more than you may realise. Why? Because the devil is in the detail and what you think you are getting may not end up being what you actually get.

At this stage in your building journey, you are dreaming of your finished home. You’ve spent hours upon hours in showrooms selecting everything you want — tiles, tapware, baths, appliances. You’ve poured over Pinterest and gathered your design details, and in your head, you know exactly what you want.

But have these details transferred over into the builder’s quote and, in turn, the building contract? Probably not.

Of course, the building contract may have ‘tapware’ and ‘appliances’ listed in the quote, with a tidy lump sum sitting alongside. But unless the specific details are listed — brand, model, size, finish etc — chances are you may not actually get the item you fell in love with at the showroom. Unless every item is specified, the builder could swap it out for another model.

And so the critical error that many homeowners make is failing to make sure the builder’s quotes are detailed enough. Make sure any quote you sign specifies all selected items.

Missing information is not the only mistake people make with builder’s quotes

Builders are notorious for providing short quotes or contracts with very little detail. But overlooking the missing information is not the only mistake that people make. Failing to understand industry terms that are used throughout your quote or building contract is another big mistake that could end up costing you money.

And of course, you don’t know what you don’t know — if you are not part of the building industry, how are you expected to understand the jargon, right? Unfortunately, in this case, ignorance is not bliss. Ignorance is the fast track to budget blowouts and disappointing outcomes for your home and your family.

So let’s give you a crash course in the basic building contract terms you need to know.

Provisional Sums

The term ‘Provisional Sum’ is often used when a particular aspect of the work is undefined and/or not fully costed. Most of the time a provisional sum is listed if the builder is unable to determine the actual cost of the work. For example, earthworks may be listed as a provisional sum if the builder cannot determine how much earthworks is required.

It’s important to identify what is listed in your builder’s quote and contract as Provisional Sums because if this term is listed anywhere within your quote, chances are the price may change.

Prime Costs

‘Prime Costs’ is another term that may show up in your builder’s quotes. This is the sneaky little term that allows builders to swap out one item for another. Your tapware, vanity, toilet, bath may all be lumped together as ‘plumbing fixtures’ on your quote and listed as ‘prime costs’.

Prime costs is a way of making allowances for stock availability during construction. But it is also a way for less-than-reputable builders to fleece you on the price — they can swap out the quality items you wanted for another brand, and increase the cost based on the changes.

Ultimately, provisional sums and prime costs leave the door open for builders to make changes and means you are left exposed to budget changes and extra costs… and not ending up with exactly what you want.

How to avoid making these critical mistakes with your builder’s quotes

Fortunately, there is a simple way to avoid making these critical errors with your builder’s quotes, your building contract and your house build. Be sure to:

• Read and understand every word of your building contract
• Make sure all items are itemised, specified and costed

If there are industry terms or jargon that are unfamiliar to you, or if you are unsure of the details, or if you need further clarification on something — ASK! And don’t sign anything unless you are confident with the details and every item that you want in your home is itemised.

To make it super easy for you, B4U Build offers an extensive quote checklist that outlines all the details you need to check are included in your builder’s quotes. This checklist outlines information that is often 3 to 4 times longer and more detailed than the information builders provide in their quotes. The B4U Build Builder’s quotes checklist includes everything so you can be sure you’re getting EXACTLY what you are paying for when you build your home.