FAQ: Why is my builders quote not cost-itemised?
This is a great question. I often get asked by potential clients for itemised breakdown of the job costings. While the intent typically stems from a place of trust building through transparency, I have found that itemised quotes fail to benefit the client or the builder in the long run.
The truth is, quotes are complex, difficult and significantly time consuming. Preparing an accurate quote calls upon vast amounts of specific knowledge acquired only through years of working in the industry. By breaking down the quote into a “shop-able” price-list, the builder’s expertise and value is placed under the microscope, ultimately diminishing the perceived value of the builder and his or her team.
Furthermore, knowing the cost of each item does not provide tangible value to home-owners, as this does not change the total cost required to complete the job. Rather this level of granularity creates the impression to the client that each item is up for negotiation in a clients attempt to cut costs, without the necessary industry experience to apprise accurately. For nearly all builders, costs are based on a preferred team of trades and suppliers for delivering a quality project. These relationships are often unintentionally undervalued by home-owners, but can be all the difference between a smooth on-budget, on-time project, versus an over-budget, delayed, and difficult one. For that reason, the price is as is.
Additionally, for some clients who prioritise the bottom figure above all else, seek a second and third builders quotes for comparision. Naturally, these additional builders will leverage the time, resources, and industry-experience of the original builder with the intent to marginally undercut (as they have had to spend only a fraction of the time preparing a quote). As you can imagine, this practice creates an unfair disadvantage for any building business, including my own.
I would be surprised to find any experienced builder that provides line item costs in their comprehensive quote for the same reasons detailed above. Happy to be proven wrong, and if so, please send me their quote (just kidding).
Trust building between the client and builder should not rely on cost-itemisation. In fact, cost-itemisation is no guarantee the builder has correctly scoped the project, creating an artifically low-quote, and false sense of trust. For example, a well known builder is know to under quote by intentionally quoting the bare minimum (number of skip-bins, down-lights etc) - items that wouldn’t be detected in a large scope of works.
Whether you seek Canvas’s expertise for your job or not, I encourage you to prioritise the professional relationship over costings, in the first instance. It is far more important that clients feel confident in the builder’s ability to delver a project on time and on budget.
