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Q&As
How should I go about querying quotes from builders?
My builder has been very generous in providing us with a very detailed quote, broken down to show almost every single element of the build. We are looking to reduce costs (isn’t everyone!). In employing a QS to first check that the quote was inline with similar builds, we were then advised by them to not go through all of the individual elements of the quote to try to find ways to reduce costs, as this would come across as ‘nit-picking’. I’m just wondering how else the client is meant to try to find ways of reducing costs, if we can’t go through the quote and remove, adjust, query costs where feasible?
One Answer
Hi Julie,
Quotes from builders are often more than you expect, and they can vary from builder to builder. A detailed quotation covering every element of the build is encouraging, as it means the builder has taken the time to properly look at the scheme and build up their costs, which means the quote is likely to be more accurate than lump sum figure, which is how some builders present their offers.
A quote will be built up from the known costs of labour, the specified materials, other costs such as skips, scaffolding and the overhead costs, usually including project management, paperwork costs, insurance, vehicles and the other costs incurred in running a building business. Profit is added to these – it is important that the builder makes a profit. Good contractors don’t simply guess these costs; they come from industry standard pricing guides and services. Although cost is important, you should also consider reputation, financial standing, labour, experience and competence in selecting your preferred builder. Cheapest isn’t always best.
It is tempting to try and reduce costs by looking at the quote on a line-by-line basis. If you are very familiar with the expected costs of building elements, this can be helpful in identifying errors, but trying to negotiate on a line-by-line basis is difficult. I agree with the QS that this approach may actually be counter-productive and even get you off to a bad start with your builder.
I would consider value engineering the project. Look at the proposals and see where costs may be saved by making alterations and adjustments to the specification, design and even programme. Your architect and engineer will often help with this. If the quotation is from your preferred builder, I would suggest engaging and negotiating with them openly, they will have a good understanding of the work required and will be able to identify where construction and material adjustments are feasible. I would avoid undertaking to supply the building materials directly as any error, late delivery or missing elements will give rise to a claim from the builder for abortive time, which could quickly outweigh any apparent savings made at the outset.
Best of luck with your project plans,
Steven Way (Chartered building surveyor and practice principal at Collier Stevens, answered via Build It)