27/10/2026
This ones a bit of a long post but very insightful to help explain why 2 builders quotes vary in price and scope for the same project.
A lower price does not always mean better value—and a higher price does not always mean like-for-like scope.
It is common for two builders to quote from the same plans and return very different prices. That does not necessarily mean one is overcharging or the other is offering a bargain. A building quote reflects each builder’s interpretation of the work, inclusions, construction methods, suppliers, risk allowances and level of service.
Even when a detailed specification of inclusions is provided to quote with, different builders and their estimators are likely to quote for something different.
What causes the difference?
1. The scope may not be identical
One builder may include demolition, excavation, engineering, permits, waste removal, site protection and final cleaning, while another may exclude some of these items. Even small exclusions can create a large difference in the total price.
Often, the higher priced quote will include more. The amount of detail in the quote is important. Quotes that aren’t highly detailed will often cause friction during construction, once it becomes apparent that the builder and the client have different expectations of what isn’t specifically stated in the quote.
2. Inclusions and finishes vary
Quotes can allow for different appliances, tapware, flooring, cabinetry, windows, insulation, paint systems and fixtures. The descriptions may look similar, but the brands, models, quantities and quality levels can be very different.
Does the builder meet with you to discuss the quote and confirm that you understand and are happy with what’s included in the quote?
3. Prime cost items and provisional sums differ
Prime cost items are allowances for products that have not yet been selected. Provisional sums are estimates for work where the final cost is not yet known. A quote with low allowances may appear cheaper initially, but the final contract price can rise when actual selections and costs are confirmed.
You would expect 2 quotes to vary by roughly the amount of the difference in provisional sums and prime cost items in each quote. Some builders have low allowances for these, as they know they can increase what they charge when they have an overrun on provisional costs and PC items.
4. Builders use different construction methods
Builders may solve the same design challenge in different ways. Their approach to foundations, framing, waterproofing, detailing, access and sequencing can affect labour, materials, programme and long-term performance.
5. Overheads, workload and buying power are different
Every business has different staff, supervision, insurance, systems, supplier arrangements and operating costs. A builder’s current workload and the time available to complete the project can also influence pricing.
6. Risk is priced differently
Renovations and complex sites involve uncertainty. One builder may allow for difficult access, hidden conditions, material price movement or a longer programme, while another may price more optimistically. A detailed quote often costs more because it includes realistic protection against foreseeable risks.
7. Service and project management are not equal
The price may reflect the amount of supervision, communication, documentation, quality control and aftercare provided. These services are easy to overlook when comparing totals, but they can materially affect the building experience and finished result.
A building company that has a larger allowance for supervision and management is likely to produce a better quality finish and have better communication with clients.
There are plenty of stories about the builder that avoids calls from the owner after the final payment and handover occur. How much more is it worth to pay for a builder that stands by their work and is proactive when it comes to defects and maintenance issues?
How to compare quotes properly
• Check that every quote is based on the same drawings, engineering and specifications.
• Compare inclusions and exclusions line by line—not just the final total.
• Review the value and number of prime cost items and provisional sums.
• Confirm brands, models, quantities and finish levels wherever possible.
• Ask who is responsible for approvals, site costs, temporary works, waste and cleaning.
• Check the proposed construction period, payment schedule and variation process.
• Understand the builder’s supervision, communication and warranty service.
• Ask for contact details for previous clients from the builder to speak with.
• Ask questions about any item that is unclear, missing or unusually inexpensive.
The bottom line
The best quote is not automatically the cheapest. It is the quote that most clearly describes the complete job, uses realistic allowances and gives you confidence that the builder understands the project. Before choosing, make the quotes genuinely comparable and assess price alongside scope, quality, risk and service.
Some builders may offer to provide an assessment of what the scope of quote differences are and what questions they’d be asking other builders.
