You have asked several Sydney luxury home builders for quotes and they are in. You look at the quotes and the quotes are so different from each other. Some seem excessively expensive compared to other quotes.
Why are the builders quotes so different? Shall I go for the cheapest quote?
Keep an open mind when comparing quotes between luxury home builders. You may have a pre-conceived idea of the cost of the build from your architect, friends and others in the trade. The quotes you received are nothing like you imagined.
You are building a luxury home, quality takes time and you want the best building craftmanship for your budget.
Our guide is designed to get you the best price for your new custom home project from the best builder with the best value and quality – and save you money!
Why do I need to compare the luxury home builders quotes?
On face value of each quote, it is easy to see the building contractor who is the most expensive and who is the cheapest. But upon closer inspection, you can see each builder’s quote is usually presented in a different format. There are huge variations in the level of line detail for each aspect of the build.
It will be difficult for you to go through each quote line by line and compare the costs of each element of the build. This is ultimately the best way to compare the quotes to each other. You are going to have to find a better way to make it clearer to see the variations in the pricing. As well as, ensure that the builder has included everything you need in the quote. You don’t want to be left with any surprises or budget blowouts during the build.
For example:
You may look at a builders’ quote and see one quote is less expensive for gyprocking. You need to ensure that the quote includes the correct amount of gyprock for the house as well as the labour. Perhaps the builder has misjudged the amount the gyprock for your build and this is why it is cheaper than the other builders.
Closely comparing builders quotes will highlight –
1. Hidden costs and omissions that you will need to account for.
Whether intentional or not, builders do play tricks with their quotes to win business, especially when they are desperate. They know that once they have won the job and are in the middle of the build, it is hard for clients to say no to more costs for important building omissions – and this is when you get unforeseen budget blowouts.
2. Pay reasonable market value
This ensures you are not getting ripped off and paying reasonable market value for your build. Builders who charge below market rates are cutting corners (and quickly going to go bankrupt), supplying poor workmanship, or using inferior materials and fittings.
3. Errors in a builders’ quote
We are all human, and builders can make mistakes in their quote. It is better to find out up front than again be surprised in the middle of the build when the roof is off.
During the quotation stage if you compare the quotes it will become evident why there may be huge variances between the quotes. You can always go back to the luxury home builder to include the missing items, or ask them more questions about the details of the quote to get some clarity on what you are signing for.
This eliminates any surprises in the middle of the build when you do not want to find out if something is missing and you need to add this cost during the build. This will totally throw out your budget.
There will still be some surprises during the build as it is hard to foresee all the issues that may arise. At least you will not be hit with extra expenses because something wasn’t included in the quote.
How do you compare luxury home builders quotes?
(a) Ask the builders for a quote
SBR Group recommend when asking building contractors for a quote to build your luxury home that you provide the same building brief and drawings to each builder. This will help you to ensure you get quotes from each builder that include everything you need for your building project.
If you need help choosing a Sydney builder read our blog – this has info on what to look for in a builder.
(b) Compare the dollar value of each builders’ quote
Step 1 – Scope of works
Your scope of works is all the building work that needs to take place to achieve your build. Your architect will be able to provide this to you.
You may need to use an excel spreadsheet to break down all the scope of works that need to take place. We recommend you split the spreadsheet under headings to make it easy to find and compare the pricing, such as demolition, roof, gyprock, kitchen etc.
Step 2 – Itemise each builders quote against your scope of works
Next, make several copies of your scope of works. It is best to use a new spreadsheet for each building contractors quote. This will be a significant, time consuming task but once completed, will highlight very quickly and easily, whether the quote covers all aspects of your custom build or extension.
Step 3 – Get more information or clarification on your quote
Step 2 may highlight detail or information missing, so you may need to go back to one of the luxury home builders to get fill the gaps and firm up the pricing. Add these to your spreadsheet.
Step 4 – Compare building quotes
Now you can compare the quotes, as you are comparing like for like and each quote includes everything you will need for your build. It should now be extremely easy to see the builder with the best quote.
(c) Compare the VALUE in the builder quote
Building costs should not be the only consideration when choosing a luxury home builder. Expertise, know-how, efficiency and quality materials are other aspects which should be taken into consideration.
Sometimes you need to look beyond the final cost of a build, at the extra value behind a builders’ quote. Some building quotes may include items and services that while may not have a dollar value, are very important in ensuring the success of your building project.
For example:
SBR Group offers all its custom home clients 20 hours of a qualified interior designer at no cost to you. This will help you to coordinate the style, materials and put it all together. This free service will give you confidence in your choices and that your luxury new home will look polished and high-end when it is finished. Most builders do not include this, but it certainly adds value to the homeowner, especially those that may not be confident when it comes to choosing materials and colours to achieve a certain style.
Other things to consider when comparing quotes between luxury home builders
A builder can reduce your stress if anything happens to go wrong during the building project or if you are not happy with something.
1. Ask to see the builders’ Home Warranty Compensation (HWC).
Previously known as home warranty insurance, it is law that the builder provides this insurance for all building projects over the value of $20,000.
A builder needs a certificate of eligibility to be able to provide home warranty compensation. This means they have been assessed by icare (the only provider of HWC through its brokers) and have been granted the entitlement to apply for a certificate of insurance on your behalf.
2. How long is defects liability period?
The defects liability period is the time in which the builder will return to your new home to fix or correct defects. Builders may fix the obvious defects soon after the build has been completed but some defects may not be apparent, go unnoticed or may become defect after use or over time. Ask the builder the period for his maintenance. Of course, you want this period to be as long as possible, within reason.
At SBR Group, we do not have a time frame for maintenance and are happy to fix any defects. Once you are a customer of ours, you stay a customer for life. We have been in business for over ten years, we pride ourselves on our workmanship and use our experience to ensure we use quality materials, workmanship and the right application, to limit our defects.
3. Does the build include an on-site project manager?
Smaller building companies do not provide a dedicated project manager for your build, the builder onsite will be the person managing the build. A dedicated project manager ensures all workers, trades and materials are built correctly and your build is managed efficiently.
A project manager will ensure your build stays on schedule. Quite often, cheaper quotes will not include a project manager. If time is of the essence to you, for example, you are renting a house during the build, every week you are renting is adding extra costs to your project. Money you could have spent on the build!
4. Ask to see the building schedule.
A building schedule will highlight how long the build is expected to take given everything runs smoothly and the weather gods are kind. It will also highlight how efficient their services are and how many trades they have available to them. Again, you will be able to correlate whether a cheaper quote will take longer, or vice versa.
5. Ask for a fixed price contract.
A fixed price builders quote is exactly that – fixed. This is a building contract where the pricing is agreed and fixed before the building commences. No more costs will be added unless you make variations or changes during the build.
This is how we work at SBR Group. All our quotes are fixed price, so you know exactly how much your build is going to cost.
Need help comparing luxury home builder quotes?
Reach out to the builders at SBR Group. We are here to help you understand your building quote, the building process and work with you on your build – we’re a team! Call us today on 1300 676 166 or contact us here.
