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Costs & process — How a building quote is actually built up

Costs & process

How a building quote is actually built up

Two quotes for the same job can differ by a wide margin and both be honest. The difference is almost always what has been included, what has been assumed, and how much risk each builder has priced.

Understanding the structure of a price makes comparison possible and stops the cheapest number winning by default.

What a price is made of

Labour by trade and duration, materials with their waste allowances, plant and access such as scaffold and skips, preliminaries covering welfare, protection and site management, then overheads and a margin.

Risk sits on top: unknowns behind plaster, ground conditions, and anything the survey could not confirm. A builder who prices that honestly will look dearer than one who intends to raise it later as a variation.

  • Labour by trade
  • Materials and waste
  • Plant, scaffold and skips
  • Preliminaries and site management
  • Overheads, margin and priced risk

Comparing quotes fairly

Compare scope before price. Check whether making good, decoration, waste removal, structural design fees, building control fees and VAT are inside or outside each number.

Provisional sums are the other trap. A quote with a low provisional sum for an unknown element is not cheaper — it is simply less complete.

How we quote

A free site visit, then a written, itemised quote setting out what is included and what is specifically excluded, with any provisional sums clearly identified and explained.

Where something genuinely cannot be known until opening up, we say so rather than burying it, and we agree how it will be priced if it appears.

Common questions

Why are quotes so different?

Usually scope and risk rather than rates. One price may exclude making good, decoration or fees that another includes, or may carry a low provisional sum for an unknown.

What is a provisional sum?

An allowance for work that cannot be priced accurately yet. It is replaced by a real price once the detail is known, so it is not a fixed cost.

Should I always take the cheapest?

Only after confirming it covers the same scope. A low number that excludes finishing work often ends up costing more than a complete one.

Is a quote fixed?

A quote for a defined scope is. It changes when the scope changes, which is what the variation process is for.

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