For Clients

How to read a renovation quote

Two quotes for the same renovation can differ by tens of thousands, because one quietly left things out. The five lines that tell you whether a fixed price is actually fixed.

Two quotes for the "same" renovation can differ by tens of thousands of dollars, not because one builder is dearer, but because one has quietly left things out. Here are the five lines that tell you whether a fixed price is actually fixed.

1. Provisional sums and prime cost items

A provisional sum (PS) is an allowance for work not yet fully scoped. A prime cost (PC) item is an allowance for a product you haven't chosen, tiles, tapware, a benchtop. They're legitimate tools, but a quote stacked with low allowances looks cheap and then climbs once real selections are made. Ask what each allowance assumes, and whether it's realistic for the finish you actually want.

2. Exclusions

The exclusions list is where the real scope hides. "Excludes electrical upgrades," "excludes asbestos removal," "excludes rectification of existing structure", each can become a five-figure variation once work starts. A thin exclusions list on an old home often means the builder hasn't looked hard enough yet.

The cheapest quote is usually the one with the most exclusions. You don't save the money, you just meet it later, as a variation.

3. The payment schedule

Staged payments should track real progress, deposit, then payments tied to milestones like rough-in, lock-up, fit-off, completion. Be wary of front-loaded schedules that ask for large sums before matching work is on the ground.

4. What "fixed" is fixed against

A fixed price is only fixed against a defined scope. If the scope is vague, the price isn't really fixed, it's a starting point. The detail of the scope matters more than the number at the bottom.

5. Variations, how they're priced and approved

Changes happen on every job. What matters is process: are variations quoted and approved before the work is done, or do they appear on the final invoice? Clear variation handling is the difference between a budget you control and one that controls you.

The short version

Compare scopes, not just totals. The builder who has written the most detailed, most honest scope, including the uncomfortable exclusions, is usually the one whose final number you can trust.

Common questions

What is the difference between a provisional sum and a prime cost item?

A provisional sum is an allowance for work not yet fully scoped; a prime cost item is an allowance for a product not yet selected, such as tiles or tapware. Both can move the final price if set low.

Why is the cheapest renovation quote often the most expensive?

Because a low headline price is frequently achieved through low allowances and a long exclusions list. The omitted costs return later as variations, often exceeding the gap to a more complete quote.

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