What should you look for in a construction quotation?

Two quotations for the same house can differ widely and both look reasonable. The difference is usually in what is included, what is assumed and what is left out. Here is how to read one properly.

Scope: exactly what is included

A good quotation refers to specific drawings and lists the work it covers, from site clearing to final cleaning. If something is not written down, assume it is not included.

Specifications

Look for the grade of concrete, the type and size of reinforcement steel, the roofing material, and the make or price range of tiles, sanitary ware, doors and windows. Phrases like "standard quality" or "or equivalent" with no reference leave room for very different results.

Quantities and rates

A bill of quantities shows how much of each item is measured and the rate for each. It lets you compare quotations line by line, and it makes changes easier to price fairly later.

Exclusions, provisional sums and allowances

Read the exclusions list carefully. Provisional sums and prime cost (PC) allowances, for example for tiles or a kitchen, are placeholders: if your final choice costs more, the price goes up. Low allowances can make a quotation look cheaper than it really is.

Payment stages

Payments should follow completed stages of work, such as foundations, structure, roof and finishes, not dates on a calendar. Be cautious of large advance payments, and check whether a retention is held until defects are put right.

Time, changes and validity

Check the construction period, how changes (variations) will be priced, how long the quotation is valid, and whether prices can change if material costs rise. Ask about the defects liability period after handover.

Warning signs

• A single lump sum with no breakdown
• A price far below the others, with no clear reason
• No written agreement, or no named person responsible on site

Want a second opinion on a quotation you've received? Send it to us and we'll go through it with you.