Feeling overwhelmed trying to decipher builder quotes? You’re not alone. Many homeowners find it confusing and frustrating to compare quotes, especially when builders interpret the scope of work differently and include varying levels of detail. While getting multiple quotes is essential for new builds or renovations, understanding how to compare them properly is just as important, because choosing the cheapest option isn’t always the smartest choice.
By the end of this guide, you’ll know exactly how to read and compare builder quotes, so you can make an informed decision. This is especially important in Wollongong, where coastal conditions, strict council requirements, and local material availability make thorough comparison essential to avoid costly surprises.
It's easy to assume that when one builder's quote is much higher than another's, they are simply taking more profit. However, pricing differences usually come down to how each builder has interpreted the scope of work, the quality of materials and fixtures used, as well as factors around supervision, scheduling and project management.
More experienced builders may charge more because they carry higher insurance coverage and offer more robust warranties. In many cases, they also operate under more stringent compliance processes. Quotes usually also reflect the talent of not only their own team, but also the subcontractors that your builder works with. They may have strong relationships with trades that require higher labour costs but deliver a higher quality of work with fewer defects and delays, or they may offer fewer scenarios in which junior employees are left to work on your project unattended.
For example, a $180k versus $230k quote for the same Wollongong extension might differ so dramatically because one builder is allowing for basic fixtures and minimal site management, while the more expensive quote includes higher-grade finishes, fixed pricing, experienced trades, and tighter oversight.
Here's your checklist of everything to consider before you choose the right builder for your construction project based on their quote.
When it comes to builders' quotes, the devil is in the details. A more detailed quote means you're less likely to come up against additional costs as the construction process progresses, and you're more likely to avoid misunderstandings that can cause project delays. A solid quote should clearly spell out what's included for each element and list materials and fixtures, as well as who is responsible for what. If a quote includes vague phrases like 'as per plans' or 'standard finish', ask for written clarification before you proceed.
Building or renovating is a significant investment, so you want to ensure that you're getting the best value for money with detailed reports that list actual expenses and give you quality assurance from the beginning. Look closely at how materials and fixtures are specified on the quote. Are actual brands or models given, or are terms like 'standard tapware' used? In coastal areas like Wollongong, for example, corrosion-resistant materials can affect longevity and give insight into ongoing maintenance requirements.
One of the main reasons experts (and builders themselves) recommend you get multiple quotes for building work is that it allows you to compare, side-by-side, what you're paying for. Understanding exclusions can help you avoid unexpected costs because what's not included in the quote is just as important as what is. Exclusions also go a long way to explaining price differences. For example, some builders may leave out site preparation, landscaping, fencing or service connections. A reputable builder should provide you with a detailed breakdown that lists those extra costs so that you can budget accordingly.
A builder's reputation hinges on their ability to provide a quote that reflects realistic construction costs. However, to keep projects moving while decisions are being finalised, builders will quote using provisional sums (PS) and prime costs (PC). These are estimated costs or allowances, which can lead to unexpected expenses if they are unrealistic, especially in markets like Wollongong, where local pricing can push costs higher unexpectedly. Therefore, you should always request an itemised list of PC to make it easier to compare quotes, make informed decisions and avoid costly surprises.
Beware of building quotes that seem too good to be true in terms of completion dates. While it’s natural to want to move into your home as soon as possible, a longer timeframe isn't necessarily worse; it’s often more realistic. Building quotes shouldn't just provide start and finish dates, they should include key milestones that show how the build will be managed stage by stage. In Wollongong especially, it's critical that your builder factors in winter weather delays that can affect site access, for example.
As well as the final cost, pay close attention to how payments are to be structured. There shouldn't be too much difference between different builders when it comes to payment schedules, as payments spread across key construction stages are the norm, helping to ensure progress matches payments and decreasing the risk should issues arise. Also, check the deposit amount. Good builders typically charge a 5-10% deposit, depending on the contract value, so be wary of quotes that require large upfront payments or an unbalanced schedule where too much money is required early on.
If you change your mind about something once work begins, what do the contract terms state about how variations are handled? Your quote forms the basis of your building contract, so it's best to be clear about the variation approval process, or you risk delay-causing building disputes and unexpected costs. Things that should be clearly outlined in the final quote include the variation approval process, including when costs are assessed and how written approvals are obtained. Also, be clear about what happens in the event of unforeseen circumstances, such as site conditions, that necessitate a variation.
Building companies with strong reputations often provide warranties that go beyond the legal minimum, giving you additional protection for workmanship and materials. Be sure to compare the length and conditions of the defects liability period and verify that insurance coverage is adequate for your project. Warranty and insurance coverage must comply with NSW requirements, including eligibility for the Home Building Compensation Fund, a safety net for homeowners against incomplete or defective building work, which protects you if a builder dies, disappears, or becomes insolvent.
It can be easy to overlook the importance of fees for things like scaffolding, skip bins, site toilets and temporary utilities. However, they account for about 8-12% of the total build price, so it's worth comparing these across quotes. Higher costs for things like crane hire or traffic management can account for a significant amount, but a local builder can help you work through local regulations and avoid unexpected expenses in the long run. In Wollongong, sloping or uneven blocks often incur extra site costs for earthworks or retaining walls, so watch for these in quotes.
Building quotes often follow different tiers of quality, from budget to standard to premium options. Not only can this affect finish levels and appearance, but it can also impact material durability and warranty support. In Wollongong, it's important to consider whether materials come from local suppliers, as this can boost after-sales service and reduce lead times. If it's not clear where the materials are being sourced from, don't be afraid to ask your builder. Also, be sure to clarify how much flexibility you have to customise selections without triggering cost increases or delays.
Your builder must hold a current NSW Fair Trading licence, so be sure to check on the Verify NSW website. Here, you can also find out more information about compliance and enforcement actions, and Home Building Compensation cover. For more information on their track record, ask them direct questions about their experience, ask to see examples of past work or for testimonials from previous clients. Membership in professional associations like the Master Builders Association also displays a commitment to professionalism.
If your builder goes over time or budget, it's important to understand how this will be managed. Most contracts (which are signed following your acceptance of final quotes) include a dispute resolution process, but it's always a good idea to speak with your builder at the quote stage about what penalties and protections are in place should things go awry during the construction process. But don't forget, you'll also have rights under the Home Building Act, including protections against defective work and delays, and access to the NSW Fair Trading dispute resolution services if problems arise.
From poor communication to a lack of references from previous clients, sometimes it’s easy to spot a builder’s red flags. But here’s how to identify warning signs that also appear on paper when reviewing a quote:
When comparing quotes, it's a good idea to create a table that will help you choose the right home builder for your project, based on factors beyond just the price. Include columns for scope of work and exclusions to help you spot hidden costs. Also factor in materials and fixtures quality, allowances, timelines and milestones, and payment schedules. Also include variation policies, warranties, experience and locality, communication and project management quality.
Remember, a well-rounded comparison will help you identify the best overall value, not just the cheapest quote.
If there's information missing from your quote, here are a few questions you should ask potential builders before you proceed. Remember, the more detailed breakdown you receive, the less chance of unexpected costs or communication issues during construction.
When it comes to building, there's a big difference between cost and value. Some builders can provide cheaper quotes because they use lower-quality materials, their team isn't as highly trained or because they provide a quote that's not comprehensive enough, leaving you with unexpected expenses down the track. Low allowances increase the likelihood of variations that will push the actual cost higher, and ineffective project managers can affect quality and timelines.
The cheapest quote isn't always the best choice because you can be left living with products that fail prematurely, materials with expensive ongoing maintenance requirements, or worse, projects that run way over time and budget.
At A Class Building and Construction, we believe providing potential customers with fair and comprehensive quotes is just as important as the work itself. When you first contact us, we'll ask you to fill in a questionnaire that describes not just the work to be completed, but also what matters most to you in your home. We'll ask you about your budget, so that we can offer solutions that are best suited to your situation. We'll ask you a bit of information about yourself, and we welcome you to ask us questions as well. All of this before our initial assessment of your site, because we're not just building your home, we're building a relationship with you.
Visit our website to find out more about the services we provide at A Class Building and Construction, to learn about our 100% satisfaction guarantee or to browse our inspiration gallery, where you'll find many examples of our previous projects.
To compare construction project quotes, look beyond which company can do it for the lowest price and consider what's included and what's not, what quality of build you'll receive, how experienced the builders are and how the project will be managed.
A good builder will be experienced and able to provide examples of their work, they will offer clear communication with fast response times, be open to all and any questions, and provide fully detailed, accurate quotes that list critical items and include license and insurance details.
A builder's quote should include: scope of works, material and fixtures specifications, explicit exclusions, PC sums for undecided items, timeline with milestones, balanced payment schedule, variation process, warranty/insurance details, licence details, a communication and project management plan and, of course, a final price.
Bad builders use vague terminology on their quotes, their quotes offer little information about the work to be undertaken, they usually don't list exclusions, and they may not hold the correct licence or insurance.
