Laughable quotes

Innys

Hello

I am looking to have some significant building works done on my house next year and have been seeking quotes from builders.

I have just receoved the first two through and the second, unbelievably, is 83% higher than the first one. Both quotes are based on the same architect drawings and I told both builders the same information when they came round to look at my house.

Now, I know the lower one is artificially low to get the business and the second builder obviously doesn't want the work, but, seriously, a difference of 83%? Come on....

I'm beginning to think I'll just take the average as the most likely and accurate cost. Fortunately (?), I'm waiting on a few other quotes but God only knows what they are likely to be.

ewcs

83% difference is common, there could be many factors for this

Innys

ewcs wrote: »

83% difference is common, there could be many factors for this

I'd be interested to hear what these factors are.

Both costs are in the tens of thousands, if that helps.

This difference means builder number 1 could almost do the work twice for the equivalent cost of builder number 2 which, to put it mildly, I find remarkable.

Topplasterer

Hello
It is a minefield when obtaining quotes, I am currently a plasterer but will slowly be shifting to project management, have gained alot of sound advice from Builders/QS/ Architechs etc that I have done work for, most advise following method which if done correctly can be very accurate in obtaining a quote but also give yourself alot of protection; firstly the job needs to be split down into sections; the common sense way would be to tie this in with the visit of the building regs guy (the Architect will be able to advise you on this) for example if you were having an extension built the first phase would be the foundations/drainage etc at this point the building reg guy would visit the site for an inspection; therefor you get a quote for this work upto his visit, also this is how you would pay for the work ie first payment would be the deposit equaling materials for the foundations then once the building reg guy gives the thumbs up you pay final payment, this is then repeated for whole project, hope this makes sense, in a nutshell you are having several mini contracts written up for the build which means you are not shelling out lots of money upfront, you are controlling the build, any issues along the way will be highlighted by the building regs guy so this will be rectified before that payment is made, yes this involves more work on your part but when you consider how much money you are shelving out it makes sense, also when the job is plit down like this the builder will have to be very accurate with the quote as more detail is involved so there will not be such a massive difference, hope this helps

ormus

a local builder may well do his costings at 30 quid per man hour.
a sales/marketing type building company may well price up at 50/60 quid per man hour.

i often price my jobs at different rates, according to my varied clients.
or how obnoxious i find them.

phill99

Topplasterer: have you heard of punctuation?

darich

Innys wrote: »

I'd be interested to hear what these factors are.

Both costs are in the tens of thousands, if that helps.

This difference means builder number 1 could almost do the work twice for the equivalent cost of builder number 2 which, to put it mildly, I find remarkable.

I've seen quotes for large schemes be twice the lowest tender....and the lowest tender is £250,000.

Factors could be........
-very busy and don't want the job but feel not tendering could harm future chances
-job may have issues that they see as very awkward or costly so price high in order to not win it
-cheaper builder may have spare materials lying around he can use and not need to buy any
-cheaper builder may have own equipment/plant that others may have to hire and can reduce prices accordingly.

That's 4 off the top of my head and there are probably more.

warpedchippie

Topplasterer wrote: »

Hello
It is a minefield when obtaining quotes, I am currently a plasterer but will slowly be shifting to project management, have gained alot of sound advice from Builders/QS/ Architechs etc that I have done work for, most advise following method which if done correctly can be very accurate in obtaining a quote but also give yourself alot of protection; firstly the job needs to be split down into sections; the common sense way would be to tie this in with the visit of the building regs guy (the Architect will be able to advise you on this) for example if you were having an extension built the first phase would be the foundations/drainage etc at this point the building reg guy would visit the site for an inspection; therefor you get a quote for this work upto his visit, also this is how you would pay for the work ie first payment would be the deposit equaling materials for the foundations then once the building reg guy gives the thumbs up you pay final payment, this is then repeated for whole project, hope this makes sense, in a nutshell you are having several mini contracts written up for the build which means you are not shelling out lots of money upfront, you are controlling the build, any issues along the way will be highlighted by the building regs guy so this will be rectified before that payment is made, yes this involves more work on your part but when you consider how much money you are shelving out it makes sense, also when the job is plit down like this the builder will have to be very accurate with the quote as more detail is involved so there will not be such a massive difference, hope this helps

The above is an excellent answer IMHO (despite the punctuation)


Steve

Innys

warpedchippie wrote: »

The above is an excellent answer IMHO (despite the punctuation)


Steve

It may be an excellent answer, but doesn't really help me much in deciding which builder I should use.

If I had asked "How should I make stage payments on a building contract, once I have selected a builder?", I would agree with you.

Unfortunately neither quote is in anything like the level of detail that Topplasterer has suggested and, to be honest, I doubt any of them will be. Getting builders to quote is difficult enough, let alone to a decent level of detail.

baldelectrician

What are you having done (or are hoping to have done)?

Don't always go for the cheapest price (I found this out my cost)

Innys

I'm having a two storey extension at the side and new kitchen done, so it's significant work.

I don't plan to go for the cheapest. I'll take into account references, reputation, evidence of appropriate insurance and, finally cost. However, if the first two quotes differ by such a significant amount, it makes me wonder what a reasonable price for the work is likely to be.