[Misc] Wild variation in building quotes

[mikeyjh]

If I’ve sent you a quotation £5k for a full rewire all labour and materials included as per the agreed spec then what’s it to you if I’m making say £400 profit on material mark up You’ve agreed a price with me for the contract.

Absolutely, of course - I was using the example that you quoted, £15 for a £6 roll of wall paper...

 

[Wardy's twin]

I've had the same experience - where one contractor is way over the bunch. But this is different - there's no one outlier. Yep, they are all broadly analagous - decent-sized firms without massive overheads.

a sort of gut instinct tells me to remove the lowest and highest and work on the centre but with the figures you are quoting that is far too simplistic approach.

Have they all indicated what sort of time the work will take, does the work require a lot of plumbing/electrical work as the labour here is usually costly.

Do the firms directly employ their workers or do they sub contact.

But even with these variances for the highest to be over 2.5 times more than lowest is strange. Have they simply misread the spec?

The last time I had some small work done I got down to two quotes , told them i am looking closely at two quotes and can they go through them with me in detail...

 

[AmexRuislip]

I've got four builders to give quotes against a 3-page written spec for some work on the new gaff. The spec given to them was identical.

The quotes I've got are: £68k, £99k, £134k, £165k.

Wow. Now I'm scratching my head - I have never had such wildly differing quotes and am a bit flummoxed...

I thought you were sorted by know, I'm sure there some brickies here on NSC who lend a hand

 

[Weststander]

a sort of gut instinct tells me to remove the lowest and highest and work on the centre but with the figures you are quoting that is far too simplistic approach.

Have they all indicated what sort of time the work will take, does the work require a lot of plumbing/electrical work as the labour here is usually costly.

Do the firms directly employ their workers or do they sub contact.

But even with these variances for the highest to be over 2.5 times more than lowest is strange. Have they simply misread the spec?

The last time I had some small work done I got down to two quotes , told them i am looking closely at two quotes and can they go through them with me in detail...

I haven't seen an inhouse specialist electrician or plumber employed by contractors for a long time. Subcontractors are always used instead.

The last time was a large Sussex construction company 20 years ago, who were inefficient and in the end sold out.

 

[Justice]

I haven't seen an inhouse specialist electrician or plumber employed by contractors for a long time. Subcontractors are always used instead.

The last time was a large Sussex construction company 20 years ago, who were inefficient and in the end sold out.

I won’t work for builders anymore to dodgy in paying, if I’m not direct with the client/property owner in out of there.

 

[Justice]

I've got four builders to give quotes against a 3-page written spec for some work on the new gaff. The spec given to them was identical.

The quotes I've got are: £68k, £99k, £134k, £165k.

Wow. Now I'm scratching my head - I have never had such wildly differing quotes and am a bit flummoxed...

From experience working with builders the cheapest quote there is a chance they won’t pay the sub lads and your have angry guys onsite ripping out their work, I wouldn’t go heavy on the first deposit either I’ve seen 50% given before upfront and that ended in tears.

You can always get the main build done and employ different trades independently for the finish.

 

[Rowdey]

a sort of gut instinct tells me to remove the lowest and highest and work on the centre but with the figures you are quoting that is far too simplistic approach.

Have they all indicated what sort of time the work will take, does the work require a lot of plumbing/electrical work as the labour here is usually costly.

Do the firms directly employ their workers or do they sub contact.

But even with these variances for the highest to be over 2.5 times more than lowest is strange. Have they simply misread the spec?

The last time I had some small work done I got down to two quotes , told them i am looking closely at two quotes and can they go through them with me in detail...

Such variance in costs can sometimes come down to VAT being included or not.

Friend of mine had £100k worth of work about to be done, paid a deposit lump via BACS, and the builder said ' Yeah that great, but it was a cash price, so any thro books gets +20%..'

Now he's no mug (and he's on here too..!) and deals with 7 figure sums in daily work life, reads contracts etc..

 

[Wardy's twin]

Such variance in costs can sometimes come down to VAT being included or not.

Friend of mine had £100k worth of work about to be done, paid a deposit lump via BACS, and the builder said ' Yeah that great, but it was a cash price, so any thro books gets +20%..'

Now he's no mug (and he's on here too..!) and deals with 7 figure sums in daily work life, reads contracts etc..

Interesting one but I would expect to see the VAT itemised in the quote. So assuming it was on the lowest that would add 14k or still massive gap.

 

[Wardy's twin]

I haven't seen an inhouse specialist electrician or plumber employed by contractors for a long time. Subcontractors are always used instead.

The last time was a large Sussex construction company 20 years ago, who were inefficient and in the end sold out.

yeah a bit of a stab in the dark but I guess some companies will have people capable of laying the cables and then just getting it finished and signed off by a proper electrician. I know some firms don't employ but have goto 'partner' trades who they know the costings for which could reduce costs but we are talking a big difference here which on face of it is inexplicable.

Maybe the expensive quote has come from a Tory party donor who thinks this is a government sponsored piece of work...

 

[Justice]

yeah a bit of a stab in the dark but I guess some companies will have people capable of laying the cables and then just getting it finished and signed off by a proper electrician. I know some firms don't employ but have goto 'partner' trades who they know the costings for which could reduce costs but we are talking a big difference here which on face of it is inexplicable.

Maybe the expensive quote has come from a Tory party donor who thinks this is a government sponsored piece of work...

You can’t sign off work done by others these days, some may still do it although it’s a big risk if something went wrong.

 

[Justice]

Such variance in costs can sometimes come down to VAT being included or not.

Friend of mine had £100k worth of work about to be done, paid a deposit lump via BACS, and the builder said ' Yeah that great, but it was a cash price, so any thro books gets +20%..'

Now he's no mug (and he's on here too..!) and deals with 7 figure sums in daily work life, reads contracts etc..

Any builder who wanted such a large sum of cash would also send alarm bells, who in their right mind expects £100k in cash I’ve practically given up on cash it just sits indoors getting wasted on shite tbh. Can’t make a significant purchase without again alarm bells going.

 

[Weststander]

Any builder who wanted such a large sum of cash would also send alarm bells, who in their right mind expects £100k in cash I’ve practically given up on cash it just sits indoors getting wasted on shite tbh. Can’t make a significant purchase without again alarm bells going.

This.

Also in general, do not pay large advances up front.

Their suppliers do not require advance payment (unless they're an awful credit risk ..... alarm bells), subcontractors are not paid in advance. An exception being specialist hardware or windows, selected by the client.

Paying in advance can also removes the motivation for busy builders to see your project take priority.

Pay in stages as work's completed.

 

[Baldseagull]

I've got four builders to give quotes against a 3-page written spec for some work on the new gaff. The spec given to them was identical.

The quotes I've got are: £68k, £99k, £134k, £165k.

Wow. Now I'm scratching my head - I have never had such wildly differing quotes and am a bit flummoxed...

The £68k quote was was expecting to hit you with variations, the one quoting £134k has reckoned it will be £120k, but has added 10% contingency and £2k to make it not look like a 10% contingency. The one quoting £165k was planning on subbing it out to the one quoting £134k, the one quoting £99k was planning on subbing it out to the ones charging £68k.

 

[jackanada]

I recently worked on an £80k renovation of a place in Brighton. Did some calcs with a friend who subbed on the same job and think the boss trousered half that for doing close to fa.
What annoyed me about it was that he still could have pocketed that cash and the rest of us could have done a better job if he knew more about what he was doing.

 

[Rowdey]

Any builder who wanted such a large sum of cash would also send alarm bells, who in their right mind expects £100k in cash I’ve practically given up on cash it just sits indoors getting wasted on shite tbh. Can’t make a significant purchase without again alarm bells going.

yes bonkers, couldn't believe it.

Ref cash, i'm the same, i used to spend it every other Saturday, but even that's gone/going cashless...

 

[Mike Small]

We’re about to renovate our new house. Needs absolutely everything doing to it plus a kitchen dining wall knocked down. Was working with a renovation firm who quoted £180k (!). Had to go to building firms and thankfully got 3 quotes around £125k give or take £5k so we feel better they were all close. Still concerned we’ll be taken for a ride.

 

[Weststander]

We’re about to renovate our new house. Needs absolutely everything doing to it plus a kitchen dining wall knocked down. Was working with a renovation firm who quoted £180k (!). Had to go to building firms and thankfully got 3 quotes around £125k give or take £5k so we feel better they were all close. Still concerned we’ll be taken for a ride.

With such a large sum involved and the contractor holding all the knowledge, can a QS or a knowledgeable architect be engaged by you to advise?

Have you covered all bases in your spec, right down to the number and type of sockets and light pendants? Omissions, vagaries and later changes of mind, will cost you heavily in “variations” at the end.

 

[Wardy's twin]

With such a large sum involved and the contractor holding all the knowledge, can a QS or a knowledgeable architect to be engaged by you advise?

Have you covered all bases in your spec, right down to the number and type of sockets and light pendants? Omissions, vagaries and later changes of mind, will cost you heavily in “variations” at the end.

We’re about to renovate our new house. Needs absolutely everything doing to it plus a kitchen dining wall knocked down. Was working with a renovation firm who quoted £180k (!). Had to go to building firms and thankfully got 3 quotes around £125k give or take £5k so we feel better they were all close. Still concerned we’ll be taken for a ride.

Presumably the whole quote is broken down into subsections rather than just a 125k....

I assume VAT is included in that price.

When you say totally renovated what is the scope; kitchen, 1 bathroom, 3 beds , 2 reception , electric, re-plumb , windows, extensions? There are a lot of people on here better qualified than me to give a rough view of whether that price looks right but i think you need to spec it out and the quality of the finish you are expecting...

 

[Weststander]

Presumably the whole quote is broken down into subsections rather than just a 125k....

I assume VAT is included in that price.

When you say totally renovated what is the scope; kitchen, 1 bathroom, 3 beds , 2 reception , electric, re-plumb , windows, extensions? There are a lot of people on here better qualified than me to give a rough view of whether that price looks right but i think you need to spec it out and the quality of the finish you are expecting...

Excavating eg a mini digger creating wider outdoor spaces, plus skips are costly these days.

Good point about the VAT, it must be included.

 

[Justice]

Presumably the whole quote is broken down into subsections rather than just a 125k....

I assume VAT is included in that price.

When you say totally renovated what is the scope; kitchen, 1 bathroom, 3 beds , 2 reception , electric, re-plumb , windows, extensions? There are a lot of people on here better qualified than me to give a rough view of whether that price looks right but i think you need to spec it out and the quality of the finish you are expecting...

If the vat is included the profit probably stands at £30k 30% leaving 70k to do the job sounds about right but of course haven’t seen the spec.