While building a house, there are many moments of anticipation. A very anxious one of those is while waiting to get back the quotes from the tenders you have given out. Unfortunately, against all your prayers, not even one quote comes close to what your budget is.
If you have ever found yourself in this situation, you need to read further to understand why this is happening. Or even better, you need to read this so you can avoid such situations occurring to you.
So let us look at the 7 significant factors influencing the quotes put forward by Brisbane builders, one by one.
1. Ambiguous Tenders
Tenders are sent out with properly defined expectations from your side. You might know exactly in your mind what you need, and how much you can spend for it.
However, if the tender doesn’t reflect that to the T, then you cannot expect it come back with results that you wanted. If the information on the tender is ambiguous, then the builder has three choices on how to proceed with the quote.
First, is to price the cheapest option and ask for allowances if needed later. If this is the case, then you might have to spend a considerable amount later as the work starts.
Second is to come to you to clarify any questions they have, and this might take longer to come up with a quote.
The third option is a mix of both, where the price will be quoted on the assumptions hoping to clear up any doubts at later stages. If this is the case, then the chances are that the costing usually leans to the higher side, to be on the safer side.
The only way to avoid such circumstances is to send out an accurate tender and making it clear that the bids are welcome to discuss to clear their questions before presenting the quote.
2. Unnecessary Information
To make things clear, when we said to be clear on the tender, we did not mean that you have to overshare. More information might not always be better.
Avoid repetitions and overly complicated documents, which has no specific purpose to be in the tender.
3. Provide Detailed Drawings
Providing proper drawings for all aspects including structural engineering and landscaping is an effective way to get a complete quote. Sometimes, the architect just provides the basic drawings for the tender only to give the detailed drawings at the time of construction.
To explain it better, if in floor plans it shows only walls and windows, the builder can quote only for that. But if the drawings show sections showing the structural design, the builder definitely has to take into account every detail.
If you are thinking this will only make the quotes more expensive, let us tell you what happens if you don’t provide details. Without specifications, the builders are free to assume, and they resort to the third method mentioned above to do the costing resulting in expensive quotations.
4. Don’t let the Builder Assume
Along the same lines of the previous point, any words that might indicate that you are only expressing your opinion and not facts might lead to the builder arriving at their own opinions.
If that is the case, the builder will easily justify the high cost with the excuse that he or she thought differently about the same issue. It will come down to confusion or even disagreements which is never productive for the work to proceed smoothly.
5. Ensure that the Design is in your budget
To weigh all the factors in, there might also be chances that the design, in fact, is above your budget. At times while the architect is focused on creating your dream house with all your whims intact, it is possible that they overlooked it a bit or got lost in the creative process.
Although you might have discussed with your architect your limitations on the budget, it is still probably that such errors occur. If the tenders are too high, then you have to go back and consult with the architect if the design could be changed to reduce the expenses.
If the building has not given the permit yet, it might be still possible to do the changes. The only way to avoid this is by ensuring that the design is within the budget throughout the planning and also to include it in the agreement you sign with the architect.
6. Know the Market for Builders
If the economy is in favour of real estate, the builders are going to be really busy. When there is a demand, the builders definitely don’t have to go out of their ways to ensure that they get the project.
It will entirely depend on the builder, his position and strategy they use to choose a project. Few builders take up multiple projects at a time; this could also affect the quote.
If you’re overcomplicating things in hopes of trying to turn your current Brisbane builders to the best luxury home builders Brisbane has to offer, you might as well invest the time and effort into builders in Brisbane that have the track record of doing complex jobs rather than demanding too much from the average home builders Brisbane has.
7. You Aimed too Low
If everything else fails, the simple reason behind the quotes being too high is that your budget is too low for the project. It is not only influenced by home designs but also the market at that time. It could also be merely because you are relatively unaware of how to set a budget considering all the factors.
The tricky wit budget is, how much ever you try to adhere to the original amount, it still keeps evolving depending on the needs. It might change once the design is finalised and then again when the construction starts. From the time you had decided the budget, several months would have passed, and the market would be completely different when you finally start the construction.
To sum up, you need to offer an accurate tender document with adequate information and drawings and try to weigh in external factors like the market while you consider the quotes. At times, the builder who quoted a little above your budget might be offering the best quality and value. So don’t just hire builders based on quotes but also the value of their services.