‘like For Like’ Quotes

Before you even consider who you will be inviting to tender for your project, it is important to understand that in order for you to compare competitive quotes, the contractors must be given a copy of the same drawings and specification and any other supporting documents, such as engineer’s calculations or mechanical and electrical information.

Most projects will require the contractor to carry out their own measurements and inspections. These may bring to light elements that have not been included in the specification.

At the very least you should expect the builder/contractor to visit the property to see for himself where the property and therefore the work will be carried out. If they do pick up elements that have not been detailed, ensure that these form part of the written quote.

By visiting the property the builder/contractor will be able to assess any potential logistical or other problems that may exist, such as parking restrictions, narrow roads, lack of material storage space and so on.

Breakdown Of Quote

When inviting builders/contractors to quote, ask them to break down the quote to the elements in the specification. This is a good way to help you make cost savings either by reducing the specification or by removing some elements completely.

As you can see in the sample specification provided in Chapter 2 (see Figure 2.1), the work is broken down into various elements. Although you may meet some resistance when requesting a breakdown quote, it is clear that the work can only be quoted for properly if all of the material and labour have been measured against the drawings and specification.

The quality of information that you provide should be reflected in the information that you receive back from builders or contractors. You will need to at least provide a breakdown of the elements in the project. This information could simply identify the elements that need to be priced. The sheet could indicate what you will be responsible for providing or undertaking yourself.

If you are presented with a quote that is considerably cheaper than others, it may be that the company or person providing the quote has lower overheads or has a lower profit margin. It would sensible for you to make detailed enquiries into how the price has been put together. You must be satisfied that the project or task that has been quoted for can be completed satisfactorily within the price. If you do not feel confident in the ability of a company or person, it would be advisable to consider carefully whether to enter into a contract with them.

It is in your and the contractors’ interest to know the true cost, as you may be surprised and find that the quote has come in under your budget, which would leave you to either upgrade the specification or have other work carried out.

The elements of the specification can also form the basis for the programme of works.

Mistakes In A Quote

If a builder or contractor has made a mistake in a quote that has been accepted, he may try to find ways to increase the costs. This situation has the potential to cause problems as the client would have accepted the quote in good faith. Even where a legal contract is in place, builders and contractors will try to find ways to keep the costs down if they have underpriced a job.

If a builder or contractor stands to lose too much money by keeping to their commitment, they may try to use inferior labour or materials to save money. If they are owed a considerable amount, the likelihood of them pulling out of the contract would be limited. If a genuine mistake has been made and can be substantiated, it may be beneficial to negotiate the way forward rather than forcing a builder to lose money. In this instance, you may benefit from employing a professional surveyor to oversee the negotiations.