When you receive a building quote, it’s easy to focus on the bottom-line number. But what’s actually behind that price?
In this episode of Builders Beyond Borders, the team breaks down one of the most misunderstood parts of the building industry: overheads — and why understanding them is critical to making sure your builder can actually finish your project.
From insurances and staff wages to vehicles, registrations, office costs, and compliance, running a building business involves far more than just materials and labour. When these costs aren’t properly accounted for, it can put builders — and clients — at serious risk.
The conversation also explores why some builders underquote, how that leads to cash-flow problems, and why choosing the cheapest price can sometimes mean gambling with your build.
If you’re planning to build or renovate, this episode will help you understand:
– Why builder overheads are essential (not “extra profit”)
– How rising insurance and operating costs impact pricing
– The difference between overheads and profit
– Why underquoting puts projects at risk of stalling or collapse
– How to compare quotes properly (apples with apples)
– What to look for in a builder who will still be around at the end
This episode is a must-listen if you want transparency, stability, and confidence throughout your build — not just a low upfront number.
Key Timestamps
01:16 What builder overheads actually include (beyond labour & materials)
02:16 Insurance costs and how they scale with turnover
03:28 Breaking down overheads vs total revenue
03:57 “Your markup is too high” — why clients misunderstand pricing
05:09 Why overheads constantly change and can’t be future-proofed
06:21 The danger of builders guessing overhead percentages
07:17 Overheads vs profit explained clearly
09:15 How underquoting leads to unfinished projects and builder collapse
18:40 Why speaking to a builder early saves time and money
Listen on
Spotify// https://open.spotify.com/show/0eGpiuFZidHdOcFunXPo4q
Apple Podcast// https://podcasts.apple.com/us/podcast/builders-beyond-borders/id1841312899
Youtube// https://www.youtube.com/@BuildersBeyondBordersPodcast
Follow us on
Facebook// https://www.facebook.com/buildersbeyondborderspodcast/
Instagram// https://www.instagram.com/buildersbeyondborderspodcast_/
Looking for a builder?
Perway Construction Services in Western Australia – https://www.perway.com.au
DJH Builders in Tasmania – https://djhbuilders.com.au
New Realm Homes in Victoria – https://newrealmhomes.com.au
Independent Building Solutions in Canberra – www.ibscanberra.com.au
Matt Auld Builder in Victoria – https://mabuilder.com.au
Wayne Preston in Victoria – https://prestonbuilders.com.au
