Most homeowners do the same thing when building quotes land in their inbox — they sort them from lowest to highest and start at the top. It feels logical. It feels financially responsible. But according to three experienced Australian builders, it’s one of the most costly mistakes you can make.
In a recent episode of the Builders Beyond Borders podcast, Shannon Hodgetts from DJH Builders in Tasmania, Hugh from New Real Homes in Melbourne, and Paul from Independent Builder Solutions in Canberra sat down to talk honestly about what actually goes into a builder’s quote — and why the number at the bottom of the page tells you far less than you think.
You’re Not Comparing Prices. You’re Comparing Scopes.
When you receive seven quotes for the same project, it’s tempting to assume they’re all quoting the same thing. They’re almost certainly not.
As Shannon explains, the real issue isn’t the price — it’s what’s behind it. A detailed, itemised quote shows you exactly what is and isn’t included. A one-line quote that says “I’ll do your job for X dollars” gives you nothing to work with and no way to hold anyone accountable when things go sideways.
“You’ve got to be comparing apples with apples. So many quotes have so many hidden costs.” — Shannon
Before you choose based on price, ask every builder on your list to fully itemise their quote. Only then can you actually compare them.
“Free” Quotes Aren’t Really Free
One of the most candid parts of the conversation centred on something the industry has long danced around — the cost of quoting itself.
Preparing a thorough, accurate quote for a renovation or new build can take days, sometimes weeks. That time has to be paid for somehow. The question is simply whether it’s visible or hidden.
Builders who advertise free quotes are still paying their team. That cost gets absorbed somewhere — either spread across overheads and added to every job they win, or quietly factored into the quote itself in ways clients can’t easily see.
“Someone’s always paying for that free quote. It might be the next five clients who all have an extra $20,000 tacked onto their projects to cover the cost of the 45 quotes that didn’t convert.” — Hugh
By contrast, builders who charge a transparent quoting fee are being upfront about the value of their time. As Shannon puts it, it’s a consultation — no different from paying a specialist for their professional assessment.
Why Prices “Always Blow Out”
The frustrating pattern of building projects costing more than expected isn’t random. It’s almost always traceable back to a quote that didn’t include enough detail.
A low quote wins the job. Work begins. Then the variations start — things that weren’t included, things that were assumed, things that simply weren’t thought about at the time. By the end, the client who went with the cheapest option is often paying more than they would have with the thorough, transparent quote they passed over.
Shannon describes a scenario that plays out more often than it should: a builder quotes $500,000 over the phone for a project, the client signs, and by completion the bill is $650,000 because nothing was properly documented or costed at the start.
“It’s not a nice experience for anyone.” — Shannon
The Scope of Works Is Everything
Hugh is emphatic on this point — the scope of works document is the single most important part of any quoting process. It’s not the price. It’s the detail behind the price.
A thorough scope of works means that if a question arises during the build, everyone can refer back to what was agreed. It means variations are the exception, not the rule. It means there are no surprises.
Hugh shared a story from earlier in his career about a bathroom renovation where the “contract” was a double-sided piece of paper — asking for a 30% deposit upfront and describing the scope as essentially “strip out old bathroom, install new one.” The job ended in a dispute at VCAT.
“These things happen from those single-page documents. And the problems that arise can be horrendous.” — Hugh
Bathrooms: Small Room, Maximum Complexity
Paul makes a point that catches many homeowners off guard — bathrooms are the smallest room in the house, but they involve more trades than almost any other space.
Tilers, plumbers, electricians, waterproofers, shower screen installers, cabinetmakers — all need to be coordinated in a small area within a tight timeframe. And bathrooms have a habit of revealing surprises once walls come down.
If none of that is accounted for in the original scope, every discovery becomes a variation. Every variation adds cost. A job that started looking affordable can rapidly become anything but.
Shannon’s team has spent three years refining their bathroom estimation template — and it’s still evolving, because prices change, legislation changes, and supplier terms change. No template built a decade ago is still accurate today.
The $500 Vanity vs the $5,000 Vanity
One of the clearest illustrations of why cheap quotes aren’t what they seem comes down to allowances for fixtures and fittings.
Two quotes might both include a vanity. But one builder has allowed $500 and the other has allowed $2,000. Of course one quote looks cheaper — but when the client chooses a vanity they actually love, the builder with the $500 allowance will add the difference on top. Suddenly the quotes are the same price, or the “cheaper” builder is more expensive.
“People need to understand what the scope is and learn how to read it. And I think it’s a builder’s responsibility to walk clients through that — because most people just don’t understand how it works.” — Paul
Provisional Sums, Price Rises, and the Long Lead Times Nobody Talks About
One of the more complex realities of modern building is the gap between when a quote is prepared and when the work actually begins. For larger projects, that gap can be 10 to 12 months.
A joiner might provide a quote in October. The contract is signed. Work doesn’t begin until the following February. By then, material costs may have shifted, supplier terms may have changed, and that original quote has expired.
All three builders use provisional sums for items like joinery — a placeholder figure that accounts for the fact that the final price isn’t locked in yet. It’s an honest approach that sets client expectations rather than leading to a nasty surprise later.
“Post-COVID, clients actually understand this more. People say to me, ‘prices are always going up, aren’t they?’ — I never used to hear that before 2020.” — Paul
The key is documentation — making sure quote validity periods, provisional sums, and escalation clauses are clearly communicated and understood before anything is signed.
What You Should Take Away From This
If you’re planning a building or renovation project, here’s what the Builders Beyond Borders panel want you to know:
- Ask for a fully itemised quote from every builder you’re considering — if they won’t provide one, that tells you something.
- Don’t just compare the bottom line — compare what’s included, what the allowances are, and what’s listed as provisional.
- Understand that free quotes have a cost — it’s just hidden somewhere you can’t see it.
- Read your scope of works carefully — it’s your protection if anything goes wrong.
- Ask about validity periods — especially for joinery, fixtures, and any items with long lead times.
The cheapest quote is rarely the safest bet. The most transparent one usually is.
Listen to the full episode of Builders Beyond Borders on our podcast page. Got a question about building or renovating? Send it through — it might be covered in a future episode.
