Building Quotes and Payments: A Homeowner’s Guide

The two words get used as if they meant the same thing. They don't. A quote is a price for a defined piece of work. If the work turns out to be exactly what was described, that is what you pay. An estimate is an informed guess. It tells you roughly what the job is likely to cost, and the final figure can move up or down as the work reveals itself.

Neither is wrong. An estimate is often the honest answer when part of the job cannot be seen until it is opened up, such as the condition of timbers under old roof coverings. The trouble starts when a homeowner treats an estimate as a fixed price, or a builder writes a firm-looking figure without saying which parts could change.

So ask the direct question: is this a fixed price for the work described, or an estimate? If parts of it are uncertain, ask for those parts to be shown separately, with a rate or an allowance, so the rest of the price can be firm. Our guide to estimates and quotes covers the difference in full, and is an estimate legally binding? answers the question most people are really asking.

On the legal side, in outline: the Consumer Rights Act 2015 says that where the price for a service has not been agreed in advance, you are only required to pay a reasonable price. It also says that what a trader tells you about the service, in writing or in conversation, can become part of the contract if you rely on it when deciding to go ahead. That is one more reason to get the important points written down. Citizens Advice explains both rules in plain terms. This is general information, not legal advice.

Quotes also have a shelf life. Material prices move, and most builders state how long their figure stands. If yours doesn't say, ask, and see how long a building quote is valid for what is usual.

The steps above take an evening with a notepad, and they change the conversation. Instead of asking why one builder is dearer, you are asking a specific question: your quote includes the lead flashing and the other two don't mention it; can you tell me what you are allowing for? Contractors generally respect that kind of question, because it shows you have read what they wrote.

How many quotes to get is a separate decision. Three is a common number, but the right number is the one that lets you compare properly without wasting everybody's time; our guide on how many quotes to get goes through the trade-offs. The full method for comparing them, including a simple sheet you can copy, is in how to compare building quotes.

One more habit is worth building in at this stage. When a contractor answers a question about their quote, whether it is about scaffolding, materials or timing, ask them to confirm it by email or add it to a revised quote. It takes them a minute, and it means the version of the job you are comparing is the version you will actually get if you go ahead. It also gives you a single, up-to-date document for each contractor, rather than a quote plus a set of half-remembered phone calls.

It is normal for quotes on the same job to differ, sometimes by a wide margin. Contractors have different overheads, different suppliers, different ideas about the best way to do the work and different levels of appetite for your particular job. A firm with a full diary may price high because it doesn't need the work. A firm with a gap next month may price keenly to fill it.

Most of the time, though, a large gap is explained by a difference in what is being priced. One quote replaces the underlay and the battens; another re-uses them. One includes scaffolding; another assumes a ladder. One uses a named, better-quality product; another says tiles to match. Our answer on why building quotes are so different goes through the usual reasons.

That is why the cheapest quote is not automatically the best value. It may be the best value: sometimes a contractor is simply efficient. But a price well below the others is worth a direct question about what it leaves out, because the difference tends to reappear as extras, as a shorter-lived result, or as a job that takes longer than planned. Why the cheapest quote can cost more sets out how that happens and how to tell the difference.

It is also reasonable to talk to a contractor about their price. Asking whether there are options, such as a different material or a different start date, is part of normal business. Asking someone to do the same work for much less usually just moves the saving somewhere you cannot see it. Can I negotiate a building quote? covers how to do it fairly.

Asking for a deposit is normal. It gives a contractor some commitment before they turn other work away to hold your dates, and it can pay for materials that are made or ordered for your job and cannot easily be used elsewhere.

What is reasonable depends on the job. A deposit that is modest compared with the whole price and set out in the quote is routine. A request for most of the price before anything has happened is different, and worth a calm conversation about what the money is for. If a large part of the deposit is to pay for materials, it is reasonable to ask when they will be ordered and delivered.

There isn't one standard figure that fits every job, and deposits vary between contractors and types of work. The practical test is the principle above: does the payment keep roughly in step with the work? Our answer on how much deposit a builder should ask for goes through the questions to ask.

The balance is usually due on completion, so it helps to be clear at the outset what completion means. On a roof it might be the roof finished, the scaffolding down and the waste gone. On an extension it may be more involved. Writing it into the quote or payment schedule saves a difficult conversation at the end.

Before you pay, walk round the finished work with the contractor. Note anything that isn't quite right: a missed bit of pointing, a scuffed sill, a gutter joint that drips. That list is usually called a snagging list, and most of it can be put right quickly while the contractor is still on site. What is a snagging list? explains how to put one together.

Small snags are part of building work and are not a reason to withhold the whole balance. Agree with the contractor what will be done and when, and keep a record. Our guide to final payment and snagging covers how to handle the last payment fairly on both sides, including what to do when you are not happy with something.

A quote with a reasonable validity period gives you room to read it properly, ask questions and compare. Use that time. A contractor who is comfortable with their price will be comfortable answering questions about it, and a written answer to a written question is worth keeping.

Our full checklist, with the questions to ask at each point, is in what to do before accepting a quote.