Why Are Building Quotes So Different?
Wide gaps between quotes are common and usually explainable. Here is where the differences come from, and how to get to the bottom of them.
The short answer
Usually because each contractor is pricing a slightly different job.
Building quotes differ mainly because contractors read the job differently: they include different work, choose different materials, plan access differently, handle VAT differently and price the unknowns in different ways. On top of that, each business has its own costs and its own level of demand at the time. The gap is usually a gap in information, and a few direct questions will normally close most of it.
A wide spread doesn't mean somebody is trying it on. It means the quotes need lining up before they can be compared. Our answer on how to compare quotes fairly gives a method.
Where the gap comes from
Six common reasons quotes differ
Different scope
One contractor quotes for exactly what you mentioned; another includes work they think the job really needs. Both can be reasonable.
Different materials
Products vary widely in cost. Unless the quote names them, you can't tell whether two prices are for the same thing.
Access and extras
Scaffolding, waste removal and making good may be included in one figure and left out of another.
VAT
A VAT-registered business adds VAT; one that isn't registered doesn't. Some quotes show prices before VAT. See does building work include VAT?
How risk is priced
Some contractors price in a margin for things that might go wrong. Others leave them out and treat them as extras if they happen.
Workload and overheads
A busy contractor may price higher; a quieter one may be keen for the job. Travel distance, team size and running costs also play a part.
Reading the spread
Gaps that explain themselves, and gaps that need an answer
Usually explainable
- A higher quote that includes scaffolding the others leave out
- A difference in materials you can see on the page
- One price with VAT, one without
- A contractor who has priced for work the others didn't spot
- A higher quote with a longer workmanship warranty
Worth asking about
- A price far below all the others with no obvious reason
- A low figure carrying large provisional sums
- A quote too vague to tell what is included
- A request for a large payment upfront
- A price that drops sharply the moment you hesitate
Closing the gap
Ask the same questions of every contractor
The quickest way to understand a spread is to ask each contractor the same things. What exactly does your price include? Which materials have you allowed for? Is scaffolding in the figure? Does the price include VAT? What happens if you uncover something unexpected?
The answers usually explain most of the difference. What is left is the ordinary variation between businesses, and at that point it is fair to weigh price alongside how each contractor communicated, their reviews and the terms they offer. A price that sits well below the rest isn't automatically a bad sign, but it deserves a closer look; see is a very cheap quote a bad sign? and why the cheapest quote can cost more.
Once you understand the differences, it is also reasonable to talk about the price. See can I negotiate a building quote?
Keep the replies in writing, with the quotes they relate to. If you do go ahead, they become part of your record of what was included.
A quick fix
Questions to send every contractor
Send the same short list to each contractor. The answers usually explain most of the gap.
What exactly does your price cover?
Ask for the work to be listed, even briefly, if the quote gives only a total.
Which materials have you allowed for?
Product names or a clear description let you see whether the quotes match.
Are access, waste and making good included?
These are the most common reasons for a gap between otherwise similar prices.
Does the price include VAT?
Ask for the total you would actually pay.
How would you deal with something unexpected?
This tells you whether a low price is likely to stay low.
If you use Mortaro
One clear quotation to set against the others
When you come to Mortaro, we appoint one contractor from our network for your job. They price the work at trade rates after the site visit, and we prepare a written quotation that names them and sets out what is included. Because contractors in our network price at trade rates, your quotation is comparable to going direct, with the coordination included. We won't claim to be the cheapest, and you are free to compare. Why use Mortaro explains the rest.
Straight answers
Questions about price differences
Is the middle quote usually the safest choice?
Not as a rule. Line the quotes up first. After that, any of them might be the right choice depending on what each includes and how you feel about the contractor.
Can the season affect the price?
It can. Demand for some work rises at certain times of year, and a contractor's workload affects how they price. It is one reason quotes taken months apart can differ.
Does a more detailed quote mean a more expensive contractor?
Not necessarily. Detail usually reflects how the contractor works, not what they charge. It does make the quote easier to compare and to rely on.
Start here
Tell us about the work you have in mind
We will confirm we cover your postcode, arrange a site visit with a contractor from our network and send you a written quotation. No charge, no obligation.