Have you received multiple builder quotes that are all completely different?You're not alone. Many homeowners are surprised when one builder's quote is $50,000 or even $100,000 more than another.
It naturally raises the question: Why is there such a huge difference? In most cases, it isn't because one builder is charging too much. It's because every builder has prepared their quote based on different assumptions, allowances and inclusions.
Even something as simple as your kitchen allowance can vary dramatically. One builder may allow $70,000 while another only includes $30,000.The result? You're not comparing like-for-like quotes.
Frequently asked questions about the tender process
Q: Why are builder quotes so different for the same project?
Builder quotes can vary significantly because each builder may use different allowances, specifications and assumptions when pricing your project. One builder may include site works, retaining walls, premium fixtures or upgrades to existing services, while another may leave these items out. That's why it's essential to compare builder quotes based on the same scope of works. Our tender management service in Sydney ensures every builder prices the same information, allowing you to make a true apples-to-apples comparison.
Q: What is tender management and how does it help compare builders?
Tender management is the process of preparing a detailed scope of works and issuing it to multiple builders so they all quote on exactly the same project requirements. This makes it much easier to compare building quotes, identify hidden costs, reduce the risk of expensive variations and choose the builder offering the best overall value. At Home Building Advisor, our independent builder quote comparison service helps homeowners make informed decisions with confidence.
Q: What is a scope of works and why do I need one?
A scope of works is a detailed written description of everything a builder is required to include in their price. It covers every trade and element of the project from demolition and excavation through to cabinetry, painting and landscaping and specifies exactly what is included, what is excluded, and what is subject to provisional allowances. Without a scope, builders make their own assumptions, and those assumptions are where variations and disputes come from.
Q: How long does the tender process take?
From scope of works preparation to builder selection typically takes four to six weeks. The scope takes one to two weeks to prepare after the site visit, builders are then given two weeks from the site open day to submit their tenders, and the shortlisting and selection meeting follows shortly after. Timings can vary depending on project complexity and builder availability.