The Importance Of Accurate Quoting In Construction
The Real Cost Of Underquoting in Construction
Over promising & under-delivering – It’s a tale as old as time..
It would hardly surprise me if there isn’t a pyramid, standing in Giza today, that was quoted to be constructed for 18 goats, 14 gold scarabs and 2000 slaves, and ended up costing double. Not only did this act of under-quoting upset the Pharaos, but rumour has it, the first face-palm emoji was created and etched into history.
Underquoting is rampant in the construction industry. Why do some builders do it? We can’t be sure, but what we do know for sure is that it is incredibly time-wasting and we find they usually fit into either one of these categories.
(***spoiler alert – both are equally detrimental*****)
In-experience in quoting is usually done with little or no intent. The project manager fails to adequately account for every aspect of the build, simply due to lack of experience or lack of knowledge. Sure, you get an attractive quote but are you getting a realistic one?
Intent – simply put, sometimes, underquoting is a sales tactic to secure a job, knowing full well, that it will end up costing the client a lot more. tsk tsk…
Getting an accurate cost is a WIN-WIN
So what should you consider and be informed of when it comes to construction costs/quotes?
If you don’t’ want the nasty surprises, it is imperative that the builders are experienced in the niche, and have a good history of completing projects to budget.
Here are 7 top things to consider regarding cost from Jorgesnens Design & Build. – a leading child care centre builder on the Gold Coast.
- Building complexity
- Level of specification (if you want gold plated taps, you can, you just have to pay for it)
- Retaining walls
- Latent conditions – This is anything that cannot be forecasted, such as – poor soil conditions, groundwater, someone buried asbestos on your site 30 years ago and we dig it up, the list goes on……
- Existing site conditions, maybe tree clearing, demolition of existing structures, if the site is not level you will require bulk earthworks to ‘cut and fill’ the site and potentially upgrade services to the site – I.E. the water supply may require upgrading due to poor pressure for fire fighting purposes, maybe sewer or stormwater lines do not have the appropriate capacity, or sometimes council will require road upgrades or footpath installation which all come at a large cost.
- Various other inclusions or exclusions, generally we complete the building ‘turn-key’ the carpark and landscaping around the carpark along with perimeter fencing. There will be another contractor who will complete the playground and we agree on upfront with them what is included or excluded in each of our scope of work to ensure no gaps or ‘double-ups’ that may come as a surprise for the client.
- We also exclude development approval and building approval costs (both consultant and application) and council infrastructure charges which are expensive.
Now that’s a comprehensive list! If you are feeling overwhelmed at the information, the more you needed to hear it!
These are the real costs of construction and deserve your real attention. Resist the fickle temptress that is the super attractive quote. More often than not, this is not a realistic, achievable price.
You can rest assured, that a quote provided from Jorgensens will be a real representation of the real cost of the build. There is no under-quoting. There is no intent other than to give you a real cost, to have your construction built and handed to you to a quality, turn-key finish.
So now what?
If you are after a high-quality commercial builder with a proven record of building to budget. Feel free to contact Jorgensens Design & Build for yourself and start the journey on the right foot! They may not have been around in Ancient Egypt, but their longevity in the construction industry and their reputation within it are a good representation of the experience and the quality you will get from them.
Phone +61 7 5597 6620
Email email Jorgensens