A building quotation is the formal pricing proposal document prepared by the builder and once approved becomes part of the building contract.  It outlines all the information the client needs to know about the proposed building project including, how much it is going to cost, how long it will take and what is included and excluded in the price.  Each building company has its own process for preparing and presenting the quote and increasingly some builders charge a fee for providing a detailed quotation.

Below are my recommendations for preparing a good building quotation.

A. Set the scene = accurately and clearly state who the client is, the property address, the date, list all the documents used to prepare the quote (i.e. architectural plans, engineering plans and written specifications) including the number of pages and dates for all documents and a brief written description of the building project.

B. Cost and time = give a breakdown of the building cost including

  • The “fixed price” cost

  • The “variable price” cost (i.e. prime cost + provisional sums, See FAQ No. 39)

  • The G.S.T.

  • The total contract price

  • Clearly state how long the building project will take to complete.


C. Prime cost allowances = provide a schedule of all prime cost allowances included in the quotation with a breakdown of which allowances are for the purchase cost of fittings or materials only and which allowances include labor costs as well as materials costs.


D. Specific inclusions = provide a list, price breakdown and detailed description of specific items that are significant and specific to the building project. This is an opportunity for the builder to give the client some feedback about the project and to outline some of the main things that have affected the quotation price. For example:

  • The site conditions, slope, access, soil conditions, amount of excavation etc.

  • The structural engineering, type of concrete slab, amount of structural steel, type of framework.

  • The windows, glazing and skylights.

  • The heating and air conditioning systems

  • Specific internal and external finishes and materials.

  • Electrical and automation systems.

  • Plumbing and drainage systems.

  • Interior design inclusions

  • Landscaping, fencing and pool.


E. Exclusions = provide a detailed list of all items that have not been included in the quotation price. This is probably the most important part of the quote because it spells out all the additional items that the client will need to budget for outside of the actual building price. It is also very important for the builder because if it is not spelt out in this exclusions list, it is assumed to be included in the quote.


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