Getting builders’ quotes: Where do I start?

Getting builders’ quotes is a key part of any home renovation. But how many quotes should you get? What information do you need to provide, how can you compare builders quotes and what should you beware of? We take a look

Angela Kerr Director, Editor

Getting builders’ quotes summarised

• Make a shortlist of builders
• Gather the documents you’ll need to send to builders
• Research the companies
• Evaluate builders’ quotes
• Choose your preferred builder
• Arrange your contract with the builder

Make a shortlist of builders

Firstly, you’ll want to get at least three builders’ quotes for your project and to achieve this you’ll probably have to draw up a shortlist of at least five potential builders to invite to tender for the work. This takes into account the fact some may not respond if they’re busy.

Seek recommendations from friends, family or colleagues as well as your architect and structural engineer if you’re using them. You can also find trusted local builders instantly with our Find a Builder service provided by the Federation of Master Builders. This which connects you with firms that are independently inspected and professionally vetted so you know you’ll be getting an experience builder committed to high quality standards. Using this service, you can see their work, read testimonials and get in touch.

Builders’ estimates vs quotes

Before you reach out to potential builders, it’s important to note that builders’ quotes and estimates are not the same thing.

An estimate is an educated guess of how much the project would cost – but the final cost could be much higher. It’s an informal guide to what a job might cost. By comparison, builders’ quotes should always be written and should detail all aspects of a project. It is an agreed price for the job, as long as the specification doesn’t change. So we’d recommend you always request a written quote.

Do I need detailed drawings to get builders’ quotes?

Yes if it’s a major project. Providing your builder with detailed and technical drawings allows the contractor to price up the work properly and means you’ll be able to compare builders’ quotes like for like.

It also ensures there is no confusion on your or the builder’s part about exactly what is required, how it is to be built and using what materials.

Architects usually provide the detailed drawings while a structural engineer will provide the structural drawings and calculations your architect and builder will need to do the work.

Write a formal invitation to tender letter

The next step is to write a formal invitation to tender letter, which should:

• explain the work and include the address and contact details
• can include an invitation to meet the contractor at the site
• be accompanied by your architect’s plans printed to scale on the appropriate sized paper, your detailed drawings and any drawings and calculations from the structural engineer.

Once you have sent out your invitation to tender phone round to confirm who is planning to put in a submission, invite them to visit your site and confirm your deadline. Between two and four weeks is a fair amount of time.

Take the opportunity to ask if they have any questions. Now and throughout the tendering period answer questions promptly and make your answers available to all tenderers.

Reasons why builders’ quotes can vary so much

When you ask different builders for quotes, sometimes they’ll be along the same lines but on occasion they’ll be wildly different. There are several reasons why this can happen:

• Level of demand: When there’s high demand, builders may quote a higher amount as they have no shortage of people willing to pay. While in quieter times this may be the opposite.
• Quoting low – but costs could rocket: Beware of picking the cheapest builder’s quote on price alone – especially if the quote doesn’t contain much detail. It’s crucial to be certain of what is included in the quote otherwise you may find that costs start ramping up for other work they say is needed that isn’t in the original quote.
• How much risk is involved: If you’re project is unusual, the builder may increase their quote to cover the increased risk of something going wrong.

Builders’ quotes checklist

Your builders’ quote checklist should include checking the building contractors themselves are legitimate and able to see your project through. You should also ask their tender response to include:

• Evidence of their public and employers liability insurance;
• Details of their health & safety policy and record;
• A bank reference;
• Professional reference from previous contract, eg an architect;
• Customer reference from the previous contract;
• Details of their previous work and an indication of their suitability for your type of project;
• How long they have been established;
• Employees or sub-contractors used.

How to evaluate builders’ quotes

To evaluate builders quotes you should

• Give equal consideration to all;
• Shortlist two most favourable tenders;
• Ask for clarification on any points or a further break down from those shortlisted;
• Analyse the two break downs and hold an interview if required;
• Agree final points with the winner and agree contract terms.

How to pick the right builders’ quote

Don’t just opt for the cheapest builder’s quote. Check the quote covers everything you need and that that you’re clear about what is and isn’t included. You may also want to take into account recommendations from friends and family as well whether the builder can work with your timescales. Talk through your quote and check your understanding of what is involved with your finalists to help you decide.

Getting a building contract

Some builders are still reticent about entering into a contract but one should be in place before works start for your own security.

In working up a contract, consider:

• Whether there will be a 5% retention where a small portion of the project value is retained until the very end of a project, to cover things like snagging;
• The contract period, with a start date to suit you assuming the builder is not too busy. And name the amount of weekly liquidated damages should the contract overrun. Somewhere between £250 and £500 per week is the norm for extensions;
• List any provisional sums to cover any unforeseen works.

Read our advice on Building Contracts for how they can help protect your money and get yours here