Building Matters - Simplifying Pricing SIMPLIFYING PRICING

The most important information prior to commencement of any project is the specifications. This means what is the project made up of?

Without proper specifications the person pricing will make up their own. This will result in significant price differences between Building Contractors.

The best approach to building your new home, renovations or extension is to follow the below guidelines.

  1. Before any works can commence, finalize drawings and specifications.
  2. Get the project measured professionally by a Quantity Surveyor (Bill of Quantities). This document will include a detailed and itemized list with rates including a final price.
  3. This document can then be handed over to the builder for pricing(Tendering).
  4. This keeps all builders pricing within constraints/specification of the document, hence completion of a comprehensive price.
  5. You will find that their isn’t a massive difference in prices.
  6. This method of pricing will actually save you money as some builders will hire their own QS and include the bill in their own price.
  7. Building extras will be kept to a minimum if any.
  8. Most builders use the term “so much per square foot” in their pricing. This can be easily obtained from the final price.

COMMON PROBLEMS FACED AS A RESULT OF INADEQUATE PRICING

Scenario 1: Not enough information provided for pricing purposes hence varying overall price/quotation.

  • This will lead to conflict from the start of the project and is common to fall out with the builder.
  • Large no of extras are common leading to further conflict.
  • The client will be less than satisfied by the end of the project.

Scenario 2: Some builders make up their own price using a “price per square foot”.

  • This is an inaccurate way to price as every project is different.
  • This will lead to conflict from the start of the project and is common to fall out with the builder.
  • Large no of extras are common leading to further conflict.
  • As there is plenty of work for builders today they will automatically increase their rate per square foot and the client is at a loss.
  • The client will be less than satisfied by the end of the project.

 

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