Why Your Contractor’s Quote May Not Be the Full Cost of Your Building Project

Receiving a contractor's quotation can feel like the biggest financial question has finally been answered: "This is what my building will cost."

Unfortunately, it isn't always that simple.

A contractor's quotation may cover the work they have been asked to price, but there can be important costs, exclusions and allowances that need to be considered separately.

What Could Be Missing?

Preliminary Costs

Site establishment, temporary services, scaffolding, site facilities and other preliminary expenses may not always be obvious when reviewing a quotation.

Professional Fees

Architects, engineers, specialist consultants and other professional services may be separate from the contractor's construction price.

External Works

Driveways, paving, fencing, landscaping, retaining walls and boundary walls can sometimes fall outside the main building quotation.

Municipal and Connection Costs

Water, electricity, sewerage and other service connections can add to the overall project cost.

Prime Cost Items

Items such as tiles, sanitaryware, taps and light fittings may be included as allowances. If you choose products that cost more than the allowance, the final price increases.

Provisional Sums

Some work may be priced as an estimated allowance because the exact cost cannot be determined when the quotation is prepared. The final cost may therefore change once the work is carried out.

Variations

Changes to the design or specification after construction starts can result in additional costs.

Don't Compare Quotes on the Total Alone

A quotation of R1 million is not necessarily cheaper than a quotation of R1.1 million.

The important question is:

"What exactly is included in each quotation?"

A detailed independent cost estimate gives you a benchmark against which contractor quotations can be compared. It can help you identify missing items, unrealistic allowances and significant differences between quotations.

Know Your Numbers Before You Sign

At IntelliBUILD, we prepare detailed building cost estimations based on your building plans and specifications. Our reports break down expected material, labour, equipment and site costs, giving you a clearer picture of the true cost of your project.

Before accepting a contractor's quotation, make sure you understand what you're actually paying for.

Know the real cost. Compare with confidence. Build smarter.