Low quote price? It may not be the best deal…

1701954268381491225882538.jpg-2024-2-5 13.52.34

While it may be tempting to choose the cheapest builder for your project, it’s essential to recognise that price alone does not reflect the overall value or quality of the work. Opting for the lowest bid often entails compromises in terms of materials, craftsmanship, and service, which can lead to costly issues down the line.

Builders offering significantly lower prices may cut corners, use inferior materials, or lack the necessary experience and expertise to deliver a satisfactory result. Additionally, hidden costs or unexpected delays may arise, ultimately costing more in the long run.

When choosing your builder, it is important to consider the following factors:


Is your price truly a quote? Or is it just an estimate?

When embarking on a construction project, understanding the difference between a quote and an estimate is crucial. While these terms are often used interchangeably, they represent distinct stages and levels of detail in the pricing process.

A building estimate is an initial assessment of the projected cost of a construction project. It provides a rough approximation based on limited information and may not include detailed specifications or considerations for various factors such as site conditions, material selections, or labour rates. Estimates are typically provided early in the planning stages and serve as a starting point for discussions between the client and the builder. They are valuable for setting a preliminary budget and determining the feasibility of the project, but are not always a reliable indicator of the final price or quality of the project. These are thrown out willy nilly by a project builder, a professional builder such as WDH will give you an accurate assessment of the true cost of your build.

WDH rarely offer estimates we offer a building quote, also known as a bid or tender, it is a formal offer submitted by a builder outlining the cost of the project based on specific details and requirements provided by the client. Unlike an estimate, a quote is more detailed and comprehensive, it will cover everything required to get your house built. They reflect a commitment from the builder to deliver the project at the specified price and within the agreed-upon scope.

By only providing estimates, building companies can present artificially lower construction costs, making them appear more competitive in pricing. Unfortunately, this approach can lead to projects being awarded based solely on price, without considering the overall value or quality offered.


Why is the price really so low?

When a builder offers a surprisingly low price to a consumer, it’s often because they lack a clear understanding of their own costs and financials. This includes factors such as the true cost of labour and materials, as well as the necessary markup to cover fixed expenses and ensure profitability.

Companies offering low “too good to be true” prices often underbid projects in an attempt to secure work, even if it means operating at a loss once all expenses are accounted for. Despite initial appeal to consumers, these bargain rates often lead to financial instability, as the builder struggles to cover essential costs. Over time, this unsustainable pricing strategy can erode profitability, leaving the company vulnerable to insolvency.

Their thin profit margins and low cash-flow can lead them to make unrealistic promises or cut corners in order to secure contracts. It’s a precarious situation for both the builder and the client, as the builder’s financial instability jeopardises the successful completion of the project, potentially leaving clients in limbo, and with a great deal of stress. Google Privium or Oracle for examples of recent companies who have left customers in despair.


Does the builder provide an internal design service?

Internal design and construct services within a building company offer a multitude of benefits, enhancing the overall efficiency, quality, and cohesion of the construction process. By integrating design and construction under one roof, these services streamline communication, foster collaboration, and ensure seamless coordination between the creative vision and its practical execution.

This integrated approach allows for early input from construction professionals, ensuring that design concepts are not only aesthetically pleasing but also structurally sound, feasible within budget constraints, and compliant with building codes and regulations. By involving builders in the initial design phase, potential conflicts or discrepancies can be identified and addressed early on, minimising the need for costly revisions or delays during construction.

Furthermore, internal design and construct services promote greater continuity and accountability throughout the project lifecycle. With all aspects of the project managed under one umbrella, clients benefit from a single point of contact and a cohesive team working towards a common goal. This streamlined communication and project management result in fewer misunderstandings, smoother transitions between design and construction phases, and ultimately, a more efficient and cost-effective building process.


So, when choosing the builder for your dream home, make sure you do your research and don’t automatically assume the lowest price is the best deal…


To discover why our clients opt for the Williams Designer Homes difference, get in contact with us on 0483 961 003 or book a consult with me using the below link:


Tony Williams

Director – Williams Designer Homes Pty Ltd

Posted in
Avatar photo

Tony Williams

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
Call Now Button