Browse Forums General Discussion 1 Oct 24, 2022 3:42 pm Does anyone know whether it is standard for a builder to quote variation price for a selection of material that is higher than the inclusion allowance amount to be based on the supplier's retail price or trade's price (i.e. discounted from retail price)? I understand that there are builder's margins involved too which will usually apply to any excess over the allowance. For example, if the provisional allowance in a building contract states that there is an allowance of $50/m2 for tiles and the buyer selects a tile that costs retail price of $70/m2 ($60/m2 at a trade's price), is it standard for the the quote variation price to be $10/m2 or $20/m2? Cheers Re: Variation Quote from Inclusion Allowance 2Oct 24, 2022 4:44 pm it'd be whatever the builder's pricing team decides it's going to be. inclusion upgrades is where builders that quote low base price make their buck allowance is just a bucket of money allocated to a particular purpose, it's not an indication of actual costs. which is why it's best not to have any allowances left in the contract when you are signing it. unless you're happy to carry part of the risk of costs going up. keeping in mind that if the builder has to put fixed price on items, they will also include some buffer to protect themselves from those price rises. Re: Variation Quote from Inclusion Allowance 3Oct 24, 2022 7:37 pm Thanks, I understand how allowances work in that sense. I'm wondering whether it is common practice for whether the variation quotes are based on a supplier's retail price (i.e. buying as a customer directly from the supplier) or trades price (i.e. buying as a builder). I've spoken the the supplier directly as it was part of a selection process and I am aware that they have existing relationships with the builder, hence having access to a trades price (lower than retail price). Do you know whether builders typically pass on these cost savings (i.e. savings from the difference between retail price and trades price) to the ultimate customer? I work with owner, he/she is my man on the ground and I instruct them when to visit the site and take photos and I have other tools in the bag. 4 15447 Looking for advice on whether this variation in tile colour is acceptable. The large tile on the left was used in my main bathroom renovation 1 year ago. My ensuite… 0 8573 |