Browse Forums Renovation + Home Improvement Re: Validating builder cost estimates? 8Nov 24, 2020 8:27 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Validating builder cost estimates? 9Nov 24, 2020 9:06 am Thanks guys for all the feedback, this has been really useful for me to understand how this works. Much appreciated! Re: Validating builder cost estimates? 10Nov 26, 2020 8:31 am world2160 ChrisBirmele We are planning a renovation and are currently looking for a builder (we have DA approval, the engineering drawings are done). We contacted fourteen and ended up with three rough cost guidelines so far (the others were never interested or we eliminated them after the first meeting). The cost guidelines range from less than 500k to 750k for the same job. I tried to normalise the variance to ensure we compare apples with apples. We still believe the average is about 20% too high. Does anyone have suggestions how to 'validate' a builders estimate? I understand they have to make a living but some of them try to take us for a ride. Thanks Not sure how you can validate the cost estimate yourself, i think best to just get more quotes. With the current covid situation i was told that alot of the smaller builders are out of job and should give a better deal. How do you know the cost is 20% too high or is it just your wish list it should be lower. The best cost estimate is economic reality, what the builders will charge to get the job done. I am a QS and I can tell you that it does not matter what estimate I come up with if you cannot get the builder to build it for the less than theirr price. All you can do is ensure that your instruction set to the tenderers is clear and simple and carefully select who you invite to tender, that means research. Ultimately a well conducted tendering will result in realistic offers, if then it is too high your project and specification will need a haircut. Beware of tenders that are way too low, you won't get quality or performance. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Fair Trading can issue orders to rectify and complete but once the matter goes to NCAT these orders are automatically vacated. You will have to terminate contract and sue… 21 29708 How are you doing Ben? Extremely interested in hearing what you are doing or plan to do! 12 15135 custom probably not. Volume, most defiantly, but spec would vary. If youre doing a knock down, there additional costs associated with that that will eat into your budget… 1 10274 |