Can a Builder Charge for a Quote?

It is often recommended to obtain at least two quotations from different builders before deciding how to proceed with your residential property project. However, providing a detailed quotation takes the builder time and energy. Anyone who has seen a comprehensive quotation from a builder knows that it is a detailed document with a large number of details. A quotation without this detail is fundamentally useless; however, it is very difficult for a builder to provide a ‘back of the envelope’ calculation that can be relied upon.

The Emerging Trend of Charging for Quotes

There has been a recent push for builders to start charging for quotations. Particularly builders in the high-end property market are charging fees for the provision of a quotation. Many customers are fine with being charged for a detailed quotation, but there are also others who disagree with this approach and consider quotations a ‘cost of business’ for the builder.

Considerations Before Paying for a Quote

If your proposed builder does suggest a fee for providing a quote, we set out below some of the considerations:

• Is the builder being asked to develop plans and specifications? If the development of plans is involved then there will more than likely be a cost, as the builder has to engage an architect or draftsperson to carry out these works. This is rarely (if ever) provided for free.
• How detailed are your specifications and plans? If the builder has to research unique construction methods or your specifications are inadequate, this will require more work.
• Are you speaking to more than one builder? If you are speaking to multiple builders then you are asking these builders to provide a great deal of work for free, and you will only choose one of them. We strongly suggest only proceeding to quotation with two to three builders and not multiples.

Best Practices for Managing Quotation Costs

• Ask the builder from the get-go what their availability to do the job is. There is no point in getting a quotation from a builder who is fully booked up for the next three years when you wish to commence construction immediately.
• If there is a charge from the builder for quoting, make sure that this is in writing with timeframes set out.
• Be aware of terms and conditions that state that copyright of any plans stays with the builder. If you do not proceed with that builder then you may not be able to use the plans that they have developed for your project.
• Get legal advice if you are concerned about any aspect of your interactions with a builder.