General Estimating Questions and Answers

FAQ's

GENERAL ESTIMATING QUESTIONS

Can I include different “Options” in the estimate?

Certainly, as an example, if your drawings show the project built in brick veneer construction and you want the project costed as designed but also as an option to building it in an alternative construction type, like weatherboard, we can provide that also, so you can compare the difference between the two.

Can I make changes to the estimate after I receive it?

Certainly can, we can revise your original estimate as many times as you like, please contact us for a price.

How do we know what to include in your estimate?

The estimation report will be based on any working drawings or sketches as well as any engineering details you have provided. Once you have accepted our fee proposal and wish to proceed, we will get you to logon here to select all the items and fittings and the required level of finish you would like us to apply to your estimate. Simple as that!

What if we are unsure of the quality of finish in our project?

Simply by upgrading our service, we can price your estimate in up to 3 different levels, so you can compare your design in either a “Budget”, “Standard” or “Deluxe” level of finish.

BUILDERS

Does the estimate include my margins and supervision fees?

We can provide the final estimate with or without your margin attached, it’s up to you. We can also include supervision fees if required, just let us know.

Giving PDH Estimating my rates and confidentiality?

Many builders entrust us with their individual contractor and supplier rates to include in their own estimate to get a more “Accurate” final figure. We treat your price file with utmost respect and confidentiality and do not share its contents to anyone, guaranteed!

What happens if another builder gets us to estimate the same project as you?

This happens on rare occasions, but because builders have different rates that we apply, we end up with 2 very different estimates. We will not inform you or any other builder that this has happened so as not to influence the outcome.

OWNER BUILDERS - THE FACTS

"Owner Builder" pit falls?

Here’s some common pit-falls in being an “Owner Builder”

1 – Material & Service Discounts:
Builders do receive discounts on materials and services, this is because they build many homes a year and are rewarded for that. You may not receive the same level of discount for building a single residence or even a multiple unit development.
2 – Construction Timing:
Tradies are loyal to builders and will more than likely postpone your project to work for a builder who is guaranteed to give them repeat work. You may have to wait a bit longer for the contractor or tradie to commit to your project!
3 – Trade Show Advice:
When you attend a “Home” or “Trade” show, be aware of companies who advise you with their “New” and “Innovative” building products. These, more often than not, are far more expensive than promised. As an example, sellers of alternative cladding systems, which are sold to you on how “easy it is to erect, anyone can do it, and thus saves you money” become far more expensive than brickwork by the time you have to finish the product with render and paint. Please consider the additional works involved before you purchase these products.

As we often say, if it was cheaper, everyone would be using it!

Can I order materials straight from the Bill of Quantities?

In short “No”. The selected sub-contractor, such as the “Carpenter” that you intend on using, should make the list of materials that they require. They will base this on the specific materials and fixings that they prefer to use. They should then give you that list so you can get it quoted. When the materials arrive the sub-contractor knows exactly what everything is for, otherwise they will spend their time, at your cost, sorting out any material you or we have compiled, and you may not get a refund for returned materials. This is not helpful to the builder, it just wastes your time and money.

Financial Institute Paperwork, how we can help you!

Owner Builders often have to submit an “Independent Adviser’s Progress Inspection Report” during all claim stages of their project. We can complete these forms for you at a minimal cost. Please contact us for our fees.

How much can I save by being an owner builder?

If you could save a “small fortune” by being an owner builder, then everyone would be doing it. The truth is you WILL save money. How much you save will depend on how much work that you put into it, and then consider how much your time costs, if you take time away from your work consider the cost of that time.

CHOOSING A BUILDER

Introduction to builder’s margins……

We hear often of customers who, after they have obtained 3 or 4 quotes to build their project, have asked “Why are their quotes so different”. We know that the construction cost of the project may not differ much between the builders, but it may come down to the builders margins that make the most difference! We generally consider there to be 3 main types of builders:

1 – Beginner Builder: How to identify -
New to the industry and not many overheads, also keen for the work, their margins can range between 10 to 14%
2 – Middle of the Road Builder: How to identify -
Generally well established builder who has minimal overheads, their margins can range between 12 to 19%
3 – Master Builder: How to identify -
You are paying for the experience and reputation built up over many years in the building industry. Think of their overheads such as the rent of a commercial office space and staff. These builder’s margins can be anywhere between 25 to 28% or more.

For a $500K build cost (Inc. GST) your quotes can range from $550k to $640k for the same project………

Consider the types of builders you get your quotes from and try and compare from a similar quality of builder. Compare apples with apples!

Supplying your own fittings, appliances and other items!

Most builders will allow you to purchase your own bathroom fittings, appliances, wall and floor coverings, joinery and the like, you won’t be paying any margin on these items, but you must have them ready for the builder when they require them. Don’t hold the construction site up because you don’t have everything ready. It will cost you!

When you purchase your own fittings, you become responsible for their warranty, not the builder. So if something goes wrong with a particular item that you supplied, you will have to replace the item, including the re-fitting of it, but if the fault is in the installation of the item, then the builder is responsible.

GENERAL CONSTRUCTION QUESTIONS

Purchasing materials on the internet or from friends?

Be careful purchasing any leftover materials from friends or from the internet. If you were to purchase any leftover plaster or fixing glue, make sure your plasterer likes using that particular brand, because if he doesn’t, you have just wasted your money and will have to replace the plaster or the plasterer. Make it easy for yourself! Build like builders build…… with common sense.

What about “Alternative” construction methods?

Unless you have the budget for it, all “Green” and “Sustainable” building products are considerably dearer that standard. There are benefits but they are all long term. Do your homework!

What’s the most economical method of construction?

Drive around any new large scale suburban development and see what is the most common type of home being built, and you will find it is, more than likely, a brick veneer residence built on a slab with a concrete tile roof. This is the most reasonable method of construction today.

Large project home builders rarely use timber framed floors, metal roofs or alternative claddings, because they are always more expensive, here are the reasons why:

1 – Floors
You only need 1 trade to put down a slab, a concreter, but if you are building on a timber floor system then you need a concreter for the strip footings, a brick layer to brick up the base and the carpenter to build the floor. Generally 20% more cost. Of course if the house is being built on a sloping or problem site this may be a most economical method of building, but for a flat site, a slab is the cheapest and quickest!

2 – Roofing
Even though metal roofing requires timber trusses spaced further apart (thus costing less for the trusses) you would think this is a cheaper option, but metal is far more expensive than concrete tiles per m2. The problem with trusses spaced further apart will be evident when you get the “extra” bill from the plasterer to support the plaster ceiling from metal battens because the trusses being further apart cause the sagging of the ceiling. Everything has an ongoing effect.

3 – Alternative Claddings
New cladding types hit the market every year, and because of their lightweight nature, easy to install theory, you would imagine they cost less than “Bricks and Mortar” but they aren’t cheaper. After you purchase the cladding, and get the builder or yourself to install, you then need to finish the cladding. Most claddings need painting at the very least, or rendering, so combining the cladding, labour and the finish to the cladding costs far more than standard brickwork. These claddings however are far more economical for 2nd storey work where the outsides walls are not supported on any lower walls underneath it!

Again, check any large display village to see what most builders are offering as these are the most economical ways of building.