Why a Properly Priced Quote Protects You and Your Project
In a competitive market, it’s tempting to go with the builder who offers the lowest quote. But when it comes to building or renovating your home, a builder who under-quotes to win the project may cost you more in the long run—in time, stress, and quality.
Planning a renovation or extension in Geelong?
It’s tempting to choose the cheapest quote, but when it comes to building your dream home But when it comes to building or renovating your home, a builder who under-quotes to win the project may cost you more in the long run in time, stress, and quality.
A quote that’s honest, accurate, and profitable is far more valuable. Here’s why a realistic price benefits you and protects your investment.
1. They Spend More Time on Your Project
A fairly priced quote allows a builder to dedicate proper time and attention from detailed planning and supervision to high-quality finishing touches. Builders who underquote often juggle too many jobs, increasing the risk of delays, mistakes, or oversight in your home.
2. Better Client Experience
Builders working with realistic margins can invest time in you answering questions, guiding decisions, and problem-solving proactively. Those operating on razor-thin profits often rush between jobs, leaving clients with a stressful and impersonal experience.
3. Thoughtful, High-Quality Execution
The right pricing structure supports quality control, skilled trades, and adequate supervision.
It also affords the Builder time to upskill themselves and their team, furthering their knowledge and understanding of important best practices.
When price is squeezed, builders are often forced to rush work or accept substandard results just to keep things moving.
The result? A finish that looks fine from afar, but lacks durability or polish up close.
4. Best Practice & Best Materials
A profitable project allows for premium, compliant materials and best-practice construction methods, the kind that ensures longevity and comfort. Whilst two quotes might look similar, it is important to dig deep into them, and ask each builder what process or practise is important to them and why.
A budget-cutting builder may look for the cheapest materials they can get away with and may not install them diligently, which may lead to expensive repairs, replacements, or poor performance sooner than expected.
5. Avoid the Worst-Case Scenario:
Builder Bankruptcy or disappears during your project.
As part of the mandatory insurances for your project, a Home Warranty Insurance policy has to be taken out in your name. This affords you some financial protection if your selected Builder goes broke, dies or disappears during your build or during the maintenance period.
Whilst this can help you during this tough and stressful time, the support is quite limited and offers minimal protection. The policy covers up to a maximum of $300,000, or 20% of the contract value, whichever is less. This could mean that you are left out of pocket to complete your home, or fix major defects, and you may have to pay a premium to secure a new builder to take on the risk of finishing your project.
The Bottom Line
A profitable, honest quote isn’t about overcharging it’s about building with care, quality, and confidence. If you’re unsure what your project should cost, consult a Quantity Surveyor, Estimator, or services like ProCalc to set realistic expectations before you compare quotes.
At Shepherd Homes, we believe every client deserves a responsibly quoted project one that allows for craftsmanship, attention to detail, and a home that performs beautifully for years to come.
