How to compare builder quotes properly

Getting two or three quotations is sensible. Comparing them properly is harder than it looks, because builders rarely present their prices in the same way. One may itemise every trade, another may give a single figure, a third may leave out things the others included. Choosing the lowest total without checking why it is lower is one of the most common mistakes we see.

Here is a practical way to work through them.

Step 1: Make sure everyone priced the same thing

Before looking at numbers, check what each quotation is based on. Did every builder receive the same drawings, the same specification and the same information about the site? If one priced from an older drawing, or from a site visit conversation, the quotes are not comparable yet. Go back and ask them to confirm, or re-price, on the same information.

Step 2: Lay them out side by side

Put the quotations into a simple table — a spreadsheet works well — with the main sections of work down the side and each builder across the top. Groundworks, structure, roof, windows, services, finishes, externals and preliminaries are usually enough. Where a builder has not broken the price down, ask them to.

Step 3: Identify gaps and exclusions

Go through each quote line by line and mark anything one builder has included that another has left out or excluded. Common differences include skips and scaffold, making good, decoration, building control fees, electrical upgrades and removal of spoil. For each gap, either ask the builder to price it, or add a sensible estimate so the totals are comparable.

Step 4: Normalise the allowances

If one builder allows a certain figure for the kitchen and another allows much less, the second quote will look cheaper even though it is not. Choose a single realistic figure for each allowance and apply it to all quotes. Do the same for provisional sums where you reasonably can.

Step 5: Check VAT is treated consistently

Make sure every figure is on the same basis — all inclusive or all exclusive of VAT. A price from a builder who is not VAT registered can look very different from one who is, so compare the figure you will actually pay.

Step 6: Look beyond the price

Once the totals are comparable, look at the other terms:

• Programme — start date, duration and any obvious risks to timing
• Payment terms — how much up front, and whether stages are tied to real progress
• How variations will be priced and agreed
• Validity period and any material price clauses
• Insurance and any workmanship guarantee offered
• How clearly and promptly the builder answered your questions

Step 7: Write down your questions

By now you will have a list of things to clarify with each builder. Send the questions in writing and keep the replies. The answers — and the way they are given — are often as useful as the price itself.

Step 8: Decide on value, not just cost

The right choice is the builder who offers the clearest scope, a realistic price for the whole job, sensible terms and confidence that they can deliver. That may be the cheapest, but it often is not once the gaps are filled.

A note on references and checks

Price comparison is only part of choosing a builder. Visiting previous work, speaking to past clients and checking the company's details are all worthwhile. We cannot vouch for any individual builder, but we can help you ask the right questions.

Want a second pair of eyes?

If working through this feels like a lot, our £149 Builder Quote Check does it for you. Caroline compares two or three quotations for the same job, identifies differences, omissions, exclusions and allowances, looks at VAT presentation, programme and payment terms, and gives you a clear list of questions to put to each builder before appointment.