Final extension quote 55% higher than estimate - help

we too get at least 15 quotes from builders when it comes to construction. You'd be amazed at the difference pricing comes in at so as a Customer, its well worth the time and effort. As a business, they don't get customers unless they can offer free quotes....for every 10 quotes they may get 1 job out of that....and if that job makes them $10-$15K then yes its worth their time quoting in my opinon.

Most trades i know allow a specific time/day each week to get through all the quotes so that the other days are left free for actual 'work'.

Going back on track, i would suggest that you move on from this builder and continue getting quotes. We recently got quotes for a 210m2 2-storey house and quotes ranged from $180-$390K....for the same house! obviously finishing quality is another thing and the standard you're after or whats offered will differ from builder to builder but as long as you're comparing apples with apples, you'll soon get a fair idea as to how this builder of yours is placed compared with the other quotes that come in.

Maybe rent it back out on a periodic lease while you get more quotes done....as builders can often take weeks to get back to you with any sort of pricing.

And i'm not sure what you're building but for over $300K (in Adelaide anyway) i'd expect it to be a fairly significant build and quality of finishing.....
 
Having obtained quote from more than 15 builders, the highest is $170,000 and lowest $75,000.
Are you serious, you got more than 15 quotes?
we too get at least 15 quotes from builders when it comes to construction.
I'm with Ace in the Hole; 15 or more quotes is outrageous and I can't imagine a scenario in which that would be justifiable. If the first 3 vary enormously, you could maybe justify getting a few more to properly gauge the market, but FIFTEEN - sheesh! :eek:

Defence doesn't even get 15 quotes for multi-$bn projects.
 
I'm with Ace in the Hole; 15 or more quotes is outrageous and I can't imagine a scenario in which that would be justifiable. If the first 3 vary enormously, you could maybe justify getting a few more to properly gauge the market, but FIFTEEN - sheesh! :eek:

Defence doesn't even get 15 quotes for multi-$bn projects.

1st quote I got is $170,000 from a well known granny flat builders.
2nd quote I got is $155,000 from a Chinese builder.
3nd quote I got is $169,000 from a builder by referrals.

If I only obtained 3 quotes, I would have gone with the most expensive one, because they have a good reputation & big office premises (so can't run away) for tiny bit extra than the other quotes.

That means, I would have spent $170,000 - $80,000 = "$90,000" extra on the project. I bought the house for under $400,000, after extension, the bank valued it at $500,000.

To spend $170,000 on the house will only improve it by $100,000 is crazy. I will end up with $70,000 negative in equity...so much for the hard work.

I believe "Mamaof3" is an experienced property investor. That's what it takes to make money in development. If you relax your standard then it's likely you'll over pay for the land & construction. The vendor will make money...the builder will make money...even the council & bank will make money... but the investor don't make money because there is little profit left.

I know you feel it's unfair for the builders. I was working in direct sales i.e. the door-to-door sales person every body hates :D. I know for a fact that for every 8 to 11 rejections I get, I will make one sale. So the more people I see, the more time I spent, the more rejections I get, and the more sales I win. That's just life...

The difference for me is, it takes 8 to 11 rejections to make 1 sales that brings in $5-$15 in profit. Whereas for the builders, they have to provide 10 quotes to win 1 project that brings in $30,000 in profit.

One of my friend living closeby built a 78sqm brick-veneer 2 bedroom "granny flat" for $66,000 as owner builder. My extension is only 65sqm & cladding exterior. That means, the actual material & labor cost should be approxi. $50,000. I've received 2-3 quotes from experienced builders at ~$80,000. That means, their profit should be around $30,000. That's 37.5% in profit.

P.S. If I accepted the builder who quoted $170,000. They would have made 70% in profit, whereas I would have ended up with $70,000 negative equity. It's not exactly fair is it...
 
I'm also in the process of organizing a backyard extension to add a couple of bedrooms & living area.

Having obtained quote from more than 15 builders, the highest is $170,000 and lowest $75,000. I found 3 good builders i.e. more than 10 year experience & clean history under current license. They quoted ~$80,000 on average.

Are we allowed to name builders on this forum?
I think it would be a great idea if Lei could name these 3 builders as a reference for others needing work done.
That way, the other 12+ builders would not have to be bothered so much.
Would save everybody some time end effort.

Can we start up a State/City database or references?
Has this been done already?

I think an attempt has ben made before on this forum for good tradesmen, etc
What ever happened with that?


Just found that database:
http://www.somersoft.com/forums/showthread.php?t=52827&highlight=tradesmen

However, it's a little difficult to search, have to read every single post.
It would be good if it was made a sticky and the first post could be continually edited in a list or table format, State/City/Trade/Service.
The recommended trade or service could then have the post number referenced to it so specific comments as to why it's good can be seen.
 
That way, the other 12+ builders would not have to be bothered so much.
Would save everybody some time end effort.

Ace...are you a builder yourself? If you are...then fair enough. I understand why you get annoyed at people who get many quotes. When I was in sales, I don't like those who listen to my sales pitch but don't buy anything... hehe...:)
 
Just a quick questions who owns the plans? did the builder do them up or did you have them done and just available for the builder.

If thier yours just get other quotes no biggie as for tenants get someone back in if you can as I'm sure it will be sometime before the first sod of soil is turned.

If the plans were done by the builder and usually are copy write so be carefull.

I'm was in a situation up to a couple of days ago pricing a job and have found out the builder did the plans (owner has not paid for plans) and are copy write and the owner is getting other builders to quote from these plans (me being one) I am now pulling out not worth the hassles. The builder is waiting for the owners to start with another builder and I dare say legal action will be coming.

As for 15 builders :eek: If i know thats what the owners are getting I would not even bother coming out. I usually have 2 questions before I go do a quote on house or extension. 1. have you got working plans to price from, 2. What is you expected start date. There are a host of other questions when we meet.

Brian
 
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