How to Compare Builder Quotes (and Not Get Burnt)

Choosing the right builder quote isn't just about picking the cheapest number on the page. In Melbourne’s booming construction scene, understanding the nuances of a builder's quote could be the difference between a smooth, on-budget build or a costly, stress-filled nightmare.

This guide will help homeowners, developers, and investors spot the red flags, decode construction jargon, and evaluate builder quotes like a pro.

Why Comparing Quotes Matters

In Melbourne, building or renovating a home is a significant investment. With quotes often ranging from hundreds of thousands to millions of dollars, even small differences can cost you big.

However, many first-time clients mistakenly compare quotes on headline price alone. This is where hidden costs, vague inclusions, and scope gaps hide. The key to a successful build is comparing quotes apples to apples — and that means understanding exactly what’s included, what’s excluded, and where risks lie.

Key Elements Every Builder Quote Should Include

Here's what a professional builder quote should clearly outline:

1. Scope of Work

A precise breakdown of what the builder will deliver. This should align with architectural drawings, engineering reports, and your desired inclusions.

Watch for: vague line items like "general site works" or "standard inclusions" with no details.

2. Inclusions & Exclusions

Ask for a detailed inclusions list (fixtures, fittings, finishes, appliances) and exclusions (site prep, landscaping, fencing, driveways). Some builders leave essentials out to appear cheaper.

3. Provisional Sums (PS) & Prime Cost Items (PC)

These are allowances for items yet to be finalised (e.g., tiles or kitchen joinery). Be wary of overly low allowances – they can lead to blowouts.

Tip: Ask for realistic PC/PS values based on current supplier pricing in Melbourne.

4. Site Costs

Site works vary dramatically across Melbourne due to slope, soil type, access, and overlays. Some quotes include a nominal figure for site costs or leave it "TBC".

Request soil test data and preliminary site survey to firm up estimates.

5. Permits & Consultants

Clarify which party is responsible for securing planning permits, building permits, energy reports, bushfire assessments (BAL), and council fees.

Gidaya Group includes full permit management for clients.

6. Timeline & Payment Schedule

Quotes should outline build duration and staged payment terms. Builders aligned with the HIA or Master Builders Australia usually follow standard contract structures.

7. Warranty, Insurance, and Registration

Only consider builders who are:

• Registered with the VBA

• Covered by Domestic Building Insurance (DBI)

• Offering 6-year structural warranty

Gidaya Group ensures clients receive compliant contracts with all protections in place.

Questions to Ask Before Signing a Builder Quote

• Are these prices fixed, or subject to change?

• What happens if the site costs are higher than estimated?

• Who is responsible for obtaining planning approval?

• Can I review a full specification sheet?

• What are your recent projects, and can I view them?

Common Pitfalls When Comparing Quotes

• Too Good to Be True: Unrealistically low quotes often indicate cut corners or missing scope.

• "PC/PS Padding": Builders who inflate provisional sums to create negotiating room.

• Conflicting Assumptions: If builders are quoting off slightly different plans or specs, it’s not a fair comparison.

• Lack of Transparency: Avoid builders who don’t provide detailed breakdowns or push for early contract signing.

Gidaya Group's Transparent Quote Process

At Gidaya Group, we prioritise trust and transparency:

• Full scope breakdown with line-item clarity

• Fixed-price contract proposals (after design sign-off)

• Pre-construction checklist so clients know what to expect

• Site assessments and due diligence reports upfront

We believe informed clients make confident decisions — and that's how we build lasting relationships.

Final Thoughts: How to Make the Right Decision

Comparing builder quotes in Melbourne is about clarity, not just cost. Request detailed inclusions, align assumptions, and don’t rush the decision.

When in doubt, bring in a third-party estimator or advisor to sanity-check the numbers.

Gidaya Group is here to help decode your quotes, answer your questions, and ensure you're never caught off-guard.