Ever questioned how a builder can guarantee the price of your renovation?
Wouldn’t it be too dangerous for a builder to offer a fixed price guarantee in light of the escalating expenses of construction and the length of time required to finish a bespoke home renovation?
A complex remodeling job requires accurate pricing, but how can a builder possibly achieve that?
These are all excellent questions, and in this article, we explain in detail what happens behind the scenes of a fixed-price construction proposal.
We have optimised all of our systems and procedures as a boutique builder that specialises in renovations to complete our projects quickly and reliably. This guarantees that we can offer a fantastic construction experience with outcomes that are assured.
We offer a genuine fixed price quote as one of those promises.
We want you to understand the inner workings of a fixed price quote and why we charge for this service, thus we want to be completely transparent with you about our quotation process.
So what exactly is a fixed price quote?
A fixed price quote (or fixed price construction proposal) will capture everything you want and everything you need for your job to be completed with no hidden builder variations. In this detailed document, it will also include a thorough specification (right down to the tap fittings you choose and the colour of your benchtops), documented scopes of work, a breakdown of all the expenditures, the schedule and timeline, how we will deliver your job and most importantly the overall price, which includes taxes.
How does a builder work out your fixed price when there are so many things that are unknown in a renovation?
A key component of our quotation process includes site inspections. It enables us to comprehend site circumstances and record the whole extent of activity. There are some specific things we need to consider for extensions and renovations that will affect the final price. Some of these things include the following:
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- How simple is it for tradespeople to access the building site or area where we will be working?
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- Are there any obstacles or limitations?
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- Do any fences or trees need to be removed or are certain areas of the garden in danger of being harmed given that we need to access certain areas with heavy machinery?
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- Are the current service lines (water and gas) big enough to service the new home?
During these site visits, we are also able to discuss with the homeowner, any additional info that fills in the gaps in the scope of work that the plans may not reflect. Specifically, information that will assist the trades to quote for the complete scope of work. These are things like:
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- Is there any new fencing or driveways being replaced?
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- How much of the home are we painting?
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- Is the client planning on living in the home during the time of construction?
These are all things that are required to be documented in the initial stages so we can allow for our scope to cover everything that needs to happen for the price to be complete and fixed. All of these topics and questions are covered in the initial meetings of our preliminary service.
Once we are familiar with the plans and the complete scope of work, we may make videos on-site to explain these scopes of work to all the trades so they can see what we are asking them to perform in real time. Additionally, the trades themselves may make additional site visits to confirm anything further that they need. This process ensures we are not relying on us to quantify everything; there might be a lot of subtleties that we, the builder, might not see since we aren’t expert plumbers or electricians. By quantifying all materials required, confirming all lead times and asking the trades and suppliers to likewise guarantee their quote, we eliminate all the uncertainty.
The scope of work effectively acts as a giant checklist of everything we are asked to consider, making sure no questionable area is overlooked. There is a lot of communication between the many trades and suppliers so that we, the builders, can ensure that everything has been considered and accounted for. All this occurs before we even break ground.
How long will the project take to complete?
The schedule of the project is a significant consideration, in addition to the price, this is generally built out at the same time as the cost. Knowing when the project will begin, how many other projects will be running concurrently, how long the project is expected to take, and how long you, the client, will need to be away from the house are all things that affect the complexity and final cost of the project. Scheduling the complete project guarantees that the resources may be used appropriately and reveals the difficulties of the overlap of trades.
Specifying the project’s duration has an impact on the fixed price quotation. For instance, if a project is difficult and is predicted to take a full year to finish, that years’ worth of resources, management and hire items that must be accounted for, which obviously raises the project’s cost. If this is looked at throughout the pricing process, the builder may be able to tackle the job more effectively, which may result in a lower project cost for you.
The proposal – your insurance policy
Once the documentation is complete, we have the opportunity to sit down with you and provide a detailed account of all of the important details. This is our chance to explain how the project will be delivered. This includes things like; how we will communicate during construction, who you can call if you have any concerns, what platform we will communicate on, how frequently you will meet with the builder, how long the job will take, when you can access the site, what happens if you change your mind, etc etc. It also includes the price but delivering a successful project is so much more than just a number.
We have established these procedures so that you receive a fixed price quote and that it is guaranteed throughout the whole process. Our fee to provide you with this service is your insurance policy to ensure that your biggest investment is safe from a nightmare build and costly blowouts from builders variations.
As you can see, creating a fixed price quotation proposal requires a lot of time and work and can take anywhere from 4-6 weeks to complete, and that is if you already have council approval.
So now that you know what goes into a fixed price construction proposal, you’ll be able find a builder who can provide this level of service and feel confident that the quote at the start, is the price you pay at the end.
Let us help you set your expectations for your upcoming renovation by downloading our FREE ZJ Building Design Guide before you’ve even begun planning your dream home.
