Builder Tender Process & Comparing Quotes
Beyond the initial purchase, the construction costs will make or break most projects.
Therefore, it’s fundamental to ensure that a detailed tender process is undertaken, not only to get the best possible price but to also ensure that the quality and specifications are comparable.
It’s important to obtain quotes from similar builders and ideally, that will provide a fixed price on a full turnkey solution. When it comes time to obtain quotes, these are some considerations to think about:
• Have you provided the builder with all the documents required to provide a fixed price quote, including working drawings, engineering, energy reports and a full list of selections?
• Do the quotes you have received reference your provided documentation correctly and are all details on the quote transparent?
• Do you fully understand the specifications being provided, and are all quotes using the same quality products?
• Does the quote contain any provisional cost (PC) items? If so, this will increase the likelihood of variations during construction. Most PC items can be removed by providing sufficient documentation. There can still be fundamental reasons why quotes vary greatly; including builder workloads, project appeal, location and plain trying it on! Ultimately you want to obtain at least 3 quotes from similar builders to ensure you’re choosing the right builder for your unique project circumstances.
It is also important to research and ask the builder to see a recently completed project that is similar to your project that is being quoted. Once you have received all quotes it is vital to cross-reference and to check final contracts and documentation.
Zybek Developments has a structured process to obtain quotes including the provision of full documentation, a detailed schedule of materials and full selections. This enables builders to provide a fixed-price quote based on the exact same specifications and with limited opportunities for variations.
GUIDE TO RESIDENTIAL DEVELOPMENT
When developing residential property there are 4 key things you need to understand to extract the highest profits:
- Optimum build size
- Available footprint
- Target market & appropriate specification
- The costs
This document serves as a guide to help you understand these four areas to help you increase your profits when developing residential property. Remember, an experienced project manager such as Zybek Developments can guide you through this process to help you increase your profits and save your time.