A Builder’s Tender can be very complicated and they don’t need to be. If a 10-year-old cannot understand it, then there is something wrong. Tenders need to be clear, concise and detailed around what is included and not included in your overall build price.
So let’s break down a construction tender in really simple terms (I will discuss in much more detail each of these items in other blogs of course):
- Base Price
- Facade Price
- Site Costs
- Authority Costs
- Specific Site / Authority costs
- Design Variations (architectural or otherwise)
- Final Price
Now every builder presents their tenders differently. A builder might have a higher base price and lower site costs, whereas another builder might do the opposite. One builder might include the piering in their base price and another builder might include piering in their site costs with extra piering required for your site in another section. It gets bloody confusing and you are stuck wondering: what is going on and who is right or wrong?
Every builder presents their tenders differently.
Keep It Simple
So to keep things simple, do not over-analyze each of the line items and associated costs. Simply ask yourself:
- how big is my house?
- what are the inclusions / exclusions?
- do I understand the costs / charges?
- what’s the overall price?
- am I comparing apples to apples?
If you select your preferred builder based on base price or individual site / authority costs, then you are asking for trouble. You do NOT pay the base price to get your home built and completed. You pay the TOTAL final price, so always be looking at that – anything else is camouflage. So it is important that you understand your tender and your builder’s pricing strategy.
Your construction tender is a legal document that outlines your home price, inclusions, exclusions, terms and conditions, plan references and all outlined upgrades. So it’s critical that you understand what’s in it because once you sign it, it’s as binding as the your building contract.
Make sure that it’s clear and do not take the sales person word for anything unless it is in writing – remember, if it is not in writing, it has not happened!