Your plans have been drawn up, planning granted, builders pricing it and now you get all the tenders back. But they all seem different, prices are varying wildly and there is no proper breakdown, what do I do?
If you have a QS on board, they will be able to do a tender report for you to break down exactly whats included, what isn’t included and give you a better idea of which contractor is the best for you. Don’t always assume that the cheapest price you get back is the best one.
You will need to know what has your contractor included in his price. Has he priced up the windows as per your specification? Has he used a cheaper window supplier that you are adamant you do not wish to use? What figures has he used for Mechanical and Electrical costs? In a lot of tenders (or builders quotes), there will be sums of money entered as “PC Sum”. A Prime Cost sum (PC or PC sum) is an allowance, usually calculated by the Architect or Quantity Surveyor, for the supply of work or materials to be provided by a contractor or supplier that will be nominated by the client (that is, a supplier that is selected by the client to carry out an element of the works and imposed on the main contractor after the main contractor has been appointed). This is most common with windows, kitchens/fittings, plumbing and electrical works. Builders may insert these themselves without full knowledge of the exact scope of works and essentially make an allowance for these works. Therefore, you must be sure on your quotes received, that all of these sums are cross referenced so that low ones are not making the builder cheaper than others and giving a false economy. A QS will guide you easily and quickly through all of this.
Another thing to watch out for is the allowance on finishes. Some quotes will come back as a shell only, and will not include and flooring or wall finishes. Then others will allow only the most basic of finishes and then when the contract begins and the specification is clarified, the price will jump up. If you know the flooring or finishes you want prior to sending out to a builder for pricing, let them know the cost and the material specification so that it can be included in their costings and be accounted for early on in the project.
Check to see has any landscaping or site works been included. This may be optional and you may wish to leave these out and sort it yourselves at a later date, but make sure all your prices are on a like for like. Don’t have one contractor allowing for a fully tarmacadamed driveway and another one allowing for a stone base driveway.
Another area where contractors can be cheaper are in the likes of roof tiles/slates. You can have a very standard functional roof tile for €1.30 each, or a lovely looking natural slate for €3.50 each. With anywhere from 11 to 16 of these in a square metre, the costs of roofing can add up quickly due to labour and material costs.
Has the builder changed any specification of other areas? Has he used Ballytherm insulation instead of Kingspan? Have they used painted MDF skirting instead of an oak veneered? Little things like these can make all the difference. And whilst you may wish to discuss potential savings with your preferred builder, you should ensure that all prices received are priced on the same specification with the same materials so you have a proper like for like comparison.
The last thing to consider is what payment details the builder wants and if retention shall be applied. Some builders want equal monthly or fortnightly payments over the duration of the project. This is not a good way to proceed. You should only pay for work actually completed to the value of what is in the priced schedule (Bill of Quantities). If a builder wishes to get deposit payments for windows or plumbing equipment etc, then they should state so and be able to supply you with invoices to verify. But by and large, you should only ever pay for work actually completed and finished on your home. However if you specify a certain material or supplier who demands a deposit or up front payment, you should be accommodating to the contractor.
Retention is a form of withholding money on a builder as a safety net. This may not be applicable on one off houses, many builders will not accept it, but I would advise to include it in your contract. Generally, retention is 5% on all payments until the job is done. You will then pay half of all the retention held and hold onto the remaining 2.5% for a specified period, usually 6 to 12 months. This is so that should anything go wrong, your builder will have to come rectify any defect work. And if he doesn’t, you at least have a sum of money that can be put towards rectifying this work.
When you have your preferred builder, ensure you are ready to get going before signing or confirming the contract. Have your funding in order as a starting point. It may seem obvious, but many start projects and run into issues with their lender on first draw down or later on, so ensure all is set for payments. If there are any major stipulations in your lending, ie 10% withheld on completion etc, let your builder know prior to him starting so at least everyone is fully aware of what is going on. Have your big items for finishes picked out. Windows can be a long lead in item that needs to be in hand early on. Finalised kitchen design and supplier and your sanitary fittings are others that need particular attention. Other items like floor and wall finishes can be picked out during the construction phase. But to ensure you minimise delays, it is important to notify your builder with plenty of notice of preferred suppliers and materials. Get your builder to give you milestone dates so you know how quickly you need to get any subbys or materials lined up for them to install. Another important item is to get your electrical layout finalised. Chasing for points and wiring needs to be completed when blockwork has been finished, so keep this in mind and have your layouts well thought out in advance of the first fix being completed. It could be too late to add in things later on or could cause delays so go over it and speak to your builder and electrician about your options.
Always read the fine print of any quotation submitted. Make sure all prices are on a like for like basis. And make sure you are happy and can work with your preferred builder and that your completion date is always kept in focus. Cheapest price is not always the best price and if something looks too good to be true, it often is.