You get two quotes for the same job and they are tens of thousands of dollars apart. One builder must be overcharging, right? Usually not. In most cases the two quotes are pricing different jobs, even when they are working from the same drawings.
Here is where the gaps come from, and how to compare quotes so you are looking at the real price, not just the headline number.
1. What Is Included and What Is Left Out
This is the biggest source of difference. One quote may include site costs, demolition, driveways, paths, fencing, landscaping, window coverings and connection fees. Another may leave some or all of them out, so you end up paying for them separately later.
Line the two quotes up and list every item each one excludes. Then price the exclusions so you are comparing like with like.
2. Allowances: Prime Cost Items and Provisional Sums
Prime cost items are allowances for fittings you have not chosen yet, such as tapware, tiles and appliances. Provisional sums are allowances for work that can’t be priced exactly yet, such as excavation or rock removal.
A builder who uses low allowances will produce a cheaper-looking quote. The difference comes back when you make your real selections or the excavator hits rock. Ask each builder how they set their allowances, and compare them line by line. A quote with fewer allowances is usually a more certain price.
3. Site Conditions
Two builders can read the same block very differently, especially if one has not looked properly. Things that change the price include:
- Soil classification. A soil test sets the site class under the Australian Standard for footings and slabs. More reactive soils need deeper, stronger and more expensive footings.
- Slope and fill. A sloping block or uncontrolled fill adds earthworks, retaining or a different slab design.
- Stormwater and services. Where water can legally discharge, and how far away the connections are.
- Overlays. A flood overlay can lift floor levels and change materials. Our guide to flood-resilient building explains why.
- Access. Tight access means smaller machines, more labour and more time.
If one quote is based on a soil test and the other is not, they are not comparable.
4. Specification Level
Two quotes can list the same “kitchen”, but one includes laminate benchtops and basic appliances while the other includes stone benchtops and a better range. The same goes for insulation, windows, flooring, ceiling heights and bathroom finishes. Small differences across a whole house add up quickly.
5. How the Price Handles Risk
A fixed-price contract puts more risk on the builder, and a careful builder prices that risk in. A lower quote with large allowances, vague exclusions or no soil test leaves that risk with you. In Victoria, cost-plus contracts are generally only allowed for very large jobs, so for most homes you should expect a fixed price.
Compliance costs are real too. New homes must meet the 7-star energy standard, and from 1 July 2026 builders must arrange Home Warranty insurance through the Building and Plumbing Commission for contracts over $20,000. A quote that seems to skip these is a warning sign.
6. Program and Workload
A builder who is very busy may price high because they don’t need the job. A builder who is very quiet may price low to win it. Neither tells you much on its own, but it is worth asking when they could start, how long the build will take, and who will be your point of contact.
How to Compare Quotes Properly
- Make sure every builder is quoting from the same drawings and specifications
- Check every builder is registered with the Building and Plumbing Commission
- List the exclusions in each quote and estimate their cost
- Compare prime cost and provisional sum allowances line by line
- Check whether each quote is based on a soil test and site survey
- Compare the specification level room by room
- Ask each builder for a start date, a build time and a payment schedule
Once you have done this, the quotes are often much closer than they first looked, and the one that seemed cheapest sometimes isn’t.
Red Flags
- A firm price given over the phone without seeing the block
- A deposit request above 5% on a contract of $20,000 or more
- Large provisional sums or vague allowances
- No soil test or site survey behind the price
- Pressure to sign quickly
For more on what a contract should contain, read our guide to what your building contract should include. For likely budgets, see how much it costs to build a house in Shepparton and our kitchen renovation costs guide. Choosing between builders? Start with how to choose a builder in Shepparton.
A Quote You Can Compare
Roweanne Builders quotes at a fixed price, with inclusions and allowances set out in writing so you can see exactly what you are paying for. If you have a quote from someone else, we are happy to talk through the differences. Call (03) 5822 2225 or get in touch.
FAQs
Why is one builder’s quote so much cheaper?
Usually because it includes less, uses lower allowances, or has not accounted for site conditions. Compare exclusions and allowances before you compare totals.
Should I always take the cheapest quote?
Not on price alone. The cheapest quote often becomes the most expensive job once exclusions, low allowances and variations are added.
How many quotes should I get?
Two or three from registered local builders is usually enough, as long as they are all quoting the same plans and specifications.
Can a builder give me an accurate quote over the phone?
No. An accurate quote needs a site visit, drawings, and ideally a soil test. A phone price is an estimate at best.
This article is general information only. Every block and design is different, so get advice specific to your project before you rely on it.