Unlike when purchasing mass–produced, products, which are identical to each other regardless of the price, comparing the quotes of renovation builders is rarely the best indicator of the value you will receive. In fact, one industry expert has said many times that “renovation horror stories often start with a great price.” Why is that?
Many factors affect the renovation costs when pricing a project. In order to present you with a lower price, builders can estimate based on using lower quality, cabinets, flooring, fittings, fixtures, appliances, and other materials. You sometimes won’t know this until a few years after the project is finished and things start to warp, fade, crack, jam, leak or squeak.
They can use ‘allowances’ for products you will have to pick out after you sign the contract that are based on the lowest cost products instead of quality products in line with the standard of your home or the quality you are expecting the builder to provide. When you select the type of product you expected to be included, you could find out that the allowance only covers a small part of the cost, and you will have to pay extra for what you thought was already included in the price.
Skilled carpenters, project managers, and specialty tradesmen command higher salaries than those with lower skills or experience. Professional well trained and coordinated contractors produce better quality work than low cost labour. Effective project management means that your project runs smoothly, on budget, and on time
Nothing about any of the above practices by cheap builders is illegal, but they can affect the price and outcome of any given project by 50%, 75%, 100%, or even more. Of course, without quality materials, skilled craftsmen, and professional project management, a renovation project can become a nightmare. So can a project where the builder has so under-priced the estimate that they can’t finish the job, (unless you pay more). The horror stories you see on TV are from people with builders who presented the lowest quote.
Some builders go even further to cut costs. They may not be QBCC licenced or they may not have the right insurance, or they may ’save you money’ by not applying for approvals or getting certification inspections. If they take these illegal shortcuts, they may take other shortcuts when renovating your home. Some renovators may suggest working without a contract or that you apply for the approvals yourself to save money. True, you might save some money, but the person whose name is on the building approval application is legally and financially responsible for the project and in meeting Australian standards and the building code. The cheaper guy’s knows this, but likely won’t tell you. Do you want that responsibility? Or do you want your builder to be responsible and accountable for their work?
Looking at a renovation quote, the low priced estimate could look very similar to a reasonably and honestly higher priced quote. On the surface they both describe the same project, but as you now know, the devil can be in the details.
What makes a renovation project successful?
My definition of a successful project is one where:
- ALL of your expectations are properly set and either met or exceeded.
- You are left feeling pleased and satisfied with the final results.
- The quality of work is exceptional.
- You felt comfortable with the tradesman that worked on your home.
- You and your builder respect each other during and after the work is done.
- You feel that you’ve paid a fair price for the value and quality you received.
- The project has added value to your family’s life, and your home.
Be extremely careful in choosing your builder based upon a low price. Better yet. . .
Just don’t do it at all!!
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