Home Renovation Blog
Expert renovation tips and information about Home Additions and quality Renovations
Building Quotes and avoiding hidden costs is possible if you know what to look for. Not all Building Quotes are created equal!
If you are embarking on a home renovation project and have received a quote from multiple builders, there are some very good reasons why the bottom line varies between them. We share with you the hidden costs behind quotes and explain why cheaper quotes may cost you more in the long term.
This seems obvious, but it is important to ask what has been excluded from the Quote. Do not assume that everything that you think should be included, has actually been included.
Common items to be excluded may include fencing, landscaping and painting. Maybe these are items that you are happy to complete yourself? However if they are not, you must insist on a price to be included in the quote. Their exclusion will have a significant impact on the total cost.
In fact, the Quote should clearly list items that are excluded. If it doesn’t, ask your Builder to provide a written list of exclusions. Check this list carefully and ensure that you go into a Building Contract with your eyes wide open.
Building prices can vary due to different types and grades of materials specified. If a Builder is very cheap, and their Quote seems significantly low, you will need to ask more questions about the materials supplied.
Ask whether the quote includes treated pine or untreated pine. Amerex only recommend using treated pine to ensure that you have maximum protection against termites and borers.
Another example is when a Builder allows a small budget amount for items such as door handles, bathroom fittings and kitchen appliances. In a quality home renovation project, budget fittings do not usually apply (budget fittings are more suitable for project homes and first home buyers), and as such you will be hit with a large number of variations that will very quickly add up to thousands of dollars.
When renovating character homes, small quality details can make a big difference – both to the price and the end result. For example, using a metal door jamb may be cheaper, but we always use timber door jambs to maintain the look and feel of the heritage element of the home.
Poor quality fittings and building materials will not stand the test of time as they will break or wear out easily, and the future capital gains in your home may be affected as a result. By contrast, a home that has had a quality home renovation and addition using quality materials and quality workmanship will appreciate at a greater rate and hold its value within the market.
Has the Builder specified what they charge as an Administrative Fee for Variations? If this is not specified then you need to ask. ALL renovation projects have variations – don’t believe anyone who suggests otherwise.
Most Builders charge anywhere from $250 to $1000 Admin fee per Variation. In our 25+ years of experience, we have found that it is not unusual to have between 10 to 20 variations on a project.
The types of variations that occur can include small items such as adding in extra electrical points, to changing your alfresco ceiling from plasterboard to cedar lining, or simply deciding that you would like to have custom built-in shelving in your new linen cupboard after all.
Whatever the reason, we can assure you that from experience there will be at least 10 Variations. If you are someone that changes your mind a lot, there will be more.
Consider the cost then if you have 10 Variations, each with an Admin Fee of $1000. This would add $10,000 to your project straight away. 20 Variations will add $20,000! You get the picture, and it is not pretty!
Amerex does not charge an Admin Fee for Variations, so you can be assured that on an Amerex home renovation project, your budget will not be blown by Admin Fees.
If you are renting during your home renovation project, it will cost you considerably more if your project runs over time and you need to pay a hefty amount in rent each week/month.
How can you safeguard against this? Find out if the Builder has a track record of delivering on time. Ask the Builder if they have completed similar projects in your area and how long they took to complete them. Ensure that any dates promised will be written into your Contract.
A member of the Amerex team will arrange a time to discuss your
renovation and additions project and assess what stage you are at in the building process.
PO Box 328, North Perth WA 6906
ABN: 67 009 252 680 Builders Registration: 10250
10 Monger Street, Perth WA 6000
PO Box 328, North Perth WA 6906
t: (08) 9227 1822
e: info@amerex.com.au