You've got three quotes for the same job and the prices are miles apart. One is cheap, one is expensive and one sits in the middle. Which one is the best deal? Often it's not the cheapest, and sometimes it's not the most expensive either. The trick is making sure you're comparing the same job.
This guide covers what a good quote should include, how to line quotes up side by side, and what to watch out for before you say yes.
Quote or estimate?
These words get used loosely, but they're not the same thing.
- A quote is a price for a clearly described piece of work. If you accept it, it can become a binding agreement.
- An estimate is a rough idea of what the job might cost. The final price can move.
The Australian Government's business site explains that if a customer accepts a quote, it becomes a legally binding contract, in its guide to preparing quotes. So if someone gives you "a rough figure" over the phone, ask for a written quote before you commit.
What a good quote includes
A written quote should leave very little to guess. The same business.gov.au guide says a quote should include at least:
- the business name, ABN and contact details
- your name and contact details
- a clear description of the work
- itemised and total costs, including GST if it applies
- any variations or revisions you've discussed
- payment terms, due dates and the payment methods accepted
- start and finish dates
- when the quote expires
- a spot for you to sign and date if you accept
If a quote is missing most of these, ask for a more detailed version. A tradie who's happy to put things in writing is usually easier to deal with if something changes later.
Check the total price
For work for your home, the price you're shown should be the full price you'll actually pay. Business.gov.au's page on displaying prices says the total price must include all charges, taxes and fees such as GST. If one quote shows a price "plus GST" and another doesn't, convert them to the same basis before you compare.
How to compare quotes like for like
Prices only mean something when every tradie is quoting on the same thing. Consumer Affairs Victoria recommends comparing at least three written quotes for the same plans and specifications, and warns that the cheapest may leave out some items or use a base rate that doesn't cover the materials and finishes you actually want. You'll find that advice on its page about getting quotes for building and renovating.
1. Give everyone the same brief
Send each tradie the same written description, photos and any plans. If one tradie suggests a different approach, ask the others to quote on that option too, so you're not comparing apples with oranges.
2. Put the quotes in a simple table
List each quote in a column and the items down the side. Tick what's included and note what's missing. Common gaps include:
- materials, fixtures and finishes (and who supplies them)
- removal of old items, rubbish and site clean-up
- travel, call-out fees, and weekend or after-hours rates
- permits, approvals and compliance certificates
- making good afterwards, like patching or painting
3. Look closely at allowances
On bigger jobs, quotes often include allowances for items that haven't been chosen yet, such as tiles, taps or appliances. These are called prime cost items. Work the tradie can't price exactly yet, such as excavation, may appear as a provisional sum.
Consumer Affairs Victoria's building contracts checklist suggests avoiding these where possible and naming the exact make, model and colour instead, because the final cost can end up higher than the estimate. A quote with low allowances can look cheaper than it really is.
4. Compare labour, not just materials
For smaller jobs, Consumer Affairs Victoria suggests confirming whether a quote covers transport to the job, time spent picking up parts, the cost of parts, labour and apprentice costs, and any call-out, weekend or public holiday rates. These can add up quickly on an hourly job.
5. Check the timeline and payment terms
A cheaper quote that starts in four months may not suit you as well as one that starts next week. Look at when payments are due and make sure they line up with work that's actually done. Be wary of large upfront payments, and check your state's rules on deposits for building work.
Price isn't everything
Once the quotes are lined up fairly, think about the person behind each one. Consumer Affairs Victoria suggests considering who is most likely to deliver value for money, listen to what you want, keep you updated and communicate clearly.
Before you choose, it's worth:
- checking their licence or registration on your state's official register (our guide on how to check a tradie's licence shows where to look)
- looking up their ABN on ABN Lookup and making sure the name matches the quote
- asking for a certificate of currency for public liability insurance
- talking to a couple of recent customers and reading a range of reviews
Warning signs in a quote
- No ABN, licence number or business address
- A single lump-sum price with no detail
- A price given without seeing the job, when the job clearly needs a look
- Pressure to accept today or a "special price" that's about to expire
- A quote that's far lower than the others with no clear reason why
- Reluctance to put changes in writing
Before you accept
Ask questions about anything you don't understand, and get any changes added to the quote in writing. For bigger jobs, use a proper written contract. Rules on contracts and deposits vary between states, so check your state's fair trading or consumer affairs agency. Our guide to choosing a builder for your renovation covers contracts in more detail.
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Frequently asked questions
How many quotes should I get?
Two or three written quotes for the same job usually give you a good feel for the going rate. Consumer Affairs Victoria recommends comparing at least three for building and renovating work.
Is the cheapest quote the best one?
Not always. The cheapest quote may leave out items or allow for basic materials. Compare what each quote includes before comparing price.
Should a quote include GST?
If GST applies, the quote should show it, and the total price you're shown should be the full amount you'll pay. Ask if you're not sure.
Can a quoted price change?
A quote is meant to be a firm price for the work described. It may change if the job changes, so any variations should be agreed in writing before the work is done.
What's the difference between a prime cost item and a provisional sum?
A prime cost item is an allowance for something not yet chosen, like tapware. A provisional sum is an estimate for work that can't be priced exactly yet, like excavation. Both can push the final cost up.
This guide is general information only, not legal or financial advice. Rules change, so check the official sources linked above for your state.