Paid Quotes for multi unit sites

Discussion in 'Development' started by alexander, 30th Dec, 2018.

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  1. alexander

    alexander Member

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    Long time reader first time contributor....I'm interested to read your opinions :

    Are you willing to pay for a builders quote for a multi unit site?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    What is the context? Is the architect calling tenders? Open tenders? Are you calling prices with limited information (incomplete plans, no engineering, no specification or no DA/CC)?
     
  3. alexander

    alexander Member

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    Developer calling tenders. DA complete, working drawings, engineering, landscape, energy reports, soil etc.....all complete ready to appoint a builder.
     
  4. FireDragon

    FireDragon Well-Known Member

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    I've just completed a mixed use (Units + shops), as far as I remember I received tenders from 5 builders last year and didn't pay for the quotes from the builders.
     
  5. Propertunity

    Propertunity Well-Known Member

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    No. It’s just part of the overheads of running a business.
     
    Tufan Chakir likes this.
  6. Tufan Chakir

    Tufan Chakir Well-Known Member

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    It's not "normal" practice
    be genuine in seeking tenders/quotes and you'll have a genuine response, without charge
     
  7. Fabs

    Fabs Active Member

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    It's definitely not normal practice, however, tendering is a time consuming task and I have seen builders charging for a quote, especially when they are too busy and you don't have a previous relationship with them.
     
  8. alexander

    alexander Member

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    Agree. Estimating a multi unit project can take several days and up to a week. Builders that apply a m2 rate may get the quote wrong and seek to recuperate lost profits via unforeseen variations. There are many ways to seek variations i.e. site costs etc.

    I've have no hesitations in paying for a quote, provided its detailed i.e. 25 pages and the builder is professional. The only time I haven't paid for a quote is when using the same builder, a prior relationship has been established.
     
  9. Bunbury

    Bunbury Well-Known Member

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    How much are they asking for the quote?
     
  10. alexander

    alexander Member

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    $700 per dwelling.
    It takes countless hours to prepare a detailed quote that's based on a detailed quantitative take off for all materials. Some builders pay for this service and on charge prospecting clients, others you are well experienced do the takeoffs themselves. In the past, I've signed a preliminary HIA contract, that stipulates, if I award the job to the builder, they deduct the quote fees off the original contract.

    By paying for a quote, I know I will get 100% commitment and a 99% chance of a fixed price (not allowing for rock expenses). In lieu of a ballpark figure applied using squares rate, then hit up with variations or unwarranted job delays, because builder mis-priced the job and can't afford to finish the job.

    I'm just curious how many others on this forum have a similar opinion. I understand this is standard practice for professional builders.