Why Is There Such a Variation in Price When It Comes to Estimates?

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When it comes to finding a contractor or builder for your next home improvement project or business development, it can be difficult to compare estimates. Some companies will bump up an estimate because they’re looking to maximise their profits, while others may set a low estimate and then expect you to cough up more when the work is underway.

Below, we’ve put together four of the key reasons why estimates are likely to vary and offer assistance on how to find the right company for your next building project.

“Guestimations”

Although most qualified builders and contractors will have an understanding of your project, estimating a realistic cost for your project can be challenging. Whether your contractor doesn’t have enough information or they are just unsure of the timescale for your project, a ‘guestimation’ is often only to be used as a stepping stone, with a full estimate to come as the work begins.

If you are still unsure of whether an estimate is appropriate, consider using a service like My Build Estimate to get an instant quote for your next commercial or domestic building project, whether big or small. You can use our build estimate service to compare estimates from several contractors, you will be able to work out whether your quote is realistic.

Experience

As there are no set entry requirements to work in construction, it is easy for anybody to get into the trade with little experience. When selecting the right construction company for your next project, you should take into consideration past projects and experience before making a decision. The adage of ‘you get what you pay for’ certainly rings true when it comes to manual labour, and you are likely to find that a more experienced tradesperson will charge more than an inexperienced company. This does not, however, mean that a high cost equates to a high quality, so ask around and do your research before selecting a team to work with.

Service quality

Across the construction industry, there are thousands of businesses vying for your custom, and setting low prices to attract clients is one of the oldest tricks in the book. With limited funds, you’re likely to suffer from a poor quality service where corners are cut to maximise their returns, to make sure that you find a company that prides itself on delivering high-quality services at realistic prices.

Extension of time

Many contractors factor time into their estimate, and allow your construction project to be extended in the event of delays. Builders regularly incorporate an extension of time (EOT) into their quotations and estimates to protect themselves against potential delays. Although this is good if you’re working on a large commercial project where delays are possible, the chances are that you won’t want to fork out for potential delays before the work has even begun. Speak with your contractor before signing an agreement to consider the impact of a delay on your project’s cost.

By taking time out to analyse your estimates, you will be able to get the most out of your money and enjoy a stress-free construction experience.

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