How to get and compare quotes

Getting quotes is the point where a search becomes a decision. Done well, it shows you the realistic price range for your job, the different ways businesses would approach it and how each one communicates. Done badly, you end up with three numbers that can't be compared, because each business quoted for something slightly different.

This guide explains how to ask for quotes, what a good one includes and how to compare them. It's general information: rules for contracts and deposits differ between states and kinds of work, so check the rules where you live.

Write a brief first

The single biggest improvement you can make is to give every business the same brief. It needn't be long. Cover:

• What you want done, in plain words, including any must-haves.
• Where, including access issues such as stairs, parking or pets.
• When, with any deadlines or times that don't suit you.
• Materials or finishes, if you have preferences, or ask for options.
• What's out of scope, for example "I'll repaint myself afterwards".
• Photos and measurements, if you can provide them.

Send the same brief to each business and keep a copy. If one business suggests a change, such as a different material or approach, ask the others to quote on that option too, so you're still comparing like with like.

Quotes, estimates and ranges

Businesses use different words, and it's worth knowing what each usually means.

• Quote: generally a fixed price for a defined scope. If the scope doesn't change, the price shouldn't either.
• Estimate: a best guess, which may change as the job progresses. Useful for jobs with unknowns, such as hidden damage.
• Rate: an hourly or daily charge plus materials. Common for small repairs and diagnosis.
• Provisional sums and allowances: amounts set aside in a building quote for items not yet chosen or priced, which can change the final total.

Ask each business which it's giving you and what could change the price. Then get the answer in writing.

What a good written quote includes

A clear written quote usually sets out:

1. the business's name, ABN and contact details;
2. a licence number, where the work requires one;
3. a description of the work and what's included and excluded;
4. materials, brands or standards where relevant;
5. the price, whether GST is included, and how variations will be priced;
6. the deposit and payment schedule;
7. the expected start date and duration;
8. any warranty the business offers;
9. how long the quote remains valid.

You can check the ABN with the free ABN Lookup tool (see checking an ABN) and the licence with your state's register (see checking licences).

When a quote becomes a contract

For bigger jobs, a quote often leads to a written contract. In NSW, for example, the government says a written contract is required for residential building work over $5,000 including GST: a small job contract for work between $5,000 and $20,000, and a large job contract for work over $20,000. The NSW Government also says the deposit for home building work can't be more than 10% of the contract price. Other states have their own thresholds and rules, so check with your state's consumer or building agency.

Our guide to contracts and deposits covers what to look for before you sign.

Comparing quotes

Once your quotes arrive, line them up. Look at:

• Scope. Does each quote cover the same work? Note anything missing or extra.
• Materials. Are they quoting on comparable products and finishes?
• Price structure. Fixed price, estimate or hourly? Are there provisional sums?
• GST. Is it included in every quote?
• Payments. How much is the deposit and when are the progress payments due?
• Timing. When can they start, and how long will it take?
• Warranty. What does each business offer in writing, on top of your consumer guarantees?
• Communication. Who explained things clearly and answered your questions?

Our quote checker puts up to three quotes side by side and flags things like a deposit over 10% (the NSW limit for home building work), an unchecked licence or a missing written contract.

The cheapest quote

A low quote isn't a red flag in itself. A business might have lower overheads, be keen for work or simply be more efficient. But a quote that is much lower than the others often means something is different: a smaller scope, cheaper materials, items left out, or a business that plans to recover the difference through variations later.

Ask the low quoter to walk you through what's included. If the scope is genuinely the same, you may have found a good deal.

The most expensive quote

Similarly, a high quote isn't automatically a rip-off. It may include things the others left out, better materials, a longer warranty or a more careful approach. Ask what makes the difference. Sometimes the answer is worth paying for; sometimes it isn't.

Red flags in the quoting stage

• refusing to give a written quote for anything beyond a small job;
• pressure to sign immediately, or a discount that expires today;
• a large upfront payment or a request for cash with no receipt;
• vague scope, such as "renovate bathroom" with no detail;
• no ABN, or an ABN or licence that doesn't match the name on the quote;
• a quote delivered after an uninvited knock on the door (see door-to-door sales and cooling-off).

Saying no politely

It's courteous to let businesses know when you've chosen someone else. A short message is enough: thank them for their time and say you've decided to go another way. It keeps the door open if you need them in future.

After you choose

Before work starts, make sure you have the agreed quote or contract in writing, confirm the start date, and check how you'll pay. If you'll be paying by bank transfer, confirm the account details by phone using a number you already have, not one in an email. Our guide to paying safely explains why.

Site visits

For many jobs, a business will need to see the site before it can quote accurately. Be ready for the visit: have your brief, photos and any plans on hand, show them everything relevant, including access and any problem areas, and ask the questions on your list. Pay attention to how the business behaves. Does it listen, ask sensible questions and explain options? Is it on time? A site visit is a chance for both sides to judge whether the job is a good fit.

If a business won't visit and the job really needs it, its quote may include more assumptions, so read the exclusions carefully.

Keep a simple comparison table

As quotes arrive, record the key details in one place: business name, ABN, licence number, total price, GST, deposit, payment stages, start date, duration, warranty and any exclusions. A table, a note on your phone or our quote checker all work. Seeing the details side by side makes differences jump out that are easy to miss when you read each quote on its own.

Key points

• Give every business the same written brief.
• Ask whether you're getting a quote, an estimate or a rate.
• A good quote sets out scope, price, GST, payments, timing and warranty.
• In NSW, home building work over $5,000 including GST needs a written contract, and deposits are capped at 10%.
• Compare scope and inclusions, not just the bottom line.