Blog→Builder's Quote Template: How to Quote Construction Work in Australia
Builder's Quote Template: How to Quote Construction Work in Australia
How to quote residential construction and renovation work in Australia — covering prime cost items, provisional sums, progress payment schedules, and state compliance requirements.
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Building quotes are more complex than most trade quotes — they need to cover prime cost items, provisional sums, progress payment schedules, and variations. Here's how to structure them clearly for Australian residential and renovation work.
What a builder's quote must include
- Builder's licence number — mandatory on all contracts and quotes for licensed building work
- ABN and business name
- Quote number and date
- Expiry date — building materials pricing is volatile; 14–30 days is appropriate
- Client and site details
- Itemised scope — by trade or by building stage
- Prime cost (PC) items and provisional sums — clearly identified and explained
- Progress payment schedule
- GST
- Exclusions and assumptions
- Commencement and completion dates (if known)
Prime cost items and provisional sums
Prime cost (PC) items are selections the client hasn't made yet — a kitchen sink, tapware, tiles. Quote a PC allowance (e.g., "Kitchen sink PC $350"), and adjust up or down when the actual selection is made. The builder's margin on supply and install is separate.
Provisional sums (PS) are items where the scope isn't fully defined — "Earthworks PS $8,000" when you don't know the soil condition yet. These must be reasonable estimates, not lowball figures used to win the job.
State and territory legislation governs how PC items and PS must be disclosed in domestic building contracts. Get familiar with your state's rules.
Progress payment schedule
For residential construction, a standard schedule:
- Deposit on contract signing: 5–10%
- Base complete (slab or bearers and joists): 15–25%
- Frame complete: 20–25%
- Lock-up (roof, windows, external doors): 20–25%
- Fit-out (kitchen, bathrooms, flooring): 15–20%
- Completion: remaining balance
Renovation work uses simpler schedules — deposit, mid-point, completion is common for jobs under $50,000.
Pricing building work
Builders typically quote from a bill of quantities or a schedule of rates. For residential renovation work, common approaches:
- Rate per square metre — for similar-scope work where you have historical data. Australian residential extensions run $2,500–$4,500/m² depending on finish level and state.
- Trade-by-trade pricing — obtain quotes from subcontractors, add margin (typically 15–25% on sub contracts), add your own labour for direct work.
- Cost-plus — cost of all labour and materials plus an agreed margin. Transparent but requires client trust and good record-keeping.
Exclusions on a builder's quote
- "Subject to council approval — timeframes and any required design changes are outside our control"
- "Assumes existing structure is in satisfactory condition — variations may be required if concealed defects are found"
- "Does not include removal of hazardous materials (asbestos, lead paint) — to be quoted separately if found"
- "Landscaping, fencing, driveway not included unless listed"
- "Provisional sums are estimates — client to be notified before costs exceed allowance"
Domestic building contracts
In most Australian states, building work over a threshold (typically $10,000–$20,000) must be performed under a written domestic building contract. Your quote leads to a contract; the contract governs the build. Key legislation by state:
- NSW: Home Building Act 1989
- VIC: Domestic Building Contracts Act 1995
- QLD: Queensland Building and Construction Commission Act 1991
- WA: Home Building Contracts Act 1991
Related guides
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