You have asked for three quotes for the same renovation and get back three documents that can hardly be compared with each other: a single A4 sheet with a total price, a detailed six-page specification and something in between with lots of provisional sums. Picking the lowest price is tempting, but it is often the most expensive choice in the long run. In this article you will read what a good building quote should contain, how to set quotes side by side fairly and which mistakes you are better off avoiding.
What should a building quote include?
A quote is more than a price: it is the basis of your agreement. Anything that is not in it will be up for discussion later. A complete quote contains the following elements.
Company details
The contractor's name, business address, KvK number (Chamber of Commerce registration number) and VAT identification number. If these details are missing, you cannot check the company and you have a problem if a dispute arises. Also read 5 tips for choosing the right contractor.
Description of the work
A description, item by item, of exactly what will be done: "renovate bathroom" says nothing, whereas "remove and dispose of existing tiles and sanitary ware, level walls and floor, fit new wall tiles up to the ceiling and floor tiles, install sanitary ware" does. The more specific the description, the less room there is for differences of opinion afterwards. Also look at what is not included: is demolition work included? Removal of rubble? Moving pipes? Painting after the plastering?
Materials versus labour
A good quote separates material costs from labour costs. For labour, it states the number of hours or days and the hourly rate, or a fixed contract price per item. For materials, it states the brand, type and quantity, or a clear description of the quality class. Two quotes that both mention "tiles" can differ by a factor of three in material price. Only with this breakdown can you see where a price difference comes from.
Provisional sums
A stelpost (provisional sum) is an estimated amount for an item whose exact cost is not yet known, for example because you still have to choose the sanitary ware or the tiles. The contractor settles the actual amount later. Provisional sums are normal, but a quote that consists largely of provisional sums gives you no certainty about the final price. For each provisional sum, ask whether the amount is realistic for the quality you want; an underestimated provisional sum makes a quote artificially cheap.
Additional work and reduced work
Additional work (meerwerk) is work that was not in the quote and turns out to be needed during the job, or that you ask for. The quote should describe how additional work is charged (hourly rate, mark-up on materials) and, more importantly, that additional work is only carried out after your written approval in advance. The same applies to reduced work (minderwerk): if work is dropped, it is deducted.
VAT rate
Building work is generally subject to the standard VAT rate of 21 percent. There is an important exception: for painting and plastering homes older than two years, the reduced rate of 9 percent applies to labour and materials alike. Applying insulation material to floors, walls and roofs of homes older than two years is also covered by the reduced rate for the labour part. Check that a painter or plasterer uses the correct rate; if the whole quote shows 21 percent, you are paying more than necessary. Always compare prices including VAT, because as a private individual you cannot reclaim it. Setting a quote "excluding VAT" next to a quote "including VAT" is the classic mistake.
Validity period, schedule and payment schedule
A quote has a validity period, often thirty days. After that the contractor may adjust the price, for example because material prices have risen. It should also state when the work can start, how long it will take and in which instalments you pay. A payment schedule with a reasonable deposit, instalments linked to milestones and a final instalment after approved completion is customary. Put aside any quote that asks for the full amount up front.
Guarantee and general terms and conditions
What guarantee does the contractor give on the work, for how long and what does it cover? Which general terms and conditions apply, and do you receive a copy? Terms drawn up by trade associations in consultation with consumer organisations are usually more balanced than a company's own terms. Also ask about any disputes procedure.
How do you compare like with like?
The cause of quotes that cannot be compared usually lies in the request. If you give each contractor a different verbal explanation, you get three interpretations back. Here is a better approach:
- Write one request. Describe for each room what needs to be done, what quality you want and what you will do yourself. Add photos, measurements and possibly a sketch. Send the same document to all contractors.
- State what you want to see in the quote. Explicitly ask for a materials/labour breakdown, named provisional sums and prices including VAT.
- Make a comparison table. Put the items of your request in the rows and the contractors in the columns. For each item, fill in whether it is included, not included or included as a provisional sum.
- Level the quotes. If contractor A includes the demolition work and B does not, add a realistic amount to B (or ask B for an addition) before you compare totals.
- Compare the provisional sums separately. Deduct all provisional sums and compare the "hard" contract price. Then judge whether the provisional sums are realistic.
- Weigh the soft factors. Reviews, references, insurance, guarantee, schedule and your impression during the visit. The cheapest quote from a contractor who cannot start for another five months may not be the best.
If in doubt: call the contractor and ask follow-up questions. A tradesperson who can explain their quote well and is willing to add details is often also the one who communicates well during the work.
Common mistakes when comparing quotes
- Only looking at the total. The lowest price often contains the most provisional sums or the least description. The difference comes back later as additional work.
- Mixing up prices including and excluding VAT. A difference of 21 percent that has nothing to do with the contractor.
- Not having verbal promises put in writing. "We'll just do that as well" does not exist if it is not on paper.
- Not taking into account what you have to arrange yourself. A skip, a permit, electricity and water on site, clearing the room, disposal of the old kitchen.
- Ignoring the schedule. A lower price with a start in six months' time can cost more because of a longer period paying for two homes or a temporary kitchen.
- Signing too quickly under time pressure. A price that is "only valid this week" is a sales technique, not a sign of a good contractor.
- Forgetting the contingency item. Keep a reserve of 10 to 15 percent on top of the chosen quote yourself; also read How do you prepare for a renovation?.
Checklist: how to assess a building quote
- Are the company name, address, KvK number and VAT number on the quote, and are they correct when you check them?
- Is the description of the work specific and complete for each item, including demolition and disposal?
- Are materials and labour separated, with brand/type/quantity and hours or a fixed contract price?
- Are provisional sums named, realistic and limited in number?
- Does it state how additional work is charged and that it is approved in writing in advance?
- Is the price including VAT, and has the correct rate been applied (9 percent for painting and plastering work on homes older than two years)?
- Are the validity period, start date and duration stated?
- Is the payment schedule linked to milestones, with the final instalment after completion?
- Are the guarantee, general terms and conditions and any disputes procedure mentioned?
- Have you based all quotes on the same request and levelled them in one table?
Request quotes from tradespeople in your area
On VerbouwPro you post your job free of charge with one clear description. Contractors, painters, plasterers and other tradespeople from your area respond, you see their profile and reviews and you choose yourself whom you ask for a quote. That way you get quotes that are comparable from the start.