There are costs associated with your build, purchase or renovation. These are in addition to ACT Government fees.
Be sure you understand which costs are and are not included in your contract.
Getting quotes
For building and construction services, before requesting a quote from someone you are thinking of hiring:
- check to see if they charge for a quote
- check to see that they are qualified to provide the service
- be specific about the fittings, finishes (which include paint, grout, etc), appliances and floor coverings you want so you get a more accurate quote
- provide completed plans or specifications, if possible
Getting at least three written quotes before you decide who to hire is a good idea.
There is a difference between a quote and an estimate.
Estimate
An estimate is a reasonable assumption of the costs involved without knowing the exact extent of the work to be done or the exact costs of materials. An estimate, even if written, will not bind the person providing it to you, and you can end up paying more or paying for work you didn't expressly authorise.
Quote
A quote is a legally enforceable document detailing all the work and parts or materials to be used. It should have a time limit for which the quote is valid. The quote should always be fixed and state how long it is fixed for. Quotes that are based on an hourly rate plus costs do not guarantee a set price.
If you change your mind on what you want, write a list of the changes or have the plans re-drawn and ask for a re-quote.
Prime cost and provisional sum items
Prime cost items
Prime cost items are those you may not have selected at the time of the contract. The contract sum includes an amount of money estimated to purchase the items. This allowance should be a reasonable estimate for a standard or average item. You must pay the price difference if you choose a more expensive item.
Prime cost items can include:
- stoves
- heating
- tiles
- carpets
- taps
- bathroom fittings
- light fittings
The above list is not exhaustive. Prime cost items should be specified in the contract or listed in an attachment.
To avoid disputes and additional costs at the end of your contract, keeping the number of prime cost items small is a good idea. Select other items upfront to know the actual cost before the work starts.
Provisional sum
A provisional sum is an amount of money included in the contract sum to cover work or materials where the extent needed cannot be precisely detailed when entering a contract. Typically, this may consist of site work costs, covering unforeseen circumstances such as rocks and materials in the earth that could not be reasonably detected before work starts.
