Best Outcome Quotation Process

Over the last decade or so, building brokers, designers and planning firms have established themselves as an alternate means in which to obtain quotations from builders with the supposed primary benefit being the procurement of the best possible price.

Whilst the idea of having an independent broker farm out your plans to various builders in order to obtain the best price sounds good in principle – it will not necessarily result in the best possible outcome, let us explore some pro’s and con’s associated with current industry models and outcomes and demonstrate how our methodology improves on these significantly - Read on below.

1. Is the recommended least expensive quote the best price and is this from the builder who is also the best fit for my project?

The price may be the least expensive quote within a basket of high-priced quotes, worse still, the only competition that the recommended quote may have could be itself – i.e. one quote only may have been obtained. Building brokers, design firms and other industry players will often have business relationships with builders whereby referrals and requests for quotations are channelled exclusively, as opposed to genuinely and fittingly farming the market. This circumstance exists for many reasons, including convenience in addition to potential varying degrees of remuneration offered between the builder and the referring party.

The residential building industry has a very broad spectrum with respect to the size, specification and the degree of intricacy related to the dwellings it produces. As a consequence different builders elect very definite and distinct positions in the market place. From a clients perspective, the significance of this relates to most suitable builder not only having the right experience and expertise but also that their position in the market draws on trade rates and material prices that are commensurate and aligned with the size, scale and specification of the proposed project on the table.

The nomination of the appropriate builders for quoting based on the merits and design characteristics of each individual project will result in better prices stand alone - the value of this strategic approach cannot be underestimated.

At Perth house design we follow systems and a protocol's for all clients that are designed to result in a recommendation, which is based on a combination of price competitiveness and builder suitability. Firstly and prior to submitting for quotations on behalf of our clients, the builders we consider must pass through a two-stage vetting process:

Stage # 1: Stage one qualification criteria:

a) Great experience in the marketplace.

b) Excellent reputation for the quality of their work.

c) Demonstrate a high level of customer service.

d) Responsible and well-managed businesses that cap new business orders in line with their production capacity when necessary.

e) Financial stability.

Stage # 2: Builders are then shortlisted based on their compatibility surrounding the following factors:

a) Size and scale of the build.

b) The degree of intricacy and the type of specification related to the build.

c) Compatibility of the builder’s usual construction methods and materials used measured against those demonstrated in the design and specification.

d) Competitive pricing.

e) Client preference.

2. Do I understand what is included in the price?

Specifications and standard inclusions will vary greatly from builder to builder. In order for a broker to accurately confirm as to what is and what is not included they must take the time to familiarise themselves with multiple specifications as elected by the sweet of different builders on their books - this can be made more difficult due to the builder's specifications changing regularly. Given this onerous task, it can often be the case that brokers can make assumptions in relation to specifications and consequently misquote, thus leading to disappointment and frustrations on the part of the client.

At Perth house design we are very careful and diligent in this area and ensure that the latest and up to date information is provided to our clients, in the event that a question cannot be accurately answered due to a lack of concrete information, we will take the time to conduct the necessary research and revert back to you once this is obtained.

3. Do I understand the particular policies of the recommended builder – for example, I want to supply my own bricks, is this OK? – I also want polished concrete floors; I assume that this is OK!

As with construction methods, choice of materials and specifications, the internal policies will vary from builder to builder, for example, some will be flexible in relation to owner supplied items (often to their detriment) and others will not. Using this example - the answer to this particular question it is not necessarily critical to a new prospective client, what is important is that this type of information is unearthed prior to the authorization of documentation and parting with funds as the alternative is a procedure to disappointment.

At Perth house design our checklist procedure will go a long way towards eliminating such disappointment and our overall diligent, transparent and candid approach and methodology will contribute significantly to a satisfying and rewarding customer experience.