In a series of articles, the team at will discuss pitfalls to avoid when building new or renovating an existing home.
Understand The Tender
Provisional Allowance – An estimated contingency to cover ‘unknowns’ based on costings from past projects. A low PA requires additional funds to cover the work. Conversely, a credit is applied if the estimate was high.
Base Price – This lump sum covers everything for the build based on the builder’s standard allowance for materials and finishes. It is more accurate than a sq/m rate, but unlike a bill of quantities, it does not allocate costing for specific items.
Owner’s Selections – These additions are project specific such as A/C, flooring and driveways as well as owner’s upgrades to the standard inclusions. The cost of any Owner’s Selections are formally approved by the owner before the build.
Costs can rise due to factors beyond anyone’s control. Ask your builder about time frames and how long they will hold the tender price.
At Grand Pacific Homes, we believe trust is the basis of every good building relationship.
Need advice? The team at Grand Pacific Homes can help. Get in touch: (02) 4227 6405 or info@grandpacifichomes.com.au
