What’s the difference between a quote and estimate? Find out how we manage your renovation budget

I often get asked by clients for a budget estimate in my very first meeting. The best I can offer them at this stage is a general guide based on their property’s current market value. The final project budget will only come to light once we have been engaged to provide our services, which will allow us to work through the scope of work, desired fixtures and finishes with the clients.

If you are getting contractors or shop fitters to give you quotes without finalising the scope of work, design and finishes, then you are almost certainly going to receive estimates. These will not give you much clarity, and not match the associated invoices. We have seen a range of estimates that are:

• Higher than quotes - as they will include a margin to allow for the aspects of the project that haven’t been detailed or specified

• Lower than quotes - as the tradesperson will have a list of tasks/items that have not included until finalised

• Include “if . . . then” scenarios* - for example, if the damage to floor joists exceeds 3m2 as seen on site, then the cost to replace every additional m2 will be $$. These will most likely attract a call-out or similar fee as they require a lot of time to put together, which may be reimbursed if engaged for the renovation project. If you are getting several such quotes, it could be an expensive exercise. On the other hand, if you have finalised your design and scope of work, then you are more likely to receive quotes that will match invoices at the completion of the project. So, there are no nasty surprises and you can be confident that all the required work has been included. The benefit is that you will get a clear idea of the fixed part of your project budget, and can proceed to allocate what’s left on materials and contingency (trade or labour is the fixed part of your budget as tilers will charge the same rate regardless of whether they are using $19 or $90 tiles to tile your bathroom).

If your project budget is under pressure, we can work with you to defer some work, or get cost-effective materials to achieve your look.

A general guide to help you plan your budget is explained in How much should my renovation cost?

360 Renovation Consulting provides professional renovating services to commercial and residential property owners looking to maximise the appeal and functionality of their space. We provide every degree of support to make your renovation stress-free, and enjoy the challenge of stretching every dollar of your project budget to help you achieve your renovation objectives. Call us now to see how we can help !