Let’s be real: if a client isn’t willing to pay a consulting or quotation fee, that’s probably a red flag already.
Think about it. If someone’s planning to spend $1 million, $2 million, or even $3 million on a build, then a $3,000 consulting fee isn’t exactly make-or-break. In fact, that $3,000 could save them hundreds of thousands down the track.
The Design Trap
Here’s a scenario that plays out far too often:
A client walks into an architect’s office and says, “This is my budget.” Then they spend 6–12 months deep in the design phase, building a dream around that budget. They fall in love with the concept. Then the plans go out to two or three builders, and every single quote comes back hundreds of thousands (or even millions) over the budget.
What happens next? You’re back to square one, scaling everything down, scrapping parts of the design, and settling for something average – all because no one told you what the real cost of building that dream would be.
Who’s Actually Responsible for Costing?
Here’s the unfortunate truth: architects aren’t responsible for accurate costing. Yes, you can bring in estimators, but unless they’re extremely detailed and experienced with your specific type of build, they’re likely to miss things. And even then, they’re not factoring in the actual running costs of the building company.
Every builder runs a different kind of business. Some builders are exactly what people imagine: one bloke on site with a couple of apprentices which is obviously perfectly fine if they are happy to run their business like that. But if you’re running a professional, reliable building company, you can’t be on site every day swinging a hammer.
You need:
- A project manager
- A foreman
- Admin support
- Someone doing your estimating
If you’re quoting jobs yourself, that means you’re not on site. So something’s got to give.
Business Models Matter
The structure of the business directly impacts the running costs. But it also impacts how supported your project is.
You can go with the cheap guy who’s juggling everything himself, but don’t expect smooth communication, timely progress updates, or accountability.
On the flip side, builders like us use project management software so:
- Clients can log in and track progress
- Staff can log hours
- Purchase orders and budgets are visible
- Everything runs smoother, and the data is clean
That software isn’t free – it’s a running cost. But it also means your project won’t go off the rails halfway through.
It’s Not Just About Price
Choosing a builder shouldn’t come down to price alone. You need to understand:
- Their business model
- How they operate
- Why they charge what they do
- What their previous clients say about them
You can save $50k or $100k upfront, but if you’re losing sleep every night because your builder’s not in control, is it really worth it?
Apples Aren’t Apples — And Mispricing Warps Market Value
Most builders are paying the same for labour, materials, and plant. The big difference in pricing usually comes down to:
- Poor documentation
- Missed items in the quote
- Lack of communication or due diligence
Here’s the real kicker: when one builder misprices a job – either by rushing the quote or not fully understanding the scope – it gives the client a false sense of what the market value actually is.
So now, that undercooked quote becomes the reference point. And the builders who’ve taken the time to quote properly and include everything? We suddenly look like we’re really expensive, when in reality, we’ve just priced it right (or at least a hell of a lot closer).
This warps expectations. Clients think they’re getting ripped off by the builders quoting accurately, but what they’re actually seeing is the consequence of a poorly scoped or incomplete quote>.
If a builder hasn’t been paid for their time in the pre-construction phase, they’ve got no real incentive to do a thorough job. But when a builder is compensated properly, they take responsibility. They check the documents, ask the hard questions, highlight the gaps, and quote with precision. That’s how you avoid the trap of a cheap quote turning into a budget blowout later.
You Want Your Builder to Make Money
Let me say that again: you want your builder to make money.
A profitable builder is a sustainable builder. If your builder is barely scraping through or worried about covering costs, that stress will show up on your site. Trust me, this comes from a place of experience.
It’s kind of ironic – people are happy to pay quantity surveyors or designers but baulk at paying a builder for quoting because they think they’re being “locked in”. Or they think builders slap ridiculous markups on everything. But the truth is, the margins are often tight, and most of us are working with the same material and labour costs.
So when one quote comes back way cheaper than the others, you’ve got to ask yourself: What’s missing?
Gone are the days of four walls and a tin roof. Today’s builds are complex. It’s bloody easy to miss something. And when something’s missed, guess who pays for it? Either you, in variations, or the builder, and that’s when corners get cut.
Final Thoughts
This isn’t about squeezing people for more money. It’s about transparency. If we’re paid properly to quote, we’re responsible for getting it right – and that’s what you want.
We consider ourselves consultants in this industry – not just builders. We add far more value than most people realise. So it’s fair to be paid like consultants.
I don’t know about everyone else, but I’m here to stay. I want Lou Projects to be around for the next 20+ years. What’s the point of getting a cheap build if your builder isn’t going to be around next year to fix things when they inevitably come up?
At the end of the day, we need to profit on every job. Not to gouge, but to sustain. To deliver quality. To keep showing up for clients, every day, for decades to come.
