CORNHILL CONSTRUCTION QUOTATION VERSUS A BUILDER'S ESTIMATE

It is way too easy to fall into the trap of believing that the all encompassing price that we give to a client for a single storey extension is considerably dearer than if the client went to a local builder. True, if you compare our figure to that of the estimate from a builder our figure will be much higher, but that is not to say that placing the business with the builder would be greatly cheaper. Quite the contrary, in fact.

So what is the difference? Let's suppose that a client has asked Cornhill Construction give them a quotation for their single storey extension. The proposed extension is to their kitchen to give them a breakfast room. It is approximately 4.5 metres X 4.5 metres, with a hipped tiled roof. Cornhill's price is say £40,000 including VAT.

Bob the Builder then gives them a price of £30,000 for the same thing. £10,000 is a big difference and clearly the client would like to save it. The truth of the matter is that even if they placed their business with Bob, they are not going to make the savings they imagine, if at all.

On getting the job, Bob then informs the client, if they are not already aware, that they need to have plans drawn up for the planning permission, and for building regulations approval, and of course he needs working drawings to build from too. An architect is therefore needed. Architects fees for a project of this nature would range from £1500 to £3000 depending on the architect, and how good or busy he/she is. Let's say £2250 to split the difference.

Next, of course, would be the local authority fees for both planning and building control. For a contract of this sort of size these fees would be close to £1000.

No one mentioned to the client at the outset that because they want a knock through done to open the kitchen into the breakfast room, a structural engineer would be needed to design and size the lintel! One visit to site to survey and discuss, one and a half hours at his office doing his sums and a trip to site when it is being done (to satisfy himself and the architect) and there is another bill for £750 inc VAT.

Now assuming the client has not got an HNC in Building Technology and a lot of time on his hands, and is of sound mind, he will want his building programme project managed. He may well believe Bob, when Bob tells him that that is what Bob is for. No, it's not. Bob is a builder, not a project manager. Bob is extremely good at his trade (be that carpentry, bricklaying or even general) but it is likely that he has precious little project management experience, if any. Unsuspecting clients often accept the word of a builder, that a project manager is not necessary . . . for about two weeks into the build. The “on the ball” ones then realise that Bob is running from pillar to post, trying to build, order materials, chase materials, quality check the other trades work, liaise with the planners, avoid the building control officer, get skips changed over, find a replacement for the plumber who never turned up, encourage the labourer to put his paper down and get on with it, whilst at the same time, line up the next trades that are due in next week, and remember to order an extra pallet of bricks because he got his quantities wrong in the first place (Oh yes, to save another £600 no one ever had a proper “bill of quantities” done by a Quantity Surveyor). Meantime he has been so busy doing all of this that he has fallen behind on the walls he was building, so the project is already a week behind schedule.

As if this isn't bad enough, Bob then admits that his Eastern European bricklayers have rushed back to Lithuania to look after their ageing Grandmother and are not expected back in the UK for 10 days to 2 weeks and the electrician he subcontracted the electrics to can now no longer fit the job in to his schedule because of the 3 week delay and he is having trouble finding one who can. Using sub-contractors may well save you some money but the delays they often cause will have you tearing your hair out!!

The client would then obtain the services of an experienced project manager to wrestle the whole thing back on track. Of course there is a cost for this. Even if a job is to be managed from the outset, before there is a mess to sort out, project management is reckoned to cost anyway from 7.5% to 10% of the project cost. With the original cost of £30,000 plus the fees of £4,000 the project is now £34,000. Project Management would therefore be in the region of another £3,000.

So now we are only a couple of weeks into the build and the original £30,000 has already risen to £37,000!!!

Add to this that builders are notorious for adding “extras” as you go along that anybody would assume was originally included, and the small difference between their original “bargain” price and Cornhill's complete package price is completely eroded.

The above does not take into account that the client is expected to be on hand to accept deliveries at all hours. Constant trips to the bank to draw out cash to pay the labour force ( didn't they make it clear in the beginning that the whole thing was priced for cash?? By the way that's also why you haven't got a written guarantee!!) Add to that the client is still piggy in the middle between the builders, the project manager, the planners, the architect and the building control officer, and it quickly becomes apparent that Cornhill's price (which included VAT because it's all above board, and includes a ten year guarantee) seems remarkably low, given that we handle every single aspect from design, draw, and local authority permission, using our own labour force, inspected and overseen by our own project managers, who themselves have the backing of the Home Counties' leading Home Improvement Group. And at all times the client only has one person to deal with, their dedicated Project Manager. All at a fixed price.

Our prices are not dear. They are simply realistic, compared to partial prices by others.

For Bob's price read “LOW ESTIMATE TO GET THE JOB, WE'LL ADD ON EXTRAS LATER” plus “WE HAVE NO IDEA EXACTLY WHEN WE WILL BE ABLE TO ACTUALLY FINISH THE JOB”

Then add Architects, local authority fees, structural engineers fee, project management, all the extras grudgingly agreed to just to get the job finished, and private therapy and hair weaves just to get through it!

Suddenly, Cornhill's ALL-INCLUSIVE price of £40,000.00 starts to look extremely attractive!!

back