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Why Quotes Vary So Much (and How to Spot the Red Flags)

Homeowners often get wildly different quotes. Here's why quotes vary so much — and how to spot red flags before you commit to a tradie.

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When you're hiring a tradie for work around the home, it's common advice to get a few quotes before making a decision. But what happens when those quotes vary wildly — sometimes by thousands of dollars?

It can be confusing and even a little stressful. One quote looks like a bargain, another looks like daylight robbery, and you're left wondering if you're comparing apples to oranges. So what exactly causes such variation in quotes, and what should you look out for before choosing a business?

Let’s break it down.

1. GST: Included or Not?

It might sound simple, but one of the most common reasons for confusion in quotes is GST. Some tradies include GST in their quote, and others don’t — especially those who are used to quoting for other businesses (where GST is typically excluded).

As a homeowner, you should always check whether the quote is inclusive or exclusive of GST. It can be a rude shock when you receive an invoice that's 10% higher than expected because GST wasn’t factored in.

💡 Tip: Always ask if the quote includes GST — especially if it’s not clearly stated.

2. Provisional Sums & Prime Cost Items

If you’re building or renovating, you’ll often see provisional sums and prime cost allowances in your quote. These are placeholders for items that haven’t been selected yet — like tiles, tapware or cabinetry.

One builder might base allowances on standard-quality materials, while another might quote for premium finishes. That can result in quotes that look quite different on paper.

💡 Watch for vague wording around these allowances. If they’re too low, expect variations later.

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3. Different Interpretations of the Scope

Some tradies take the time to fully understand your project, including reviewing plans, site visits, and asking questions. Others might take a quick look and send through a basic estimate.

The first approach usually results in a more accurate (and often higher) quote, while the second can lead to underquoting, which may mean surprises during the job.

💡 Ask for a breakdown of what the quote covers and confirm any assumptions made.

4. Risk Management Styles

Every tradie approaches risk differently. Some include a contingency buffer in their quote to account for unexpected delays or complications. Others might leave it out to appear more competitive — but then issue variations later.

Also, be mindful of clauses in contracts around price escalations, especially when it comes to materials or labour shortages.

💡 If a quote seems very low, ask how they plan to handle any unexpected issues.

5. Business Size and Overheads

Smaller businesses tend to have lower overheads — fewer staff, no office rental, and limited admin costs. That can allow them to quote less. But it might also mean they’re juggling multiple roles, which can impact timelines or communication.

Larger operations might charge more due to additional overheads but may offer a more streamlined process and better resource availability.

💡 There’s no right answer here — it depends on what kind of experience and support you’re after.

builder

6. Subcontractor Relationships

Tradies often rely on subcontractors — like plumbers, sparkies, or tilers. A builder with a strong, experienced team might pay a bit more but ensures smooth scheduling and consistent quality.

Cheaper quotes might come from using unknown or less experienced subcontractors. That can increase the risk of delays or needing rework.

💡 Ask about who’s doing the work — their experience and relationship with the main contractor.

7. Level of Detail in the Quote

Some quotes are highly detailed, breaking down every trade and line item. Others are just a lump sum.

While detailed quotes might look more expensive up front, they often reflect better planning. Vague or overly brief quotes can mean shortcuts were taken in the estimating process.

💡 If a quote lacks detail, ask for clarification. A clear quote gives you peace of mind.

tradie quote

8. Current Workload

Tradies’ prices can also fluctuate based on how busy they are. A builder with plenty of work might quote higher — or might decline altogether. Someone with a lighter workload may offer a discount to secure your project.

But bear in mind: if a business is too available, that could be a red flag in itself.

💡 Ask how soon they can start and whether they have ongoing jobs running at the same time.

So, How Do You Compare Quotes Fairly?

Here are a few quick ways to level the playing field:

  • Check what’s included (and what’s not). Read the exclusions section carefully.
  • Ask if GST is included in the total.
  • Look at the breakdown — more detail often equals more transparency.
  • Don’t just focus on price. Consider availability, communication, reputation, and how confident you feel about working with them.

Red Flags to Watch Out For

🚩 Suspiciously low quotes with little to no detail

🚩 Unwillingness to answer questions or explain the numbers

🚩 Cash-only pricing with no formal paperwork

🚩 Pushy sales tactics or pressure to sign quickly

🚩 No ABN or license details

Getting multiple quotes is a smart move — but they need to be compared properly. It’s not just about the number at the bottom; it’s about the value, detail, and trust behind it.

If you’re ever unsure, don’t be afraid to ask for clarification. A professional tradie won’t hesitate to walk you through their process.

💬 Need help getting quality quotes from verified tradies?
Let ServiceSeeking.com.au connect you with local pros who are ready to quote — no guesswork, no hassle. Post your job today and compare options the easy way.

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