Planning

How to Read a Home Construction Quotation Before Signing

The nine sections a construction quotation should contain, the questions to ask about each, and the red flags that usually mean the price will change later.

By
Towardsnorth Editorial Team
Published
Reading time
3 min
Architect and engineer reviewing drawings and a house model at a site office

A quotation is a description of a home in numbers. If a section is missing, the description is incomplete and the price is provisional whether or not it says so. Here is what a complete quotation contains and what to ask about each part.

The nine sections

  1. Area statement. Built-up area per floor with the measurement rule. Ask: are balconies, staircase and tank slab counted, and at what percentage?
  2. Scope summary. Structure, finishing or turnkey, and the boundary of the site works. Ask: is the compound wall in or out?
  3. Structural specification. Concrete grade per element, steel grade, steel quantity basis, block type, plaster. Ask: is the steel quantity from drawings or an assumption?
  4. Finishing specification with allowances. A rupee allowance per item, not just a brand name. Ask: what happens if I choose above the allowance?
  5. Waterproofing and services. System named for terrace and wet areas; wire, pipe and switch brands. Ask: is the terrace ponding test included?
  6. Exclusions. A list, not a sentence. Ask: is anything "as per actuals"?
  7. Payment schedule. Stages, percentages and what "completion" of each stage means. Ask: who certifies completion?
  8. Timeline. Stage dates with a completion date. Ask: what happens if a date is missed?
  9. Defect liability and warranty. Period and coverage for workmanship, waterproofing and RCC. Ask: what is excluded from warranty?

Red flags

  • A single lump sum with no specification sheet.
  • "Standard quality" or "good brand" instead of a named grade or allowance.
  • More than 20% of the value payable before the plinth is complete.
  • No mention of supervision, testing or quality checks.
  • Exclusions described as "etc."

How the payment section should be structured is covered in Construction Payment Schedule: What Is Fair and Why, and the difference between contract types in Turnkey vs Labour Contract.

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