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How to read a contractor quote (BOQ)
How to read a contractor quote (BOQ)
A planning estimate gets you a number; a contractor's quote commits you to it. Here's how to read one, what a proper estimate must include, and the red flags to watch.
The three contract types
- Labour-only — you buy all materials; the contractor charges for labour (often per sq ft). Most control, most effort.
- With-material (item rate) — the contractor supplies labour and materials at agreed rates per item. Common for homes.
- Turnkey (lump sum) — a single price for the finished house to a spec. Least effort, but the spec must be airtight.
What a proper quote (BOQ) includes
- Itemised work with quantities, units and rates — not just lump sums
- Material specifications — cement grade, steel brand, tile/fitting make and size
- Clear inclusions and exclusions (external works, GST, approvals)
- A payment schedule tied to stages, and a timeline
Red flags
- Vague items ("finishing — lump sum") with no specs or quantities
- A rate far below others — usually means cheaper materials or hidden extras
- No mention of GST, external works or who handles approvals
- Large upfront payment not tied to completed stages
Use your SimpleHome estimate as the benchmark to sanity-check each quote against. See how we estimate →
FAQ
Is a per-sq-ft quote enough?›
It's fine for early comparison, but before signing get an item-wise BOQ with quantities, rates and material specs so you know exactly what's included.
Should the quote include GST?›
It should state it clearly. Construction services attract GST, and registration/approval fees are separate — make sure you know what's in and out.