Guides · Quoting · 6 min read · Updated 25 September 2026
How to quote as a small builder: scope, stages, allowances and the fine print that saves you
A building quote is the contract in draft. Everything the final claim will be argued over is decided here: what is in, what is out, when you get paid, and what happens when the client changes their mind. Get these right and the job runs itself.
Scope, in enough detail to be boring
Room by room or stage by stage: what is being built, demolished, supplied and finished, to what standard. Reference plans and drawings by name and date. Two pages of clear scope cost nothing; one vague paragraph costs a variation dispute.
Stages and percentages
Set the progress claims in the quote so the client agrees to them before you start: deposit, then stages that match real milestones (slab, frame, lock-up, fit-out, completion). Most states regulate deposit size and progress payments on domestic building work; check the rules for your state and put the agreed schedule in the quote.
Provisional sums and prime cost items
- A prime cost item is an allowance for something the client will choose, such as tiles or tapware, at a stated dollar amount. If they choose dearer, the difference is a variation.
- A provisional sum is an allowance for work you cannot price yet, such as rock excavation. State the allowance and how the difference will be handled.
- Both protect you and are fairer to the client than padding the price. List them clearly.
Exclusions
Council and certifier fees, asbestos, unforeseen ground conditions, existing services that need upgrading, landscaping, furniture removal. If it is not in the scope, say it is not in the scope.
The rest of the quote
- Your business name, ABN, builder's licence or registration number.
- Itemised or staged pricing, GST and the total including GST.
- Validity, usually 30 days.
- Payment terms per claim, for example 7 days.
- An acceptance line. On larger jobs the quote is followed by a formal building contract; the quote's scope and schedule should match it.
After acceptance
The quote becomes the job. Every claim, variation, subbie invoice and materials purchase is recorded against it, so the margin is visible while you can still do something about it. SmokoBooks does this from the accepted quote without retyping, and keeps the variation and work order documents branded and on the same job.
Common questions
Fixed price or cost plus?+
Fixed price with clear allowances is what most domestic clients expect and what most state contracts assume. Cost plus suits jobs where the scope genuinely cannot be defined up front, and needs a client who understands it.
How much deposit can I take?+
State rules cap deposits on domestic building work, and the cap depends on the contract value. Check your state's building authority before setting it.
Do I need a separate building contract?+
Above a threshold that varies by state, yes, a written domestic building contract is required. The quote should feed straight into it.
General information for Australian sole traders and small trade businesses, not tax or legal advice. Thresholds, rates and due dates change: confirm the current figures on ato.gov.au or with your accountant.