When you start getting into the detail of your building quote, you'll come across two terms that trip a lot of people up — prime costs and provisional sums. Understanding these properly can save you from some nasty surprises when invoices start arriving.
A prime cost is a dollar allowance in your quote for items that haven't been fully selected yet. Things like taps, tiles, light fittings, appliances — the stuff you'll choose during the design and selection process. The allowance represents what a standard choice might cost. If you pick something that costs more than that allowance, the difference gets added to your contract price. Simple enough.
Where it catches people is when those allowances are set unrealistically low. If your builder allows $3,000 for kitchen tap ware and the taps you actually want cost $5,000, that's $2,000 extra you weren't expecting. A builder who's low-balling you will set those figures low on purpose — it makes their price look sharp when you're comparing quotes. A good home builder sets allowances that genuinely reflect what a decent finish costs.
Provisional sums work a bit differently. These are for costs that genuinely can't be locked in until the work is done — things like earthworks, pier foundations, or unexpected site conditions. They're an honest estimate of what that work is likely to run. Again, the quality of that estimate depends heavily on how much investigation your builder did upfront.
The best way to control your costs is to minimise how many prime costs and provisional sums are in your quote. That means making your selections early, choosing your finishes before you sign if you can, and working with a Mackay builder who does proper site investigations before putting a number on paper.
In Mackay's climate, unique homes often need specific site work that a lazy quote will gloss over. Being lifestyle focused also means being financially focused — knowing what your home will actually cost before you commit is part of the service a customer focused builder should deliver.
At INH Mackay, we work hard to minimise the unknowns for our clients. Find out more at inh.com.au/Mackay.
