What a builder's quote includes
Building quotes are long because the work is. A reader should be able to check the total on the first page and the detail behind it on the next ones.
- Summary: what is being built, where, the start date, how long it takes and how long the price holds.
- Price by stage: groundworks, structure, roof, first fix, second fix and finishes, each with labour and materials, so a change in one stage does not unravel the rest.
- Provisional sums: allowances for work nobody can price yet, such as drainage that depends on a survey. Mark each one as subject to change.
- Prime cost (PC) sums: allowances for items the client will choose, such as a kitchen or tiles. Say what the allowance buys and what you charge to fit it.
- Exclusions: planning and building control fees, structural engineer, party wall costs, decoration and anything else you have not priced.
- Payment schedule: tied to stages the client can see, never a large sum far ahead of the work.
- Variations: priced and agreed in writing before the work is done, with the effect on the end date.
Quoting only the labour of a trade, with the client buying the materials? Use the labour quotation format: it has the fields, per-unit and day-rate pricing, and a free Word and Excel file.
Example: single-storey rear extension
A quote for a rear extension, laid out by stage. Prices are examples only.
| Stage | Amount |
|---|---|
| Groundworks and foundations | £7,800 |
| Blockwork, brickwork and steel installation | £11,200 |
| Roof structure and covering | £6,400 |
| First and second fix: electrics and plumbing | £4,900 |
| Plastering and finishes | £3,600 |
| Provisional sum: drainage alterations (subject to survey) | £1,500 |
| Subtotal, excluding VAT | £35,400 |
| VAT at 20% | £7,080 |
| Total including VAT | £42,480 |
Stage payments for the same job
Each payment follows a stage the client can see. The amounts below are percentages of the £35,400 subtotal, before VAT.
| Stage | Share | Amount |
|---|---|---|
| On acceptance, to book the start date | 10% | £3,540 |
| Groundworks and structure complete | 25% | £8,850 |
| Roof watertight | 25% | £8,850 |
| First fix complete | 25% | £8,850 |
| Completion and snagging done | 15% | £5,310 |
A small final payment is a reason for the client to wait for snagging to be finished. Write what counts as complete next to each stage, for example that the roof is watertight when the covering and flashings are on.
Provisional sums and prime cost sums
Both are placeholders, but they mean different things, and mixing them up is how a quote turns into a dispute.
| Provisional sum | Prime cost sum | |
|---|---|---|
| What it covers | Work you cannot price yet | An item the client has not chosen yet |
| Example | Drainage, subject to a survey | Kitchen units, tiles, a sanitaryware set |
| What changes | The scope and price once the facts are known | The price of the item, to match what is chosen |
| What stays fixed | Your day rates and margins | Your fitting charge and handling margin |
| Where to write it | Its own line, marked as subject to change | Its own line, with what the allowance buys |
Load the loft conversion example to see a prime cost sum as a quote line.
VAT on building work
- Rates: most building work on houses and flats is standard-rated at 20%. Building a new house or flat is zero-rated, and converting a building into homes or renovating an empty home can qualify for the 5% rate. See GOV.UK: VAT for builders.
- Domestic reverse charge: where it applies, a VAT-registered business that supplies building services to another VAT-registered business in the Construction Industry Scheme does not charge VAT; the customer accounts for it. It covers most construction work, including installing heating, electrical and drainage systems and site work such as scaffolding. See GOV.UK: the VAT domestic reverse charge for building and construction services. Say on the quote which VAT treatment you expect, because it changes the total your customer pays.
- Late payment: for business customers the statutory interest is 8% plus the Bank of England base rate, with a fixed sum of £40, £70 or £100 by size of debt. See GOV.UK: charging interest on late commercial payments.
The guide to VAT on quotes shows how to lay out VAT on the page.
Building quote wording to copy
Replace everything in square brackets. This is general wording, not legal advice; have a solicitor check a contract for larger projects.
Project summary and exclusions
Project: [single-storey rear extension of about 20 square metres] at [address], for [client name].
Start: [date]. Expected duration: [14 weeks], depending on weather, access and decisions on provisional and prime cost items.
Not included: planning and building control fees, structural engineer, party wall costs, kitchen supply, decoration and flooring. We can quote any of these separately.
Provisional and prime cost sums
Provisional sums are allowances for work that cannot be priced until [a survey]. They are marked on the quote. The final price follows the work found, at the day rates in this quotation.
Prime cost sums are allowances for items you choose. If your choice costs more or less than the allowance, the difference is added to or taken off the price, and our fitting charge stays as quoted.
Variations, payment and validity
Variations: any change to the work above is priced in writing, with its effect on the end date, and agreed by you before we carry it out.
Payment: [10]% on acceptance, then on completion of each stage in the payment schedule. Invoices are due within [7] days.
This quotation is valid until [date]. To accept, sign and return it or reply to the email it came with.
When the quote is ready, send it with one of our quote email templates. Give the client clear quote acceptance wording, and use the steps in confirm a quotation once they say yes. If quotes are not turning into jobs, improve your quote acceptance rate with the nine changes in that guide.
For smaller jobs use the contractor and tradesman quote template; for the plumbing inside a build, the plumber quote template has the call-out and guarantee lines.