Risks and Benefits - Quoting Square Meter/Foot Rates vs. Full Quotations in Construction

Date Written: 2023-08-30

When pricing construction projects, contractors often decide between quoting square meter/foot rates or preparing full quotations. Let's explore the advantages and potential pitfalls of each approach:

Quoting Square Meter/Foot Rates:

Benefits: Speed, simplicity, flexibility, and transparency.

Risks: Limited accuracy, scope misalignment, unforeseen costs, and unrealistic client expectations.

Preparing Full Quotations:

Benefits: Accuracy, comprehensive assessment, tailored pricing, and better client understanding.

Risks: Time-consuming, complexity, and potential for higher costs.

A potential solution to this dilemma is to invest in an efficient estimating system, such as NextEstimate, which allows for estimates to be created very quickly from pre-built "Smart Templates". The time saved using this approach means that an quotation (or at least an estimated figure) can be provided very quickly. This is a much safer option that providing rates based on the area of a project.