Renovation Quoting for Australian Builders: Stage-by-Stage Breakdown

Renovation quoting in Australia requires more than just pricing the work.

You need to structure quotes that align with HIA contracts, manage variations properly, and protect your margins through clear stage payments.

The Australian Renovation Quote Structure

Aligning with HIA/MBA Contracts

Most Australian renovation contracts use standard progress payment stages:

Standard 5-Stage Payment Schedule

1. **Deposit** — 5-10% (max 10% under Australian Consumer Law)
2. **Frame Stage** — 15-20%
3. **Lock-Up Stage** — 35%
4. **Fixing Stage** — 30%
5. **Completion** — 10-20%

Your quote should mirror these stages so progress claims are straightforward.

Quote Document Structure

Section 1: Project Overview

• Client details
• Site address
• Project description
• Quote validity (30 days standard)
• Builder licence number
• Insurance details (public liability, home warranty)

Section 2: Scope of Works

Detailed description of all work, organised by stage:

• Demolition and site preparation
• Structural works
• External works
• Internal works
• Finishes and fixtures

Section 3: Specifications

• Materials and finishes
• Fixtures and fittings
• Allowances (PC sums and provisional sums)

Section 4: Pricing

• Stage-by-stage breakdown
• Prime cost items
• Provisional sums
• Contingency allowance

Section 5: Exclusions

• Items not included
• Customer responsibilities
• Assumptions

Section 6: Terms and Conditions

• Payment schedule
• Variation process
• Dispute resolution
• Warranties

Pricing Each Stage Accurately

Stage 1: Demolition & Site Prep

Labour Items

• Site establishment (skip, fencing, amenities)
• Demolition (internal, external)
• Asbestos removal (if applicable — separate quote)
• Site clearing and levelling
• Temporary works and protection

Materials

• Skip bins (number and size)
• Temporary fencing
• Protection materials
• Demolition equipment hire

Hidden Costs

• Council permits
• Traffic management
• Neighbour notifications
• Utility disconnections

Stage 2: Structural Works

Labour Items

• Excavation and footings
• Concrete work (slabs, beams)
• Steel fabrication and installation
• Framing (timber or steel)
• Roof structure

Materials

• Concrete (m³)
• Reinforcement (tonnes)
• Steel beams and posts
• Timber framing
• Roof trusses or rafters
• Structural fixings

Subcontractors

• Excavation
• Concrete pumping
• Steel fabrication
• Crane hire

Stage 3: Lock-Up

Labour Items

• External cladding
• Roofing
• Windows and external doors
• Flashings and weatherproofing
• Rough-in coordination

Materials

• Cladding materials
• Roofing materials
• Windows and doors
• Flashings and membranes
• Insulation

Subcontractors

• Electrician (rough-in)
• Plumber (rough-in)
• HVAC (rough-in)

Stage 4: Fixing

Labour Items

• Internal wall linings
• Ceiling installation
• Internal doors and frames
• Joinery installation
• Tiling
• Painting preparation

Materials

• Plasterboard
• Cornices and architraves
• Internal doors
• Joinery units
• Tiles and adhesives
• Paint and preparation materials

Subcontractors

• Plasterer
• Tiler
• Joiner
• Painter (preparation)

Stage 5: Completion

Labour Items

• Final fix (electrical, plumbing)
• Hardware installation
• Final painting
• Floor coverings
• Landscaping (if included)
• Cleaning and handover

Materials

• Electrical fittings
• Plumbing fixtures
• Hardware
• Floor coverings
• Landscaping materials

Managing Prime Cost (PC) Items

PC items are allowances for items the customer will select:

• Tapware
• Lighting
• Appliances
• Floor coverings
• Tiles

How to Quote PC Items

"PC Sum for kitchen tapware: $500"

"Includes supply only. Installation included in labour."

"If actual cost exceeds PC sum, difference will be charged as a variation."

Protecting Yourself

• Set realistic PC sums (not lowball to win the job)
• Document the PC sum clearly
• Get written approval before ordering items over PC sum

Variations Management

Variations are where renovation margins live or die.

Quote Variations Properly

Every variation should include:

• Description of additional work
• Reason for variation (customer request, unforeseen condition)
• Labour cost
• Material cost
• Margin
• Impact on timeline

Variation Approval Process

1. Identify variation requirement
2. Prepare written variation quote
3. Get customer signature before proceeding
4. Add to running variation register
5. Include in next progress claim

Common Renovation Variations

• Structural issues discovered during demolition
• Asbestos or hazardous materials
• Customer changes to specifications
• Council requirement changes
• Service relocations

Contingency Allowances

For renovations, always include contingency:

Recommended Contingency

• Minor renovation (cosmetic): 5-10%
• Medium renovation (structural changes): 10-15%
• Major renovation (heritage, unknown conditions): 15-20%

How to Present Contingency

"Contingency Allowance: $15,000"

"This allowance covers unforeseen conditions typical in renovation work. Unused contingency will be credited at completion. Additional variations beyond contingency require separate approval."

Insurance and Compliance

Home Warranty Insurance

Required in most states for work over $20,000 (varies by state).

• Include certificate number in quote
• Factor premium into pricing

Building Permits

• Quote permit fees separately or as allowance
• Note approval timeframes in quote validity

Certifier Fees

• Include as provisional sum
• Varies by project complexity

Using QuoteOS for Renovation Quotes

Instead of spending days on renovation quotes:

1. **Enter project scope** — Room by room, stage by stage
2. **AI structures the quote** — Using your pricing library
3. **Add PC sums and contingency** — Customise allowances
4. **Generate professional PDF** — HIA-aligned format
5. **Track variations** — As the project progresses

Try QuoteOS free → [Builder Quoting Software](/trades/builders)