How to read a tradie's quote, and the red flags to watch for

A good quote tells you exactly what will be done, with what materials, for what price including GST, by whom and on what terms. If you cannot answer those questions from the paper in front of you, it is not ready to sign. The price matters, but the detail is what protects you: most disputes over renovation work start with something both sides assumed rather than wrote down.

Quote or estimate?

The words get used loosely, but the difference matters:

• A quote is a fixed price for a defined job. If the scope does not change, the price should not either.
• An estimate is an informed guess, and the final bill can go up.

Ask for a written quote. If some work cannot be priced until the job is opened up, such as rotten floor framing under old bathroom tiles, ask for those items to be listed separately with a rate (per hour, per metre, per item), so the rest of the price stays fixed.

What a good quote includes

Go through it line by line:

1. Business details. Business name, ABN, address and contact details, plus the licence number of the tradie or builder doing licensed work.
2. A clear scope. What comes out, what goes in and where. "Reno bathroom" is not a scope; "remove bath, install shower base, waterproof floor and shower walls, tile to 2.2 m" is.
3. Materials named. Brands, models or at least grades: tile size, tapware range, the air conditioner model and capacity, the roof tile profile. Without this, two quotes are not comparable.
4. Who supplies what. Items you buy yourself should be marked as owner-supplied so nothing is charged twice or missed.
5. GST. Quotes to households include 10% GST, and so do our figures. The quote should say whether the price is GST-inclusive.
6. Rebates and discounts. For solar, batteries and heat pump hot water, the STC or battery discount is usually taken off the price. It should appear as its own line, so you can see the full price and the discount.
7. Rubbish removal and making good. Skip bins, tip fees and patching or painting after the work are common gaps.
8. Start date, duration and payment stages. When they start, how long it takes and what you pay at each stage.
9. Certificates and warranties. Which compliance certificates you get and what warranty applies to workmanship and products.
10. Variations. How changes are priced and approved, ideally in writing before the work is done.

Red flags

None of these proves someone is dodgy, but each deserves a question:

• No written quote, or a price by text message with no scope.
• No licence number, or reluctance to give one, for work that needs a licence.
• A large deposit before work starts, especially for standard materials. Staged payments tied to finished work protect both sides.
• Cash only, or a discount for cash. It leaves you without a paper trail if something goes wrong.
• Pressure to sign today, "this price is only good until Friday", or door-knocking offers because they are "doing a job down the street".
• Rebate-led selling that talks mostly about the discount and little about the product or installation.
• Vague lines such as "sundries" or "all necessary work" covering a big part of the price.
• A price far below the others with no clear reason. Usually something is missing from the scope and will come back as a variation.

Licences and paperwork

Electrical and plumbing work must be done by licensed tradespeople under state licensing. Check the licence number on your state regulator's public register before you sign; it only takes a minute. When the job is finished, ask for the compliance certificates for electrical and plumbing work and keep them with your house records.

For larger building jobs, most states also require a written contract and, above a set value, home warranty insurance. The rules and thresholds vary by state, so check with your state's building or fair trading regulator for anything beyond a small job.

How to compare quotes

Get at least three quotes. Before comparing prices, make them comparable: same scope, same materials, same exclusions. If one quote includes something the others leave out, add it to the others or take it out of the first.

Then check the total against what the job typically costs in your state. Our cost guides break each job into its parts: the hours each trade needs at local labour rates, plus materials, checked against market prices and real quotes. For example, a mid-range bathroom reno typically costs $22,000, split system air conditioning in three rooms $9,000, and a 6 kW solar system with a small battery $8,900. See the details in our Bathroom renovation, Split system air conditioning and Solar panels.

Check your quote in a minute

Our "Is my quote fair?" tool compares the price you were quoted with what homeowners in your area typically pay for the same job: Is my quote fair?. If your quote lands above the usual range, it is not automatically wrong. Ask what makes it different: a higher spec, a harder site, or items the other quotes missed. A good tradie will be able to explain.

Before you sign

• Read the payment terms, the cancellation terms and any cooling-off period.
• Make sure the quote is dated and says how long it is valid.
• Keep every document, message and variation in writing.
• Ask for proof of public liability insurance.

A clear, itemised quote takes longer to write. The tradie who takes that time is usually the one who takes care over the job.