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  • Writer's pictureJ&R Builders

Beware the PC sum trap when choosing a builder.

When making a comparison between quotes from builders, make sure you are comparing “apples with apples” and you are aware of any PC sums or excluded items in the build contract. This will help you choose the right builder and avoid the stress of being presented with cost variations along the way.

A PC sum is a price allowance for a scope of work in your build contract that you agree NOT to fix the cost of. In some instances, PC sums can be useful in providing greater flexibility – for example, you may agree with your builder to have a PC sum or allowance for your kitchen to give you time to choose all of your fixtures, fittings and finishes. However, we believe agreeing on specifications with your builder right from the start is a much safer approach if you want to keep to a budget. This is because if PC sum estimates are unrealistic, they can be misleading and reduce the overall perceived cost of your home. Our advice is that if you are using a PC sum, do some research and make sure the PC sum amount allowed in the contract is realistic for the end result and specifications you want.

Another common trap is beginning the planning stage of building with a budget expectation based solely on square meter rates. While these can be helpful as a rough guide, when it comes to building there are many variables in design, material and specification choices that can vastly impact the end build cost. It can be helpful to involve your builder during the design stage to help ensure your layout, material and specification choices are aligned with your end budget.

At J&R Builders, we want to ensure your home will be exactly what you envisioned with no surprises to the budget along the way. To help achieve this, we do our best to eliminate PC sums and exclusions. That way, we can build your quote based on specific material and sub trade costs, and ensure you get accurate pricing from the get-go.

If you are thinking about building in the Far North or you would like more information about the building process, give us a call on 09 406 1123 - we are here to help. 

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