Before accepting a construction quotation, check ten things: that every quote covers the same scope, what is excluded, the specifications and brands, provisional sums and prime cost items, whether VAT is included, how long the work will take, the payment terms, how variations will be priced, the warranty and defects period, and whether the contractor is registered and able to deliver. Two quotes for "the same building" can differ by 30 percent simply because one leaves out the external works or uses lower-grade materials. Line them up side by side and you will see which price is real.
We price jobs and also review quotes for clients. These are the checks we use.
1. Do all quotes cover the same scope?
The most common problem is that each contractor priced something different. One includes plumbing and electrical, another does not. One includes the septic tank and boundary wall, another stops at the building. The fix is to give every contractor the same drawings and, ideally, a Bill of Quantities to price. Then you compare line by line.
2. What is excluded?
Read the exclusions page first. Common ones:
- Water and power connections.
- External works: paving, drainage, fencing.
- Permits and approvals.
- Site clearance and removing rubbish.
- Soil tests and engineer's fees.
- Painting, ceilings or fittings.
Anything excluded is still a cost. Add it to that quote before you compare.
3. Are the specifications the same?
"Tiles" can mean a cheap ceramic or a good porcelain. "Iron sheets" can mean gauge 32 or gauge 28. Check:
| Item | What to compare |
|---|---|
| Concrete | Grade (C20, C25) and who tests it. See concrete grades |
| Reinforcement | Bar sizes and spacing to the structural drawings |
| Blocks | Size and strength, machine made or hand made |
| Roofing | Sheet gauge, coating, brand, insulation |
| Windows and doors | Material, glass type, ironmongery |
| Finishes | Tile type and size, paint brand and coats |
4. Watch provisional sums and PC sums
A provisional sum is an allowance for work not yet designed. A prime cost (PC) sum is an allowance for something you will choose later, like light fittings or sanitary ware. They are normal, but a quote with large or unrealistic allowances can look cheap and then grow. Check that each allowance is realistic, and treat a low allowance as a future extra.
5. Is VAT included?
Some quotes include VAT and some do not. Some contractors are VAT-registered and some are not. Put every quote on the same basis. A difference of 18 percent can make the "cheapest" quote the most expensive.
6. How long will it take?
Ask each contractor for a programme. A very short programme may be unrealistic, and a long one may mean they have too much other work. See our guide on realistic construction timelines.
7. Payment terms
Check the advance payment, how often interim payments are made and against what, and the retention.
- Advance payment: keep it modest and, for larger contracts, secure it with an advance payment guarantee.
- Interim payments: pay against measured work, not against dates.
- Retention: commonly 5 to 10 percent, held until the defects period ends.
Avoid paying most of the money before the work is done. Our construction contract checklist explains safe terms.
8. How will changes be priced?
Ask how variations will be valued. The best answer is "using the rates in the Bill of Quantities". If rates are not given, you have no basis to check later changes.
9. Warranty and defects period
What happens if the roof leaks six months after handover? A proper contract has a defects liability period, often 6 to 12 months, during which the contractor fixes defects at their cost. See our guide on construction handover.
10. Who is behind the price?
A good price from a contractor who cannot deliver is worthless. Check:
- Registration with the Contractors Registration Board in the right class. See CRB classes explained.
- Similar projects completed, and references you can call.
- Staff, equipment and cash to carry the job.
- Insurance.
Our guide on assessing a contractor's experience and capacity goes deeper.
Build a comparison table
Put the quotes in one table: base price, cost of exclusions added back, VAT adjustment, allowance adjustments, programme, payment terms. The adjusted figure is the real comparison. Very low prices compared with the others deserve questions, not celebration. Ask the contractor to explain how they priced it.
Red flags in a quotation
Some quotes tell you more about the contractor than about the building. Be careful when you see:
- A single lump sum with no breakdown. You cannot check it or value changes later.
- A price far below the others with no clear explanation. It usually means something was missed or will be claimed later.
- Vague words such as "standard finish", "as required" or "good quality" in place of specifications.
- A large advance payment requested before any work.
- No company details: no registration number, address or TIN on the letterhead.
- Pressure to sign quickly because "prices are going up tomorrow".
None of these proves a contractor is bad, but each one deserves a direct question before you go further. Our guide on avoiding construction scams lists more warning signs.
Frequently asked questions
How many quotes should I get?
Three to five is common for a building project. Fewer gives little comparison; many more wastes everyone's time.
Should I always take the lowest quote?
No. Take the best value: a complete scope, sound specification and a contractor able to deliver, at a fair price.
What is a reasonable advance payment?
Many contracts use 10 to 20 percent, secured by a guarantee on larger jobs. Avoid large advances to contractors you do not know.
Can I negotiate a construction quote?
Yes, but negotiate scope and specification openly. Squeezing the price without changing the work often leads to hidden cuts on site.
Should the quotation include a programme?
For anything larger than a small job, yes. A programme shows the contractor has thought about sequence and resources, and gives you a baseline for tracking progress.
Want a second opinion on a quote?
Vika Construction offers project management and builds across Tanzania. Contact us to discuss your project or to request a quotation.
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