When you're pulling together a build, there are a few stages to move through.

Getting quotes from builders is part of that process, and with a quote you can sort out your finance and a whole lot more.

But what do you do if the build contract comes through with a much higher price than the original quote?

I feel a bit like the Hitchhiker's Guide to the Galaxy, but "DON'T PANIC" is a good place to start.

First up, how old is the quote? Most quotes have an expiry date, so if you're still within that period you certainly have the right to challenge it.

Sometimes there's no date on a quote. Still no panicking, as an unsigned quote is generally considered live for 3 months. It might take legal action to enforce it though.

Also, have you already paid a deposit? A contract has 3 parts - offer, acceptance and consideration. So if you've signed the quote and then paid a deposit, you have solid grounds for considering it a contract.

Why Has It Changed?

In order to work through this with your builder, a legitimate first question is to ask why it's changed.

For example, if details were changed from the original scope of works, then those alterations can justify a price increase. Clients are notorious for fiddling around with floorplans and designs. If you've done that, then you can't expect the builder to soak up any extra costs that result from your changes.

So ask the builder for a detailed breakdown of the revised quote. This will help you understand the reasons for the increase and determine if the new costs are justified.

If you need to, get quotes from other builders for the same scope of works. This will give you a better idea about whether the new price is reasonable.

Should You Challenge It?

Knowing whether or not the increase is justified is part of the equation here, but there are some other things to take into consideration.

Many people have compared working with a builder to a marriage. Maybe you're not joined together until death, but you certainly are joined together until the project is completed.

If you start the relationship by having an argument, then you're most definitely starting out on the wrong foot.

Essentially, you'll have established an oppositional and antagonistic relationship with the builder. Trying to move from there to a place where you can work together in harmony for the benefit of the project is a big ask.

Even worse, the builder might decide that divorce is preferable to staying married to a difficult client, and you're right back at square one, staring at a dating app and wondering what to write in your profile.

What Caused It?

It's important to understand what caused the increase and whether it's reasonable.

Maybe you changed a few things and the contract has gone up by $50k. Is it worth blowing the whole thing out of the water just to make a point?

A first step would be to discuss the revised quote with the builder. There might be room for negotiation, especially if you can show that other builders offer similar services at a lower price.

If the builder has been reliable and professional up to this point, and you believe in the quality of their work, then bear in mind that a long-term relationship can potentially lead to better overall value.

But if the price increase is significant and you’re not comfortable with it, you might need to reconsider your options. This could involve negotiating further, seeking alternative builders, or even postponing the project if necessary.

If discussing it with the builder doesn't get you anywhere, particularly if the price increase is unjustified or if there is a dispute over the terms, consult a legal professional or a construction contract expert to understand your rights and options.

Other Considerations

Given the relationship with your builder has already started shakily, it's important to make sure you cover yourself moving forward, just in case further issues arise.

Ensure that all terms and conditions are clear and agreed upon before signing the contract. This includes payment schedules, materials, timelines, and any potential additional costs.

Make sure that all changes, including any agreed-upon price adjustments, are documented in writing. This helps prevent misunderstandings down the track.

Finally, make sure you get legal advice before you sign the contract. Lawyers who work in this space have seen most of the things that can happen to mess things up, so it's worth paying to have them check your contract and flag any potential land mines hiding in there.

By taking these steps, you can address the issue professionally and make an informed decision about how to proceed with your project.

And hopefully live happily ever after with your builder. Well, until the project is done at least!