How to Read and Compare Trade Quotes in Australia

You have three quotes sitting on the kitchen table. One is $14,000, another is $18,500, and the third is $22,000. They are all for the same bathroom renovation. So which one is actually the best deal?

Most homeowners look at the bottom line and pick the cheapest. That is the single most expensive mistake you can make. A quote tells you exactly what a tradie will do, what they will not do, what materials they will use, and what happens when something unexpected turns up behind a wall. If you cannot read and compare trade quotes properly, you are making a decision worth thousands of dollars on gut feeling.

This guide breaks down every section of a trade quote, shows you how to compare trade quotes on a like-for-like basis, and flags the common traps that catch Australian homeowners every year. If you have not started the quoting process yet, read our companion guide on getting quotes from tradies first, then come back here once you have paperwork in front of you.

What a Proper Trade Quote Should Contain

Before you compare anything, you need to know what a complete quote looks like. If a tradie hands you a one-page document with a total at the bottom and nothing else, that is not worth considering. A proper trade quote should contain every item listed below.

Essential elements:

1. Tradie’s business details. Full legal name, ABN, licence number, and contact details. If any of these are missing, do not go further until they are provided. You can verify licence details on TradieVerify.
2. Description of works. A plain-language breakdown of every task included: demolition, preparation, installation, finishing, cleanup. Each stage should be a separate line.
3. Materials list. Specific brands, models, grades, and quantities. “Tiles” is not a materials specification. “Beaumont Tiles Arlington 600x600 matte, 32 tiles at $48 each” is.
4. Labour costs. Either itemised by task or shown as a total with the number of tradies and estimated hours.
5. Timeline. Estimated start date, expected duration, and completion date.
6. Payment schedule. Deposit amount, progress payment milestones, and final payment terms.
7. Exclusions. What is NOT included. This section is as important as what is included.
8. Validity period. How long the quote stands. Standard is 30 days. Material prices fluctuate, so a quote without an expiry may not be honoured months later.
9. Insurance and licensing confirmation. Public liability insurance (minimum $5 million is industry standard) and the specific licence class held.

If a quote is missing three or more of these elements, ask the tradie to resubmit. You cannot compare trade quotes accurately if they are not built to the same standard of detail.

Itemised Quotes vs Lump Sum Quotes

Not all quotes arrive in the same format. Understanding the difference between an itemised quote and a lump sum quote is essential before you start comparing.

Always request an itemised quote for jobs over $5,000. For smaller work, a lump sum is acceptable provided the scope is clearly defined. If a tradie refuses to itemise a large job, treat that as a red flag.

How to Compare Trade Quotes Line by Line

The goal when you compare trade quotes side by side is to confirm every tradie is quoting on the same scope, same materials, and same finish standard. If they are not, the price difference means nothing.

Step 1: Create a Comparison Table

Set up a spreadsheet with columns for each tradie and rows for every line item. This forces gaps into the open.

Quote C looks cheapest. But waterproofing, electrical, and finishing are either excluded or missing. Add those back and Quote C is likely the most expensive. This is why you must compare trade quotes at the line-item level, not at the total.

Step 2: Check Scope Alignment

Go through each row and confirm all three quotes cover the same scope.

• Missing line items. If one quote does not mention waterproofing for a bathroom job, it is either excluded or forgotten. Both are problems.
• Bundled items. “Included in labour” is not the same as a listed line item with a dollar value. Bundled items cannot be compared.
• Different descriptions. “Full retile” vs “retile floor only” is a scope difference worth thousands. Read the description, not just the label.

Step 3: Check Material Specifications

Two quotes can list “kitchen benchtop” at completely different prices because one specifies laminate and the other specifies stone. For every materials line, confirm:

• Brand and product name. Generic terms like “good quality” or “mid-range” mean nothing.
• Grade or finish. Rectified vs unrectified tiles can differ by 30% in cost.
• Quantity and measurement. Per square metre, per linear metre, per item. Make sure units match across quotes.

Step 4: Verify What Is Excluded

Every quote has an exclusions list. Some exclusions are reasonable (permit fees vary by council, so tradies exclude them). Others are warning signs. Common exclusions that catch homeowners off guard:

• Waste removal and skip bin hire. $300 to $1,500 depending on the job.
• Scaffolding. $2,000 to $8,000 for two-storey external work.
• Permit and inspection fees. Check our building permits guide for what your project might require.
• Temporary services. Temporary power, water, or site fencing.
• Making good. Repairing walls, painting, or patching after the primary work is done.
• GST. GST-registered businesses must include it. If a total looks surprisingly low, check whether GST has been left off.

Add excluded costs back in before comparing totals. A $15,000 quote that excludes $3,000 of items another tradie includes at $17,500 is actually more expensive.

Understanding Prime Cost Items and Provisional Sums

These two terms appear in nearly every building and renovation quote. They are the most common source of budget blowouts, and most homeowners do not understand them until after the bill arrives.

Prime Cost (PC) Items

A prime cost is an allowance for an item you have not selected yet. Tapware, light fittings, tiles, and appliances are common PC items. The tradie includes a placeholder amount so the quote has a total, but you choose and pay the actual cost later.

The trap. Some tradies set PC allowances deliberately low to make their quote look cheaper. A $500 allowance for a toilet suite sounds reasonable until standard models at the supplier start at $800. When you choose your actual products, the difference comes out of your pocket as a variation.

How to protect yourself:

• Ask the tradie what specific products the PC allowance is based on.
• Visit the supplier and confirm whether the allowance covers the range you are likely to choose.
• Compare PC allowances across all three quotes. If one is significantly lower, ask why.

Provisional Sums (PS)

A provisional sum is an estimate for work that cannot be accurately priced until the job starts. Excavation, structural repairs hidden behind walls, and stormwater connections are common examples.

The trap. Provisional sums are not fixed prices. If the actual cost is higher, you pay the difference. If one tradie estimates $2,000 for excavation and another estimates $4,000, the lower figure does not mean cheaper work. It may mean a less experienced tradie who has underestimated site conditions.

How to protect yourself:

• Ask each tradie to explain their provisional sum assumptions.
• Request that provisional sums be converted to fixed prices where a site inspection can provide enough information.
• Compare the PS totals across quotes separately from the fixed-price totals.

The Lowball-Then-Variations Trap

This is the most common way Australian homeowners end up paying more than expected. The pattern works like this:

1. A tradie submits a quote significantly lower than competitors.
2. You accept the quote and sign the contract.
3. Work starts. The tradie “discovers” issues requiring variations.
4. Each variation is individually small but they add up fast.
5. By the time the job is finished, you have paid more than the highest original quote.

Variation clauses are legitimate because unforeseen issues do arise. The problem is when a tradie relies on variations to make up for a deliberately low initial price.

Warning signs of a lowball strategy:

• The quote is 20%+ below the next cheapest, with no clear reason.
• PC allowances and provisional sums are unrealistically low.
• The exclusions list is longer than the inclusions.
• The tradie avoids discussing what happens if additional work is needed.
• No variation approval process is described.

Your rights with variations. In most Australian states, a tradie must provide a written variation notice with the additional cost, scope change, and timeline impact before doing extra work. You must approve it in writing. If work is done without your approval, you are generally not liable to pay. Check rules for your state with Fair Trading NSW, Consumer Affairs Victoria, or QBCC.

Red Flags in Trade Quotes

Some problems are obvious. Others only become apparent after you have signed. Use this checklist to compare trade quotes and spot warning signs before committing.

Document red flags:

• No ABN, licence number, or business address on the quote
• Verbal quote only, with nothing in writing
• No expiry date on the quote
• Vague descriptions (“various plumbing works” instead of itemised tasks)
• No exclusions section (every job has exclusions; if none are listed, they are hidden)

Pricing red flags:

• Total is 20%+ below all other quotes with no clear reason
• PC allowances are significantly lower than competitor quotes
• No breakdown of labour vs materials
• Deposit requested exceeds state legal limits (see table below)
• Full payment demanded before work starts

Process red flags:

• Tradie is reluctant to provide an itemised breakdown
• No mention of a variation approval process
• Timeline is vaguely described (“a few weeks”) with no milestones
• Tradie cannot provide their licence number when asked
• Pressure to sign immediately with claims like “price only valid today”

Deposit Caps by State

Every quote should include a payment schedule. If the requested deposit exceeds these legal limits, do not sign.

For more detail on deposit rules and contract requirements, see our guide on getting quotes from tradies.

Your Quote Comparison Checklist

Use this checklist to compare trade quotes once you have all three in hand. Work through it systematically before making a decision.

1. Verify every licence. Search each tradie on TradieVerify to confirm their licence is active and covers the work quoted. See our licence verification guide for a detailed walkthrough.
2. Build your comparison table. Enter every line item, material, and cost into a spreadsheet with one column per quote.
3. Align the scope. Confirm all quotes cover the same work. Flag missing items or scope differences.
4. Standardise materials. Check that specs are equivalent across quotes. If not, ask tradies to requote on the same spec.
5. Add exclusions back. Calculate the true total by adding excluded items back into each quote.
6. Compare PC and PS totals separately. Review prime cost allowances and provisional sums in isolation. Unrealistically low figures signal either inexperience or a lowball strategy.
7. Check the payment schedule. Confirm the deposit is within legal limits and progress payments are tied to milestones, not calendar dates.
8. Review the variation process. Every quote should describe how extra work is approved and priced. If it does not, ask.
9. Confirm insurance. Request a certificate of currency for public liability from each tradie. For projects that require it, check home warranty insurance obligations.
10. Call references. Ask each tradie for two recent clients with similar work. Ask those clients whether the final cost matched the original quote.

The best quote is the one that is fully itemised, covers the complete scope, uses specified materials, comes from a licensed and insured tradie, and offers a clear process for handling changes. That quote may not be the cheapest. It is almost always the best value.

Frequently Asked Questions

How do I compare trade quotes when they all look different?

Build a spreadsheet with a row for every task and a column per quote. Where a tradie bundles items or uses different labels, ask them to match the most detailed quote’s format. This forces an apples-to-apples comparison. Our getting quotes guide covers how to set up your brief so quotes arrive consistently.

What is the difference between a prime cost item and a provisional sum?

A prime cost (PC) is an allowance for something you have not chosen yet, like tapware or tiles. The final cost depends on your selection. A provisional sum (PS) is an estimate for work that cannot be accurately priced until the job starts, like excavation or structural repairs. Both can change, but PC items are within your control while PS items are not.

Should I negotiate the price on a trade quote?

You can ask a tradie to match a specific element from another quote, but blanket “can you do it for less?” often leads to corners being cut. A better approach is to ask the higher-priced tradie what their quote includes that the cheaper one does not. The answer usually justifies the difference or reveals where the cheaper quote cuts scope.

What should I do if a tradie refuses to provide an itemised quote?

For jobs under $2,000, a lump sum with a clear scope description is acceptable. For anything larger, an itemised breakdown is standard practice. If a tradie refuses to itemise a significant job, it suggests they lack a structured pricing system or are deliberately obscuring costs. Get your other quotes from tradies who will itemise, whether you need a licensed builder, plumber, or electrician.

How long should I keep trade quotes on file?

Keep all quotes, including rejected ones, for the project duration plus twelve months after completion. If a defect appears or a dispute arises, the original quotes serve as evidence of the agreed scope and price. Under Australian Consumer Law, you have rights to remedies for defective services, and documentation supports those claims.

Can I mix and match items from different trade quotes?

You can ask a tradie to match a specific material or approach from another quote. However, asking one tradie to execute another tradie’s scope and pricing line by line is not realistic. Each tradie prices based on their own suppliers, subcontractors, and workflow. Focus on the best overall quote rather than assembling a hybrid.

Key Takeaways

• Read every line, not just the total. The cheapest quote often excludes items the others include.
• Build a comparison table. Lay out all three quotes side by side with matching rows for every task and material.
• Watch for low PC allowances and provisional sums. These are the main tools used to make a quote look cheaper than it will cost.
• Check the exclusions list. Add excluded items back in before comparing totals.
• Know your state’s deposit caps. Never pay more than the legal maximum upfront.
• Verify every licence. Search for your tradie on TradieVerify before signing anything.
• The best quote is the most transparent one, not the cheapest one.

Related Guides

• Getting Quotes from Tradies — Our getting quotes guide
• Tradie Payment Terms: What’s Standard — Our payment terms guide
• 10 Questions to Ask Before Hiring Any Tradie — Our essential hiring questions

Sources

1. Queensland Building and Construction Commission, “Seeking and comparing quotes,” qbcc.qld.gov.au
2. NSW Fair Trading, “Getting quotes for contractors,” fairtrading.nsw.gov.au
3. Consumer Affairs Victoria, “Giving quotes: tradespeople and small works,” consumer.vic.gov.au
4. Department of Energy, Mines, Industry Regulation and Safety WA, “Ask us: estimates and quotes,” consumerprotection.wa.gov.au
5. Australian Competition and Consumer Commission, “Consumer guarantees on services,” accc.gov.au
6. Housing Industry Association, “Understanding building contracts and quotes,” hia.com.au
7. Master Builders Australia, “Guide to comparing builder quotes,” masterbuilders.com.au
8. Access Canberra, “Building and renovating: contracts and quotes,” accesscanberra.act.gov.au