# Fit-Out Quotation Comparison: Put Three Quotes on One Basis

> A quotation comparison puts several contractors' prices on the same basis before they are compared: the same treatment of GST, the cost of anything one quote leaves out added back, and the cash each asks for up front or holds back shown side by side. Without that, the lowest headline number is often not the lowest cost.

## What it calculates

The comparison takes up to three fit-out quotations and shows, side by side:

- each quote **before GST**, whether it was quoted with GST or without;
- a **comparable price** that adds back your estimate of what each quote leaves out;
- the comparable price **with GST**;
- how far each quote is **above the lowest**, in rupees and as a percentage;
- the cost **for each sq ft of carpet area**, if you enter the area;
- the **share of the price that is provisional** and could change;
- the **cash paid as advance** and the **cash held as retention**.

All figures are yours. The calculator stores nothing and starts blank.

## Inputs

For each quote:

- **Quoted amount**: the total on the quotation.
- **GST in the quoted amount?**: whether the total includes GST or GST is added on top.
- **Your estimate of items left out**: the cost, before GST, of anything you need that the
  quote excludes.
- **Provisional sums inside the quote**: the total of allowances that will be re-measured.
- **Advance asked**: the percentage paid before work starts.
- **Retention held**: the percentage kept back until the defects period ends.
- **Programme** and **defects liability period**: for reference alongside the price.

Optionally, the **carpet area** the quotes are for, and in the assumptions panel the **GST
rate**.

## Method

1. Quoted before GST = the quoted amount, or the amount divided by (1 + GST rate) when the
   amount includes GST.
2. Comparable before GST = quoted before GST + your estimate of items left out.
3. Comparable with GST = comparable before GST × (1 + GST rate).
4. Above the lowest = comparable before GST − the lowest comparable before GST.
5. Cost for each sq ft of carpet = comparable before GST ÷ carpet area.
6. Provisional share = provisional sums ÷ quoted before GST.
7. Advance and retention = the percentage × the quoted amount with GST.

## Assumptions

| Assumption | Default | Notes |
| --- | --- | --- |
| GST rate | 18% | Confirm the rate for your contract |
| Exclusions | Before GST | Enter them on the same basis as the quote |
| Advance and retention | On the amount with GST | Most payment terms are applied to the invoice value |

The quality of the comparison depends on the exclusions estimate. If one contractor
excludes the HVAC changes and another includes them, the comparison is only fair once you
have put a realistic figure against the missing work.

## Limitations

- **It compares price, not scope.** Two quotes with the same total can describe very
  different offices. The only way to compare scope is line by line against the same
  drawings and specification.
- **It trusts your exclusions estimate.** A low guess for a missing item flatters that
  quote.
- **It does not value programme or risk.** A quote that finishes four weeks later may cost
  you four more weeks of rent on two premises.
- **It does not judge payment terms.** It shows the cash involved; whether those terms are
  acceptable is a commercial decision.
- **It does not check arithmetic in the quotes.** Check the quantities and totals on each
  quote separately.

## Worked example

Suppose three quotes arrive for the same office. The figures below are invented for the
example and are not market prices.

- Quote A: 100 units, GST extra, nothing excluded.
- Quote B: 110 units, GST included, nothing excluded.
- Quote C: 88 units, GST extra, but the HVAC changes are excluded and you estimate them at
  9 units.

At an 18% GST rate:

| | Quote A | Quote B | Quote C |
| --- | --- | --- | --- |
| Quoted before GST | 100.0 | 93.2 | 88.0 |
| Items left out | 0 | 0 | 9.0 |
| Comparable before GST | 100.0 | 93.2 | 97.0 |
| Above the lowest | 7.3% | Lowest | 4.1% |

Quote B looked the most expensive on its headline figure but is the lowest once GST is
treated the same way. Quote C looked cheapest but moves to second once its exclusion is
added back. Quote A, which looked mid-range, is actually the highest.

## How engineers use it

On a tender, a quantity surveyor or project manager prepares a **tender comparison**: every
contractor prices the same bill of quantities against the same drawings, and the
comparison is made line by line. Gaps are queried, unusual rates are explained, and
exclusions are either priced in or removed before any recommendation is made.

This calculator is the summary at the top of that process. It is useful when quotes have
arrived on different bases and you need a fair first view of where they stand before going
into the detail.

## When a professional design must replace it

Use the calculator to get quotes onto one basis and to decide which ones deserve a detailed
review. Replace it with a line-by-line comparison against the same drawings, specification
and quantities before you award the work, and have the contract terms (payment, retention,
defects liability, delay damages and variations) reviewed before you sign.

## Frequently asked questions

### Why can't I just compare the totals on each quote?

Because quotes are rarely priced on the same basis. One includes GST and another adds it; one includes the electrical work and another leaves it to you; one carries large provisional sums that may grow. The headline totals compare different scopes. Normalising them first shows what each will really cost you.

### What counts as an exclusion?

Anything you will need for the finished office that the quote does not cover: for example furniture, HVAC changes, fire alarm and sprinkler modifications, IT cabling, signage, landlord approval fees or the cost of work at night. Read the exclusions list on each quote and estimate what each missing item will cost you separately.

### What are provisional sums?

Allowances in a quote for work that cannot be priced exactly yet, such as a finish not yet chosen. The final cost replaces the allowance, up or down. A quote with a large share of provisional sums is less certain than its total suggests, so the calculator shows that share for each quote.

### Is the lowest quote the best one?

Not necessarily. The calculator compares price only. Programme, the contractor's track record, the specification behind each line and the payment terms all matter. A lower price on a thinner specification can cost more once variations start.

### What GST rate should I use?

The calculator starts at 18%, but the rate that applies depends on the contract and the nature of the work. Confirm it with your accountant and change the field to match.

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Source: https://hagerstone.com/calculators/fit-out-quotation-comparison