fbpx

TAG Quoting and Pricing Guide

A Practical Resource for Builders, Concreters, and Landscapers

Quoting as accurately as possible is one of the biggest challenges for builders and tradies. A small mistake can cost thousands, leading to lost profit or, worse, out-of-pocket expenses. That’s why TAG has put together this guide—to help you quote with confidence, price your work correctly, and protect your margins.

Why Quoting as Accurately As Possible Matters

Getting your pricing right isn’t just about winning jobs—it’s about making sure you’re making a profit on every project. Too often, tradies underquote in an effort to stay competitive, only to find out later they’ve barely covered costs. This guide will help you:

✔ Understand true material costs and markup strategies

✔ Avoid common pricing mistakes that eat into your profits

✔ Use TAG’s PQS to get quotes quickly and easily

1. Common Pricing Mistakes and How to Avoid Them

Underquoting the Job

Many tradies underestimate the true cost of a project. They focus only on materials and labour but forget about hidden costs like permits, site clean-up, waste disposal, or price fluctuations in materials. To avoid this mistake:

  • Use a quoting checklist to ensure no costs are missed.
  • Account for overheads—your rent, vehicle expenses, insurance, and admin work need to be covered in your pricing.
  • Factor in contingencies—allow at least a 5–10% buffer for unexpected costs

Not Charging for Your Time Properly

Labour is often undervalued, with tradies charging only for time on the tools rather than the whole job process. Pricing should include:

  • Preparation and planning (ordering materials, organising trades, site visits)
  • Admin time (quoting, invoicing, dealing with clients)
  • Project management (coordination, troubleshooting, adjustments mid-job)

Failing to Include Markup on Materials and Labour

Adding a markup isn’t about overcharging—it’s how your business stays profitable. Many builders only mark up materials but forget to add margin to labour. Instead:

  • Apply a set markup to all materials (usually 10-30%).
  • Mark up labour to cover both wages and business overheads.
  • Charge separately for project management and site supervision.

2. Markup Strategies for Builders, Concreters, and Landscapers

Markup is how you turn your costs into a profitable price. Here are three common strategies:

1. Flat Percentage Markup

This is the simplest method: apply a fixed percentage (e.g., 20% or 30%) to all costs. It works well for smaller jobs where costs are predictable.

✔ Best for: Small projects and straightforward quotes.

✖ Watch out for: It may not be flexible enough for larger, more complex jo

2. Tiered Markup

With this approach, different elements of the job have different markups:

  • Materials: 10–20%
  • Labour: 25–40%
  • Subcontractors: 10–15%

✔ Best for: Larger projects where different parts of the job carry different risks.

✖ Watch out for: More complex to calculate but ensures you’re covering all costs.

3. Cost-Plus Pricing

This strategy means charging clients the actual cost of materials and labour, plus a set percentage for your margin (e.g., 15% or 20%).

✔ Best for: Jobs with fluctuating costs, like custom builds.

✖ Watch out for: Clients may challenge costs, so always provide detailed breakdowns.

3. Accurate Material Cost Calculations

Step 1: Do a Detailed Takeoff

  • Go through plans carefully and list every material needed, including:
  • Concrete, timber, bricks, insulation
  • Fixings, screws, adhesives
  • Waste disposal and protective materials

Step 2: Get Up-to-Date Supplier Quotes

  • Prices change frequently. Always get fresh quotes from suppliers and check if there are trade discounts available.

Step 3: Factor in Wastage and Delivery Fees

  • Most materials have a natural wastage rate:
    • Timber: 10–15%
    • Concrete: 5–10%
    • Tiles & Pavers: 5–10%
  • Also, include delivery costs, crane hire, or special handling fees if needed.

Step 4: Add a Contingency Buffer

  • Unexpected costs always pop up. A safe buffer is 5–10% of the total material cost to cover price increases or last-minute changes.

4. State-Specific Considerations (VIC, QLD, NSW)

Victoria (VIC)

  • Jobs over $10,000 require a registered builder.
  • Domestic Building Insurance (DBI) is required for work over $16,000.
  • Maximum deposit allowed is 5% for work over $20,000.

Queensland (QLD)

  • Work over $3,300 requires a QBCC licence.
  • Home Warranty Insurance is mandatory for projects over $3,300.
  • Contracts must be in writing for jobs over $3,300.

New South Wales (NSW)

  • A builder’s licence is needed for work over $5,000.
  • Home Building Compensation Fund (HBCF) insurance is required for work over $20,000.
  • Maximum deposit is 10% for jobs under $20,000.
builder on phone

Quote Smarter, Build Stronger

Accurate quoting is what separates profitable businesses from those struggling to make ends meet. By refining your pricing strategies, factoring in all costs, and understanding state-specific regulations, you’ll not only protect your profits but also build a stronger reputation as a reliable and professional tradie.

If you’re looking for an easier way to get accurate quotes, TAG’s PQS is here to help. Get in touch today and let’s make quoting hassle-free!

Don’t let these opportunities pass you by!

Register now to get your hands on TAG’s exclusive modular home marketing materials, designed to help you secure more jobs and grow your profits. With an easy-to-use marketing pack and a $2,000 bonus for every successful project, there’s no better time to act. Hit the ground running and watch your business thrive—sign up today and let TAG help you make it happen!

    GET STARTED TODAY

    Not yet a TAG member?

    Join the fight for better prices and service today!

    Join the fight!
    $2,000 Per Modular Home + Happy Clients Submit Your Plans Through TAG