What's the difference between a builder's quote and the contract price?
Short answer
A quote is the price the builder is offering. The contract price is the legally binding price you both agreed to in the written contract. They should match — but if the contract has provisional sums, allowances, or 'cost plus' elements, the final invoice can land different. Always read the contract before signing, not just the quote.
Source: Master Builders NZ contract guidance. Updated May 2026.
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Check a builderKey facts
- Quote — pre-contract offer; can be withdrawn or amended
- Contract price — what you've both signed; binding subject to variations
- Provisional sums — placeholders for items not yet specified; can vary at actual cost
- Allowances — similar to provisional sums; usually for fittings the homeowner picks later
- Cost-plus contracts — builder charges cost + margin; no fixed total
Common gotchas
Quote says $450,000. Contract says $450,000 'including provisional sums of $60,000 for kitchen, $20,000 for bathroom, $15,000 for flooring'. If you pick fancier finishes, those sums increase and the final price rises.
Provisional sums aren't dishonest — they're standard for items the homeowner is choosing late. But you should know which line items are provisional and how the difference is calculated when actual costs come in.
How to compare quotes
Ask each builder for an itemised quote with provisional sums clearly identified. Compare like-for-like: a $450k quote with $50k provisional vs a $470k quote with $20k provisional is roughly the same exposure.
If a quote looks notably cheaper, look for what's not in it — site works, council fees, services connections, landscaping all common exclusions.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
Related questions
Sources: Master Builders NZ contract guidance; Building Act 2004 section 362K. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.