Builders Quotes vs Estimates – What’s the Difference (and Why It Matters)

May 25, 2025 | Preparing to Build

If you’ve started gathering pricing for your new home, you’ve probably come across a few different terms: ballpark figures, estimates, and quotes. While they might sound interchangeable, (and sometimes are used interchangeably even by professionals in the industry) they each represent very different stages of planning—and come with very different levels of accuracy and detail.

Understanding which one you’ve been given—and what it actually tells you—is key to making informed decisions as you move through the design and build process.

Builders Quotes V’s Estimates – What Is The Difference

A Quick Overview

In the residential building industry, these three forms of pricing are commonly used across all types of builders. They differ in the level of detail provided, the time it takes to prepare them, and how reliable they are as cost indicators:

1. Ballpark Figure

What it is: A rough guide used early in discussions to give you an idea of what your home might cost.

How it’s used: Ballpark figures are typically based on a builder’s past projects and may be expressed as a square metre rate (e.g. $2,400/m²). These figures don’t necessarily consider specific site conditions, inclusions, or design details, and should always be viewed as a starting point rather than a commitment.

At Lancaster Homes: We use ballpark figures in early consultations to help clients understand if their budget aligns with the scale and complexity of their brief. It’s a helpful conversation starter—but not a substitute for more formal costing.

2. Estimate

What it is: A cost projection based on preliminary design documents. More detailed than a ballpark, but still subject to change.

How it’s used: Estimates are typically provided once concept plans are in place, but before detailed engineering and selections are finalised. They often include allowances for things like PC (Prime Cost) and PS (Provisional Sum) items. Estimates are ideal for understanding the financial implications of design choices before committing to full documentation.

At Lancaster Homes: We provide estimates during our design development phase, using the most current drawings and scope information available. This gives clients a clearer sense of expected costs while allowing flexibility to refine the design before locking in a final figure.

3. Fixed Price Quote

What it is: A detailed, contract-ready price based on final plans, engineering, and selections.

How it’s used: Full quotes require significant time to prepare—often 4–6 weeks—because they involve pricing from multiple trades and suppliers. Builders usually won’t offer a true fixed price quote until all decisions have been made, and many professional builders will charge a fee for its preparation due to the time and accuracy required.

At Lancaster Homes: We prepare fixed price quotes ahead of construction contracts. Every component is documented, priced, and confirmed, ensuring clarity and confidence moving into the build phase. This is part of our commitment to transparent, reliable pricing—no surprises, no guesswork.

Why Understanding the Difference Matters

In custom home building, clarity is everything. Knowing whether you’ve been given a ballpark, an estimate, or a fixed quote empowers you to:

Set realistic expectations
Compare builders fairly
Avoid cost overruns
Make confident design and financial decisions

Unfortunately, confusion around these terms is common—and it’s easy to misinterpret a ballpark figure as a firm quote, or expect an estimate to remain unchanged despite evolving plans.

At Lancaster Homes, we’re passionate about giving our clients the tools to navigate their home-building journey with clarity and confidence. Understanding how pricing works—and where you are in the process—is one of the most powerful tools you can have.