Negotiating with a builder on price is a normal part of the commercial process. But the way you negotiate makes a significant difference to the outcome — both to the price you achieve and to the quality of the project you receive.
The wrong approach is to simply ask whether the price can be lower. Presented without context, this puts the contractor in a position where they can either say yes (by cutting quality, removing scope they assumed was implied, or reducing their margin to the point where the project becomes unattractive to service properly) or no (which ends the negotiation without progress). Neither outcome is in your interest.
The right approach starts with understanding what is in the quote. If you have not received a breakdown of the estimate — labour, materials, subcontractors, preliminaries — ask for one. A detailed breakdown allows you to have a genuinely informed conversation about where the money is going and whether any elements can be adjusted.
From that position, ask yourself what you could change. Are there elements of the scope that are desirable but not essential? Could you supply certain materials yourself — the second-fix items such as sanitary ware, tiles, kitchen units, light fittings — rather than having the contractor supply and procure them? Could you be flexible on start date, which sometimes has a commercial value to a contractor managing their programme? Could any work be phased, with phase two done after phase one is settled and paid for?
If you have multiple quotes, compare them carefully before using one to negotiate against another. A lower quote from a different contractor very often reflects a more limited or differently scoped package — different exclusions, different material allowances, or a different quality standard. Using a lower quote that covers less scope to negotiate down a higher quote that covers more is not an apples-to-apples comparison and may simply result in the same, more limited scope being delivered at the lower price.
Never ask a contractor to reduce the price without being clear about what, if anything, is being removed from the scope. A contractor who agrees to a significant price reduction without agreeing any scope change has either been overcharging in the first place, or is now planning to deliver something different from what was originally quoted. Either is a problem.
At RCB, we are happy to work through scope options with clients who have budget constraints. We will always be clear about what is and is not included in any revised figure. What we do not do is reduce our price simply to match a competitor who is quoting a different scope. 07359 872594 | contact@rcbgroup.co.uk | www.rcbgroup.co.uk