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QLD – We have some very large expenditure – building internal and external painting – occurring in the next few years. How can I be confident the allocated funds reflect market prices? We use a quantity surveyor through our Strata Manager but recent experience shows some of their allocations are wrong eg $18k for intercom replacement of 25 yo system yet lowest quote was $60k inc GST. Or $140k for lift rollers and door replacements that weren’t in the forecast. We have used 2 different quantity surveyors over the past 5 years but get the same forecast and we are assured they are the best around.
Also, should we use estimates with the GST calculated? Currently it is non GST figures which cause issues when owners review it. I understand the BCCM require budgets and forecasts to show real cash outlays the BC will pay.
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The best guide you will get to future expenditure is to compare buildings of a similar size and facilities that are maybe four or five years older. That said there are so many variables, from the quality of the original work to where the installation sits in the building and the effect of prevailing weather that you are never going to get 100 per cent accuracy.
Regarding whether or not you include GST in the quotes, it sounds like the surveyors are trying to minimise the cost assessment in every way possible. Since GST is unlikely to change any time soon, I’d include it.
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You should be able to rely on your quantity surveyor, so it’s a shame that you can’t. I usually test prices through informal channels:friends and family, forums I’m on and so on. Usually there is someone out there who has done similar work before. If you see a trade that you’re going to need doing work in another building, ask someone in the building what they paid. Why would they be secretive about that? And by striking up a conversation, you might develop a network of people who refer good trades to each other and share information that is more accurate than the info you’re getting from the QS. By the way, has anyone told the QS about the estimates in his work that were so inaccurate? How is he going to know and improve if you don’t? I’m not suggesting the work of a QS is easy. We had a piece of work done last year that was quoted at $32K by a local electrician on Sydney’s northern beaches. Same piece of work was quoted at $17K by an electrician from Sydney’s Western suburbs who had to travel for more than hour each day to get to the job. How can a QS give accurate estimates when quotes vary by that much?