Why the cheapest quote is not always the best

Three quotes are on the table

€18,000. €23,500. €31,000.
The differences are significant. And so the choice seems simple: as a co-owner, why would you pay more if the same work can be done for €18,000?

Because comparing quotes for work on an apartment building is about much more than looking at the amount at the bottom of the page.

The cheapest quote can perfectly well be the best choice. But it can just as easily turn out to be the most expensive solution when materials, execution, warranties, lifespan, or additional costs are not comparable.

At Parte, we therefore believe that a good decision is not about the question:
“Which quote is the cheapest?”

But rather about:
“Which solution offers the best balance between price, quality, risk, and lifespan?”

Comparing quotes in an apartment building: more than just a price comparison

When an Owners Association (VME) needs to have work carried out, multiple quotes are often requested.
That is a good thing.

Multiple quotes give co-owners the opportunity to compare prices, conditions, and solutions.
But that is only where the real comparison begins.

Because two contractors can submit a quote for the same project for €20,000 and €27,000 respectively, while in reality they are not offering exactly the same thing.

One quote might include, for example:

• different materials;
• more extensive preparation;
• a longer warranty;
• more work included in the price;
• a better finish;
• a longer expected lifespan;
• or a different approach to the problem.

Anyone who then looks exclusively at the final amount is actually comparing apples with oranges.

The cheapest quote is not always the cheapest solution

Suppose an apartment building is due for roof works.

Contractor A proposes a solution for €25,000.
Contractor B comes in at €32,000.

At first glance, the difference seems simple: €7,000.
But suppose the cheaper solution has an expected lifespan of 15 years, while the more expensive solution lasts 25 years.

Then the story changes.
The question is no longer:

“Who is €7,000 cheaper?”
But:
“Which investment is most interesting over the full lifespan of the roof?”

That is the difference between price and value.

What is actually in a quote?

You must first understand the content of a quote for work on an apartment building.

• What exactly will be carried out?
• Which materials will be used?
• Which preparatory works are included?
• How will the site be organised?
• What warranties are provided?
• What happens if additional problems are identified during the work?
• And above all: what is not in the quote?

The latter is sometimes forgotten.

A low quote can, for example, be the result of a limited description of the work. Certain parts may be considered additional work and therefore only appear later.
A quote of €20,000 can thus ultimately become more expensive than a quote of €24,000 in which everything is included.

A good comparison therefore starts with scope

Before you compare prices, you must first check whether the quotes relate to the same work and the same quality.
Only then does a price comparison really have meaning.

1. Look at the quality of the materials
Not every material is the same.
Two quotes may describe the same work but propose different products or systems.
That difference is not always visible on paper, and certainly not to someone without a technical background.

Yet it can have a significant influence on:

• the lifespan;
• the maintenance;
• the energy performance;
• the appearance;
• the warranty;
• and future costs.

A slightly more expensive solution can therefore be much more interesting in the long term.
That does not mean that the most expensive materials are always the best choice.

It is about the right solution for the building.

2. Look at the lifespan
An important question for major works is:
How long will the chosen solution last?
After all, an investment should not only be viewed from today's cost.
For major works on an apartment building, the lifespan can make a huge difference.

A solution that is €10,000 cheaper but needs to be addressed again after a few years may not be cheap at all in the end.
That is why it is interesting for major investments to look at the total cost over the lifespan.
This is also known as the Total Cost of Ownership.

Not just:
What are we paying today?

But also:
What will this choice cost us over the next 10, 15, or 20 years?

3. Do not forget maintenance

The purchase price is only one part of the total cost.
A cheap installation may, for example, require more maintenance.
A certain technical solution may be cheaper to install but more expensive to maintain.
A certain facade finish may be advantageous during execution but get dirty faster or require more frequent maintenance.

That is why it is wise for larger projects to also look at the long-term maintenance costs.
Because every euro saved today can cause several euros in maintenance or repairs later.

4. Warranty and service are part of the price
The warranty conditions also deserve attention.

• How long is the warranty?
• What exactly is covered?
• Who intervenes when a problem arises?
• How quickly is an intervention carried out?
• And what happens when a part is no longer available?

A contractor who is slightly cheaper but offers hardly any service after execution may be less interesting in the long term than a party that is slightly more expensive but provides a clear warranty and follow-up.
Service also has a value.

5. Look at the contractor, not just the amount
A quote does not just come from a company.
It comes from an organisation that must ultimately carry out the work.

Therefore, it is relevant to also look at experience, references, expertise, and capacity.

• Does the contractor have experience with similar projects?
• Does he know the specific challenges of apartment buildings?
• Can he plan the work correctly?
• Does he have sufficient staff and professional knowledge?
• And can he demonstrate that similar projects were well executed?

A cheap quote is worth little if the execution leads to delays, disputes, or additional problems.

6. Additional costs can change the bill

One of the biggest risks when comparing quotes is unforeseen or excluded costs.
For example:

• scaffolding;
• preparatory works;
• waste disposal;
• additional repairs;
• permits;
• safety measures;
• adjustments to existing installations;
• temporary facilities;
• or work that only proves necessary during execution.

Not all additional work can be avoided.
But the clearer the quote and the technical preparation, the smaller the chance of unpleasant surprises.
That is why a low starting price is not necessarily a low final price.

7. An apartment building is not an individual home

With a house, an owner can decide relatively quickly to choose a certain solution.
With an apartment building, it is different.

A decision often affects dozens of co-owners.
The investment is borne jointly.
And a decision today can have consequences for the building and its residents for many years.

That is why it is important that decisions within an Owners Association are not only financially responsible, but also technically and long-term defensible.
Choosing the cheapest option because it costs the least on paper is then not always the wisest decision.

The role of the Property Manager in comparing quotes

A Property Manager does not have to be a contractor, architect, or engineer.
But a good Property Manager can play an important role in structuring and guiding the decision-making process.

That starts with clearly defining the problem.
Then, where necessary, multiple quotes can be requested and compared.
It is important that not only the price is looked at, but also the content.

• Are the quotes comparable?
• Are there major differences in materials or execution?
• Are certain works excluded?
• Are there striking differences in warranties?
• Are there risks or uncertainties?
• And is additional technical expertise needed?

The intention is not to decide for the co-owners.
The intention is to give them the right information to make a good decision.

The cheapest quote can indeed be the best

It is important to make one nuance.
The cheapest quote is not by definition bad.

On the contrary.
If two quotes are fully comparable in terms of content, offer the same quality, contain the same warranties, and provide for the same execution, then it is logical to also look at the price.

Cheap can absolutely be good.

The problem arises when price becomes the only criterion.
Because a price only says something when you know what you are getting for it.

How do you compare quotes for work on an apartment building?

A simple checklist can help.

Ask with each quote:

• 1. What exactly will be carried out?
  Are the described works complete?
• 2. Which materials will be used?
  Are quality and specifications comparable?
• 3. What is included?
  Are preparatory works, finishing, and clean-up included?
• 4. What is excluded?
  Which costs could still be added later?
• 5. How long will the execution take?
  And what nuisance can residents expect?
• 6. What warranty is given?
  And what exactly is covered?
• 7. How long is the solution expected to last?
• 8. How much maintenance is required?
• 9. Who is carrying out the work?
  Does the contractor have the right experience?
• 10. What is the total cost in the long term?

Only once you have answered these questions can you truly compare quotes with each other.

From cheap to wise

An Owners Association does not always have to choose the cheapest solution.
It must above all choose the most sensible solution within the available budget.

That can sometimes be the cheapest.
Sometimes the middle one.
And sometimes the most expensive.

The most important thing is that the choice is based on more than one number.

Because managing an apartment building means looking ahead.
A decision that costs €5,000 more today may prove to be a saving within ten years.
And a decision that seems €5,000 cheaper today can ultimately cost thousands of euros extra.

The cheapest decision is not always the cheapest choice

Good management is ultimately not about spending as little as possible.
It is about investing as wisely as possible in the building.

• With attention to quality.
• With an eye to the future.
• With transparency towards the co-owners.
• And with a clear picture of the total cost.

Because the real question is not:
“Which quote is at the top with the lowest amount?”

The real question is:
“Which solution gives our co-owners the most value for their money in the long term?”

That is where good building management makes the difference.

The cheapest quote is not always the cheapest solution.

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