The Replacement Builder's Quote Is Evidence, Not the Insurer's Calculation

What the quotation contributes

The quote shows how a licensed builder proposes to complete or rectify the actual site at current rates. It can identify quantities, methodology, access, testing, supervision, provisional risks and programme.

This is critical evidence because an abandoned project cannot be priced reliably from the first builder's schedule alone.

Why the insurer may calculate differently

The insurer may exclude owner upgrades, work outside the insured contract, unproven defects, unsupported consequential damage or costs it considers unreasonable. For incomplete work, it may also apply the policy's non-completion limit and reconcile payments and work already received.

A difference does not necessarily mean the quote is wrong; it may reflect a coverage or valuation decision that must be examined line by line.

Reconcile rather than defend only the total

Map each quotation line to the original contractual obligation or defect issue. Show the quantity, evidence and category. If the insurer allows a lower amount, ask what scope, rate or assumption produced the difference.

A response stating our builder cannot do it for that price is weaker than demonstrating omitted tasks, current supplier quotes, access constraints or incorrect quantities.

Keep the construction contract separate

The homeowner may sign a replacement contract for more than the insurer accepts. That commercial contract remains between owner and builder unless the insurer is a party or the arrangement states otherwise. Understand who carries the gap before commencement.

Do not instruct upgrades or additional work without a clear private funding decision. Maintain separate variation records.

Practical takeaway: Use the quote to make the cost auditable. Then compare the insurer's assessment at item level rather than treating two different totals as self-explanatory.

How ARK Houses can help

ARK Houses makes its quotation auditable at item level and can explain quantities, access, methodology and current rates where the insurer calculates a different amount. The insurer determines the payable figure; our role is to make the construction basis transparent.

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