When is a quote binding

Describe the job clearly in general terms. Estimates should always include a disclaimer that the price is subject to change depending upon a more detailed quote being prepared.

Be as specific as possible, including:. If you have formal terms and conditions drawn up always include a copy with your estimate or quote. This not only gives your customer with a very positive impression of your business being upfront and honest, it also provides them with information such as your normal payment terms, deposits required, penalties for non-payment, etc.

Dating estimates and quotes helps you determine exactly when you prepared them. Fees and costs naturally increase over time so setting a limit on how long your price is good for protects you from being caught out by old estimates or quotes which are now unrealistic.

Why not try our completely free trial , and see for yourself? Co-founder of YourTradebase. One quick, easy app that frees you from paperwork and lets you get back to the job you love. Other popular articles. Free trial. Quotes 8 November However, there can be a lot of confusion between the two.

As this was not agreed in the quote, Eruini does not have to pay the extra portion of the bill. On this page. Estimates An estimate is not a fixed price. Quotes A quote is an offer to do a job for a specified price. Getting a quote or estimate Get several quotes or estimates If you can, get quotes or estimates from at least three businesses.

For each business, check: they are well established and have experience doing the kind of work you need if they are a member of a trade or retail association — this may give you a free and independent dispute resolution process to resolve problems, or extra warranties if the work is not done properly references from previous clients. Ask for written quotes or estimates Even if you are only approaching one business, ask for a detailed quote or estimate in writing so you have evidence if anything goes wrong.

Specify: any dates you need work done by whether you want a quote or an estimate that you want it in writing. Compare quotes or estimates Consider more than just price When comparing quotes or estimates, don't just base your decision on price. You should also consider the service provider's: level of experience reliability quality standards references and past projects.

You can always negotiate with your chosen business on price. If your preferred service provider gives a higher quote, you can ask to negotiate. Get enough information The quotes or estimates should show: what work will be done any other costs, eg materials the hourly rate for the person or people doing the work how long the work will take.

Choose a service provider If the quotes or estimates vary a lot in price, it is worth asking why. It could mean the business: has more experience is proposing using higher-quality materials is more realistic about how long the job will take has misunderstood the project. Your rights If you have been given a fixed quote, the service provider must complete the work within the quoted cost, unless you agree to a variation.

If things go wrong We have advice on quotes and estimates from builders and tradespeople in our Home renovations and repairs section in Help by product and service. Other terms can be included, if desired.

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Quoting actually refers to an offer to carry out certain work for a fixed price. Often quotes can form the basis of a legally binding offer. Therefore parties to a contract should exercise due diligence in using the term. The Supreme Court, while deciding whether a quotation constituted an offer or not, took into account the circumstances of negotiations between the parties coupled with the intention of the parties.