Contracts & Quotations

[Avatar]

Hi Guys,

You know what is doing me in at the moment is keeping the custards happy!

Personally I am much happier on a day rate and so are my punters who will accept one . .. .

Fixed prices are a bit of a nightmare for me!

- do I:

A) Fix a price high to cover unforseen extras which are my problem really. However you aint gonna get too many jobs pricing up like this!

B) Be competitive and put in a reasonable price. However when that wall needs replastering and many other extra problems come to light, the custards simply don't want to pay for them!!!

I know a guy who quotes low and swallows all the extra cost - even on the materials! He tells me he makes a loss on some jobs but does them anyway to his best ability for his reputation.

While this is commendable no doubt I simply cannot afford to do this!

I have tried pricing up jobs on the high side to compensate but that only works to some degree. You cannot compete in the modern market like that!

I wonder what others do in this situation.

Do you swallow extra cost on jobs or do you charge for them?

What do you think?

 

[SafeGasInstall]

no I dont , and I will not take job if I will not be able to pay my self a wages + small profit

and I have lost many jobs tbh

 

[JW Heating]

Just been do an estimating role for around 18 months..

first thing and possibly most important thing is to make sure the business ovr heads are covered by working out the total annual cost and working out how much that needs to be as a percentage.

Second is to shop around and "better buy" where possible, its very easy to be in the trap of just using one merchant through familiarity.

Also a clear and concise contract/quotation, that will give you the ability to charge for variations and unforeseeable works.

Get them to sign two copies of a quote, as this will form a contract. List exclusions on your quote, eg "electrical works for the operation of the whirlpool are excluded from this offer". This can make you the cheapest price on the table which will get a foot in the door in most cases.

Good Luck

Wes

 

[Avatar]

I do feel that is the best way - to have your bottom line 'like it or lump it'!

 

[SafeGasInstall]

I am now happy customer of plub centre .......they give me a prices I wish I had before when I was living in London

 

[SimonG]

Estimates only, only ever given one quotation, the bloke insisted. Worked out my price and added 10% and the quote was very detailed. At the end he got a bill for less than my quote and more than my estimate. Both happy.

 

[Rickster123]

I always used to quote not estimate. But I only I'd heating jobs. Must be harder to quote on bathrooms.

 

[Destroyer2813]

I am now happy customer of plub centre .......they give me a prices I wish I had before when I was living in London

Your one any good at speedy service though or u waste a hour in there getting a few bits

 

[SafeGasInstall]

The one in Northampton Alex

 

[Destroyer2813]

Any good i always used to find stevenage shocking when we ised to go in there

 

[Phil_Plumb]

I used to be happy with a day rate but after one custard started taking the preverbial, with oh can you move that sink over there, then his missus woukld come in and say well could you move that to there etc etc.... i got annoyed with having m time wasted so know i charge day rate with a note on my quote that extras will be chargeble for at an additional cost!

 

[lame plumber]

only do estimates and adjust if required, if they want a quote than I'll add a couple of days and some contingency for materials, and if its a doddle the quote is the bill, if I estimate the custard will sometimes do better other times they pay a bit more, works for me. Always get customers to sign and return a copy of the estimate agreeing to the prices and terms.

 

[Avatar]

Its just I have a had a few - nightmare jobs where everything is messed up!

On one (which was an estimate of course) they had so many problems and issues it was one thing after another. This was a mini hotel however . . . .

What with extra boarding to fit showers, walls out of whack, plaster falling off, plaster and lathe work as well - the list of extras went on and on and on!!

Part of the problem on this one is they wanted a fixed price estimate (maybe I should make this crystal clear in future contracts!) but they acted like I was a member of staff on the books and pretty much expected me to do whatever they wanted while I was on site . . . .

I do state on my contracts that the quote is for these specific items only - people seem to have a blind spot in this area though and become very unreasonable faced with extra cost . . .

 

[leethegasman]

have some notes on your quotes / estimates.
Eg if at time of removing existing tiles/wall covering remedial work is required this will be quoted for.
Eg if at time of doing electrical works faults are found this will be quoted for.

 

[lame plumber]

if you are on a job and they ask for extras act like a big contractor on site, write down all the extras in an invoce book, date it and get them to sign and approve the additional works, then when you get home type it all out and let them have an addition to the original estimate or quote the next day, keep your typed copy with their signature on your invoice pad. They cant possibly complain then, pain in the butt to do but stops you getting shafted.

 

[Phil_Plumb]

Been out to a custard tonight, first fixed a new kitchen and piped up a couple rads and topped up and re sentinelled the system. got paid for it with out any complaints, as i jumped into the van his wife came running out waving saying you forgot this, she handed me a bottle of Capt Morgans as a thank u! wow a first for me, didnt even specify i want a bottle of rum as part payment but hey not one to refuse alcohol!

 

[Mrs Tara Plumbi]

We give fixed quotes for bathrooms and for almost all jobs, but estimates could be just the same - do customers understand the difference.
As others said:
we give detailed itemisation or what is and isn't included.
Often the end job willl be different to the first quote but customer is kept aware of why that is - usually based on decisions they made.

 

[Avatar]

if you are on a job and they ask for extras act like a big contractor on site, write down all the extras in an invoce book, date it and get them to sign and approve the additional works, then when you get home type it all out and let them have an addition to the original estimate or quote the next day, keep your typed copy with their signature on your invoice pad. They cant possibly complain then, pain in the butt to do but stops you getting shafted.

Actually I do do this but often by email - which is nice an usable in court!

If you can prove the customer agreed it then it will be awarded in court as I found out recently . . .