STAG BUILDERS OF HERTFORDSHIRE LIMITED
Estimates vs. Quotes
Estimates vs. Quotes – what’s the difference and which should i ask for…?
Knowing the difference between a estimate and quotation, and using the right one at the right time, can protect you from any costly surprises during works.
What’s the difference between an estimate and a quotation?
The first thing to understand about estimates and quotes is that they are NOT just two different names for the same thing. Estimates and quotes each have distinct benefits & disadvantages. Knowing these is key to avoiding critical problems that can cost you time, and money.
Let’s take a look at estimates, first:
What is an estimate
An estimate is basically a ‘guesstimate’ or rough, educated guess based on what a job MAY cost. Often it is supplied either before you know all the details of the work, or during a site visit.
Estimates can change drastically when you get further information, when unexpected complications crop up during the work or the scope of what you have requested to do increases. An estimate is an informal idea of price based on limited information. Consider it a starting point in terms of costs, which can go up (or down). Estimates CANNOT be used as a legal standpoint for price.
What is a quotation
A quotation (or quote) is an exact price for the job being offered. As such it is fixed and CANNOT be changed once it has been accepted by you the customer (unless the customer changes the amount/type of work required or the company discover something completely outside of the scope of what was agreed).
Quotations (or quotes ) are only issued after an onsite visit or where you are confident that you have established exactly what is needed. It’s important to remember that quotes are presented formally and represent a contract between you and the company. As such they can be used as legal standpoints for price should a dispute arise.
Understandably, quotes give customers peace of mind; safe in the knowledge that they know exactly how much the work will cost before the job begins.
This is why most reputable and professional contruction companies or builders will charge for a quotation, as there is a lot of time spent from site visits, in costing up materials, labour, and also paying to order a copy of all the drawings/plans, structual engineers reports, and building regulations all to scale. Without a copy of professionally drawn plans a builder will not be able to offer a written quotation.
The normal time frame to recieve a legally binding quotation is normally two weeks after your site vist
Estimate or Quotation? Key Points to remember…
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Estimates are free and give a rough idea of price from a qualified quantity surveyor who specialises in construction. They should be used as an initial GUIDE PRICE ONLY.
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Quotations are not free and are legally binding. They should ONLY be used when you want to be certain of the exact costs involved. They are also fixed price, and cannot be changed once accepted by you the customer.