Price lists, estimates, quotations and tenders

Quotations commit you to the price you specify, so they're usually used when:

• the work you're quoting for has clear requirements - in terms of time, labour and materials
• your costs are stable
• you're confident the work won't turn out to be more complicated than expected

It's good practice to give your customers a written quotation. This should include the:

• overall price
• breakdown of the price components, indicating what the price covers and what it does not
• period the quotation is valid for
• schedule for when you will do the work or deliver the products
• full contact details of your business
• payment terms or schedule
• how you will control and price any changes the customer requests once the project is underway

You should get your customer's written confirmation that they're happy with the price you have quoted and the work that this includes. You should do this before you carry out the work, or provide the goods or services.

If the job changes substantially after you start work, it's a good idea to revise your quotation and get it agreed before you finish the job.

Computer software can be used to help you determine the costs involved in any work for which you're drawing up a quotation.