Estimates and quotes
Information on the difference between an estimate and a quote
A quote is a statement of the price for which goods or services will be supplied.
When a quote is accepted, a contract is formed which binds you and the trader to the details contained in the quote.
So, it is important to ensure all the information contained in the quote is accurate. To avoid confusion it is important to include everything necessary to complete the work. For example:
- Cost of materials
- Cost of labour
- Description of proposed work
An estimate is an approximation of the cost of goods or services. Unlike a quote, the price contained in the estimate is not fixed and the final price may be more or less than the estimated price, depending on the circumstances
You should be wary of getting estimates that may be deliberately too low as a way of getting you to agreed to buy a product or a service (such as repairs to your DVD player), that is, to get you to enter into a contract with trader, only to find that the 'estimated' price is all of a sudden higher.
An estimate that contains an unreasonably low price may mean that you can cancel the contract.
So estimates can cause confusion.
A 'qualified' quote is a worthwhile alternative when you are not sure what the final price will be. This basically sets the price of the purchase based on certain assumptions or conditions, so that it is understood that the price is firm unless one of the agreed conditions changes things.
For example, you may agree to buy an imported car that has to be ordered from overseas. The current price is $60,000, but it will take 3 months for it to arrive in the country.
It would be wise for the dealer to give you a qualified quote of $60,000 - on the proviso that the maker of the car may increase the price in the mean time or other factors (government charges maybe) may change and increase the price.
Charging for a quote
It is perfectly legitimate for a trader to charge for their time in preparing a quote, but they must inform you beforehand that they will do this.
Get it in writing
Any quote or estimate should be in writing and it should be clear as to whether it is a firm quote, a qualified quote or an estimate, and that everything you agreed to with the trader about what you wanted and are expecting is clearly and simply set out.