Moment 1 of 7
Agreeing the job
Know what the price covers before you accept it.
A homeowner sees a total of £28,400 and believes the project will cost £28,400. The contractor believes the figure assumes sound existing walls, standard fittings and unrestricted weekday access. Those qualifications are scattered across an email, a drawing and a conversation.
The disagreement appears months later as a price dispute, but it began before work started. The parties never established which parts of the price were fixed, estimated, allowed, excluded or dependent on information that did not yet exist.
The purpose of a price document is therefore not merely to name a total. It should make the basis of that total visible enough for both parties to understand what may legitimately change and what should not.
Guides for this moment
- For homeownersGuideQuote or estimate: what is the difference?You receive two prices for the same extension.Read the guide
- For homeownersGuideWhat is actually included in the building quote?The quote says: “Rear extension, complete: £76,000.”Read the guide
- For homeownersGuideThe quote includes an allowance. What will you actually pay?Your builder's quotation says: “Tiles: allowance £30 per square metre.”Read the guide
- For buildersGuideGive the customer a price they can understand and administerYou know what you meant when you wrote: “Bathroom refurbishment: £18,500.”Read the guide
What the words mean
- Quote and estimate
- A quote or estimate states a proposed price basis for described work. Its practical meaning depends on the wording, scope, qualifications, assumptions and later agreement, not only the title at the top.
- Scope, inclusions and exclusions
- The scope states the work the project requires. Inclusions confirm what the price and responsibility cover. Exclusions identify related work, products or responsibilities that remain outside that agreement.
- Assumption
- An assumption is a stated condition used to prepare a scope, price or programme before that condition has been fully confirmed. It should explain what is believed, why it matters and what happens if it proves wrong.
- Allowance
- An allowance is an amount included where a product, quantity or piece of work is not yet known well enough for a firm price. Its label, coverage and adjustment method must show what can change and how the final amount will be calculated.
What each side does
Having the work done
- Compare the scope and qualifications, not only the total.
- Check whether the document calls itself a quote, estimate, budget or schedule of rates.
- Ask which parts may change and what will cause the change.
- Check whether VAT is included where applicable.
- Check product allowances against the products you are likely to choose.
- Disclose known information that may affect access, condition or design.
- Read referenced drawings, specifications and terms.
- Resolve contradictions before accepting.
- Do not treat a casual request for additional work as included merely because no price was mentioned at that moment.
Doing the work
- Use the label that best describes the commercial basis.
- Avoid false precision where the information does not support it.
- Separate fixed work from uncertain elements.
- State assumptions and exclusions prominently enough to be understood.
- Identify missing design, survey or selection information.
- Explain what will happen if an allowance is exceeded or a provisional item is no longer required.
- Check that the description matches the latest drawings and specification.
- Correct imported or automatically interpreted information before asking the customer to accept it.
- Record later changes through the variation process rather than rewriting the original price history.
Assurr’s part in this
What Assurr does
- keeps the source document and interpreted project structure connected;
- helps separate scope, exclusions, assumptions and different price bases;
- records questions, revisions, acceptance and superseded versions;
- links later variations to the original agreed position;
- provides a shared reference for the customer and trade.
What Assurr doesn’t do
- determine whether a price is legally binding;
- decide whether an additional charge is recoverable;
- guarantee that every omission has been detected;
- prepare a technical specification or quantity survey;
- decide whether the price represents market value;
- replace a building contract, legal advice or professional administration.