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Funny, but when I renovated the house I did it all on day-work for all the trades. I guess that's the equivalent of people asking me for an hourly rate!
The reasoning was that we knew we would change things as we went along, and it was being project-managed by me being on-site most of the time. It's easy to spot where the trades would have made an easy mark-up with a fixed-price estimate, and I know not one of them would have come in on price anyway.
That cynical attitude, based on previous building work where every single estimate went up, is common amongst clients. When I ran larger landscaping contracts I made a point of not going over estimate unless something major changed and was treated separately. People used to say how unusual, and refreshing, it was to pay what they expected.
Gary
It really depends on the job, the location, the requirements, etc etc...but I'd always (99%, lol) QUOTE for a one-off or for regular garden maintenance.
How? Well, as your post mentions, primarily experience. Every day is a school day - but make sure you learn from it! Defining the price to be paid is essential for all of us if we put our consumer heads on. Why go to Tesco's, see something and the price says 'perhaps £x.xx' and then go to the checkout and find out it cost you more like £y.yy?
Also, using metrics is fab (defined sizes of tasks to be completed/hours needed (+costs)) and use this partially to determine any quote. It's a good way forward because it's the homework from the 'school day'. It'll get better too :->
As David Miller comments, communication is absolute to a successful outcome to the quote, both during a consultation and during the works. Emphasis on the unknown needs be made since anything under the ground can cause consequences, as numerous other threads on LJN testify!
One of the Trades, when questioned, said he could not provide a quote as there were areas he was unsure about ( I read that as inexperienced) so needed some latitude ( ie from my wallet !).
Even though the quote/fixed price was dearer it 'gives' me more confidence I can afford the works.
I can't remember the last time I submitted an estimate...
I have been renovating my house so have had lots of experience of all different types of trades in. Some have been on day rate and others have been on price. Without exception, the trades who were working on price, finished the jobs quicker and to a higher standard. They also required less management from me. if for example my plasterer who is on a price doesnt put the beading in straight, i will tell him to redo it and it will be at his own cost. If that same person is on a day rate then the cost to redo the beading will have to be borne by me. I have always find that tradesmen working on a price will make less mistakes as they know that they will have to fork out to fix them
I have always priced as "At the Estimated Cost of.....£xxxxx inc VAT". However, the price I give is really a firm quotation as I have never gone above the cost given, unless the customer adds on work………. which invariably happens or we hit unforeseeable problems, ie a broken or leaking drain…….which also happens regularly!
It takes experience and a clear head, but nothing focuses the mind more than realizing you have dropped a bit of a clanger and I tell you what, you won’t do it again. Reputation means everything to me and that includes not upping the price quoted just because you were not bright or didn’t know your job well enough to do the sums.
I once priced a 10 section fence and forgot to include the cost of panels, not surprisingly the customer bit my hand off……. I thought he was a bit eager! That was a long time ago and one rainy day not long after, I put together various hypothetical jobs and worked out our rough yardage prices for fencing, paving, turfing, top soiling, seeding etc. and those guide prices (with annual increases!) have been my back-up reference for many years.
I have always priced jobs, large or small as fixed price jobs. I price any additional work before I do it. or me it takes a little longer but I find customers prefer it and everyone knows where they stand. I don't see how someone doing a trade cant price accurately enough to come up with a decent fixed price quote for a customer. I do make the odd mistake, but I find they come out in the wash and get fewer and further between as time goes on. With a fixed price it gives me a much better way to work out my cash flow, and lets the client do theirs as well, so they are more likely to ask for additional work to be done at the same time. It also avoids the problem at the end of a job of arguments over the value of any work, when you are trying to cover the costs and so is the client
Thermo - I think that sums it up - not that the discussion is finished, far from it, but I like your comment :->
We have always price work as Quotes. With quotes the costumer is assured that that you are giving them the final price. An estimate can mean anything.
If you give a quote, because the customer knows the final price and feels safe that they may have to pay a lot more, then you can give a higher price in a quote than you would in an estimate. This protects you and your customer, because you have a much higher built in profit margin.
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