Consider this scenario: you just wrote a quotation for a building project, but halfway into the project, the projected money meant to complete the project suddenly finishes. Will you have the audacity to ask your client for another money? Answer that in your mind.
Writing a good quotation can be the difference between a profitable and a non-profitable company. In a nutshell, preparing a good quote takes time and is research-intensive.
What is a quotation?
A quotation contains a list of services/ materials with prices attached. A quote is different from an estimate in that the latter contains the estimated prices of services and materials.
With respect to the background information, there are essential things you should consider while setting up your quotation as a contractor before the final submission to your client. Some of which include:
• The Market Situation:
The United States is currently plagued with one the highest inflation rates in the last 40 years. Therefore, it is expected that prices of materials and other resources will also go up. Also, taxes may impact the costs of materials. Therefore, ensure you look up for the updated prices before submitting your quotation.
• List the Materials Needed
While this looks trivial, you must consider both the human resources and the construction materials in depth. The human resources should include the laborer’s wages and employer’s liability insurance.
• The Project’s Duration
Usually, when you bid for a construction job, it is expected that the project kickoffs and ends at a specific date. This gives your client an idea of when the project will be delivered. Also, the project’s duration should be reasonable, and if the weather may impact the completion date, you should state it.
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• The Payment Modality
Money gets things done, so you must indicate how you would like to get funds to finance the project. It could be upfront or bi-weekly; indicate the one that perfectly suit the project
• Include Your Business Information
This might look obvious, but it is possible to forget to add your business information after going through the rigor of preparing a quote.
That said, ensure you add your company’s email, address and other details. Alternatively, you can use your company’s letterhead.
As earlier said, a quote can be the game-changer in landing your next job, so do take your time to prepare one.