Knowing the difference between an estimate and a quotation
When hiring someone to do a job or provide a service, before concluding the agreement, consumers discuss the costs involved. While for certain jobs, consumers are given a quotation with a final price, in other situations, consumers may only be given an estimate of the costs involved. But what is the difference between an estimate and a quote, and what consumers should look out for? An estimate can either be verbal or written, and it is essentially a calculation of what the trader thinks the job is likely to cost. Hence, an estimate does not tell consumers exactly the amount of money they are going to spend if, for instance, they need a repair, but just provides an approximate idea of the costs involved, usually based on past experience. Ideally, if consumers decide to proceed with the job, they request a definite final price. If this is not possible, because for instance the work involves a repair and the trader cannot precisely calculate the amount of work involved, it is important that consumers agree with the trader that if while doing the repair the trader realises that the final price is going to exceed the estimate, then the trader should seek the consumer’s approval. If...