A project quotation is necessary for the construction industry before the parties involved sign any binding contract. Oftentimes, it’s not the actual construction quote that makes or breaks the business deal. Rather, it’s how it’s presented and outlined in the quotation form.
Not needless to say, an inaccurate quote for construction work could lead to grave consequences, such as loss of client trust.
In this article, we’ll discuss the components of construction quote forms, common mistakes to avoid, and best practices to adopt. At the end of this piece, we’ll also offer an integrated solution to seamlessly create accurate quotes for your business.
What Is a Construction Quote?
A construction quote is a document that specifies the amount a contractor receives to complete the job requirements. Simply put, it’s the pricing for a construction project after both parties mutually agree on the costs. Once it’s signed, it is considered legally binding.
In the construction sector, some professionals may use “quote” and “estimate” interchangeably. But the actual difference is that an “estimate” is a generalized cost projection and is less specific than a “quote.” The latter is more exact in its pricing and is only often provided once an actual business deal is established.
Key Components to Include in Your Construction Quote Form
Having an organized and clear outline for your construction quote is imperative to earn the trust of your prospective client. Your construction quote forms should include:
Basic administrative details
The first part of your construction quote must include the following basic administrative details for both parties, such as:
- Your company’s name
- The company or contractor’s name
- The company or contractor’s address
- The name of the project
- Contact information
- Site of work
Scope of work
It is equally indispensable for a construction company to include a relatively detailed scope of work. This part of the quote would comprise what is and isn’t inclusive of the costs laid out in this document. The overall scope of work ought to include the tasks, items needed, and the corresponding costs.
Meanwhile, it is also important to specify exclusions in your quote form to avoid confusion and future disputes. Some examples include fixing any damage your laborers did not cause, painting materials costs, or compensation for architects and engineers.
Materials and associated costs
Here lies the documentation for the materials and supplies to be utilized for the construction work. Ideally, you should be able to give a clear and concise description of the materials as well as accurate measurements.
A more straightforward way would be to provide the cost of materials upfront. However, itemized pricing for each material required is a much better approach to providing an accurate quote. A generic quote with minimal information is less ideal.
Section for signatures
At the end of the quote, a section for signatures from both parties is an important part. It should also include the signee’s name below the signature and the date it was signed. If you use an eSignature solution like Fill, your electronic signature and that of your client will be legally binding.
What is more, you can guarantee 100 percent safety for your documents. Fill will protect your forms and contracts with its military-grade security. Furthermore, its audit trail feature will allow you to trace the history of when and who signed the document. This makes for strong legal evidence in the event of a court dispute.
Common Mistakes to Avoid When Creating a Construction Quote
Knowing these common mistakes when creating a construction quote can help you avoid them. These common mistakes are:
Failing to conduct a site visit
These are often mandatory, and failing to do so could lead to inaccurate quoting.
Therefore, taking measurements, making topography inspections, and surveying the construction site for materials and equipment storage is absolutely necessary. A thorough site visit can help you factor in all other associated costs to get the job done.
Failing to assess the project completion timeline
This means setting a reasonable time that you’d expect your project to be completed. If your client requested a date that isn’t reasonable for you, set proper expectations and talk it out. Rushing to complete a job that needs more time could lead to quality issues.
However, having more time than necessary could lead to a prolonged project duration that will benefit neither party. Be sure to consider any potential delays, such as bad weather or supply chain issues.
Inaccurate costs
Ensuring the accuracy of takeoffs could be the most challenging part of creating a construction quote form. This includes the exact labor costs and the precise quantification of supplies and materials. Missing items or making erroneous measurements can lead to project overestimation and unsuccessful bidding.
No contingency plan
No construction projects are risk-free. In consequence, having a contingency plan and coming up with risk assessments are a must. If a prospective construction job is too risky, you should consider backing out from submitting a bid.
If you decide to proceed, developing a mechanism to mitigate the risks could help you avert costly mistakes. It is also important to be transparent about any risks when communicating with a contractor or subcontractor.
Not reviewing the quotation
Even if it’s handled by a group of professional estimators, mistakes can happen. Having said this, failing to make a thorough review of what has been initially quoted can have adverse consequences. Hence, rushing through your estimations for the sole purpose of meeting the deadline for bidding is inadvisable.
Instead, take adequate time to have your construction quotes reviewed by another estimator in the team. This will prevent any inaccurate measurements that will be a lose-lose situation for you and the purchasing party.
Overlooking the importance of a contract
A contract is a legally binding document that outlines the terms and conditions of the project. It is the foundation of the entire construction process, and it should be given the same level of attention. When creating a construction quote, make sure that both parties have a clear understanding of what they are agreeing to.
Once the contract is signed, both parties are legally obligated to abide by the terms. Read the contract with a fine-toothed comb to ensure all topics are covered and make sure it is signed accordingly.
Best Practices for Creating an Accurate Quote Form
Win more clients in the construction industry by following these best practices for creating construction quote forms.
Ensure Accurate Takeoffs
A construction quotation that will match the project costs is expected of every competent construction company. But sometimes, contractors may leave off items to lower the cost and make them more appealing to clients. Refrain from following this tactic and instead ensure your quote transparently lists all the services and materials it will cover.
Make Use of Construction Templates
Opting to create a quote form each time you submit a bid is exhausting, time-consuming, and counterproductive. To fast-track your quote form creation, you must have a pre-made template for all future quotes. Importantly, it should be a personalized template where your company logo is visible, and the quote details are neatly outlined.
Use an Integrated Software
To help you produce accurate construction quote forms, resorting to software use will help you simplify the construction-quoting process. With a paperless solution like Fill, you can use templates for your present and future quotations. You can also have your client electronically sign to ensure that your contract is binding and legally enforceable.
Creating a Clear and Accurate Construction Quote Form With Fill
At Fill, we have pre-made templates for various industries, which include quote forms for construction companies. Fill deviates from the generic quote forms that fail to provide all essential sections. Aside from the basic administrative details, breakdown of materials, and their corresponding costs, Fill has a template comprising the following:
- Payment schedule
- Schedule of services
- Insurance
- Terms and conditions
- A clause for termination
- Electronic signatures
When you use Fill, you will have access to a number of vital features besides legally binding electronic signatures. With our paperless tool, you help ensure that your forms for construction quotes are made with free and customizable templates.
Fill: A Dependable Solution for your Construction Quotes
From construction company quote to contract management, Fill is the go-to solution to streamline your business processes.
Moreover, Fill complies with all rules and regulations governing eSignatures and its other essential uses. It is equipped with 256-bit encryption for document security and sensitive data protection.
For digital archiving, we have developed a cloud-based repository for unlimited storage. You can also enjoy third-party integrations with your other document-sharing apps.
Achieve your company’s mission of becoming a leading construction business. Use Fill to digitize your construction quote forms. Sign up for free today.
