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Don't worry, you're not alone.
All too often work gets started with only an estimate or a verbal agreement in place, and this can make it hard to distinguish what should have happened and where the problem lies.
##What’s the difference between an estimate and a quote, and is a verbal agreement not enough?
An estimate is essentially a “best guess” at what your job might cost. It’s a fairly loose way of setting out the scope of work and what you may expect to pay for it but there’s no definitive commitment to do anything for a set price so costs can escalate over time.
Rather than just giving an estimate, a tradesperson might give you a verbal commitment to do your job at a specific price. If you have some record of this then it may be enough to bind them to their word but it’s very difficult to prove “mutual assent” without anything in writing.
A written quote is probably preferable for most work because once it’s accepted it becomes a binding agreement and gives both parties something to rely on to create a mutual understanding of what’s expected.
A quote can take many forms and there’s no universal template for what you should expect. What you need to be on the lookout for with a good quote is that it will explain:
Your builder may have their own way of issuing a quote. If not, they can always use the MyBuilder Quote Tool, a product that creates professional quotes and comes with a standard set of contract terms.
##What are the benefits of getting a written quote?
Everyone hopes there won’t be any problems with their job but sometimes things don’t go to plan and a written quote creates accountability on both sides.
If issues arise a quote will help you prove the commitment your builder made to you, and it also gives the tradesperson something to rely on to show they’ve done what they said they would.
Crucially, an accepted quote locks in both the work to be completed and the final price. This means your builder will be committed to completing your job for that price even if they have to do more work than initially thought, with no nasty surprises for you further down the track.
Even if you’re just having a small job done, a written quote lets everyone know where they stand and can go a long way to heading off any arguments that may arise.
##When should you have a full written contract?
In a perfect world, any agreement you make with a tradesperson would be outlined in a detailed document which is signed and dated, but sometimes this just isn’t practical.
There can also be a social taboo around asking for a formal agreement because it could imply a lack of trust, particularly for quite straightforward jobs.
But even for these small jobs, it’s important to make sure everyone’s expectations are the same.
While a verbal arrangement or a quote on its own can constitute a formal agreement, you may want to consider whether your project warrants a written contract on top of this.
Written contracts start to become more important when a job is complex, has staged payments, or is of significant cost.
Your quote will form the basis of this but the contract will set out terms a bit more broadly. These can include things like:
##What is 'Mutual Assent'?
Mutual Assent is a formal way of saying that both of you agree to the same thing. Mutual Assent should contain both of the following:
Mutual assent can be created verbally but if you have evidence of this via a quote or contract it makes it much easier to prove what was agreed on if needed.
##Working with your builder Having a solid contract is important, but it doesn't replace the need for a good working relationship with your builder.
Even with a contract in place, there can still be miscommunications and misunderstandings. MyBuilder's hiring guides have detailed advice on how to avoid these issues and what to do if it you encounter them.