understanding-contracts

Quotes and contracts

Reading time: 6 minutes

Have you ever been halfway through a project when you suddenly realise that you should have had a contract with your builder?

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.

对于大多数作品来说,书面引用可能是更可取的,因为一旦它被接受,它就会成为一个有约束力的协议,并给双方一些可以依赖的东西,以建立对预期的相互理解。

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:

  • Exactly what work will be carried out
  • The total, final price of the job
  • Who is responsible for providing the materials
  • When the work should be completed

Your builder may have their own way of issuing a quote. If not, they can always use theMyBuilder 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.

如果出现问题,报价将帮助你证明你的建造者对你的承诺,它也给了商人一些可以依赖的东西,以表明他们已经做到了他们所说的。

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?

在一个完美的世界里,你与商人达成的任何协议都将在一份详细的文件中列出,并签字和注明日期,但有时这并不实际。

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:

  • The specific description of works.For example, if you’re agreeing to a mixer tap being replaced in your quote but don’t specify a brand in the contract then your tradesperson could be within their rights to replace the mixer taps with any model they choose.
  • The cost.This will be set out in the quote and means there can be no dispute as to what’s being paid for.
  • The payment terms.材料费要先付吗?最后的账单何时以何种方式支付?商人是否需要押金?付款是否分阶段进行,如果是,如何进行?就支付金额和付款时间达成一致,以避免日后的纠纷。
  • The tradesperson’s responsibilities. Do you need the tradesperson to clear up at the end of the job? Is it important that tools are stowed away? Agreeing details like these will help both you and the tradesperson understand what’s expected before work starts.
  • Your responsibilities.Responsibilities are a two way street, so what’s expected of you? Do you need to grant access to the property at certain times? Do you need to provide certain facilities? If heavy objects need moving before the job, is this your responsibility or the tradesperson’s? Agreeing on your responsibilities from the off can avoid any sticky disputes later on.
  • Alterations.If things have to change from the original quote, make sure to confirm this in writing and get signatures if you can. By keeping a copy of the agreed amendments along with the original contract you have something to refer back to if any disputes arise.
  • Defects.Tradespeople will often offer guarantees on their work and/or materials. If they don’t, you should consider confirming which potential defects they’d return to fix and if there’s going to be any cost for this. You should also agree on an appropriate length of time for this offer to stand.

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:

  • 一个“提议”(例如,水管工可能会“提议”更换和改装你的水龙头)。
  • An 'Acceptance' (you agree to pay for the works detailed and you both agree to the terms).

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对于如何避免这些问题以及如果你遇到这些问题该怎么做有详细的建议。

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