Frequently asked questions
What is a price quotation?
A price quotation can be known as a legally binding formal document which customer receive from the supplier, detailing all costs involve in providing a certain service, the total price and the tax amount if applicable. This document clearly needs to indicates following information;
1.Descriptions of all direct costs that are involved (Labour, machinery use, price of consumables, travelling and etc),
2. Method of calculating the price and the quantity (per hour, per unit, project basis, section by section and etc.),
3. Detailed summery of the scope of the work and timelines,
3. Additional services and costs involved (if any),
4. Time duration the quotation is valid upto,
5. Business name, ABN or ACN,
6. Contract terms and conditions,
7. Refund policy and payment methods.
Upon a request made by the customer it is supplier's responsiblity to prepare the price quotation by carefully evaluating project requirement. It may also require the supplier to conduct a prior site inspection in order to preparing a price quotation when prices are not pre determined and the project is larger or complex in nature. It is suppliers duty to make sure all necessary aspects are considered and prices are double checked and realistic before send the final quotation to the customer because, no further changes are not permited to make once the final document is sent to the customer.
Subsequently, then it is customer's term to make the decision and is required to accept or refuse the quotation once it received. If accepts, the document needs to be sign off by the customer and then it will automatically become a binding contract between both parties. Upon signing the quotation by both parties no further changes can be made especially on to prices, even the "quotaed" total price is exceeding the actual "project cost" or vice versa but supplier is expected to provide services as quoted on the document.
Price quotations are only offered if supplier, could conduct a prior site inspection, have sufficient information regarding the project, total cost is pre determined or supplier have sound knowledge about the work site. If non or any of above is satisfied, customer will only be provided with a price estimation instead of a price quotation.
What is price estimation?
A written price estimation is a document which mainly outlines project's cost and expenditure as similar to a price quotation but with a slight difference. Though a written estimation contains almost the same type of information on it, it doesnt consider as a legally binding document even if it is accepted and signed off. It does not guarantee you that the final total cost will be as same as to the amount that you are provided with the estimation. Price estimation provides without a prior inspection, calculations based on limited information and even considering previous experiences in projects of similar nature to make assumptions. An estimation might not be in written form at all times. It also could be a verble may be over the phone. Therefore customer needs to expect changes to the total cost at the end of the the job/project. Zavvers offers flexible options along with price estimations and maintains constant communication with the customer to keep them up dated.
Factors to consider when hiring a service provider.
When you look for a service provider to get a particular job done, one of the first questions you need to get answered from the supplier is "How much it costs you to get the job done?" In many occasions the cost of a service can be the main deciding factor of whether to hire a perticular service provider or not. Services offer under cheaper prices are the suppliers who usually get more customer attraction than the ones with higher rates but, it is important to remember that pricing can also be deceiving and it should not be the only factor that you need to consider when hiring a service provider.
Then what are the other factors that you can consider in order to making the right purchasing decision? In other words it is a comparision between the cheapest servise provider and the rest of the suppliers that available, to determine reasons behind why someone setting a higher price when someone provides the same sevice for a cheaper price and what are the values you get extra for the additional money you pay for a supplier with a higher price. Here are some other important factors that you all should consider before hiring a service provider whithout just consentrate of the pricing factor itself.
1. Quality assurance and the guarantee of the service provider.
2. Industry expertise and the goodwill.
3. Trained professional staff and project supervision.
4. Use of appropriate tools, equipment, materials and machinery.
5. Good reference, appropriate insurance and a good track record (consistency).
6. Convenience (communication, managing) and availability of services.
7. Value for money and complementary services.
How to get an accurate price quotation?
It is simple. There are some key points we would like to highlight for you to take in to the consideratrion when requesting a price quotation. If follows, it would make both parties work more convenient and finally you will be able to recieve a most accurate price quotation. Generally, "a price quoted" in a price quotation is not subjected to be changed in the future (unlike an estimation) even if it exceeds the originally quoted amount, at the time of completion. A price quotation is binding document, therefore it is important to both parties to get this document finalized accutately as much as possible to avoid any future conflicts.
Let's what is expected from you as a customer, to help supplier, to provide you with a most accurate price quotation.
1. Read carefully the information the supplier has provided and provide them with information about the nature of the required work to be done and get confirmed whether the supplier provides services that are complying to your business's requirements.
2. Set-up a site inspection - This is the most important task. In many occasions, price quotations are only provided by the supplier upon completion of the intial site inspection. Ideally it can be conducted in a convenient time once business's daily operations are concluded as it is not appropriated to carry out during the normal business hours.
3. Clearly specify your service requirements highlighting whether its regular ongoing work or one-off or occational or periodical or general, special or additional that are expected to be provided.
4. Any special conditions that would like to include. (Eg;
General cleaning service need to be provided on daily basis in washrooms but floors are expected to be scrubbed cleaned in fortnightly basis./ Supplier is required to provide all consumable products along with the routine maintenance./ Areas require special concerntration./ If dishes are to be cleaned.)
4. Additional information supplier suppose to know or should follow when entering, while operating and exiting the property or using tools chemicals and materials or staff parking or etc.
5. If certain budgetery need are to be met then it has to be communicate clearly and get your service tailored and customized to serve uniquely for your service requirements.
6. Provide as many photos as possible, clearly state deadlines (if any), KPI's to meet (if any) and expected minimum standard to be maintained (only for budgeted projects).
An accurate price quotation is always depend on the quality of the information that supplier can receive from you as a customer. More clearer the onformation easier it is to determine. Therefore proper and clear communication is the key to get a price quotation successfully completed.
accurate as possible