Quoting for repairs
If you are in the repair business, you know that today's customers expect quality service and a high standard of work at a competitive price. They also expect professional, accurate advice and information particularly on what the cost will be.
When a quote is accepted, a contract is formed that binds you and your customer to the details in the quote.
Therefore, make sure all the information in the quote is accurate and include everything necessary to complete the work. For example:
- cost of materials;
- cost of labour; and
- description of proposed work.
Wherever possible, supply a written quote - including all relevant information. We strongly recommend you get customers to sign quotes to acknowledge that they accept your price.
You may need to carry out further investigations before you can provide a firm quote.
Consider having a standard form that sets out the terms and conditions under which your quotes are given.
If the details are negotiated over the phone, keep a written note as proof of what was discussed and agreed.
If you charge for providing a quote, you must tell the customer the cost before you prepare it. If you don't, they do not have to pay.
Estimates and 'qualified' quotes
In some instances, you may not be able to provide a firm quote.
An estimate doesn't commit you to your estimate of the price, but be careful not to mislead your customer with an unreasonably low figure. If a trader does this in order to get work, the customer may be able to cancel the contract.
When you are not sure of the extent or cost of repairs which will be required, consider giving a 'qualified' quote. Rather than saying "It could be anywhere between this much and that much", you can tell your customer: "If this is the problem, it will cost this much to fix and if that is the problem, it will cost that much to fix, etc".
When extra work is needed
You may find that extra work or materials are needed. If these extra costs could not have been foreseen with reasonable skill and experience at the time the quote was made, you may be able to add them on. But you should contact your customer first.
If the extra costs relate to work or materials that a skilled person in your industry would reasonably have included in the quote, you cannot pass these costs on and must complete the job at the price you quoted.
Implied warranties under the Fair Trading Act
Under the Fair Trading Act, all work must be carried out with due care and skill, and repairs must be of a reasonable standard and quality, free of defective parts (including second-hand ones), and be reasonably fit for their normal purpose, having regard to the nature and type of repair.
Signs or documents which contain phrases such as "all care taken but no responsibility accepted" are misleading and illegal and do not relieve the repairer of responsibility for faulty parts or defective repairs.