Do and Charge -V- Fixed Price Quotation
Renovating, building a new home or general plumbing and building maintenance, no matter the reason for engaging the services of a tradesperson, our first thoughts are usually ‘How much is this going to cost me?’
Fixed Price Quotation
An easy way to work out the cost of your project or maintenance need is to have the builder, plumber, electrician or the tradesperson required to complete your job, provide a fixed price quotation. Many trade business will offer a free quotation service which enables you to decide whether the job or project will be able to be completed within your budget.
It is often advisable to source more than one fixed price quotation so as to do a comparison, however, it is important that when comparing one company’s quote to another that you are in fact comparing apples with apples. Unfortunately, not all tradespeople are created equal and there can be many reasons why one quote may come in higher than another. Some of these factors are Experience in quoting on similar jobs to yours, inclusions and exclusions such as machine hire and removing debris from the site. Current demand for service, overheads: company overheads can vary dramatically and affect the price a company is willing and able to do the job for.
Engaging a tradesperson on the basis of a fixed price is the most reliable way of knowing what a job will cost to complete and to ensure all works are completed as per the written agreement. It gives an opportunity for you to accept or decline the services before any work has commenced. The price will be based on the job scope and cost to perform the work. When providing a fixed price for a service, the tradesperson assumes the responsibility for reasonable unforeseeable and overlooked cost or issues associated with it, whether it be time or material related. Some companies will have a variation clause written into their quotation to protect them from incurring the extra cost of unforeseeable extra cost of the job, just another example of the importance of making sure you are comparing apples with apples.
Do and Charge
‘Do and Charge’ also referred to as ‘Cost Plus’ is another way of engaging a tradesperson to complete your required works. This method is as simple as it sounds. The tradesperson does the work then charges you for the time taken to complete the job and material used. The actual cost, however, is not as simple to work out as it will be dependant on many varying factors such as the tradesperson or company’s fee structure. For example, do they charge a call out fee? What is there per hour labour Charge.
Experience with similar jobs or projects also plays a role when looking at engaging tradesperson on a do and charge basis as it may affect the amount of time taken to complete the job. Another thing to take into consideration is that each tradesperson will have a different buy and sell price for material. Material buys and sell prices will not often be disclosed as It is one of the few reasonable “trade secrets” as the ability for a tradesperson or company to negotiate with their suppliers can often provide a competitive edge for many businesses.
‘Do and Charge’ can provide an opportunity to save money if everything on the job goes smoothly, however, if your tradesperson hits a few unforeseeable obstacles along the way, which can often be the case in renovation or maintenance work, you run the risk of blowing your budget.
When comparing one provider’s price to another its important to remember that no matter which way you go, experience with similar jobs and good references is often key to making sure that your job runs smoothly and is cost effective. There are a few simple steps you can take to ensure you get the right tradesperson company for your job.
Simple steps to take when deciding on a tradesperson
- Ask your neighbors, family, and colleagues for referrals
- Research: look for reviews: google, social media, ask around.
- Check if they have industry membership. Example: Master Plumbers Association of Queensland (MPAQ)
- Make sure they are licensed to carry out all works required in the state you are living in. Example: do they have a Queensland Building and Commission (QBCC) license
- Ask for history/experience on similar jobs and for references from a previous customer of theirs.
JT’s Plumbing and Gas Fitting is a family owned and operated Brisbane and the Sunshine Coast plumbing and gas service. We pride ourselves on quality workmanship and strive to provide superior service and solutions.
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