An estimate that takes only a little bit of time should be free. When a builder takes several hours or even days to develop an estimate, a customer “can only expect a good estimate if you are compensated for your time.” Providing estimates is part of the business
Are estimations free?
Estimates are usually free for: Consultations that involve talking to a client over the phone or visiting the site to do a more precise evaluation Estimates are usually not free for: Consultations for large, complicated jobs that need lots of design work, revisions and several plans (like remodelling a bathroom)
How much do estimates cost?
Estimates tend to be free for small jobs that are fairly straightforward. Estimates are usually free for: Consultations that involve talking to a client over the phone or visiting the site to do a more precise evaluation Estimates are usually not free for:
When should a contractor charge for free estimates?
Free Estimates: When a Contractor Should Offer Them (And When to Charge a Fee) Hub > Estimates. Estimates are usually free for small, simple jobs like painting a bathroom. A contractor will charge for an estimate for complicated, big projects that involve detailed designs and multiple plan revisions, such as building an addition to your home.
Why don’t all businesses offer free estimates?
Some businesses don’t offer free estimates because they think it reduces the value of their services and expertise. If their knowledge is valuable enough, they should be able to charge for it like any other service. You could waste time and effort.
Do you charge for estimate?
In many cases, a contractor will not charge for an estimate on smaller jobs like painting, window washing, or lawn services. If the work is simple and doesn't require in-depth consultation or design work, estimates are generally free of charge.
What does a free estimate mean?
So it stands to reason that the definition of a “free estimate” when applied to the construction industry would be an approximate calculation of the cost to complete the project, provided free of charge to the prospective client.
Is a estimate legally binding?
An estimate is a non-legally binding document. It is an approximation of costs for a project, drawn up by a business to send to a client. It is not a promise. The small business providing the estimate can withdraw their offer or the client can reject it.
What is the purpose of estimated cost?
The purpose of cost estimation is to give project stakeholders accurate information concerning the related project costs. It is easier to make lasting decisions if there is information to back them up. Cost estimation also gives clients value-aided options and helps clients minimize expenses.
Can you charge for a quote?
A quote is an offer to do a job for a specified price. Once you accept a quote, the provider can't charge you more than that unless you agree to extra work, or the scope of the job changes while it is underway. Legally, this is known as a variation to your contract.
Can a contractor charge me more than the quote?
If you have a written contract with your contractor or even a text exchange, look back at your agreement. Often, contractors use non-binding language and state that there could be charges on top of the estimate.
What is the difference between an estimate and a quote?
The main difference between a quotation and an estimate is that: a quotation is an agreed fixed price. an estimate is approximate price that may change.
Is an estimate the same as a proposal?
Free estimates are generally reserved for smaller jobs that are not going to be complicated, like installing a new door, or simple repairs. A proposal is a more detailed scope of work and costs. Proposals usually do or could require a lenghthy consultation with the client to determine exactly what they are expecting.
Whats the difference between a proposal and an estimate?
Proposals include all the information contained in estimates, quotes and bids. But they take things further by showcasing the value that you can offer a prospective client and including testimonials and examples of past work to establish trust.
Why is the estimate important?
Accurate estimating provides a detailed breakdown of all project costs. Clients are more likely to trust your expertise and expect changes to the cost estimate as the project progresses if they understand the “why” behind a project's cost. This leads to better working relationships.
What is an advantage of estimation?
More accurate estimations result in smoother execution of the project. So you are spared last-minute overheads, unforeseen expenditures, and blocked working capital. What this means is lesser project costs. The right estimation means glitch-free, uninterrupted project execution.
What are the main reasons to document your cost estimate?
Documenting the cost estimate makes available a written justification showing how it was developed and aiding in updating it as key assumptions change and more information becomes available.
What is a free estimate?
An estimate is a ballpark guess at how much time, effort, and materials it’ll take to finish a job. Because it’s less accurate and more flexible than writing a quote, which has a fixed price, some contractors offer estimates for free.
Should I offer free estimates?
Whether or not you offer free estimates depends on what works best for your business, your industry, and your clients.
Send estimates faster
Want to spend less time on estimates? Download our free contractor estimate template to create a professional-looking estimate and send it to your client.
Why should I give free estimates?
There are several advantages that come with offering free estimates to potential clients:
What are the downsides of free estimates?
A free estimate policy does sound good, but there are a few downsides that might make you think twice about offering them:
How much should I charge for estimates?
A quote can cost anywhere from $50 to $1,500, depending on the size and value of the work. Quoting to paint a house will be on the lower end, while renovating the home could be on the higher end.
Impress your clients and win more jobs
Use our free contractor estimate template to create a professional-looking estimate, convert it to an invoice, and send it to your client.
Why You Should Stop Doing Free Estimates
What do you think of the definition for ‘estimate’ in the following image?
The Problem With Free Estimates
The contracting industry has become experts at running around for free. This is rooted in a couple things:
Thoughts From Other Contractors
I asked my Contractor Sales Academy members why free estimates are a bad idea. Here’s some of what they shared:
How to Stop Doing Free Estimates
I talk a lot about how being different can grow your contracting business. Not doing free estimates is one way to stand out in a crowd of contractors that all look and sound the same to the clients. I encourage you to look for ways to be different.
Not Doing Free Consultations is Better for the Client
I’ve talked to many homeowners that really don’t want you to come over. The last thing they want to do is waste their time with some contractor who probably won’t be a fit for them.
What is free estimate?
Providing “free estimates” has long been part of the building trades, covering everything from paving a driveway to replacing a roof. A customer calls, the contractor responds. Whatever time the contractor invests in coming up with the estimate is considered part of the cost of doing business.
Does Tim buy residential property?
Tim, however, isn’t buying any of it, no matter how long it takes to come up with a price. Tim works as an engineer, not a contractor. But he says he also buys, sells and renovates residential property, so he’s used to working with a lot of contractors.
Free Estimates May Provide Limited Information
Free home repair estimates don't always go the distance. Before accepting a free estimate, ask what’s included to ensure it covers the scope needed for you to make apples-to-apples comparisons between different contractors.
Design Plans Are Not Usually Included
Be prepared to pay for personalized design plans pertaining to your next project. In addition to providing compensation for time, contractors tend to create design plans for customers who are ready to start their project soon, not for those still researching costs.
Some Contractors Only Offer Free Estimates for Big Jobs
Some contractors only offer free estimates for projects that go above a certain dollar amount. That means you might have a hard time finding a contractor to give you a free quote if you're just looking for a smaller job like appliance repair.
Estimate Costs Are Sometimes Refunded
If a company only does paid estimates, don’t rule them out entirely. Many companies that charge for estimates will apply the cost toward your final bill if you decide to go with them. Ask if this is a possibility before choosing your contractor.
Get Your Free Estimate Offer in Writing
Don't just assume that your estimate will be free because a company advertised free estimates. The estimate being advertised may not apply in your case. A better option is to ask for an offer to receive your free estimate in writing. This will cover you in the event that a bill for an estimate shows up down the road.
Don't Just Pick a Company Because The Estimate is Free
While a free estimate is enticing, you shouldn't choose a company based on "freebies" alone. Before hiring a contractor, check their customer reviews and reputation in addition to their qualifications and experience. If this company is the only company in your area offering free estimates, ask yourself why that may be. Free isn’t always best.
Most Importantly: Get at Least Three Estimates
Getting more than one estimate—three is best—will help you to establish a high cost, middle cost, and low cost for the project you need done. Consider paying for some of your estimates if you can't find three companies willing to provide free estimates.
When making your calculations for the estimate, don’t forget about the little things.?
These tend to add up if not accounted for and will make for a very unhappy customer . As much as you want to keep costs low, try to account for as many miscellaneous items as possible, such as dumpsters or permits. The closer you come to your estimate when the job is complete, the better chance you have at achieving another loyal customer.
How does technology help in estimate?
Technology provides an opportunity to go above and beyond in your estimate. Create a template in excel or word, depending on the method you choose to use, to easily plug in items and costs. The program will then do the math for you. You’ll save time and provide a more accurate estimate to your potential client.
Is an estimate a favor?
Remember, providing an estimate is not a favor, but part of the service you provide. Estimates act as a roadmap to the final contract and add clarity for both you and the customer. It should show a win-win outcome for both you and the customer.
Do contractors need to provide estimates?
Though every job is different, contractors should be willing and ready to provide estimates to their customers. Knowing what to present and how to present them can be tricky, especially when you’re trying to land the job. Providing an estimate can be the hardest part of the business.
Do you include an estimate in a quote?
Even if you quoted a price verbally to the customer over the phone or in person, be sure to include an estimate in writing. This is beneficial to you as well as the customer, as you both now have an idea of what is required on both ends of the project. The customer can also visually see costs and evaluate your estimate.
