How to write a quote for a job: a worked electrical example and the cancellation trap

"How to quote for a job" is one of the most-searched questions from people running trade firms. That makes sense: the quote is where you win the job, set the price, and decide whether you will get paid without a fight. Here is what goes in one, a worked example, and one rule that catches out a lot of firms.

Quote or estimate?

Know which you are giving. A quote is a fixed price for a defined job. If the customer accepts it, that is the price, even if the job takes longer than you thought. An estimate is your best guess, and the final bill can differ, though it should stay reasonably close.

If you write "quote" at the top, treat it as fixed. If there are unknowns, such as what is behind a wall, say so in the quote and price them separately, rather than calling the whole thing an estimate.

What to put in a quote

• Your business name, address, phone and email, and your VAT number if registered.
• The customer's name and the job address.
• A quote number and the date.
• The scope: what you will do, in plain words, and what is not included.
• The price, split into labour and materials if it helps the customer understand it (and always if they are a contractor taking a CIS deduction).
• VAT: for householders, show the full price including VAT. For business customers you can show it before VAT plus VAT.
• How long the quote is valid for, such as 30 days, because material prices move.
• When you can start and roughly how long it will take.
• Payment terms: any deposit, stage payments, and when the final invoice is due.
• For householders agreeing at their home: the cancellation information (see below).

A worked example

Here is how a consumer unit change for a householder might look. The prices are illustrative.

Not included: fault-finding or repairs on existing circuits if testing finds faults. We will tell you and price any work before doing it.

Valid for 30 days. Deposit of £300 to book the date; the balance is due on completion.

Notice the line about faults. Testing an old installation often turns up problems. Saying up front that they are priced separately stops an argument at the end of the job.

The cancellation trap

This is the part most quote guides leave out, and it can cost you a whole job.

If you agree a job with a householder in their home (or anywhere that is not your business premises), it is an "off-premises contract" under the Consumer Contracts Regulations 2013. The customer has a right to cancel within 14 days, and you must give them information about that right, including a cancellation form, on paper or, if the customer agrees, on another durable medium such as email (regulation 10(2)).

If you do not:

• the 14 days does not start. The cancellation period runs for up to 12 months on top of the 14 days;
• and if they cancel, regulation 36 says they owe you nothing for work you have already done.

In other words, a householder could have the job done, then cancel months later and owe you nothing. It is also a criminal offence not to give the cancellation information for an off-premises contract.

The fix is simple. Put the cancellation information and form on every quote you hand over on paper after a home visit, and email it only where the customer has agreed to get it that way. If the customer wants you to start inside the 14 days, get them to ask for that in writing, such as a text or email. Then, if they do cancel, they pay for the work done up to that point.

None of this applies to business customers, or to jobs agreed entirely at your premises.

Follow it up

Most quotes that are lost are never chased. Send a short follow-up on day 3 and day 7. Our quote follow-up messages give the wording. If the job goes ahead, the same details flow into the invoice: our invoice maker for trades takes the lines straight across. And if the customer goes quiet after the work is done, see what to do when a customer won't pay.

This is general information, not legal advice. The regulations themselves include model cancellation wording and a model cancellation form in Schedule 3 that you can copy onto your quotes.