This is why there is often a timeframe associated with quotes. Quotes expire because the materials involved in a construction project are commodities and their prices fluctuate based on supply and demand.
A good example is lumber. It takes time for producers to catch up to the unanticipated demand. Another example may include an excavator whose costs vary depending on the price of diesel fuel at the time he actually performs the work. Contractors use estimates to calculate their expected costs to complete a project. They look at the specifications for a project and determine the raw materials and labor they need.
The contractor then goes to their suppliers to get quotes for the raw materials, which they use to calculate the estimate. An estimate may also include an accounting of taxes, overhead, subcontracts, and equipment costs. Contractors generally work up estimates before or during the process of drafting a bid or proposal. Estimates are usually free, but some contractors do charge for the time it takes to provide a thorough and accurate estimate. Those who charge for estimates often have a formal education in construction and you can expect a much more detailed document where everything is spelled out.
Check out this useful step-by-step guide for successful electrical estimation by Esticom. Now, putting all of the confusion aside, below are what we consider the most widely accepted definitions. A quote is a figure that a contractor gets from a supplier for the price of material they need for a job. Quotes are often only good for a certain amount of time-generally about a month-which means the builder has only that amount of time to buy the materials at the given price.
Outside the given time frame, the price of materials more than likely will change. Quotes expire because the materials involved in a construction project are commodities, and their prices fluctuate based on supply and demand.
Contractors use estimates to calculate their expected costs to complete a project. They look at the specifications for a project and determine the raw materials and labor they need.
The contractor then goes to their suppliers to get quotes for the raw materials, which they use to calculate the estimates. An estimate may also include an accounting of taxes, overhead, subcontracts, and equipment costs. Estimates are usually free, but some contractors do charge for the time it takes to do a good and thorough job. Those contactors who charge often have a formal education and you can expect a much more detailed document where everything is spelled out.
In this example, they know what training should be delivered, and what skills and knowledge they want imparted, but do not prescribe the training materials, the duration, or how the training will be delivered. They specify the results they want, not the methodology. What they want suppliers to respond with is a proposal on how they would deliver the training, and what results they expect to get from the training.
In this case, the evaluation is not just about price, but on how effective the training will be. In the case of a proposal, the decision is less about price and more about how much they like what you are proposing. Everybody is quoting differently on a job delivered in different ways.
Of course price is a consideration: however the Buyer makes a value for money consideration. Products By Bayt.
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