The first document is a written quotation on the job specifics. It outlines the job background and requirements, sets limits of services, and shows the price for the services offered. Most clients are going to want an exact amount of how much the offered services are going to cost. Sometimes this just isn’t possible so an estimate must be given. As long as the client understands that it is only an estimate and the price may fluctuate a bit, then everything is good.
Before you write out a quotation, do a little research into the job so you can make your bid as accurate as possible. If needed, ask some questions of the client. For instance, make sure of the specific products or services needed. Check to be sure who will be handling these products or services on the client’s end. Once you get all of the information, you can add it to your quotation.
Although tender quotations can vary depending on the job, most will include the following:
- Basis of the Tender – These are the general rules about what will be documented. This is to set up clearly exactly what is expected and what you will be working with. If it turns out that conditions change and it is more work involved than was documented, then that will be basis for asking for additional payment.
- Background to the Work – This section gives a highly detailed overview of the product or service and what it is used for. This helps the client easily understand exactly what you are offering so that there are no misunderstandings later.
- Product or Services – You should give a very specific and itemized list of the products or services that are being offered for the bid. Include the price for each service with all costs totaled at the end. As mentioned earlier, if you can’t be specific, try to give a close estimate to the actual cost. Sometimes you might need to give the client a set of options. For example, if the client orders more than X amount of a product, they might receive a discount. By giving the client a few options on pricing, it makes your tender seem more flexible and competitive.
- Provisions of Materials – This basically outlines who supplies what. Sometimes the client offers to supply certain materials or services so it needs to be clearly stated in the document.
- Errors and Responsibilities – People occasionally make mistakes on if you are submitting a tender on a large project, chances are that there will be an oversight somewhere. By stating who is responsible for what errors, it will dispel any future disputes. A final checklist should be completed by the client to ensure satisfaction in the delivery of products or services.
- Validity Period of Tender – This gives a time period that the quotation is good for. Prices for materials can change over a short amount of time and if a client waits beyond the validity period, then a new quotation may have to be given.
- Time Allowed for Delivery of Product or Services – This is the time period on how long it will take you to complete the job. This can be very hard to calculate for large jobs so most bidders will give a close estimate. Focus on what is most important to the customer. Is it on timely completion, price, quality or a combination of these and several other criteria? Address them with an assurance of fulfillment.