Service Quotations: From Scope to a Clear Offer

Confirm the scope before estimating

Describe the customer’s need, the deliverables and how completion will be assessed. Separate what is included from optional work and exclusions.

Identify customer inputs and dependencies. An estimate based on incomplete information should state its assumptions and how changes will be handled.

Estimate effort from realistic capacity

Break the work into stages and estimate the people and hours required. Use actual productive capacity rather than assuming every paid hour can be billed.

Include employment costs and an appropriate share of overhead without counting the same expense twice. Rates and employment costs vary by country and business; there is no universal hourly multiplier.

Make the commercial offer complete

• Company and customer identity, quotation reference and issue date.
• Deliverables, quantities, units and relevant effort estimates.
• Labor, materials, travel and other agreed charges.
• Currency, applicable taxes and payment conditions.
• Delivery dates, dependencies, validity and change terms.
• Warranty or post-delivery support where applicable.

Choose hourly or fixed-scope pricing

Hourly pricing can suit uncertain or ongoing work when reporting and limits are agreed. A fixed price can suit defined deliverables, but the supplier carries more estimation risk.

State how additional work will be authorized. Fixed pricing does not guarantee a profit; review effort and costs after delivery.

Review, send and follow up

1. 1Check calculations and the version being sent.
2. 2Test readability on a phone and verify attachments.
3. 3Send through a channel agreed with the customer.
4. 4Explain how an authorized person can accept.
5. 5Record the next step without treating a viewing signal as acceptance.