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CG8 - 18 Preparation of Quotations

This document provides guidance on preparing quotations for scaffolding work. It outlines essential elements to include such as identifying the parties and work site, providing accurate descriptions of the work, stating prices and rates, specifying payment terms and responsibilities, and addressing disputes and variations. While estimates, quotations, and tenders can mean the same thing legally, it's best to indicate if a proposal is not intended as a formal offer that can be unconditionally accepted.

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495 views2 pages

CG8 - 18 Preparation of Quotations

This document provides guidance on preparing quotations for scaffolding work. It outlines essential elements to include such as identifying the parties and work site, providing accurate descriptions of the work, stating prices and rates, specifying payment terms and responsibilities, and addressing disputes and variations. While estimates, quotations, and tenders can mean the same thing legally, it's best to indicate if a proposal is not intended as a formal offer that can be unconditionally accepted.

Uploaded by

Ardamit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CG8:18

Preparation of Quotations

Introduction

A quotation is an “offer” to carry out work or provide a service in exchange for payment. The preparation
and submission of a quotation is the first stage in the process of forming a contract. Quotations do not have
to be in any particular written format and can be given orally.

Similarly, acceptance of a quotation, leading to the formation of a contract, does not have to be in any specific
format and can equally be given orally.

The problem with contracts not evidenced in writing is the difficulty of proving what has been agreed in the
event of a dispute.

In order to form a contract an offer must be accepted unconditionally. Conditional acceptance, that is to say
the introduction of a new term or variation of an existing part of the quotation, can amount to a counter
offer. In these circumstances the roles of the parties are reversed with the party making the original offer in
the position of being able to accept, reject or make a second counter offer. This process of making offers and
counter offers is often referred to as the “battle of the forms”. Generally the last written offer, prior to work
commencing, forms the basis of the contract.

In simple terms, for an offer to be accepted it must be clear and precise as to the
subject matter of what is being offered, be capable of unconditional acceptance and be
supported by consideration, usually in the form of monetary payment.

This guidance note only addresses the issues associated with offers and does not deal with acceptance or
consideration.

Estimates, Quotations and Tenders

Formal written documents used by scaffolding contractors are rarely, if at all, headed with the word “Offer”.They
are commonly headed with the words “Estimate”, “Quotation” or “Tender”. All three words are interchangeable
although there is a general belief that each has a specific meaning. For example “Quotation” and “Tender” are
often said to imply a definite and fixed price for the work. Whereas, “Estimate” is often used to imply an
approximation of the price which is subject to variation and agreement before a contract is formed.

In reality all three words can have the same meaning, that is to say, they contain an “Offer” which is capable of
“unconditional acceptance” thereby leading to the formation of a contract.

If an offer is made which is not intended to be open for acceptance it should be made clear that the offer
is not capable of acceptance and that is merely an indication of the approximate cost subject to further
confirmation.

NASC May 2018


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Essentials of a Well Drafted Offer
1. Identify the site where the scaffolding is to be erected. The correct names of the parties involved
including corporate status (limited, partnership, sole trader etc.). The date of the quotation and an
identification reference number (quote number).
2. Include a date on which the offer will lapse unless accepted unconditionally.
3. Provide accurate detailed descriptions of the work to be undertaken.
Computerised estimating software improves the quality and consistency of descriptions. However, if the work is
unusual, and/or the software descriptions are inadequate to sufficiently describe the work, appropriate descriptions
should be drafted accordingly.
Descriptions should include the type of scaffolding to be provided, the safe working loads it is capable of supporting,
the number of lifts of boards to be provided and the dimensions of the scaffold (length x width (in terms of number
of boards wide) x height (expressed in metres or the number of lifts)).
4. The price of each separate item of work, including extra hire, should be clearly stated in order to
make the adjustment of accounts easier to deal with in the event of variations occurring.
The individual prices of each item should be totalled to arrive at the contract price.
5. Provide hourly labour rates (daywork rates) for the valuation of additional work on a time related
basis.
State the limitation of the use of these rates if necessary. For example, if the rates are to be used for minor
adaptions only and not for extensive additional work.
6. Generally rates and prices are only subject to discounting if they are specifically said to be so but it
leaves the client in no doubt if it is made clear that they are not subject to discount.
If rates and prices are subject to discount for prompt payment only ensure that the payment terms are stated.
7. Clearly identify whose responsibility it is to prepare the surface on which the scaffold will be
constructed.
Although the liability is often placed on the employer through a clause in the terms and conditions of contract it is
often appropriate to draw the employer’s attention to the clause or state what is required particularly if extensive
structural work is needed.
8. The method of tying the scaffold should be described in detail clearly stating what provision the
employer is required to make.
9. The period of notice required to commence the work and the anticipated erection and dismantling
times should be included.
Unless a detailed programme is submitted with the offer, indicating the phasing and timing of the work.
*10. Terms of payment should be as stated and should meet the requirements of Part 8 of the Local
Democracy, Economic Development & Construction Act.
*11. Unless retention is specifically agreed employers must make payment in full.
However, it does no harm to reinforce the issue by making it clear that the withholding of retention is not accepted.
*12. Clearly identify who has responsibility for the equipment when on site and how lost and damaged
equipment will be charged.
*13. Clearly identify who has responsibility and liability for damage to property and injury to people.
*14. In the event of additional works or variations being required describe the methods for measuring and
valuing them.
It may be appropriate in some circumstances to include a schedule of rates for additional works and variations.
*15. The mechanism for dealing with delays and extensions of time.
*16. Method of dealing with disputes such as adjudication, arbitration or litigation.
*17. E & OE (Errors & Omissions Exceptions).
* These matters can conveniently be dealt with in the general terms and conditions of trading applicable to all quotations
and need not be specifically repeated in each separate quotation.

Whilst every effort has been made to provide reliable and accurate information, we would welcome any corrections to information provided by the Writer which
may not be entirely accurate, therefore and for this reason, the NASC or indeed the Writer, cannot accept responsibility for any misinformation posted.

NASC NASC, 4TH FLOOR, 12 BRIDEWELL PLACE, LONDON EC4V 6AP


TEL: 020 7822 7400 FAX: 020 7822 7401
enquiries@nasc.org.uk www.nasc.org.uk
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