In the arena of contracting work, costing based on job is required to win any small or big contract. Quoting a reasonable price for getting awarded a contract requires analysis based on technical or financial feasibility. The logic behind price quotation is to make the quotation as low as possible. On the same lines, the plumbing job is also about price quotation. That is to say, at what price the plumber would be willing to provide his services. Before marking a service as its quotation there are certain basic information one must be aware of. The plumber cost Singapore, an all-inclusive cost that must be quoted before the contract begins. The work may include water heater repair Singapore and other supplementary activities.
The contract of plumbing is just a service contract or otherwise – One must decide on a very crucial issue whether the contract is just a service contract requiring only plumbing services to be performed or it is an all inclusive one where goods or products are also to be delivered. Ideally, plumber contracts that include material supplies have a large value as compared to the service contracts. In other words it must be ascertained whether the plumbing contract is cost-plus contract or otherwise.
Cost of service – The plumber firm or company must assess and evaluate the nature of work to be performed. The rates must be kept competitive in order to win the contract. The quotation should include task-wise break-up of rates if different nature of work is required to be done.
Defect Liability Period – There must also be notified a defect liability period within which if any defect in the work performed, the plumber may be called or summoned for getting the repair work done.
Taxes – There must be a separate mention of rates of tax followed by absolute amount of tax to be charged. The taxes recovered or collected are different from service charges.
Awareness about competitive rates – The plumbing firm must make an appraisal of service rates offered by other competitors.
Profit Margin – The profit margin must be reflected separately on the face of the quotation sheet.
Variation – The variation in terms of contract is very common after the work begins. Hence it becomes imperative to include a variation clause in the contract. There must be a separate clause for variation in rates. It must be mentioned different scenarios for price escalation. Also how price rise must be recovered by the plumbing firm.
Payment Terms – In order to avoid any ambiguities, the terms of payment must be clearly mentioned. This would facilitate prompt payment tracking of payment.
Expiry Date – In the price quotation sheet, the last date of quotation expiry must be mentioned. This must also be accompanied by customer signature and acceptance.
In a nutshell, it is observed that there are certain parameters that are to be strictly adhered to before making any competitive bid for the plumbing contract. The price quotation is required to arrive at a fair value for plumbing work. Better price quotation will help estimate profitability promptly. It would facilitate plumbing firm to optimize and allocate its resources in a better way and make informed decision making. The plumber cost Singapore must be standard so that the plumbing firm has a high probability of winning the contract.
