There are a few terms that may be thrown around in the early stages of hiring your contractor. They may all sound like they mean the same thing and it can get a bit confusing trying to determine what your contractor means. Let’s start with the word Estimate.
Contractors use estimates to calculate what costs are expected during a project. They determine the raw materials and labor needed to compete a project and use those costs to generate their estimated cost. These costs are determined by quotes they get from their supplies.
Quotes are figures that suppliers give contractors for the price of the materials needed to complete a job. Often, these prices are only good for a certain amount of time-usually a month. After that time frame, the cost of those materials could change because their prices fluctuate due to supply and demand. This is why when you receive a proposal from your contractor, it is typically only good for 30 days.
Proposals are detailed documents submitted to you by a contractor. It includes all work to be done during the process of the project and a cost. Our proposals at Chap also include a place for you to sign to accept the proposal which then makes it a contract.
Contracts are legally binding agreements between a contractor and a client. They state a start and end date and a schedule for how much and when payments are due.