Quotations are important documents at the base of a business agreement. Read all about quotations here: what they are, what they say, how to interpret them, and what to do if there are ambiguities.
What is an offer?
A quotation is a formal proposal from a supplier or service provider to a potential customer. The document lists the products, services, and associated costs. Its purpose is to provide a clear agreement on what will be provided and on what terms. Quotes are usually non-binding (unless otherwise stated) and allow customers to compare different providers before making a decision. For some quotes, companies charge a specification fee to prepare the quote. You often get this cost “refunded” if you agree to the quote.
What’s in a quotation?
A good quotation includes the following elements:
- Contact details:
- Name, address, VAT number, phone number and email address of the company/supplier.
- Customer’s name, address, telephone number and e-mail address.
- Description of services or products:
- A detailed description of what is provided.
- Specifications such as product numbers (EAN codes), dimensions, materials or duration.
- Fee quote:
- Price per product or service.
- Total price, including or excluding VAT.
- Possible discounts.
- Timelines:
- Start and end dates of work for services.
- Delivery time for products.
- Prerequisites:
- General terms and conditions: e.g. cancellation options, cancellation policy, liability clauses, warranty.
- Payment terms: e.g. advance payment (down payment), when to pay what, which VAT regulations apply.
- Period of validity of quotation.
- Exclusions and exceptions.
- Signature or Agreement:
- A place where the customer can give his or her agreement, often with a date.
What should definitely not be missed?
Under Belgian law, an offer must contain at least the following items:
- Supplier Identity: The full name, company number and address.
- A clear description: The customer must know exactly what is being delivered.
- Price and VAT: The total price including VAT and if possible a breakdown of costs.
- Period of validity: The period during which the quotation is valid.
- General terms and conditions: In which reference is made to rules on cancellation, warranties, or disputes.
Note: When working in the construction industry, there are often additional requirements such as the entry of measurement records or engineering plans.
What should you pay attention to when making an offer?
- Completeness: Make sure all details about products, services and costs are clear.
- Comparability: When comparing multiple quotes, look at specifications and not just price.
- Hidden costs: Ask explicitly about additional costs such as transportation, start-up or administrative fees.
- VAT entry: Check whether VAT is included.
- Deviations from the conversation: Make sure everything discussed is actually in the quotation.
Read our article with 10 tips on how to properly compare quotes here.
How long is an offer valid?
The validity period of an offer is usually stated in the document. This can range from a few days to several months, depending on the industry and the nature of the products or services. If no validity period is stated, the quotation is considered “reasonably binding” for a period of time common in the industry in question.
What if you disagree with the offer?
- Contact the supplier to discuss any ambiguities or errors.
- Ask for a custom quote if things are missing or need to be changed.
- If no agreement is possible, refuse the offer and have to look at other options.
Would you like to cite this article as a source? Then use:
Stiasteny, L. (2024, Nov. 26). Everything you need to know about quotes. Apartment.com. Accessed on (date XX/XX/202X), from https://www.appartement.be/alles-over-offertes/
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