Draft for review
Business cash and contracts

A sharp quote needs measured quantities, not hidden guesses

Separate measured quantities from estimating assumptions when deciding whether a low quote is commercially sound.
Corporate Recovery Partners
CRP Stacy avatar beside CHECK THE QUANTITY and A confident unit rate cannot fix a guessed quantity.
Expose the measurements and assumptions in your quote. on a monochrome 1609 cover.
01 / 06

The rate can be right and the total wrong

Many quote reviews focus on whether the hourly or unit rate is competitive. The quantity deserves equal attention. A carefully chosen rate multiplied by an unsupported quantity still produces an unreliable price. Before cutting the margin to win work, find out how much of the estimate is measured and how much is an assumption.

02 / 06

Mark the basis beside each amount

For significant items, record the drawing revision, site measurement or other information used. Label allowances and unresolved quantities clearly in the internal estimate. Keep the original working so another person can check it. Do not turn a rough preliminary quantity into a precise-looking figure simply because the quoting software expects a number in every field.

03 / 06

Connect quantity to the promised scope

Business.gov.au's contract guidance calls for a clear description of the work or result. Compare that description with what has actually been measured. If the customer expects all areas completed, but your take-off covers only the rooms shown on an earlier drawing, the attractive total may reflect missing work rather than an efficient way to deliver it.

Source: business.gov.au: Prepare a contract

04 / 06

A small omission can multiply

Imagine a hypothetical painter pricing ten identical rooms from a preliminary schedule. A later drawing includes twelve. Even if the rate per room was sensible, the original total does not include the extra two rooms. That example does not decide who must pay under a contract; it identifies a measurement question that should be resolved before pricing is treated as final.

05 / 06

Review changes without losing the trail

When revised documents arrive, note what changed and update the affected quantities. Avoid silently replacing the old file, especially if someone has already discussed its price with the customer. Ask for clarification where drawings conflict. Keep the revised calculation linked to the version of the offer it supports so the team is discussing the same scope.

06 / 06

Make the uncertainty a decision

Before submitting, decide whether the unknown quantity can be measured, clarified or addressed through an appropriate agreed pricing arrangement. Get advice on wording where needed. Do not simply hide it inside a smaller margin and hope the quantity works out. A quote is more useful when the team can explain both the rate and the amount of work behind it.

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