An old quote may contain an allowance rather than a fixed price for every item

The quote total may contain different pricing terms

A customer accepts an old quote after supplier prices have risen. Before announcing a revised total, identify whether the affected item was a fixed price, an allowance or another expressly defined amount. Obtain advice about the actual agreement. A line labelled allowance does not automatically authorise any increase, and a fixed total does not explain every component without reading the terms.

Locate the relevant line and definition

Imagine a contractor quoting a fixed installation price with a separate allowance for a customer-selected fixture. Gather the original quote, accepted terms and selection correspondence. Ask what the allowance was intended to cover and how any adjustment was to be handled. Do not apply the fixture wording to unrelated labour or materials that were priced differently.

Check the contractual mechanism

business.gov.au recommends clear descriptions of work and payment terms. Give the adviser the exact allowance wording and proposed adjustment. Ask whether approval, evidence or another step is required under the agreement. The general guidance does not decide the entitlement. Avoid treating a supplier's newer quote as sufficient proof that the customer must pay every difference.

Source: business.gov.au: Prepare a contract

Separate selection changes from price movement

In the fixture example, the customer may choose a more expensive model as well as facing a later price rise. Show those changes separately with supporting records. Identify quantities, specifications and any related installation effect. A single unexplained adjustment can make it difficult to determine whether the issue is scope, market cost or the operation of the allowance itself.

Obtain the required agreement before committing

Explain the proposed treatment through the proper channel and have uncertain terms reviewed. Do not order an expensive substitute on the assumption approval will follow. Keep any customer's response and the updated scope together. If the position remains disputed, ask what the contract requires while that disagreement is addressed rather than simply stopping or proceeding without advice.

Update the working estimate correctly

After the position is resolved, give the delivery and accounts teams the agreed figures and conditions. Retain the original allowance and explanation of the change. A reliable estimate distinguishes amounts that were fixed from those adjusted under an agreed process. It should not use the existence of one allowance to reopen every part of an old quote.