Estimates are a common practice in the business world, particularly in certain sectors. When the final cost cannot be clearly stated from the start, you need to issue a document presenting the price you expect your client will need to pay for the services or goods you provide.
This isn’t a binding document, but it’s still a good idea to add an estimate disclaimer to avoid misunderstandings. Many of the terms and conditions can suffer modifications along the way, depending on various elements.
If you look at an estimate disclaimer sample, you can see it can focus on the price, payment or delivery terms, design, and any other element that cannot be established from the start. For instance, a quotation disclaimer underlines that what the client initially gets is an estimation of the final price and that changes can occur.
How to Write an Estimate Terms and Conditions?
An estimate disclaimer is a disclosure tool meant to keep the client from discovering unwanted surprises along the way. Quote disclaimers should be used in any document you issue that includes a price, as long as that price is subjected to modifications.
That’s especially important for small businesses; if the price changes due to market fluctuations or various reasons, you want to be sure your company won’t be liable. Since exterior changes are not always easy to predict, take a look at an estimate terms and conditions sample as a guide.
It will probably mention that the prices the company estimated can change somewhere along the way, with no need for a prior warning. It’s merely a protection method against the fluctuating factors on the market, like fuel prices or the changing economic background.
If you’re a contractor, your construction estimate disclaimer must set the ground for unanticipated complications to the project, like the price of materials changing or needing extra hours to complete it.
It’s not always about pricing subject to change disclaimer; you may also need to cover the issue of liability. It’s essential to underline where your responsibility ends and that you will not be liable for damage caused by the client or a third party.
Are Disclaimers Legally Binding?
An estimate disclaimer can be legally binding, but it depends on the document you include it in. To be official and stand out in court, if necessary, the quote disclaimer must be part of a contract.
The contract is the legal agreement between two parties, mentioning the obligations and benefits on each side. Many of them include pricing subject to change disclaimer to make it easier to address any ulterior issues.
To ensure the document you sign is official and legal, check for the following elements: your offer, the explicit acceptance from the client’s part, and the obligations each party has.
If what you provide your client with isn’t a full contract, but a simple estimation of what they should expect from the project in terms of costs, the estimate disclaimer will not be legally binding.
Including an estimate disclaimer in the document that you offer your client is the best way to make sure they fully understand the terms of your collaboration. Even if not all disclaimers are legally binding, they are very useful in ensuring good communication and avoiding unnecessary conflicts if the prices justifiably change.
If you want to add pricing subject to change disclaimer in your document, do it with a useful template like the one on the WeInvoice site. While you’re there, take a look around; you will discover many other user-friendly templates and invoice generators.