Approving an estimate without surprises

What “approved” means on an estimate

When you approve an estimate you usually authorise the work on the terms written in it — the description, the rates and the assumptions — while accepting that the total is a forecast rather than a promise. That is the main difference from a quote, which normally fixes the price for the work described.

How far the final bill may drift from an estimate depends on where you are. In Ontario, a business can't bill a consumer more than 10% above an estimate unless the consumer agrees to the extra charges in writing. New Zealand's consumer protection agency says the final price should generally be within 10–15% of an estimate. In the UK, Citizens Advice says the final price for estimated work should be reasonable. In the US, rules differ by state and trade. A written ceiling on your approval works everywhere, because it becomes part of what you agreed.

Four ways to keep an estimate honest

A written ceiling: “Not to exceed $6,000 including tax without my written approval.” One sentence next to your signature.

A stop-and-call rule: ask to be contacted before extra work starts, with the reason and the price, rather than finding out on the invoice.

Stages instead of one lump: approve and pay phase by phase — demolition, then rebuild — so a surprise in phase one doesn't carry into phase two unchecked.

One folder for the paper trail: the signed estimate, every signed change and the emails about them. It settles most arguments about the final bill.

How to write a limit into your approval

Add one sentence next to or under your signature before you sign. Examples: “Approved up to $6,000 including tax. Anything above this needs my written approval first.” Or: “Approved for phase 1 (strip-out and survey) only; phase 2 to be quoted after the survey.”

In the signer on this page, use Add Text to place the sentence, then your signature and the date. If the estimate has no room for it, the free acceptance-page builder adds a page where the limit goes into the notes. Either way, mention the limit in your reply email too, so it is in the thread as well as in the PDF.

Don't change the business's own figures or cross out their terms. If you disagree with part of the estimate, ask for a revised version and approve that one.

Hourly estimates from agencies and freelancers

Design, marketing, software and consulting estimates are usually hours multiplied by a rate, sometimes as a range such as “40–55 hours”. Before approving, ask what the top of the range assumes, how many rounds of revisions are included, and how hours are reported. A weekly hours update lets you stop or re-scope early instead of meeting the overrun at the end.

For longer projects, approve one phase at a time: discovery first, then design, then build. Each phase gets its own short estimate and its own signature, and the later phases are priced with better information.

Car, appliance and other repair estimates

Repair shops often need your approval before they start, and they may find more once things are taken apart. Ask them to call you with the price before doing anything beyond the approved work. Some places write this into law: in California, an auto repair dealer must tell you the revised total and get your authorisation before charging for parts or labour beyond the estimate, and in Ontario an auto repair invoice can't be more than 10% above the written estimate.

Estimates themselves aren't always free, especially when finding the fault takes work. If a shop charges for the estimate, ask about the fee before you hand over the car or the appliance. Ontario requires auto repairers to tell you about an estimate fee in advance.

Sources

• Ontario: Business guide to consumer protection — estimates
• Ontario: A guide for auto repair businesses
• Consumer Protection (New Zealand): Quotes and estimates
• Citizens Advice: Problem with building work, decorating or home improvements
• California Bureau of Automotive Repair: Write It Right