Estimate approval template

Estimate Approval

This Estimate Approval (the "Approval") is between [Contractor's business name] (the "Contractor") and [Customer's name] (the "Customer"). It is for work at [Job site] (the "Job Site").

By signing this Approval, the Customer accepts the Contractor's estimate described below and asks the Contractor to do the work on the terms of this Approval. It takes effect when both parties have signed it.

1. The estimate being approved

The Customer approves the Contractor's estimate number [Estimate number], dated [Date of the estimate] (the "Estimate"). A copy of the Estimate is attached to this Approval or has been given to the Customer.

If the Estimate and this Approval say different things, this Approval controls.

2. Work included

The Contractor will do the following work at the Job Site (the "Work"):

[Work included]

The Work includes the labor, materials and equipment needed for it, unless this Approval says otherwise.

3. What is not included

The following is not part of the Work and is not included in the price:

[What is not included]

Anything else that is not described as part of the Work is also not included, unless the parties add it by a change order.

4. Price

The price for the Work is [Price]. This price is [Fixed price or estimate].

If the price is a fixed price, it changes only by a change order.

If the price is an estimate, the Contractor will charge for the Work actually done at the rates in the Estimate. The total will not be more than [If an estimate: percent it may run over] percent above the price stated here, or above any lower limit the law sets, unless the Customer approves the higher amount in writing before the extra cost is incurred.

5. Deposit and payments

The Customer will pay a deposit of [Deposit] when both parties have signed this Approval. The deposit is subject to any limit the law sets on deposits for this kind of work. If the law sets a lower limit, the deposit is that lower amount.

The deposit counts toward the price. The Customer will pay the rest of the price as follows: [How the rest of the price is paid].

6. How long the estimate is open

The Customer may accept the Estimate by signing this Approval on or before [Estimate is open until]. After that day, the Contractor may change the price or withdraw the Estimate, unless both parties have signed this Approval by then.

7. Timing

The Contractor expects to start the Work on or about [Estimated start] and expects the Work to take about [Estimated time to finish].

These are estimates and not fixed dates. They depend on weather, delivery of materials, permits and inspections, and access to the Job Site. The Contractor will tell the Customer promptly about a delay and give new expected dates.

8. Changes

A change to the Work, the price or the timing takes effect only through a written change order that both parties sign before the changed work starts. The change order will describe the change and state its effect on the price and the timing.

9. Hidden or unforeseen conditions

If the Contractor finds a condition at the Job Site that could not reasonably have been seen when the Estimate was prepared, the Contractor will stop the affected part of the Work and tell the Customer promptly. Examples are concealed water damage, rot, mold, pests, faulty wiring or plumbing, and hazardous materials such as asbestos or lead paint.

The price does not include work needed because of such a condition. The affected part of the Work will continue only after the parties agree on a change order for it. Until then, the Contractor may do only what is reasonably needed to make the area safe.

10. Permits, licenses and inspections

The permits and inspections that the law requires for the Work will be obtained and arranged by [Who obtains permits and inspections]. Permit fees are included in the price only if the Estimate says so.

The Contractor holds the licenses and registrations that the law requires for the Work. The Contractor's license or registration number is [Contractor's license or registration number].

The Contractor will do the Work in line with the building codes that apply to it.

11. The Customer's part

The Customer will:

(a) give the Contractor access to the Job Site during the agreed working hours;

(b) provide water and electricity at the Job Site at no charge;

(c) clear the work area of furniture, vehicles and personal belongings before the Work starts, and keep children and pets away from it;

(d) make the selections and decisions the Work depends on, such as colors, fixtures and finishes, by the times the Contractor reasonably asks for them; and

(e) tell the Contractor about any condition at the Job Site that the Customer knows of and that could affect the Work or the safety of the people doing it.

The Customer confirms that the Customer owns the Job Site or has the owner's authority to order the Work. A delay in any of the items above may move the expected dates.

12. Workmanship and warranties

The Contractor will do the Work in a good and workmanlike manner.

If the Customer tells the Contractor in writing about a defect in the Contractor's workmanship within [Period for reporting workmanship defects] after the Work is finished, the Contractor will correct the defect at no charge within a reasonable time.

The manufacturers' warranties on materials and products pass through to the Customer. The Contractor will give the Customer the warranty documents that the Contractor receives.

This section does not cover normal wear, misuse, lack of maintenance, or damage caused by someone other than the Contractor and its workers. It does not limit a warranty or right that the law gives the Customer and does not allow a contract to limit.

13. Cancellation

The Customer may cancel this Approval as the law allows. This includes any right the law gives the Customer to cancel, within the time the law sets, a sale made at the Customer's home or away from the Contractor's place of business. This Approval does not shorten or limit any such right, and the law decides what refund is due when the Customer uses it.

In any other case, if the Customer cancels, the Customer will pay for the Work done up to the cancellation and for materials already ordered for the Work that cannot reasonably be returned or used elsewhere. Payments already made count toward that amount, and the Contractor will promptly refund anything paid above it.

14. General terms

The laws of the state where the Job Site is located govern this Approval.

This Approval and the Estimate are the whole agreement between the parties about the Work and replace earlier discussions about it.

Nothing in this Approval takes away a right that the law gives the Customer and does not allow the Customer to give up.

If a court finds part of this Approval unenforceable, the rest remains in effect.

The parties may sign this Approval electronically and in separate copies, which together form one document.

The parties agree to the terms of this Approval.