Fixed-price vs hourly quotes: explain the cost clearly

Identify what the displayed amount represents

For a fixed-price offer, explain the work covered by the amount and the boundaries of that scope. For an hourly offer, state the rate, the estimated time and how the final amount would be determined under your agreed terms. An estimated total is not automatically a guaranteed maximum. If you intend to offer a limit or a fixed amount instead, describe that explicitly. Avoid calling a figure “fixed” in the summary while describing it as an estimate elsewhere.

• Label the pricing basis beside the amount, not only in a distant paragraph.
• Identify whether quantities are confirmed or estimated.
• Explain whether materials and other costs are included or separate.
• Distinguish one visit or project from an ongoing service.

Show hourly quantities without counting the wrong thing

If you charge by a person’s time, use total labour hours. Two people working three hours each represent six labour hours, not three. If your rate is instead for the whole team, label that unit clearly. Separate time spent on different activities only when that detail helps the client understand the offer. Do not make a precise-looking total from quantities you have not assessed; mark uncertain hours as estimates and explain what could change them.

Check a simple calculation and its assumptions

The figures below are fictional arithmetic examples, not market rates or a price recommendation. Twelve labour hours at EUR 25 per hour give EUR 300. Adding EUR 120 for materials gives an estimated subtotal of EUR 420 before any applicable tax. If the labour takes fourteen hours instead, the same hourly calculation gives EUR 470 before tax, assuming the materials remain EUR 120. A fixed-price offer of EUR 420 for a defined scope is a different promise from that hourly estimate.

Estimated labour: 12 hours × EUR 25 = EUR 300. Materials: EUR 120. Estimated subtotal: EUR 420 before applicable tax. Pricing basis: Hourly, using estimated labour time. Still to agree: How time will be recorded, how changes will be discussed and which payment terms apply.

Keep optional work out of the agreed base amount

An extra item should not look both optional and already included. State its scope, quantity and price separately, and explain whether it is excluded from the displayed base total. If the client chooses it, update the selected work and the total together before sharing the revised proposal. The same care applies to discounts, supplies and taxes: check that each adjustment is represented once. A materials allowance is also different from a confirmed materials cost, so label it honestly.

Explain what happens when the work changes

Suppose a client asks for another room, another page or an additional design concept. Compare the request with the original scope before agreeing to do it. Discuss any change to the price and timing, then record the revised offer clearly. Do not assume that an hourly arrangement means every extra task is approved, or that a fixed amount includes unlimited additions. Keeping the decision separate from the request helps both sides review what they are actually discussing.

• Name the extra work instead of burying it in a longer description.
• Identify which quantity, deliverable or assumption has changed.
• Check the revised subtotal and any percentage-based amounts.
• Make clear which version the client should review.

Use ScopeMic to present your own verified figures

The free project estimate calculator can help you check labour, materials and other costs before preparing a proposal. In ScopeMic, review the quantities, units and prices in the pricing step, and keep the narrative consistent with that breakdown. Describe whether the offer is fixed-price or an hourly estimate in your brief and review the generated wording. ScopeMic does not choose your commercial terms or establish an agreed maximum for you. Check the client preview and PDF before sending the proposal.