Published on: October 12, 2022 As a service provider, you are likely to provide the client with an estimate of how much it will cost to hire you to do the job. The main thing to remember is that this is an estimate. You are not a fortune teller and are not predicting the future. There is a lot of information out there on what you should include in an Estimate Disclaimer, so you don’t need to reinvent the wheel. This blog will look at how to write a good estimate disclaimer and how to help minimize the risk of being sued by the client. Table of Content How to Write an Estimate Disclaimer? What You Must Include in an Estimate Disclaimer? What You Must Not Include in an Estimate Disclaimer? Detailed Estimate Terms and Conditions Sample Are Disclaimers Legally Binding? FAQs Conclusion How to Write an Estimate Disclaimer in 10 Simple Steps? An estimate disclaimer is a statement that is typically included with an estimate or quote to state that the estimate is based on certain assumptions and conditions. 1. Clearly state that the estimate is only an estimate When writing an estimate, it is important to be clear that the estimate is only an estimate. This means that the final cost may be higher or lower than it, and the estimate should not be seen as a guarantee of the final price. 2. Indicate the factors that may change the costs There are a number of factors that could cause the final cost of a project to be higher or lower than the estimate. These include the complexity of the project, the availability of materials, your availability, and the prevailing market conditions. In addition, the estimate may not include all the costs associated with the project, such as permits or fees. 3. Indicate estimate is based on current cost and is subject to change The purpose of the disclaimer is to let the customer know that the estimate is based on current costs and may be subject to change. This is important to include because it helps to manage customer expectations and avoid misunderstandings. 4. Include a disclaimer of liability When writing an Estimate Disclaimer, it is important to include a disclaimer of liability. This will protect you from any potential legal action that may be taken against you. Example: The estimate is provided “as is,” and the company is not responsible for any errors or omissions. This estimate is based on the information provided by the customer and is subject to change without notice. The company is not responsible for any damages that may result from using this estimate. By including a disclaimer of liability, you are stating that you are not responsible for any damages that may occur as a result of the use of your estimate. This is an important legal protection that you should always include in your Estimate Disclaimers. 5. Indicate estimate does not include all possible costs An estimate disclaimer is a statement that indicates that the estimate does not include all possible costs. This is important to include in a disclaimer because it allows the reader to understand that the estimate is just an estimate and not a guarantee of the final cost. This is especially important to include if the estimate is for a project that has many potential costs that are not known at the time of the estimate. 6. Indicate estimate is valid for a certain period of time This is important to include in a disclaimer because it helps to set expectations for the customer or client. It is important to be clear about the time frame that the estimate is valid so that there are no potential conflicts down the road. 7. Indicate payment terms may change An estimate disclaimer is a statement that notes that the payment terms indicated in an estimate may change. By including an Estimate disclaimer, you can avoid any misunderstandings or miscommunications about the payment terms of a project. This is important to include in an estimate to protect yourself from potential liability if the actual acceptable methods, like electronic payment/ offline payment, end up being different than what was initially agreed upon. 8. Indicate estimate is confidential When writing an estimate disclaimer, it is important to indicate that the estimate is confidential. This will ensure that the client understands that the information contained in the estimate is not to be shared with anyone outside of the company. For example: “This estimate is confidential and for internal use only.” This is to protect yourself in case the client decides not to go ahead with the project. By indicating that the estimate is confidential, you are making it clear that the client cannot share the estimate with anyone else without your permission. 9. Provide your contact information This will allow the recipient to get in touch with you if they have any questions about the Estimate. Additionally, by providing your contact information, you are indicating that you are the author of the Estimate and that you are responsible for its content. 10. Thank the customer for their inquiry Thank the customer for their inquiry and state that you look forward to working with them. Example: Thank you for your inquiry. We appreciate the opportunity to provide you with an estimate for the requested work. Please note that this is only an estimate, and the actual cost may be higher or lower depending on the actual scope of work required. We look forward to working with you on this project. What You Must Include in an Estimate Disclaimer? There are a few key elements that should be included in an estimate disclaimer: The scope of work: This should be a brief description of the work that the estimate is for.The assumptions and conditions: This is where you list the assumptions and conditions that the estimate is based on. For example, if the estimate is based on the assumption that the customer will provide certain materials, that should be noted here.The disclaimer: This is the actual disclaimer statement that warns the customer that the actual price may be different from the estimate.The signature: The estimate terms should be signed by both the customer and the business. This helps to ensure that the customer understands the disclaimer and agrees to it. What You Must Not Include in an Estimate Disclaimer? There are a few things that you should avoid writing in an estimate disclaimer. First, you should avoid making any promises about the accuracy or completeness of the estimate. Second, you should avoid promising that the estimate will remain valid for a certain period of time. Third, you should avoid promising that the estimate will be revised if new information becomes available. Fourth, you should avoid making any other promises that could create liability for the company.Additionally, avoid making any promises or guarantees in the disclaimer that you cannot realistically keep. This could lead to disappointed customers and damaged relationships. Finally, keep the language in the disclaimer simple and easy to understand; avoid using any technical or legal jargon that could confuse the reader. By following these guidelines, you can ensure that your estimate disclaimer is effective and legally sound. Manage and Grow Your Small Service Business Schedule and dispatch technicians, create invoices, get paid, generate service reports with our all-in-one service business management software. Try FieldCamp for FREE Detailed Estimate Terms and Conditions Sample Free Estimate Disclaimer Template Download Are Disclaimers Legally Binding? Disclaimers are commonly used to protect businesses from liability, but they can also be used to protect individuals from responsibility. In some cases, a disclaimer can be used to disclaim an entire contract. In other cases, a disclaimer may only disclaim certain parts of a contract. Whether or not a disclaimer is legally binding depends on the specific language of the disclaimer and the jurisdiction in which the disclaimer is being made. Depending on how it is written, a disclaimer may or may not be enforceable. By adhering to the General Clauses of Contracts Act and other legislation with a fair policy, disclaimers can be rendered legally obligatory. The disclaimer must not be in conflict with the idea of natural justice.The best way to make the disclaimer policy applicable to those utilizing it is to ask the user, customer, or viewer to agree to the terms and conditions prior to using, reading, or viewing the content.The provider may utilize the disclaimer as a reliable piece of evidence in court if the terms are reasonable and simple for the user to understand and follow.Users are cautioned by the Disclaimers, but this is not enough to protect them legally on its own. It is possible to include them in an already enforceable contract by including them in the terms and conditions (T&C) that users must agree to in order to create an account or purchase a service.It may be challenging to understand the terms or disclaimer’s content when users are requested to accept them specifically. Specific disclaimers are necessary to stop users from abusing the material and bringing legal action. FAQs What is an Estimate Disclaimer? An estimate disclaimer is a statement that is typically included with an estimate that states that the estimate is based on the information that is available at the time and is subject to change. How do you write an estimate letter? The estimate letter should include a breakdown of all the estimated costs, as well as the time frame for the completion of the project. The estimate letter should also include a statement of work that outlines the scope of the project. Are quotation and estimate the same thing? No, a quotation is not the same as an estimate. The estimate is an approximation of the likely cost of a project or job, while the quotation is a set price for a specific job or product. Quotations are usually based on a detailed assessment of the work to be done, while estimates are more general and can be based on a range of factors. What are the key elements that you should mention in an estimate? An estimate provides a detailed breakdown of the expected costs for a project. It is an important tool for budgeting and planning and can help to avoid surprises or cost overruns. When creating an estimate, you must mention all necessary costs and an Estimate disclaimer. Conclusion Writing an estimate disclaimer is a good idea as it prevents misunderstandings and ensures that every party knows what they’re getting into. We hope this article has helped you understand how to write an estimate disclaimer. FieldCamp can help in invoicing by automating the process and making it easier for businesses to keep track of their finances. This service scheduler and management software can generate invoices based on information entered by the users, and it can also keep track of payments and send reminders when invoices are due. This can help businesses to avoid late payments and maintain good financial standing. Author Bio Gaurang Bhatt Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs. Sign up for weekly updates from Fieldcamp.
