You write a detailed quote, calculate everything carefully, and send it off. Then, for a while, you hear nothing. If the client suddenly gets in touch weeks later, eager to place the order, it's often a nail-biting situation. Because in the meantime, material prices might have noticeably increased again. If you're unlucky, you'll end up paying this price difference out of your own pocket.
This is exactly what the binding period protects you from. Used correctly, it safeguards your profit margin and provides you with the necessary security for operational planning.
When is a Quote Legally Binding?
As soon as you submit a quote, you are legally bound by it (§ 145 BGB). If the client accepts, a contract is formed under exactly the conditions and prices stated on your document. This is good for your order situation – provided you have set a time limit. If this deadline is missing, you bear the full risk for interim price jumps in material or labor costs.
The law (§ 147 BGB) strongly differentiates here based on how you submit your quote:
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Offers between those present: If you give the client a price directly on the construction site, in live chat, or over the phone, they basically have to accept immediately. If they state they need three days to think it over, the offer is legally off the table. So, you don't have to worry about them referring back to this verbal commitment weeks later.
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Offers between those absent: If you send the quote via email, fax, or mail, the client naturally has more time. Without a fixed deadline, the quote is valid as long as a response can be expected under “regular circumstances.” This is not a fixed value, but depends on various factors:
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Type of business: For minor matters, a quick response is expected; for large projects, it takes longer.
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Industry: What is customary in your trade?
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Method of transmission: An email is read and answered faster than a traditional letter.
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In trades, for simple jobs, this can be 5 to 7 days. For larger projects, it can be several weeks. However, this legal grey area makes reliable operational planning extremely difficult.
The Solution: Always Set a Specific Date!
It's better not to rely on these vague circumstances. The most important tip for your daily work: Every written quote should have a clear expiration date. This creates clear conditions from the outset. You know by when you can expect a decision, and your client realizes they need to make a decision.
For trade quotes, a period of four to eight weeks has often proven effective. This gives you enough buffer for your material procurement.
Here's how you can easily phrase it in your quote:
“This quote is valid until [date, e.g., May 31, 2024].”
Or, if you want to keep it a bit more flexible:
“This quote remains valid for a period of [e.g., four weeks] from the quote date.”
The “Non-Binding” Quote as a Clever Alternative
Sometimes you already anticipate that material costs are currently fluctuating greatly or delivery times are uncertain. In such cases, you might just want to give the client an initial orientation without immediately committing yourself contractually.
With additions such as “non-binding offer”, “without obligation”, or “price changes due to increased material costs are reserved”, you are legally not submitting a binding offer at all (invitatio ad offerendum). Rather, it is an invitation for the client to offer you the job themselves. If they agree, you can calmly decide whether to accept the project under the current conditions.
Price Clauses for Very Long Projects
If you have a large project ahead of you or if the implementation extends over many months, so-called price clauses (also known as value assurance clauses) can be useful. They help you contractually cushion later fluctuations in material or labor costs. Attention: Such clauses are subject to strict legal rules and must not unfairly disadvantage the client (e.g., through a unilateral increase only upwards). Here, a quick check by a specialist lawyer is often recommended beforehand.
Quote vs. Estimate: The Subtle Difference
In everyday professional life, these terms are often confused, but legally there is a clear distinction:
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The Quote: Is legally binding as soon as the client accepts within the deadline. The price you stated is fixed.
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The Estimate: This is a well-founded, but non-binding estimation of the expected costs. Slight price overruns (usually 15 to 20 percent) are often still acceptable. If it becomes significantly more expensive, you must inform the client beforehand and obtain their consent. An estimate is ideal when the exact scope of work cannot yet be foreseen in detail beforehand.
Act Before the Deadline Expires
As the binding period draws to a close, it's the perfect opportunity for a follow-up. Ideally, you should get in touch 7 to 10 days after sending the quote. A quick call or a friendly email helps to clear up any last misunderstandings and encourage the client to make a decision.
To avoid losing track of multiple open quotes, digital assistants can help. A tool like quidly automates these processes and reliably reminds you to follow up, even before the right moment passes.
Important: Retention Obligation
Even rejected or expired quotes should not immediately end up in the trash. Fixed legal retention periods apply to business documents:
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At least 6 years: This applies to most quotes that ultimately did not result in an order.
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Full 10 years: As soon as your quote later becomes an actual invoice, the ten-year retention obligation for tax reasons (§ 147 AO) applies.
A neat, digital filing system saves you a lot of time in the long run and eases the stress during your next tax declaration.
Note: This article is not legal advice. If in doubt, your Chamber of Crafts or a specialist lawyer can help.