Define: Purchase Order
Represents the designer’s written orders to a supplier.
Define: Change Order
A change order should be clearly labeled and
include the original purchase order number to which a change is being made
How should project estimates be compared equally? (4 ways)
1) Labor and material costs. Be sure the quality of materials is the same.
2) List of jobs to be done and clear remodeling room plans
3) Start date, the length of the contract, and the estimated date of completion. You should ask for a written time schedule as part of the contract;
4) Overall price, which must include permits and disposal fees as well as labor and materials.
What are some things to consider when determining how you want to charge clients? What percent of gross profit should you aim for for appropriate compensation and expansion.
Consider fixed living costs, anticipated business expenses such as insurance, contingency funds, savings plans, loans, and gross profit.
28-35% gross profit range.
What are five methods of billing?
1) Retail
2) Retail less discount
3) Cost plus markup
4) Flat fee
5) Per diem and hourly fees
What information should a purchase order contain?
1) Name and address of party contracting services/materials
2) Name and address of party performing services/materials
3) Date service or materials are being ordered
4) A clear and precise statement of services and/or materials being ordered (order #, quantity, description, unit price etc)
5) A statement of performance expectations for both parties such as "payment due upon receipt of goods or services"
6) A statement of penalties for all parties relative to lack of performance
7) Authorization (signature) by client.
After a client's project is complete, what should you give to the client?
A folder of maintenance information, cleaning instructions, warranties, names/numbers of paint and other info for touch up.