- Quote
- A document presenting a fixed price for a specific job, typically listing materials, labour, quantities, and unit prices. Once accepted by the customer it can carry contractual weight, so it's worth being as specific as possible about scope, exclusions, and VAT treatment before sending it.
- Proposal
- A document similar to a quote but often broader, combining pricing with a description of the approach, timeline, and what makes you the right person for the job. Common for bigger jobs like full renovations, where the customer is comparing several tradespeople and wants more than just a price.
- Estimate
- A rough, non-binding figure given before a full quote, usually based on limited information such as a phone description of the job. Unlike a quote, an estimate isn't a fixed commitment and should be labelled clearly so the customer doesn't mistake it for a final price.
- Deposit
- A partial payment made before work begins, typically 30% to 50% of the total value. It commits the customer to the job and covers your upfront material costs. Request it directly on the quote via PayShap or EFT so the job doesn't start until it's in your account.
- Labour
- The cost of the work itself, separate from materials, usually priced per hour or as a fixed amount for the job. Splitting labour from materials on a quote makes it easier for the customer to understand what they're paying for, and easier for you to see your real margin on the work you actually do.
- Measurement Record
- A document recording the actual quantities of work completed on site at a given point, used to calculate progress or stage payments on larger contracts. Common on bigger builds where payment is tied to measured progress rather than a single lump sum at the end.
- Award
- The moment a customer formally awards a job to a tradesperson, usually by accepting the quote. On larger contracts with multiple quotes on the table, this is the point the customer commits, and it's worth confirming in writing, even a simple WhatsApp message, once it happens.
- Contract Work
- A job carried out for a fixed, agreed price rather than billed by the hour, with the contractor responsible for delivering the agreed result regardless of how long it actually takes. Most quotes sent through Prummo are structured this way, giving the customer price certainty upfront.
- Subcontract
- Work handed off to another tradesperson or business under your main contract with the customer, for example a builder bringing in an electrician for the wiring. The main contractor stays responsible to the customer for the whole job, even the parts done by a subcontractor.
- Specifications Document
- A document setting out the technical requirements, materials, and standards a job must meet, usually provided by an architect, engineer, or body corporate on larger projects. A tradesperson quoting against one should price strictly to the specification and flag any deviations in writing before starting.
- Operating Licence
- A licence or registration authorising a person or business to carry out certain regulated work. South Africa has no single mandatory trade licence for general building, but specific trades do have compulsory registration, such as electricians registering as installation electricians, or plumbers registering with the Plumbing Industry Registration Board (PIRB). Always check the requirements for your specific trade before taking on regulated work.
- Site Inspection
- A visit to assess a job before quoting, or to check completed work before final sign-off. An accurate site inspection upfront is often what separates a quote that holds up from one that needs revising halfway through the job once the real scope becomes clear.
- Warranty
- A commitment to fix defects in your workmanship or materials for a set period after a job is finished, for example six months on a paint job or a year on a plumbing installation. Stating the warranty period and what it covers directly on the quote sets clear expectations and builds trust with the customer.
- Retention
- A portion of the payment, often 5% to 10%, withheld by the customer until the job is fully complete or a defects liability period has passed. More common on larger contracts, it gives the customer assurance that snags will be fixed rather than left after final payment.
- Staged Payments
- Splitting the total quote value into separate payments collected at agreed points in the job, such as deposit, midpoint, and completion, rather than one lump sum at the end. In South Africa this is arranged directly between tradesperson and customer via PayShap or EFT; there's no card-based instalment or financing plan on quotes in this market.
- Pro Forma Invoice
- A preliminary invoice sent before work is completed or materials delivered, used to confirm the price and terms with a customer or supplier. It isn't a tax invoice for SARS purposes, and a VAT-registered tradesperson still needs to issue a proper tax invoice once payment is received.
- Profit Margin
- The difference between what you charge a customer and what the job actually costs you, expressed as a percentage. Tracking margin per job, and per client over time, shows which work is genuinely worth taking on and which jobs are quietly costing you money.
- Direct Cost
- A cost tied directly to a specific job, such as materials bought for that job, labour hours worked on it, or a subcontractor hired for it. Knowing your direct costs per job is the starting point for pricing quotes accurately.
- Indirect Cost
- A cost that keeps your business running but isn't tied to any single job, such as fuel, tool maintenance, insurance, or admin time. Tradespeople who only account for direct costs on a quote often end up underpricing the job once indirect costs are factored in.
- Service Fee
- An additional charge added on top of materials and labour, for example a call-out fee, an emergency or after-hours rate, or a travel charge for a distant site. Listing it as its own line on the quote keeps the pricing transparent instead of quietly folding it into the labour rate.
- Quote Validity Period
- How long a quoted price stays valid before it may need to be revised, typically 15 to 30 days. Material and fuel prices move, so stating a validity period protects you from being held to an old price on a job the customer sits on for months before accepting.
- Payment Terms
- The agreed schedule and method for how a customer pays for a job, for example a deposit up front, a stage payment partway through, and a final balance on completion, settled via PayShap, EFT, or cash. Stating payment terms clearly on the quote avoids awkward conversations once the job is underway.
- Addendum
- A formal amendment to a quote or contract, made after the original was accepted, that changes the scope, price, or timeline of the job. Adding it as its own document rather than editing the original keeps a clear record of what the customer originally agreed to versus what changed later.
- SARS (South African Revenue Service)
- South Africa's national tax authority, responsible for VAT registration and collection, income tax, and customs. Tradespeople who register for VAT must submit returns to SARS and charge the standard 15% rate on their invoices. Check your registration status with SARS before deciding whether to show VAT on a quote.
- PayShap
- South Africa's real-time instant payment system, built by BankservAfrica and the major banks. A customer can pay a tradesperson instantly using just a phone number or ShapID, with no card needed and funds landing immediately. It's one of the payment methods a tradesman can offer clients for settling a quote in the app, alongside cash.
- Certificate of Compliance (CoC)
- A legally required certificate confirming that work meets safety and regulatory standards, most commonly issued for electrical installations under the Occupational Health and Safety Act by a registered person after inspection. An electrician quoting a job should factor in whether a CoC is needed, since it's typically required before a property sale and often for insurance purposes. Leaving it off a quote can mean an unpleasant surprise for the client later.