- Quote (Orçamento)
- A document presenting a fixed price for a specific job or service. When accepted by the client, it can have contractual value. Typically includes materials, labor, quantities, and unit prices.
- Proposal (Proposta)
- A more comprehensive document than a quote. Beyond pricing, it includes commercial terms: execution timeline, payment conditions, validity period, warranties, and exclusions. Used for larger jobs or business clients.
- Estimate (Estimativa)
- A cost approximation without a fixed price commitment. Presents a value range (e.g., between $2,000 and $3,000) based on the professional's experience. Useful when there are unknown variables.
- VAT / Sales Tax
- A consumption tax applied to goods and services. Rates vary by country. Professionals should check their local tax obligations and clearly state whether quotes include or exclude tax.
- Deposit (Sinal)
- A partial payment made before work begins, typically 30% to 50% of the total value. Serves as a commitment guarantee and covers initial material costs.
- Labor
- The cost of human work in a service, excluding materials. Can be charged by the hour, by the day, or as a fixed amount. Should include not just time on site, but also travel and preparation.
- Measurement Certificate
- A document recording the quantities of work actually completed in a project. Used to verify what was done versus what was quoted and to calculate partial payments.
- Award / Acceptance
- The formal act of assigning a job to a professional or company. When a client awards your quote, they are officially confirming they accept the terms and want to proceed.
- Contract Work
- A contract where a professional or company commits to completing an entire job for an agreed price. The contractor assumes responsibility for the final result.
- Subcontracting
- When a contractor hires another professional or company to perform part of the work. Example: a builder subcontracting an electrician for the electrical installation.
- Specifications Document
- A technical document that describes in detail what must be done in a project: materials, methods, standards, and specifications. Serves as the basis for professionals to prepare quotes.
- Operating License (Alvará)
- An official license authorizing a construction company to operate. Classifies the company by categories of work it can perform, with value limits. Requirements vary by country.
- Inspection
- A formal inspection of a project to verify it matches the quote, plans, and applicable standards. Can be done by the client, an independent technician, or an official body.
- Warranty
- The period after job completion during which the professional commits to fixing defects at no extra cost. Warranty periods vary by country and type of work.
- Retention
- A percentage of the total value (typically 5% to 10%) that the client withholds until the end of the warranty period. Serves as security to cover any defects that appear after completion.
- Installments
- Splitting the total payment into parts over time. With Prummo, the client can pay in 3 interest-free installments via Klarna, while the professional receives the full amount immediately.
- Proforma Invoice
- A preliminary document indicating the amount to be paid before the final invoice is issued. Has no tax value, but helps the client confirm amounts and prepare payment.
- Freelancer Receipt (Recibo Verde)
- A tax document issued by independent workers in Portugal to prove service delivery and payment receipt. Issued electronically through the tax authority portal. Similar to a freelance invoice in other countries.
- Profit Margin
- The percentage a professional adds to the actual cost (materials + labor) to make a profit. Typically ranges from 20% to 40%, depending on the type of work and experience level.
- Direct Cost
- Expenses directly tied to a specific job: purchased materials, labor hours on site, and equipment rental. Easy to attribute to a specific quote.
- Indirect Cost / Overhead
- Business expenses not tied to a specific job: insurance, fuel, tool maintenance, phone, and accounting. Should be factored into the hourly rate calculation.
- Service Fee
- A percentage charged by a platform or payment processor for using its services. In Prummo, standard payment processing fees apply when a client pays online (Stripe/Klarna). Prummo itself is free for manual quotes, with optional paid plans for advanced features.
- Validity Period
- The period during which a quote maintains the stated prices. Typically 15 to 30 days. After this period, the professional can recalculate if material costs have changed.
- Payment Terms
- Terms defining how and when the client must pay: method (card, bank transfer), deadlines (on completion, 30 days), and structure (deposit + installments or full payment on completion).
- Amendment / Change Order
- A formal change to an already-accepted quote or contract. When extra work or changes arise during execution, the amendment documents the new scope and adjusted price.