Cost estimates and tradespeople’s invoices: what customers should know

In short: A cost estimate (Kostenvoranschlag) is an estimate of what a repair or job is likely to cost. Whether the amount is binding later on and what applies if the invoice is much higher depends on what was agreed.

In more detail: An ordinary cost estimate is not binding, so the final price may differ somewhat. If it becomes clear that the estimate will be substantially exceeded, the business must inform you without delay under the German Civil Code (BGB).

In detail

• Non-binding or binding: A non-binding cost estimate is an expert’s estimate; the amount is only fixed if a fixed price or a binding estimate has been explicitly agreed.
• Substantial overrun: If the estimated amount is clearly exceeded, the business must notify you in good time; where the limit lies depends on the individual case.
• Right to cancel: If you learn of a considerable increase in costs, you can usually cancel the job and then only pay for the work done up to that point.
• Charges for the estimate: If in doubt, a cost estimate is free of charge; a fee for it must be agreed beforehand, which happens, for example, when extensive fault-finding is needed.
• Compare offers: For larger jobs, get several written quotes and make sure that materials, working time, travel and disposal are clearly listed.
• Check the invoice: Compare the invoice with the quote and ask for unclear items to be explained before you pay.
• Defects: If the work is faulty, you are usually first entitled to have the business put it right; document defects and report them promptly (kaufvertrag-maengel-und-rechte, skonto).
• Tax advantage: Part of the labour costs for tradespeople’s work in your own household can be taken into account for income tax; this usually requires an invoice and payment by bank transfer, and the tax office (Finanzamt) can tell you the exact conditions.
• No undeclared work: Jobs done without an invoice (Schwarzarbeit) are illegal, and anyone who commissions them generally also loses their rights in the event of defects.