ExpressQuote is as close as I have seen with the difference between "flat rate" and "contract"

We use flat rate pricing on residential service and small commercial jobs. It is a pre-printed book listining all the seperate tasks and their corresponding prices for each task. The customer gets a written invoice from the tech before the work begins listing each task he will need to execute to get the job done right. This pricing is based on averages, so it may take a little longer to do the same thing in one house, but it will get done a little faster in another house. All in all,it evens out in the end. We have been using this system for a long time now and it works well for us.


With contract pricing, which we still use on occassion, I actually estimate the amount of material that I use and add in the labor that it will take on that particular job as well as my burden factors and profit to com up with a price to do the job. The customer gets a written proposal with a detailed scope of work, but only a lump sum of what the cost is.

We also still do a little, actually very little T&M work with large commercial and industrial customers, depending on the urgency. Sometimes time does not allow the privilege of giving the customer the cost up front.

That being said, I agree that all three will work and profits can are being made using all three methods.

This has been an interesting topic w/ alot of great posts and insight.

Have a Blessed Day,
Rick Bruder