What To Do When Supplier Prices Change Between Quote and Start

Prevent the problem with quote validity terms

In today’s volatile market, putting clear validity terms in every quote isn’t optional — it’s sensible trading. Say in plain language how long your labour prices and material prices are valid for. A typical approach is 30 days for labour and a shorter window for materials, often 14 days. That gives you a defensible cut-off to re-price if suppliers move. Put the dates on the quote, not just a vague line about ‘prices subject to change’. If you work with longer lead times (specialist joinery, made-to-measure windows) you might need a bespoke validity period noted and signed off, but make it explicit.

Separate the numbers. Break the quote down into labour, materials, and any provisional sums so the customer sees what’s volatile and what’s fixed. Tradespeople who put one lump sum invite trouble — the client won’t understand why one small item has changed the total. When you show a materials line with a note about short validity you’re signalling early that those figures can move. That makes later conversations less confrontational because you already set expectations and gave them a reason to accept an adjustment if it happens.

Add a simple escalation clause in the same quote: if material costs rise by more than X% (or £Y) after the materials validity period, you reserve the right to revise the materials cost and will notify the client in writing with supporting supplier evidence. Keep the language plain and the threshold realistic for your trade. This is about protecting your margin, not squeezing the customer. A clear clause also avoids arguments with clients who claim they had no warning that prices might change before work starts.

Finally, make the validity period part of your process. Don’t send a quote and forget it. Diary the expiry date and chase if the client hasn’t signed. If they want you to hold a price longer, get that agreed in writing and consider charging a price-holding fee or a deposit. For bigger jobs consider staged agreements: lock in labour and certain manufactured items early, while leaving volatile consumables subject to later adjustment. It’s proper, pragmatic risk management that keeps your job profitable and your business solvent.

How to raise a price change if it happens

If a supplier spikes your price after you’ve agreed terms, deal with it quickly and professionally. Pick up the phone first to explain the situation, then follow up with an email that sets out what’s happened and attaches the supplier’s new price list or invoice. Don’t hide behind a vague ‘costs have increased’ line — show the evidence. Tradespeople respect straight talk. The sooner you notify the client, the more trust you preserve and the fewer surprises anyone gets when invoices or change orders land.

When you explain the rise, give the customer options. Lay out what it would cost to proceed with the new material at the higher price, offer a lower-cost alternative product that achieves a similar result, or suggest phasing the work so you can order materials later if that reduces exposure. If the client wants you to proceed at the original price, you can choose to absorb small increases as a cost of doing business — but only if you’ve decided that’s acceptable. Always state the effect on the delivery date if the price change impacts lead times.

Stay calm and factual. Clients react better to numbers than emotion. Show them the arithmetic: original materials cost, new cost, difference, percentage change, and how that affects the overall quote. If you used a margin on materials in your quote, explain whether that margin still applies or if the change wipes it out. If the increase is due to things like fuel surcharges or a manufacturer price bulletin, point that out. Being transparent keeps the conversation about practical choices rather than blame.

Record every step in writing. After you’ve discussed options on the phone, email a summary with attachments and request the client’s instruction: accept the increase, pick an alternative, or cancel. If they accept, get a signed instruction or an email saying ‘agreed’. If they reject it and you can’t proceed, follow your contract on cancellations and deposits. This paperwork protects you later and makes sure you’re not left holding the bill because someone ‘forgot’ what was agreed.

Deciding your threshold in advance

Before you even write a quote, decide what level of supplier movement you will swallow and what you’ll pass on. This is common-sense financial planning, not being awkward with customers. Many tradespeople set a percentage threshold — 5% or 10% depending on the job size and margin. Others prefer a fixed cash amount; for example, anything under £75 you’ll absorb but anything above you’ll present to the client. The right threshold depends on your overheads, margin targets and the cashflow tolerance of your business.

Think in terms of impact to profit, not just headline change. A 5% increase on a low-margin materials line could wipe out your job profit; a 5% change on a large high-margin supply may be easier to handle. Work the numbers when you price jobs: if your target margin is 20% overall and materials form 40% of the cost, a 10% materials increase drops your margin substantially. That math helps you choose a sensible threshold and justify it to the client when asked. Don’t guess — calculate.

Put your threshold into your terms and training. Make it a standard clause in your quote templates and train anyone who issues quotes to use the same rule. Consistency avoids awkward conversations and saves time. If your apprentice or estimator knows the rule, you’ll get fewer ad-hoc decisions that damage the business. Also review the threshold periodically — what you could absorb when business was busy might be different when work is slow or when your wage bill increases.

Finally, be pragmatic about exceptions. For big or strategic clients you might choose to make concessions to keep a long-term relationship. For one-off jobs where you can’t afford to lose the customer you might dip under your threshold. But these exceptions should be deliberate and recorded. Put any concession in writing, note why you made it and who authorised it. That discipline keeps you profitable and stops ‘nice guy’ decisions from becoming habit and eating your margins.

If the customer refuses the increase

Sometimes a client will simply say ‘no’ to a price increase. You need a plan for that. First, don’t panic and don’t storm off. Re-open the conversation: explain the evidence again and offer practical alternatives. Can you change the specification to a cheaper material? Can you phase the work so the customer can pay later or you can lock in a better supplier price? Being prepared with options turns a flat refusal into a negotiation and often keeps the job intact.

If the customer insists on the original price, weigh up whether you can afford to honour it. For small jobs or repeat customers you might accept the hit as a cost of maintaining goodwill. For larger contracts absorbing the increase could harm the whole business. If you can’t afford it, explain you’ll have to cancel and follow your written terms on deposit returns or partial retention. Be professional: give the customer their options, time to decide and clear notice of the consequences if they choose to proceed at the old price.

Where a deposit has been paid, check your contract and the law. If your terms say you can re-price following supplier increases and the client accepted the terms, you have a stronger position. If there’s no such clause, your options are limited: either eat the cost, agree a compromise, or cancel and refund the deposit where appropriate. Keep the refund or cancellation process fair and prompt to avoid escalation. A client who feels treated fairly is less likely to damage your reputation with negative reviews or complaints.

If a dispute looks like it won’t resolve, escalate sensibly: invite the client to mediation or independent adjudication if the sum is large, or suggest a small claims route for low-value disputes. Always keep a polite, factual record of communications — court and mediators prefer a paper trail. And learn from the situation: update your quote terms, tighten your validity windows and consider taking larger deposits or staged payments to reduce your exposure next time.

Practical contract clauses, supplier relationships and admin to protect you

Good clauses are simple and unambiguous. Use plain language: say materials prices are valid for X days, labour is valid for Y days, and that after expiration materials may be re-priced to reflect supplier increases with proof. Add a clause describing your change order process: you’ll notify the client in writing, provide supporting supplier evidence, and require written client instruction before you order. Make sure the customer signs or emails acceptance of the quote and terms. Short, clear clauses avoid misunderstandings and give you something to point to if things go sideways.

Build better supplier relationships. A reliable merchant or manufacturer can often give you advance warning of price changes or hold prices for you if you have a good account. Negotiate call-off arrangements or fixed-price supply for key items, or place staggered orders to reduce exposure on large jobs. If a supplier is repeatedly unpredictable, consider switching. Picking merchants who understand trade pressures (local builders’ merchants, speciality suppliers) can save you heartache when markets wobble.

Keep admin tight. Save supplier emails, price bulletins, invoices and screenshots in a job file. When you notify a client about a price change, attach the supplier evidence. Use a consistent filing system — digital folder per job, named attachments with dates — so the information is easy to find later for disputes or warranties. Also keep a change order register that records what was requested, when, the decision and who authorised it. This protects you and helps you learn which suppliers or materials cause the most volatility.

Sample wording you can tweak: “Materials prices are valid for 14 days from the date of this quotation. After that period materials may be re-priced to reflect supplier increases. Any adjustment will be notified in writing with supporting supplier documentation and must be accepted in writing before ordering. Labour and workmanship charges are valid for 30 days.” Put that in your standard quote template and make it visible. Little things like that save arguments and keep your business profitable — which is the whole point of running a trade business properly.

Common mistakes

• –Having no quote validity period, leaving no basis to raise a price change later
• –Not telling the customer about a price rise until the final invoice
• –Passing on every tiny fluctuation, appearing petty over small amounts
• –Failing to keep supplier evidence to back up a price increase if questioned

Questions people ask

How long should a quote remain valid?

30 days is common for labour; materials, especially volatile ones like timber or copper, are often given a shorter validity of 2-4 weeks or a note that they're subject to review if the job starts later.

What if the customer refuses to pay the increased price?

If your quote validity terms were clear and the increase is fairly evidenced, you can decline to proceed at the original price, or negotiate a compromise — but try to resolve it before ordering materials or starting work.