How do I check a trades company’s quote-to-job record before buying?
Ask for a list of quotes sent with the outcome of each, then match won jobs to final invoices and costs. The gap between quoted and actual cost shows whether the company prices well. A strong record shows both a healthy win rate and jobs that finish near their estimate.
Begin with the quote log. Ask for the quotes sent over a meaningful stretch, with the customer, the type of work, the amount and whether it was won. A seller who cannot produce one may be quoting from memory, which makes any pipeline claim hard to trust.
Then follow won jobs through. Pick a handful and compare the estimate with final labour, materials and subcontractor costs. Look for patterns: certain job types that regularly run over, or customers who dispute invoices. Ask who does the estimating and whether the method is written down or lives in one person’s head.
Check what remains open. Ask about accepted quotes not yet started, work in progress, unpaid holdbacks and callbacks for warranty repairs. Those carry cost and obligation into your ownership. Finally, ask whether the key people hold the trade certifications the work depends on, and whether they plan to stay. Your accountant can help you read job costing, and your lawyer can review any open contracts. Ask how the company decides which jobs to refuse. A firm that quotes everything may be winning work it cannot do well, while one that is selective may be leaving growth on the table. The answer shows how the owner thinks and what you would inherit.
Key takeaways
- Match every sampled quote to its final cost.
- Ask who estimates and whether the method is written down.
- List accepted quotes, work in progress and warranty callbacks.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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