The price of services (e.g. repairs and renovations) should always be agreed in writing. It is in the interest of both parties. If no prior agreement exists regarding the price, the consumer must generally pay the price charged by the business, assuming the price is reasonable and the invoice is itemised. The business must also clearly indicate what kind of price estimate they are giving the customer and, if requested, show it to the customer. A price estimate can be a cost estimate, an indicative price or a fixed price.
A price or cost estimate is given when the service provider has had the opportunity to examine the object of the service. The service provider is entitled to charge a fee for making the price estimate. If the cost estimate carries a fee, this must be disclosed to the customer in the first place. In making the price estimate the service provider must clearly indicate if the estimate only covers the work performed or only the components needed. Otherwise the price estimate is interpreted as an estimate of the total price charged for the service.
The service provider must stick to the price estimate. If changes such as additional work are required, these must be agreed with the customer beforehand. If the final price is lower than the price estimate, the company is not entitled to charge according to the original price estimate. The price estimate may only be exceeded by 15% and justifiable grounds must be given for this.
An indicative price is often given over the phone when the service provider hasn't yet had the opportunity to examine the object of the service. In the event that this indicative price is substantially exceeded, the contractor must notify the commissioner without delay and, if necessary, interrupt work.
A fixed price is in question when a predetermined agreed amount is charged for the work regardless of how much time it takes. A predetermined exact fixed price ("contract price") may not be exceeded at all. Nor does the contractor have to lower the price even if the work turns out to be cheaper than expected.
The maximum price is an upper limit. It may not be exceeded even if the actual costs of the work are greater than expected. The price may, however, be lowered according to the amount of work performed or materials used.
The customer has the right to receive a written itemisation of the service before paying for it.