Avoid No-Quotes with a Time and Materials Contract

Precision machine shops are businesses like any other, and sometimes they must make difficult decisions to protect their bottom lines. Customers often feel the pain of those decisions in the form of no-quotes for small or high-risk projects. 

At Arbiser Machine, we help our customers avoid this frustration whenever possible by providing services for a broad range of projects. In some cases, we may suggest a time and materials contract so we can meet your needs in a way that is mutually beneficial. 

Time and Materials Contracts Are Mutually Beneficial Agreements 

A time and materials contract is an alternative to standard quoting that consists of adding up the cost of labor and materials at the end of a project instead of providing an upfront estimate. 

While this approach can seem like a leap of faith for customers, it’s the most sensible option for specific types of projects: 

• Repair items

• Low-cost parts 

• Projects where the cost of quoting exceeds the revenue potential of the part 

• High-risk parts 

Time and materials contracts help customers avoid no-quotes on these projects because we don’t have to worry about underestimating the cost of the work. Adding up costs after the fact guarantees that we’ll meet our revenue goals while ensuring that our customers pay a fair price—a win for both parties.

With this approach, we can begin working on a project immediately instead of bringing in our estimators to build a quote. (Though our quoting process is streamlined and automated to save time, it still requires some work on our part—work that can be avoided with a time and materials contract.) 

Time and materials contracts are open-ended agreements, but we can work with customers who want concrete numbers before entering a precision machining partnership, setting a not-to-exceed figure as a backstop if needed. 

If you have an application that you’re worried will be no-quoted based on its revenue potential or risk profile, contact us today!