The short version
- Long fixed prices shift all the risk to you.
- Customers accept variation clauses more than you think.
- A short validity date is the cheapest protection you have.
A builder's word used to be worth a fixed price. It is a good tradition. It is also getting people into trouble.
Material prices rose 7.2% in the year to September.1 Construction has more company failures than any other industry.2 Those two facts are connected.
Who carries the risk?
A fixed price moves the entire risk of inflation onto the smaller party. The customer has a home to fall back on. You have a van and an overdraft.
What we would do
Stop offering open-ended prices. Put a 30-day validity on every quote. On anything longer than eight weeks, add a clause that passes through material rises above an agreed level.
You will lose a few jobs. They were probably the ones that would have cost you money. Most customers, told plainly why, will accept it.
Sources
- Building materials and components: commentary, October 2026, Department for Business and Trade. Accessed 11 November 2026.
- Company insolvencies, September 2026, Insolvency Service. Accessed 11 November 2026.
General information only. This is not legal, insurance or financial advice. Your own policy wording decides what is covered.