Entrepreneurship, Costing and Customer Care
This domain tests whether you can run plumbing work as a business: pricing a job so it makes a profit, quoting and invoicing correctly, keeping records and dealing with customers professionally. Calculation items usually involve a full cost build-up.
Running the business
- Register the business with the Registrar General's Department, obtain a TIN, and register for VAT once turnover reaches the GRA threshold.
- Keep quotations, invoices, receipts, job cards, material purchases and wage records; without them you cannot price the next job or prove income.
- Put scope, price and payment terms in writing. A quotation is a fixed offer; an estimate is only a guide.
Costing method
Direct cost = materials (add 5–10% waste) + labour + plant + subcontract. Add overheads (rent, tools, transport, insurance, admin) as a percentage. Add profit. Then add VAT and levies if you are registered. Mark-up is calculated on cost; margin is calculated on the selling price - a 20% mark-up is only a 16.7% margin.
Worked example
Bathroom installation: materials GHS 4,200; add 5% waste = GHS 4,410. Labour 6 days × GHS 180 = GHS 1,080. Direct cost = GHS 5,490. Overhead at 10% of direct cost = GHS 549, giving GHS 6,039. Profit at 15% of cost = GHS 906, giving GHS 6,945. Quote GHS 6,945 plus VAT and levies if registered. Reason: each percentage is applied to the correct base and shown as a separate line, so the customer sees exactly what they are paying for.
Customer care
- Arrive when you promised, carry identification, protect floors and furniture, and leave the area clean.
- Explain the fault in plain language and give options and prices before starting work.
- Get written approval for variations before doing the extra work.
- Handle complaints by listening, apologising for the inconvenience, acting, and following up.
- Leave a handover note with warranty terms and contact details.
Traps
- Confusing mark-up with margin and under-pricing the job.
- Forgetting waste, transport, supervision or taxes in the build-up.
- Quoting from the phone without a site visit.
- Doing extra work without a written variation, then not being paid for it.