What is budget planning?

What is budget planning?

The budget is the overall plan formulated in terms of value for all expected income and expenditure. In business administration (BWL) one usually speaks of a budget in connection with a short-term financial plan that reflects the future financial year or the company’s development.

Where does the word budget come from?

word origin. The loan word budget comes from “travel bag” (French bouge), whose French diminutive “Ranzen” (French bougette) referred to a leather sack or leather bag used for money.

What does budget offer mean?

A budget offer is a favorable or cheap offer.

What is a budget offer?

The target price offer is often also referred to as a budget, information or planning offer. It contains a brief description of the technical solution tailored to the needs of the requestor, eg a description of the main components and, if necessary, a draft or principle drawing.

How much can an estimate cost?

As a rule, a company can charge up to 10% of the determined repair costs for a cost estimate. However, this does not mean that the costs of preparing the offer have to be so high. In fact, the costs are usually lower, if any are charged at all.

Is an offer always free?

The offer is always free of charge The creation of an offer is always free of charge. In contrast to a very detailed cost estimate, it is also made shorter.

Is an offer subject to a fee?

Can an estimate cost anything? According to the German Civil Code (BGB), the cost estimate is not to be remunerated “in case of doubt”. Translated, this means that there is only a legal right to payment if the payment of the cost estimate has been explicitly agreed beforehand.

Are craftsman offers subject to a fee?

Even if both terms are often used interchangeably, there are still differences that craftsmen should note and, above all, communicate: In an offer, according to BGB § 145 to 150, the costs stated are considered a fixed price and must not be exceeded.

How much more expensive can an offer be?

According to current case law, clients must accept deviations of 15 to 20 percent from the cost estimate. Deviations of up to 25 percent can also be justified.

Is an offer binding?

According to §145-150 BGB, all offers are binding if the non-binding nature of an offer has not been expressly determined. Thus, entrepreneurs and customers are fundamentally bound to the conditions of a legally binding offer letter.

When is an offer binding?

In principle, every contract offer that is made to someone personally is binding, unless the binding nature is expressly excluded, e.g. B. by the note “Offer subject to change”. Then contracts that came about through silence can also be binding.

Can an offer be withdrawn?

A withdrawal of the submitted offer after the offer period is no longer possible. The bidders are then bound to their offer until the end of the required binding period. Section 10 (2) VOB/A: Offers can be withdrawn in text form up to the end of the offer period.

When is the order a request and when is it an acceptance?

If the order was preceded by an offer from the supplier, this is referred to as acceptance. The purchase contract is concluded under the conditions offered. If, on the other hand, the order is placed without a prior offer, it is an application.

How long are you bound by a declaration of intent?

The commitment only begins with the receipt of the declaration of intent and ends when the receipt of an answer can be expected under normal conditions. The commitment period can also be limited in the declaration of intent, eg valid until March 15 (so-called limited offer).