The difference in one line
A quotation is a fixed price; an estimate is an approximate one. Accept a quotation and the price is agreed. Accept an estimate and you have agreed to the work at roughly that cost, with the final figure to follow.
| Feature | Quotation | Estimate |
|---|---|---|
| Price | Fixed until the valid-until date | Approximate; may change with the work |
| Binding once accepted | Yes, on both sides | The scope, not the exact figure |
| Best when | Scope is clear enough to commit | Scope depends on what you find |
| Typical use | Supply of goods, defined services, fixed projects | Repairs, renovations, restoration, investigations |
| Must state | Scope, exclusions, validity | All of those, plus what would change the price |
| Numbering | QUO- series | EST- series |
Why the word matters
A customer who was told “about 800” and receives an invoice for 1,150 will remember the first number — and in many jurisdictions a document headed Quotation is treated as a firm offer. Head the document with the word you mean, and if it is an estimate, say in a sentence what it is based on and what would move it.
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How to give an estimate that stays an estimate
- Title it Estimate, not Quotation.
- State the basis: “Based on the site visit on 12 September; assumes the subfloor is sound.”
- List the variables and their rates: “Additional labour at 45.00/hour; materials at cost plus 10%.”
- Promise to agree changes before doing them: “Any change will be confirmed in writing before extra work starts.”
The quotation maker produces either — change the title — and the job estimate template has the basis-of-estimate note built in.
Worked example: the same job, both ways
A customer asks for a bathroom to be retiled. Nobody has seen what is under the old tiles.
- As an estimate: “Estimate EST-0031. Remove existing tiles, prepare walls, supply and fit 14 m² porcelain tiles: approximately 1,650.00. Based on a sound substrate; if plaster needs replacing, add 18.00/m² plus materials, agreed before starting. Valid until 30 September.”
- As a quotation: issued after the old tiles are off and the wall is inspected. “Quotation QUO-0031. Prepare walls and replace 3 m² plaster; supply and fit 14 m² porcelain tiles: 1,890.00. Valid until 30 September. 40% deposit to book.”
Same job, same tradesperson. The estimate protected the customer from a surprise and the tradesperson from an argument; the quotation, issued once the unknown was known, is the price both sides can rely on.
What to say when the customer asks for “a quote” and you can only estimate
Say so, in one sentence, on the document and in the email: “This is an estimate because we cannot see the subfloor until the carpet is up; we will confirm the price before any extra work.” Customers accept uncertainty when it is explained; they do not accept it when it arrives as an invoice.
Questions
Is an estimate legally binding?
Generally the agreement to do the work is binding, but the figure is understood to be approximate. A quotation's figure is binding once accepted. Local law varies; the wording on the document is what a court reads first.
Can I turn an estimate into a quotation?
Yes — once the unknowns are resolved, issue a quotation with a new number that references the estimate.
Should an estimate have a valid-until date?
Yes. Prices for materials and labour move; the date limits how long the approximate figure stands.
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