Estimate vs Quote: What Contractors Should Send (and When)
Customers use “estimate” and “quote” as if they mean the same thing. For a contractor they do not. Sending the wrong one can lock you into a price you cannot keep, or lose a job to someone who sounded more certain. This guide explains the difference and when to use each.
The short answer
- An estimate is your best guess at the cost. It can change once the work starts, and the customer knows that.
- A quote is a fixed price for a defined scope. If the scope stays the same, the price stays the same.
When to send an estimate
Send an estimate when you cannot see everything yet:
- Repairs where the damage may be worse once walls, floors or panels are open
- Older homes where wiring, plumbing or framing may not be to code
- Jobs priced by time, where the hours depend on what you find
- Early conversations, when the customer is still deciding what they want
Give a range rather than one number (“$1,800 to $2,400”), say what would push it to the high end, and say how you will handle surprises (“We will stop and get your approval before any extra work over $200”).
When to send a quote
Send a quote when the scope is clear and you have seen the site:
- Painting, flooring, fixture installs and other work you can measure
- Repeat jobs you have done many times
- Any job where the customer is comparing several contractors
A firm price wins more of these jobs, because the customer can say yes without worrying about the final bill. List exactly what is included and what is not, and set an expiry date (30 days is common) so material price changes do not catch you out.
How to word each one
Put the right word at the top of the document, and add one line that makes the terms plain:
- Estimate: “This is an estimate based on what we could see on [date]. The final cost may change; we will get your approval before going over the top of this range.”
- Quote: “This quote is a fixed price for the work listed below and is valid for 30 days. Changes to the scope will be quoted separately before work starts.”
Turning an estimate into a quote
A good habit is to start with an estimate, then send a quote once you know more. For example, open up the damaged area, take photos, then send a firm quote for the repair. The customer gets certainty before the big spend, and you are not stuck with a guess.
Changes after a quote is accepted
When the customer asks for something extra, write a short change order before doing it: what is added, the price, and the customer’s approval (a signature, email or text is fine). Then add it as its own line on the invoice. This one habit prevents most payment disputes. See our guide on writing a contractor invoice that gets paid fast.
Quick checklist
- Right word at the top: Estimate or Quote
- Your business details and the customer’s details
- Job address and a short description of the work
- Line items for labour and materials
- Range (estimate) or fixed total (quote), with tax shown separately
- What is included and what is not
- Expiry date and how changes are handled
- Deposit amount, if you take one
FAQ
Is an estimate legally binding?
Generally an estimate is not a fixed price, but some places limit how far a final bill can go over a written estimate without the customer’s approval. Check the consumer rules where you work.
Is a quote legally binding?
An accepted quote is usually treated as an agreement for the listed work at the listed price. Changes in scope should be agreed in writing.
Should I charge for estimates?
Many contractors give simple estimates free and charge for detailed ones that need hours of measuring or design, often crediting the fee against the job.