Quotation vs Estimate: Which One Should You Send?

Many people use "estimate" and "quotation" as if they meant the same thing. Clients often hear both as a promise. Choosing the right one, and labelling it clearly, can prevent a difficult conversation later.

What each one means

An estimate is an informed guess. You expect the final cost to be around that amount, but it may change as the work becomes clearer.

A quotation is generally a firm offer. If the client accepts within the validity period, you are expected to do the stated work for the stated price.

Exactly how these are treated legally depends on your country and wording, so don't rely on the label alone. Say clearly what you mean.

When an estimate makes sense

• You haven't been able to inspect the job yet.
• The scope is likely to change.
• A client only wants a rough budget figure.
• Hidden conditions could affect the work, such as old wiring behind a wall.

When a quotation makes sense

• The scope is clear and you have seen the job.
• Material costs are reasonably stable.
• The client is ready to make a decision.
• You are competing with other businesses on a defined job.

How to word them

For an estimate, you could write: "This is an estimate based on the information available today. The final price may change. We will contact you before doing any extra work."

For a quotation, you could write: "This price is valid for 30 days and covers only the items listed. Additional work will be quoted separately."

A useful habit

If you begin with an estimate, follow it with a proper quotation once the details are confirmed. The client then gets a quick early answer and a firm price before committing.

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