What an estimate is
An estimate is your best assessment of what a job is likely to cost, based on what you can see at the time. It is not intended to be a fixed price, and the final figure can move if the work turns out differently.
Estimates suit jobs where the scope genuinely can't be pinned down — opening up an old floor, chasing a leak, groundwork where conditions are unknown. Say clearly that it's an estimate, explain what could change it, and tell the customer you'll confirm before costs increase.
What a quote is
A quote is a fixed price for clearly defined work. If the customer accepts it and the scope doesn't change, that's what they pay — so the risk of the job taking longer sits with you.
Quotes suit well-defined work: a bathroom refit to an agreed spec, a fixed run of fencing, a consumer unit change. Customers generally prefer them because they know where they stand, and a clear quote often wins work against a vaguer, cheaper number.
Which to use, and how the risk sits
Broadly: quote when you can define the work, estimate when you honestly can't.
| Estimate | Quote | |
|---|---|---|
| Price | Indicative, can change | Fixed for the stated scope |
| Best for | Unknown or investigative work | Clearly defined work |
| Who carries overrun risk | Shared — customer pays actual | You do |
| Customer certainty | Lower | High |
What either document should include
Whichever you send, the same information prevents arguments:
- Your business name, address and contact details.
- The customer's name and the site address.
- A clear description of the work, broken into labour and materials where it helps.
- The price, and whether it includes VAT.
- Whether it is an estimate or a fixed quote — say the word.
- What is excluded (making good, decoration, disposal, scaffolding).
- How long the price is valid for — material prices move.
- Payment terms, deposit and stage payments.
Price it properly before you send it
A fixed quote is only safe if the number behind it is right. Work out labour, materials, travel and margin before you commit — a quote sent from a rough guess is where most underpriced jobs begin.
This is general guidance rather than legal advice; for contract disputes or unusual terms, take advice from a solicitor or your trade body.
Put it into practice
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Sources & further reading
Common questions
- Is a quote legally binding in the UK?
- A quote accepted by the customer generally forms a contract at that price for the work described, so the scope and exclusions you write matter. For anything contentious or high value, take proper legal advice.
- Can I change the price after giving an estimate?
- An estimate is indicative rather than fixed, but the fair — and far less contentious — approach is to tell the customer in writing as soon as you know costs will rise, and get their agreement before continuing.
- How long should a quote be valid?
- Many trades use 14 or 30 days, mainly because material prices move. Put the expiry date on the document rather than leaving it open-ended.
- Should quotes include VAT?
- If you're VAT registered, state the price and show VAT clearly so the customer knows the total. If you're not registered, say the price includes no VAT so nobody expects an extra 20% later.
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