Quote vs estimate: what’s the difference?
Customers often use the words interchangeably, but they mean different things. Choosing the right one, and saying so clearly, avoids arguments when the bill arrives.
| Quote | Estimate | |
|---|---|---|
| Price | Fixed for the work described | Your best guess |
| Can the final bill change? | Only if the scope changes and the customer agrees | Yes, but it should stay reasonably close |
| Best for | Clear, well-defined jobs | Jobs with unknowns, such as hidden damage or fault-finding |
| Customer expectation | “This is what I’ll pay” | “This is roughly what I’ll pay” |
When to give a quote
Give a quote when you can see the whole job: a switchboard upgrade, a repaint, a new driveway. Customers prefer a fixed price, and it’s easier to accept.
When an estimate is better
Give an estimate when you can’t know the full job until you start: leaks behind walls, electrical fault-finding, old houses with surprises. Explain what could change the price and by roughly how much.
How to word them
- Put “Quote” or “Estimate” clearly at the top
- For quotes, list exactly what’s included and excluded, and how long the price is valid
- For estimates, list the assumptions, and say you’ll contact the customer before going over by more than an agreed amount
- Put any change to the scope in writing and get the customer’s approval before doing the extra work
Do you have to honour a quote?
Generally, if the customer accepts your quote and the work matches what you described, you should charge the quoted price. Australian Consumer Law also protects consumers from misleading pricing. If the job changes, agree a variation in writing first.
General information only, not legal advice. Building and some other trades have extra rules on quotes, contracts and variations that differ by state. Check with your regulator, industry body or a lawyer.
Next steps
Read how to write a quote, or make one now with our free quote template.
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