Quote vs Estimate: What's the Difference and When to Use Each

If you're a tradesman in the UK, you've probably used the words "quote" and "estimate" interchangeably. Most customers do too. But legally, they mean very different things — and using the wrong one could cost you money.

What Is a Quote?

A quote (or quotation) is a fixed price for a specific piece of work. Once a customer accepts your quote, it becomes a legally binding agreement. You cannot charge more than the quoted price unless the customer agrees to additional work.

Key characteristics of a quote:

• Fixed price — you must honour it
• Legally binding once accepted
• Usually has a validity period (e.g., 30 days)
• Should include a detailed scope of work

What Is an Estimate?

An estimate is an approximate price based on your best judgement. It's not legally binding, and the final cost can go up or down depending on what you find during the job.

Key characteristics of an estimate:

• Approximate price — can change
• Not legally binding
• Used when exact costs are uncertain
• Should still be as accurate as possible

Quick Comparison

	Quote	Estimate
Price	Fixed	Approximate
Legally binding?	Yes (once accepted)	No
Can price change?	No (unless scope changes)	Yes
Best for	Clear, defined jobs	Uncertain or complex jobs
Customer confidence	High	Lower

When to Use a Quote

Use a quote when:

• You can clearly define the scope of work
• You've done a site visit and know what's involved
• The job is straightforward (e.g., fitting a new boiler, rewiring a room)
• Material costs are stable and predictable

When to Use an Estimate

Use an estimate when:

• You can't see the full extent of the work (e.g., hidden damp, underground pipes)
• The job involves unknowns that could affect cost
• Material prices are volatile
• The customer hasn't finalised exactly what they want

Protecting Yourself

Whichever you use, protect yourself with these practices:

1. Always put it in writing — verbal quotes can lead to disputes
2. Be specific about what's included — and what isn't
3. Include a validity period — material prices change
4. Add a variation clause — "Any additional work not specified in this quote will be charged at £X per hour"
5. Get acceptance in writing — an email reply saying "go ahead" is enough

The Bottom Line

Use quotes whenever you can — they give customers confidence and win more jobs. Save estimates for genuinely uncertain situations. And always, always put everything in writing.