Quoting guide
Quote or estimate: make the basis clear.
A quote and an estimate are not interchangeable labels. Tell the client which one you are providing and make the assumptions behind the figure easy to understand.
Short answer
An estimate is a reasoned indication of likely cost when important scope or conditions remain uncertain. An accepted fixed-price quote will normally form part of a binding agreement for the stated work and price. The heading alone does not decide the legal position: the wording, scope, assumptions, conversations and acceptance all matter.
Quick check
- Use “estimate” only when the figure can genuinely change
- State what information is missing
- Use a quote for a defined scope and price
- Put assumptions and exclusions beside the price
- Record extra work as a variation
- Give required consumer and cancellation information separately
- Keep the accepted version and messages
The working difference
| Estimate | Quote |
|---|---|
| A reasoned indication, not a final fixed price. | An offer to carry out stated work for the stated price. |
| Use while scope, quantity or condition remains uncertain. | Use when the scope and pricing assumptions are clear enough to commit. |
| State the range or figure, assumptions and what may change it. | State scope, exclusions, price, validity and terms. |
| Replace it with a quote when the information is settled. | Once accepted, changes need agreement rather than a silent price increase. |
The title is not a magic label
Calling a firm offer an “estimate” does not automatically prevent a contract. The full wording and conduct matter. Make the intended basis explicit and use suitable terms.
When an estimate is useful
Use an estimate during early budgeting or where design, opening-up work, client selections or measurable quantities are not settled. Explain why the cost is uncertain and what will allow a fixed quote later.
A single precise number can look more certain than it is. Where appropriate, show a range or named allowances and say whether VAT is included.
Worked example
Useful estimate wording
“Budget estimate based on the planning drawings dated 4 July. Structural design, kitchen supply and drainage alterations are not yet defined. We will issue a fixed quote when that information is available.”
When to issue a quote
Citizens Advice describes a quote as a promise to do agreed work at an agreed price. Acceptance can create a binding agreement even without a signature, so keep a written record of the version accepted.
- The scope can be described clearly
- The key quantities and specifications are known
- Subcontractor and supplier bases are current
- Unknowns are excluded or made provisional
- The programme and access basis are understood
- You are prepared to stand behind the offered price on that basis
What happens when the work changes
A builder should not simply exceed an accepted quoted price. If the client requests extra work, or genuinely necessary extra work becomes apparent, explain it and agree the price before proceeding wherever practical.
Record the scope added or removed, price and VAT effect, programme effect, approval and date. Update the running total so the client can see the commercial position.
Worked example
Minimum variation record
“Variation 03: replace a further 6m² of defective subfloor discovered after strip-out. Add £X plus/applicable VAT. Adds two working days. Approved by [name] on [date].”
Consumer rights sit behind the document
The Consumer Rights Act requires services to be carried out with reasonable care and skill. Statements the client relies on can become contract terms. If price or time was not fixed, the law can imply a reasonable price or reasonable time.
A quote should therefore be accurate about what you will do, but it is not a substitute for suitable contract terms and required pre-contract information.
Take care with agreements made away from your premises
Extra rules may apply when a consumer agrees work online, by phone or away from your business premises. These are known as distance or off-premises contracts. You may need to provide specific information, a copy the client can keep and cancellation details. A 14-day cancellation period often applies, but the rules and exceptions depend on how the agreement is made and the work involved.
Take care if the client wants work to start during the cancellation period. A request to start early does not remove all cancellation rights. Use suitable documents and ask Trading Standards or a legal adviser if you are unsure.
Extensions are not the same as new buildings
The GOV.UK doorstep-selling summary identifies an exception for construction of new buildings and expressly notes that extensions are not included in that exception.
A simple decision before you send
- 1
Is the scope sufficiently defined?
If no, issue a clearly labelled estimate or charge for further investigation and design work.
- 2
Can you price the unknowns openly?
Use exclusions, options or defined provisional sums rather than hiding uncertainty.
- 3
Are you ready to commit?
Issue a quote that states what the price is based on, how long it is valid, the terms and how the client can accept it.
- 4
Did something change?
Issue and agree a written variation; do not overwrite the accepted quote.
Sources and further reading
Primary and authoritative sources used to check this guide.
- Before you get building work doneCitizens Advice
- Consumer Rights Act 2015legislation.gov.uk
- Consumer Contracts Regulations 2013legislation.gov.uk
- Doorstep selling regulationsGOV.UK
General information for UK residential building work, not legal advice. Contract and cancellation rules depend on the wording, circumstances, location and type of work. Requirements can differ across the UK. Use terms and cancellation documents suited to your business and take professional advice where needed.