The short answer
- A quote is a fixed price for a defined job. An estimate is your best guess. In the UK, Citizens Advice puts it plainly: with a quote, the trader can’t charge more than quoted without a good reason.
- A good quote has: a number and date, your details and the client’s, a clear scope of work, itemised lines with quantities and prices, tax, the total, how long the price is valid, payment terms and any deposit, and a place to accept.
- Once the client accepts, the quote is part of the contract. Extra work needs a new, accepted price, not a surprise on the invoice.
- Some US states regulate estimates in specific trades. In California, for example, auto repair shops must give a written estimate and get consent before going over it.
- Send the quote the same day, as a link your client can open on their phone, and schedule a follow-up. When it’s accepted, it becomes the basis of your invoice.
Quote, estimate, bid: what’s the difference?
The words get used loosely, but the difference matters when the final bill arrives.
| Quote (quotation) | Estimate | |
|---|---|---|
| What it is | A promise to do defined work at an agreed price | Your best guess at the likely cost |
| Can the price change? | Only for agreed extra work or a good reason | Yes, but the final price should be reasonable |
| Best for | Work you can scope precisely | Jobs with unknowns (old wiring, hidden damage) |
| Tip | Spell out what’s excluded | Give a range and say what would push it up |
What it is
Quote (quotation)A promise to do defined work at an agreed price
EstimateYour best guess at the likely cost
Can the price change?
Quote (quotation)Only for agreed extra work or a good reason
EstimateYes, but the final price should be reasonable
Best for
Quote (quotation)Work you can scope precisely
EstimateJobs with unknowns (old wiring, hidden damage)
Tip
Quote (quotation)Spell out what’s excluded
EstimateGive a range and say what would push it up
In the UK, Citizens Advice defines a quote (sometimes called a “fixed estimate”) as a promise to do work at an agreed price, and an estimate as the trader’s best guess. The Consumer Rights Act 2015 backs this up in two ways. Section 50 makes anything you say or write about the service binding if the customer relies on it when deciding to hire you, so your quote’s description and price become part of the contract. Section 51 says that where no price was fixed, the customer must pay “a reasonable price for the service, and no more”, and what counts as reasonable is a question of fact.
In the US there’s no single federal rule; it depends on the state and the trade. California is a good example of how strict it can get. Its Business and Professions Code (section 9884.9) requires an auto repair dealer to give the customer a written estimated price for parts and labor, forbids any work before the customer authorises it, and forbids charging more than the estimate without the customer’s consent, obtained once it’s clear the estimate isn’t enough and before the extra work is done. Check your own state’s consumer protection office for rules in your trade.
A bid is usually a quote submitted in competition, typically for a contract or a tender. And a quote isn’t an invoice: the invoice comes after the work, to ask for payment. See our guide on how to write an invoice.
What to include on a quote
- Quote number and date. There’s no legal numbering rule for quotes, unlike invoices, but a number (Q-2026-031) tells you which version the client accepted.
- Your details: business name, address, phone, email, and your VAT number or EIN if you have one.
- The client: name, address and, for on-site work, the job address.
- Scope of work: what you will do, and what you won’t. “Prep and paint walls and ceiling; furniture moved by client” heads off a lot of arguments later.
- Itemised lines: each task or product with quantity, unit (hour, square metre or square foot, item) and price.
- Tax: VAT at the right rate in the UK if you’re registered; sales tax in the US if your state taxes the service.
- Total, and whether it’s a fixed price or an estimate.
- Validity: “This quote is valid for 30 days.” It protects you when material prices move.
- Timing: start date or lead time, and expected duration.
- Payment terms: deposit, stage payments, balance due date, accepted payment methods.
- Acceptance: a line for the client’s signature and date, or a clear way to accept online.
If the client agrees to the contract in their own home, UK consumer law usually gives them a 14-day right to cancel, and you must tell them about it; if they want you to start sooner, get that request in writing. In California, a home improvement contractor’s down payment can’t exceed $1,000 or 10% of the contract price, whichever is less (Business and Professions Code, section 7159.5).
| Description | Qty | Unit price | Total |
|---|---|---|---|
| Prep and paint living room walls and ceiling (labour) | 1 | £640.00 | £640.00 |
| Paint and materials | 4 | £38.00 | £152.00 |
| Sand and gloss skirting boards | 12 m | £9.00 | £108.00 |
Fixed price for the work described. Excludes moving furniture and repairing plaster beyond minor filling. Start within 2 weeks of acceptance, about 3 days on site. Deposit of 20% (£216.00) on acceptance, balance on completion by bank transfer. Accepted by (name, date):
- A quote number, so you know which version was accepted.
- Issue date and how long the price holds.
- Your details (and VAT number if registered) and the client’s, with the job address.
- Each line with a quantity, a unit and a price.
- Subtotal, tax and total.
- What’s excluded, timing, deposit and balance, and a place to accept.
Free quote template you can copy
QUOTE No. [Q-2026-031]
Date: [DD Mon YYYY] Valid until: [DD Mon YYYY]
Type: [Fixed-price quote / Estimate – final price may vary]
[Your business name]
[Address] · [Phone] · [Email]
[VAT reg. no. / EIN, if applicable]
Prepared for: [Client name] · [Client address]
Job address: [if different]
Scope of work:
[What you will do, in plain words]
Not included: [What you won't do]
Description Qty Unit Unit price Amount
[Labour] [8] [hour] [45.00] [360.00]
[Materials] [1] [lot] [120.00] [120.00]
[Travel / disposal] [1] [flat] [30.00] [30.00]
Subtotal: [510.00]
Tax [rate]: [0.00]
Total: [510.00]
Timing: [Start date or lead time] · [Expected duration]
Payment: [Deposit of X% on acceptance] · [Balance due on completion]
Pay by: [Bank transfer / card / check]
Changes: any extra work will be quoted separately and agreed before it starts.
Accepted by: ____________________ Date: __________
Replace everything in brackets and delete what doesn’t apply. The sample figures add up, so you can use them to test a spreadsheet. For layout tips and Excel formulas, our invoice template guide works just as well for quotes.
Deposits: say exactly what they are
A deposit protects you against a client who cancels after you’ve bought materials or turned down other work. Write down:
- the amount (a figure, not just a percentage);
- when it’s due (on acceptance, before ordering materials);
- what happens if the client cancels: whether any part is refundable, and when.
State and national rules can cap deposits in some trades, as California does for home improvement. When you receive a deposit and you’re VAT-registered in the UK, the payment normally creates a tax point for that amount, so ask your accountant how to invoice it.
From quote to invoice
- 1Visit or callMeasure, ask questions, note what’s excluded.
- 2Send the same daySend the quote as a link, with a line that recalls the client’s need.
- 3Follow upA short message after 3–5 days, then one before the quote expires.
- 4AcceptedConfirm the start date and the deposit.
- 5InvoiceTurn the accepted quote into an invoice with the same lines, plus any agreed extras.
The timings are rules of thumb, not research findings. What matters is that the follow-up is scheduled at the moment you send the quote, so it doesn’t depend on your memory.
When a quote isn’t accepted, ask one question: “Was it the price, the timing, or something else?” The answer is worth more than another reminder.
Send it from your phone, as a link
Quotes are often lost to whoever replies first. With Binome360 you type or dictate the quote in one sentence; your binôme prepares it, and nothing is saved until you confirm.
Quote for Tom Okafor: paint living room walls and ceiling £640, 4 tins of paint and materials at £38, skirting 12 metres at £9, VAT 20%
Ready: quote Q-2026-031 for Tom Okafor, £1,080 including VAT, valid for 30 days. Save it? You can then send it as a link on WhatsApp or by email.
Check quantities and prices, especially after dictating.
Try Binome360 for freeWhat happens next:
- Your details once. Business name, address, tax number, tax rate and legal notes are set in the module and appear in the footer of every document, in one of four templates in your colours.
- Numbering is automatic, with separate sequences for quotes and invoices.
- A link, not an attachment. The WhatsApp button prepares a polite message with the number, amount and link; email works too.
- The client answers online. From the page, they read the quote, download a PDF, and accept or decline it. You see the answer in the app.
- Accepted quote → invoice in one tap, with the client and lines carried over. Mark it paid when the money arrives; an unpaid invoice past its due date is flagged as late, and a courteous reminder is prepared for you to send.
Binome360 never collects money for you, and it isn’t a certified e-invoicing platform. Your client pays you the usual way.
Mistakes that lose jobs (or money)
- One lump sum. “Bathroom refit: $6,000” invites haggling and hides what’s included.
- No expiry date. Six months later, the client expects last season’s prices.
- No exclusions. If it isn’t written that you don’t move furniture or fix plaster, the client may assume you do.
- Extra work on a nod. Quote extras in writing before you start them.
- Unnumbered versions. In a dispute, nobody knows which one was accepted.
Frequently asked questions
Is a quote legally binding?
Once the client accepts it, yes: it becomes part of the contract, and you’re expected to do the work described for the price quoted. Before acceptance, it’s an offer. In the UK, what you write in a quote can also become a contract term under section 50 of the Consumer Rights Act 2015 if the client relies on it.
Can a quote go up after it’s accepted?
Only if the client agrees to a change, such as extra work, or there’s a genuine reason set out in the quote. Put any change in writing, with a price, before doing the work. With an estimate, the final price can differ, but it should stay reasonable and you should warn the client as soon as you know.
How long should a quote be valid?
There’s no legal standard. Thirty days is common; use a shorter period if your material prices move fast, and always write the date on the quote.
Should I charge for quotes?
Most small businesses quote for free to win work. Charging can make sense for long surveys or design work; if you do, tell the client the fee before you start, and consider deducting it from the job if they go ahead.
What’s the difference between a quote and a proforma invoice?
Both come before the sale. A proforma invoice is formatted like an invoice and is used mainly for customs, bank finance or advance payment. Our proforma invoice guide explains when to use one.
In short
A good quote describes the job and what’s excluded, itemises each line with a quantity and price, shows tax and the total, and says how long the price holds and how the deposit works. Write “quote” or “estimate” deliberately, because the word changes what you can charge. Your first step: copy the template above, fill in your details, and send your next quote on the same day as the visit.
Sources
- Citizens Advice, “Problem with building work, decorating or home improvements” (quote vs estimate): citizensadvice.org.uk.
- Consumer Rights Act 2015, section 50 (information binding on the trader) and section 51 (reasonable price): legislation.gov.uk/ukpga/2015/15/section/51.
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (SI 2013/3134), cancellation of off-premises contracts: legislation.gov.uk.
- California Business and Professions Code, section 9884.9 (auto repair: written estimate and consent): leginfo.legislature.ca.gov.
- California Business and Professions Code, section 7159.5 (home improvement down payment cap): leginfo.legislature.ca.gov.
- HMRC, VAT Time of Supply manual, “Basic tax points” (advance payments and deposits): gov.uk/hmrc-internal-manuals/vat-time-of-supply.
- GOV.UK, “Invoicing and taking payment from customers”: gov.uk/invoicing-and-taking-payment-from-customers.
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