The difference in one table
| Quote | Estimate | |
|---|---|---|
| What it is | A fixed price for a defined job | Your best guess at the likely cost |
| Can the price change? | Only if the job changes, for example the customer adds work | Yes, within reason |
| Binding? | Yes, once the customer accepts it | Not as a fixed price, but the final bill must be reasonable |
| Best for | Jobs you can see and measure | Jobs with unknowns, such as repairs and fault finding |
What the law says
A quote that the customer accepts is a contract at that price. If the scope changes, agree the change and the price in writing before doing the extra work.
With an estimate, the price isn't fixed, but under the Consumer Rights Act 2015 a consumer only has to pay a reasonable price for a service where no price was agreed. A final bill far above the estimate, without explanation, is hard to justify.
How to word them
- Call a fixed price a quote, and say what it includes and excludes.
- Call a guide price an estimate, and say what could change it.
- On repairs, give an estimate with a cap, or a price for the first stage and a quote for the rest once you can see the problem.
- Put variations in writing before you do them: what's changing and what it costs.
Do it in DripLess
Less paperwork, more paid work.
In DripLess, quotes are sent with a valid-until date and the customer accepts online. Variations can be added to the job, so extra work is recorded and invoiced properly.
Questions
Is a quote legally binding?
Once the customer accepts it, a quote forms a contract at the quoted price for the work described. You can only charge more if the work changes and the customer agrees.
Is an estimate legally binding?
Not as a fixed price. But a consumer only has to pay a reasonable price, so a final bill well above the estimate needs a good reason, ideally agreed with the customer as it happened.
Can a tradesman charge more than the quote?
Only for extra work the customer asked for or agreed to, or where the quote said certain items were provisional. Agree changes in writing before doing them.
Should I give a quote or an estimate?
Give a quote when you can see and measure the whole job. Give an estimate when there are unknowns, such as hidden faults, and explain what could change it.