In casual conversation, we use "estimate" and "quote" interchangeably. In business and law, they are opposites. Using the wrong one can trap you in a contract where you lose money, or scare away a client who wants certainty.
The Quote: Fixed & Binding
A Quote is a fixed price offer. Once the client accepts it, you cannot change the price, even if the work takes twice as long as you thought.
- Risk: High for the freelancer/contractor. You bear all cost overruns.
- Best for: Standardized, predictable jobs (e.g., "Install 5 windows," "Design a 3-page website").
- Protection: Always include a validity period ("valid for 30 days") and a detailed scope description. If the client changes the scope, the quote is void.
The Estimate: An Educated Guess
An Estimate is a rough idea of the price based on current information. It is generally not legally binding to the exact cent, though it should be reasonably accurate (usually within 10-15%).
- Risk: Shared between client and contractor.
- Best for: Unpredictable jobs (e.g., "Repair water damage in walls," "Debug a legacy codebase").
- Protection: Include a range ("estimated $5,000–$7,000") and specify conditions that could increase the cost.
When to Use Which
| Situation | Use a... |
|---|---|
| You know exactly what's needed | Quote |
| There are unknowns or risks | Estimate |
| Client wants price certainty | Quote (with contingency built in) |
| Scope is likely to change | Estimate |
When using our Quotation Generator, you can edit the document title. Be sure to choose the right one—it could save you thousands.