Quotation.
A quotation is a fixed-price offer that becomes a binding contract upon acceptance. Unlike an estimate, the contractor is committed to the quoted price for the defined scope and period.
Who this guide is for
Builders, contractors, and tradespeople who issue quotations to clients, and anyone who needs to understand the legal difference between quoting and estimating.
What a quotation must include
A proper quotation includes: your company details, client details, precise scope of work, total price including VAT, payment terms and stage payments, start and completion dates, validity period, terms and conditions, and exclusions. Without these elements, the quotation is open to misinterpretation.
Miniature example
"Quotation for: Replacement of flat roof covering at 10 Acacia Avenue. Strip existing felt, install new 3-layer felt system, replace fascia boards. Total: £4,950 including VAT. Payment: 50% on commencement, 50% on completion. Valid for 28 days. Excludes: skylights, insulation upgrade, scaffolding if required."
Common mistakes
- Issuing a quotation without a validity period and later being held to old prices
- Omitting exclusions and then needing to charge extra for assumed scope
- Not including terms and conditions, leaving the contract undefined
Related guides and tools
Compare with estimate vs quote vs tender. Generate a professional formal quotation with the free generator.