Definitions
An estimate is an informed approximation of what a job will cost. It tells the client what to expect but leaves room for the price to change if the work turns out bigger or smaller than expected. Builders, mechanics and designers often estimate when they cannot see the full scope yet.
A quote (or quotation) is an offer to do specific work for a specific price. Once accepted, the price is generally fixed for that scope. Changes need a new quote or a written change order.
The labels alone do not settle it. A document titled “Estimate” that states a firm price and is signed by both sides can bind you just like a quote, and a “quote” full of “approximately” may not. What counts is the wording, what you agreed and the law where you work. In the US our editor titles the document “Estimate”, the term most clients there use; you can still state a fixed price in it.
Quote vs estimate vs bid vs proposal
| Estimate | Quote | Bid / tender | Proposal | |
|---|---|---|---|---|
| Price | Approximate, may change | Fixed for the stated scope | Fixed, competing with others | Often a range or options |
| Typical use | Repairs, renovations, early scoping | Defined jobs and products | Construction and public contracts | Consulting, creative, software |
| Binding? | Usually not on price, depends on wording | Usually yes once accepted | Yes if the bid is accepted under the tender rules | Depends; often followed by a contract |
| Detail | Main items and assumptions | Itemized lines, terms, validity | Follows the buyer’s format | Approach, timeline, team, price |
| Who starts it | Seller, on request | Seller, on request | Buyer issues the tender, sellers respond | Seller, often after a brief |
A bid answers a buyer’s invitation, usually against other bidders, in the format the buyer sets. A proposal sells an approach as well as a price and is common for consulting and creative work.
What to put in a quote or estimate
- Your details and the client’s, plus a reference number from its own series, for example Q-2026-015. See invoice numbering.
- Itemized scope: each task or material with quantity, unit and price.
- Validity period: a clear “valid until” date.
- Assumptions: for example “walls in sound condition” or “client supplies all copy”.
- Exclusions: what is not included, such as permits, disposal or stock photos.
- Change orders: how extra work is priced and approved, ideally in writing and signed before it starts.
- Deposit and payment schedule: how much is due on acceptance and when the rest is due.
- Tax: whether prices include or exclude tax.
- Acceptance: a signature and date line.
Use the quote editor to build this from your saved clients and items. Trade pages such as contractor quotes and roofing quotes include sample lines for those jobs.
A worked example
A painter quotes a bathroom and hallway repaint for a homeowner.
Estimate Q-2026-015 · Valid until 30 June 2026
| Description | Qty | Unit | Unit price | Amount |
|---|---|---|---|---|
| Painting labor | 16 | hours | $55.00 | $880.00 |
| Interior paint, washable | 4 | gallons | $42.00 | $168.00 |
| Tape, fillers, drop cloths | 1 | lot | $60.00 | $60.00 |
| Subtotal | $1,108.00 |
Maths: 16 × $55.00 = $880.00; 4 × $42.00 = $168.00; $880.00 + $168.00 + $60.00 = $1,108.00. Sales tax, if your state applies it, is added at your own rate.
Assumptions: walls need light filling only. Exclusions: ceiling, trim, moving furniture. Change orders: extra work at $55.00 per hour, agreed in writing first.
Deposit: the painter asks for 25%: $1,108.00 × 0.25 = $277.00 on acceptance, with $831.00 due on completion. Check your state’s rules first. In California, for example, a home-improvement down payment is capped at 10% or $1,000, whichever is less, so the most the painter could ask for on this job is $1,108.00 × 0.10 = $110.80.
Common mistakes
- No validity date. Material prices move. Without “valid until”, a client may try to accept a months-old price.
- Vague scope. “Paint the bathroom” invites disputes about ceilings, trim and doors. List what is in and what is out.
- Mixing up tax. State whether prices are before or after tax, and keep it the same on every line.
- Starting extra work on a verbal yes. Write a change order with the price and get it signed first, or the extra may never be paid.
- Reusing the quote number on the invoice. Quotes and invoices belong in separate series, so your invoice numbers stay in order.
- Calling a firm price an estimate (or the reverse). Make the wording match what you mean: “fixed price” or “estimate, final price may vary”.
How to accept and convert to an invoice
- Send the PDF with a signature line. Clients can sign on paper or reply in writing quoting Q-2026-015. You can add your own signature with the signature generator.
- In My documents, open the quote and click Accepted? Turn it into an invoice. The client and items are copied into a new invoice with the next invoice number; the quote number stays separate.
- Adjust quantities to what was actually delivered and add any signed change orders as extra lines.
- Deduct the deposit already paid, or list it as a payment received, and set the payment terms. Our payment terms guide explains Net 30, due on receipt and the rest.
The result is a normal invoice you download from the invoice generator, ready to send.