An estimate that reads like a quote is a quote
This is the most expensive piece of paperwork a small firm gets wrong, and it is entirely about wording rather than numbers.
An estimate is your best guess at what a job will cost. A quotation is a firm offer that becomes a contract price the moment it is accepted. Which one you have sent is not decided by the word at the top: it is decided by how the document reads. Put "estimate" on a page that gives a single confident total, itemised, with no caveat, and a customer can reasonably argue they were given a price. Plenty have, and won.
So every estimate from here carries wording on its face saying the final cost may differ once the works are opened up, and that any change will be agreed before it is carried out. That sentence is the entire point of the document.
When to estimate and when to quote
- Estimate when you cannot see the whole job. Anything behind a wall, under a floor, below ground. Anything where the spec is still moving.
- Estimate when the price depends on something outside your control, like a structural engineer's design you have not received yet.
- Quote when you have seen it, you know the spec, and you are prepared to be held to the number.
Sending an estimate does not make you look less professional. Sending a quote you then have to renegotiate does.
How to write one that does not cause a row later
Say what the figure is based on. That is the difference between a variation you can charge for and one you cannot.
If the estimate assumes the existing joists are sound, write that down. If it assumes you get a clear run at the room with nothing to move, write that down. When the assumption turns out to be wrong, you are pointing at a line on a document you both have rather than arguing about a conversation on a driveway in February.
Then agree changes in writing before doing them. A customer who approves a variation by text message has approved it. A customer who finds an extra 900 on the final invoice has not.
Turning an accepted estimate into an invoice
Keep the reference. When the job is done, raise the invoice carrying the same reference so the customer can line the two up.
If the final figure has moved from the estimate, put the reason on the invoice. Not a defensive paragraph, one line: what changed, and when it was agreed. Invoices get queried when they arrive without explanation, and a queried invoice is a month of cash flow.
No cap on line items, because estimates run long
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Common questions
What is the difference between an estimate and a quote?
An estimate is a best guess at what a job will cost. A quotation is a firm offer that becomes a contract price the moment it is accepted. Which one has actually been sent is decided by how the document reads rather than by the word at the top.
When should I send an estimate rather than a quote?
When the whole job cannot be seen, such as anything behind a wall, under a floor or below ground, or when the price depends on something outside your control, like a design that has not been received yet. Send a quote once the spec is known and you are prepared to be held to the number.
Can an estimate be read back to me as though it were a quote?
Yes, if it reads like one. A page with a single confident total, itemised, with no caveat, lets a customer reasonably argue they were given a price. That is why every estimate here carries wording stating that the final cost may differ once the works are opened up.
How do I avoid a dispute about a variation later?
State what the figure is based on. If the estimate assumes the existing joists are sound, write it down. When an assumption turns out to be wrong, that line is what settles it, rather than an argument about a conversation on a driveway months later.
Can a customer agree to a price change by text message?
Yes. A customer who approves a variation by text message has approved it. A customer who finds an extra amount on the final invoice with no earlier agreement has not, and that is where the dispute comes from.
How do I turn an accepted estimate into an invoice?
Keep the same reference on the invoice so the customer can line the two up. If the final figure has moved from the estimate, add one line on the invoice stating what changed and when it was agreed, rather than a defensive paragraph.