The difference matters.
A QUOTATION
A fixed price for defined work.
You are bound by it, subject to the scope.
AN ESTIMATE
An approximate figure.
The final cost may differ.
WHY THE DISTINCTION MATTERS
A customer who received an estimate and expected a quotation disputes the invoice.
WHAT TO STATE
Which you are providing, in the document.
WHAT A QUOTATION SHOULD CONTAIN
The work What is included and excluded The price Validity period Payment terms
THE VALIDITY PERIOD
State it. In volatile conditions, a short period is reasonable.
FOR ESTIMATES
State what could change the figure, and by roughly how much.
And that you will confirm before exceeding it.
WHAT TO AGREE
That additional work is quoted before it is done.
WHAT TO AVOID
A verbal price A price with no scope attached Exceeding an estimate without warning
WHAT TO CONFIRM
Acceptance, in writing, before starting.
