What is a Quote?

A quote is a fixed price for specific goods or services. Once you accept a quote, it becomes a binding agreement, and the business must complete the work for the price listed, unless you approve extra work, unexpected issues arise and you agree to the additional cost, or the business made a genuine pricing error.

A quote helps you avoid surprises and “bill shock,” which is why Consumer Affairs recommends getting written quotes from at least three businesses. A good quote should clearly list the total price, what work will be done, the materials needed, how long the price is valid, and when it may change.

If a business only offers a daily rate, be cautious. A daily rate does not give you a final cost, which increases the risk of the job taking longer and costing more. If a fixed price cannot be given, ask the business to put details in writing, such as the number of days needed, the billable hours, employee rates, and how they will get your approval before doing extra work.

What is an Estimate?

An estimate is not a fixed price. It is a business’s best guess of what the job will cost based on the information available at the time.

The final amount may be higher or lower than the estimate, especially if the work takes longer, unexpected issues appear, or material prices change. Estimates are helpful for budgeting, but they are not binding the way quotes are.

It is also reasonable to expect the final bill to be close to the estimate, unless the business discovers a legitimate reason the cost must change, and they should explain this to you.

In Simple Terms

• Quote = Fixed price (binding once accepted).

• Estimate = Approximate price (can change).