A customer asks for a quote. Another asks for an estimate. A general contractor asks for a bid. They sound like the same request, but each one sets a different expectation about how firm your price is.
Estimate: your best guess
An estimate is an approximate price based on what you can see. It can change if you open a wall and find a problem. Label it clearly as an estimate and add a line explaining what could change the final price.
Quote: a fixed price
A quote is a price you commit to for a defined scope. If the scope stays the same, the price stays the same. Give it an expiration date so you are not held to it after material costs move.
Bid: a quote in a competition
A bid is a fixed price submitted against other contractors, usually to a general contractor or property manager. Follow their format, answer every line they ask for, and make your scope and exclusions impossible to misread.
Whichever you send, write the scope down
The price only means something next to a written scope: what is included, what is not, and what happens if the job changes. When it does change, write a change order instead of arguing about it at the end.
Free for email subscribers
Get 1 month of Business free
Join the weekly email and we'll send you a code for a free month of Business (normally $19.99), plus the printable invoice checklist. One useful guide a week on pricing and getting paid. Unsubscribe any time.