How to write a quote or estimate.

The short version: describe the work, price each part, say what's not included, put an expiry date on it, and get the customer's OK in writing before you start. If the job changes, re-quote before doing the extra.

Quote or estimate: what's the difference?

People use the words loosely, but in practice:

• A quote is a fixed price for a clearly defined job. If they accept, that's the price.
• An estimate is your best guess when you can't know everything up front (hidden damage, hours that depend on what you find). The final bill can differ.

Say which one it is on the document. If it's an estimate, say how you'll handle it if the cost looks like it will go over (for example, "we'll check with you before exceeding this").

What to put on a quote

1. The word "Quote" or "Estimate" and a reference number.
2. Your business name and contact details.
3. The customer's name and the job address.
4. The date and a valid-until date.
5. What you'll do, broken into lines: labor (hours × rate, or a flat fee) and materials or items.
6. What's not included, so there are no surprises.
7. Any sales tax as its own line (only if you're registered to collect it) and the estimated total.
8. How they accept: a signature, or a reply by email or text.

How long should a quote be valid?

Long enough for the customer to decide, short enough that material prices don't move under you. Thirty days is a common choice (it's the default in Invoice & Quote, and you can change it). Put the actual date on the quote, not only "30 days".

When the job changes

Most disputes start with extra work nobody priced. If the scope changes after the customer says yes, stop, write down the change and the new price, and get their OK before doing it. A quick revised quote is the easiest way.

Some trades and states have their own rules

For certain kinds of work, states set rules about estimates. For example, in California, auto repair shops must give a written estimate for parts and labor, get the customer's authorization before starting, and get consent again before charging more than the estimate. Home improvement and other licensed trades often have similar rules. If you're in a licensed trade, check your state's licensing board.

From "yes" to invoice

Once the customer accepts and the work is done, the quote becomes the invoice: same customer, same lines, a new invoice number and a due date. With a free Invoice & Quote account that's one tap, and it's free.

See a sample quote (PDF)

Sources

• California Bureau of Automotive Repair: Write It Right (written estimates and authorization for auto repair)
• U.S. Small Business Administration: Apply for licenses and permits

General information, not legal advice.