Quote: definition, example, and why it matters

Unlike an estimate, a quote locks in the price. If the actual cost rises, the contractor absorbs the difference unless the customer approves a change order. Quotes are common in commercial work where buyers need budget certainty.

• Short definition. A fixed-price offer to perform a job that, once accepted, is binding.
• Category. Quote is a invoicing term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds quote into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does quote mean?

Unlike an estimate, a quote locks in the price. If the actual cost rises, the contractor absorbs the difference unless the customer approves a change order. Quotes are common in commercial work where buyers need budget certainty.

Related terms

• Estimate — A non-binding written quote of the cost of a job, sent before work begins.
• Change order — A signed addendum modifying the price, scope, or schedule of an existing job.
• Scope of work — The written description of exactly what work is included in a job.