In everyday use, most people treat 'quote' and 'estimate' as the same thing. Legally and practically, they aren't — and the wording on the document affects whether you can charge more if the job runs over.
The rule of thumb: quote = firm price, estimate = best guess. Which one you send changes how you protect yourself against scope creep.
Quote: a firm, binding price. A quote is a commitment. You're saying 'this job will cost exactly this much.' If the materials cost more than you expected, that's your problem — the customer pays the quoted amount and no more.
Estimate: a good-faith approximation. An estimate is your best guess based on the information you have. If reality turns out to be different (a rotten subfloor under the tile, extra materials because the wall wasn't square), you can adjust — but you need to document the change with a change order
The wording that matters. The word at the top of the document — 'Quote' or 'Estimate' — actually matters if things go to court. A customer who received an 'Estimate' has a harder time claiming you broke the deal by adjusting the price. A customer who received a 'Quote' has a stronger c
Which to use when. A practical decision framework:
Both work better with digital signatures. Whether you send a quote or an estimate, get it signed. A digital signature on the customer's phone creates a clear audit trail: who agreed to what, when. Glo Invoice's estimates come with built-in e-signature — no third-party tool required.
Frequently asked questions
Is 'quote' or 'estimate' more common in the trades?
Both are used. Roofers and fence contractors lean toward 'quote' (firm price). Electricians, plumbers, and remodelers lean toward 'estimate' because scope changes are common.
Do I have to use one or the other?
No — you can send a document titled 'Proposal' or 'Bid' if that fits your industry. The legal weight comes from the terms inside the document, not the title alone.
Can I turn an estimate into a quote?
Yes. Once you've assessed the job and are confident on scope, resend it as a quote with a firm price. Some contractors do this after an initial walkthrough.
