A quotation (or quote) is a document a business sends to a potential customer that sets out what it will provide and at what price, before any work is done. Once the customer accepts it, it usually forms the basis of the contract.
What a quotation contains
- Your business details and the customer's details
- A quote number and date
- A description of the goods or services, with quantities and prices
- Tax, if you are registered
- Terms: validity period, payment terms, exclusions
Types of quotation
- Fixed-price quote: one price for a defined scope.
- Itemised quote: a price for each part, so the customer can remove or change items.
- Estimate: an approximate price that may change, with the reasons it could change.
- Tender: a formal quote in response to a request for tender, often with a set format.
Is a quotation legally binding?
A quote is an offer. Once the customer accepts it, you've generally agreed to do the work for that price, which is why validity dates, exclusions and variation terms matter. Rules differ by country, so treat large quotes like contracts.
Create one in our free quotation maker.