The one-line difference
A quote is a fixed offer. Once the customer accepts it — in writing, by text, or by letting you start work — you've formed a binding contract at that price. A court will hold you to it even if the job turns out harder than expected.
An estimate is a prediction. You're telling the customer roughly what the work should cost, based on what you know at the time. You can charge more than an estimate if costs genuinely rise, but only if the final price is 'reasonable'. That's the test set by section 51 of the Consumer Rights Act 2015.
What 'reasonable' actually means in court
Section 51 of the Consumer Rights Act 2015 says that where a price has not been fixed, the consumer must pay a reasonable price — and what counts as reasonable is a question of fact. In practice, small claims judges look at three things: what similar work costs in the local market, what you told the customer during the job about costs changing, and whether you kept receipts and time records.
The figure most judges land on is usually the original estimate plus 10–15%. If you quoted £2,000 and the bill comes in at £2,200, almost any court will accept it. If it comes in at £3,500 with no explanation, you'll be told to accept the lower figure or spend a day in court.
When to use a quote
Use a quote when the job is visible end-to-end and you've seen it. Boiler swap on a like-for-like unit. Rewire on a property you've fully surveyed. A bathroom refit where you've measured, specified the suite, and priced the materials. Anything where you can walk the customer through the line items and nothing is hidden.
The quote gives you a clean commercial position. You own the margin, the customer knows what they're paying, and nobody argues at the end. Most repeat trade buyers — landlords, letting agents, insurers — prefer quotes because they can approve a number.
When to use an estimate
Use an estimate when you genuinely can't see the job. Leak behind a tiled wall. Rising damp with unknown extent. Old wiring where you don't know how the circuits are split until you get the boards off. Groundwork where you don't know what's under the slab.
On an estimate, document the uncertainty in writing. State what you could and couldn't see. Say clearly: 'this figure is an estimate — if the work uncovers X, Y, or Z I will contact you with a revised price before continuing.' That single line is the difference between charging fairly for extras and getting nothing.
The wording that holds up in court
These are the exact phrases that have won and lost small claims disputes. Use them on every document.
- •On a quote: 'This is a fixed price quotation, valid for 30 days from the date shown. Variations will only be carried out with your written agreement and will be priced separately.'
- •On an estimate: 'This is an estimate only, based on information available at the date shown. The final invoice may vary. We will notify you in writing before carrying out any work that takes the total above the estimate.'
- •On both: 'By accepting this document (by signature, email reply, or authorising the work to start) you confirm you have read and agree to the terms.'
- •Never write 'quote/estimate' together — courts will interpret it against you under the contra proferentem rule, which says ambiguous terms go against the party who drafted them.
Real example: the tiler who lost £800
A tiler wrote 'QUOTE: £1,200' on a text message for a 12 m² bathroom. On ripping out the old tiles he found the substrate was rotten. He completed the job and billed £2,000. The customer paid the £1,200 and refused the extra £800.
The tiler went to small claims. The judge ruled that because the document said 'quote', the £1,200 was a fixed price. The tiler had not notified the customer in writing when the problem was found. He got £1,200 and nothing else. Had he written 'estimate' and messaged the customer the moment the substrate came up, the outcome would have been different.
What the document must contain either way
Regardless of whether it's a quote or estimate, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require certain information for off-premises work — which includes almost all trade work in customers' homes.
- •Your full trading name, address, and contact details
- •Your VAT number if VAT-registered
- •A description of the services in enough detail that the customer knows what they're getting
- •The total price, or if not calculable in advance, how it will be calculated
- •Arrangements for payment and delivery
- •Information about the right to cancel within 14 days (for contracts made in the customer's home)
- •The duration of the contract, or if continuous, the terms of termination
The 14-day cancellation trap
If you agree work in a customer's home, they have 14 days to cancel without reason under the 2013 Regulations. If you start work inside that window and they cancel, they must pay for work done — but only if you gave them written notice of the cancellation right first. If you didn't, you may have to refund everything.
Include a cancellation notice on every quote or estimate you give in someone's home. A single paragraph is enough: 'You have the right to cancel this contract within 14 days without giving a reason. If you ask us to start work within this period and later cancel, you will pay for work completed up to that point.'
How customers use 'quote' against you
Savvy customers — and a lot of bad landlords — know the legal difference even if they pretend not to. They will ask for a 'quote' knowing they can hold you to the price. If you hand them a document labelled quote without meaning to, they'll accept it, let you discover the problems, and then refuse to pay a penny more.
The fix is simple. Stop using 'quote' as a generic word for 'here's a price.' Decide up front whether the job is quotable. If it is, send a quote. If it isn't, send an estimate — and say so on the page, in the subject line, and at the top of the document.
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