If you’re looking to get a price for a job, read quantity surveyor Tim Phillip’s expert advice on these common pricing terms — and discover why quotes may be your best bet
The terms ‘quote’ and ‘estimate’ can easily be mistaken for the same thing. However, their meanings are actually very different and proceeding on the basis of one or the other will almost certainly be met with very different outcomes.
QUOTES
A quote should provide you with a fixed final cost for your project. It should be in writing and set out all the detailed requirements in full, with pricing ideally broken down against each element. Some quotes will include a timeline. Quotes are mostly stated to be valid for a specified time, as your builder/ tradesperson will be bound by the price quoted and material and labour prices are subject to change. For a quote to be binding, it must be accepted within the specified timescale, otherwise the quote will need to be renewed.
ESTIMATES
An estimate is a rough approximation of what the total project might cost. It should be in writing and will usually include a disclaimer to make clear the final cost is subject to change once more details are known. It will typically include just a high level statement of requirements. The cost will be an estimation based on the builder or tradesperson’s experience of similar work undertaken. Experienced builders and tradespeople should generally be expected to estimate within, say, 10 to 20% of the final cost, but as the pricing is not done in detail, the potential for unforeseen elements to arise increases, which may further impact the final cost.
DIFFERENCES
If you are provided with a quote, you should expect to pay exactly that sum for the finished project. An estimate is a more general assessment of what the end cost might be. It is rare for an estimate to match the final cost of a job as the initial pricing will not have been detailed enough. A quote is considered binding (subject to the issues we’ll look at below) whereas estimates are not. Estimates are very useful at the outset of a project to get rough figures to establish if it’s financially viable. However, you should always aim to secure final quotes prior to proceeding with building work.
PROVISIONAL AND PRICE COST SUMS
Both quotes and estimates can include references to ‘provisional sums’ and ‘prime cost’ sums. These terms are used where elements of a project are not yet finalised but a cost needs to be allocated to compile the quote or estimate.
Provisional sums are used where general areas of a project have not yet been fully designed. For example, an extension project may not have a kitchen desi
