Definition
A quote is a document that offers a client a fixed price for specific goods or services before work begins. Once the client accepts a quote, the seller is expected to honor that price unless the scope changes. Quotes include the itemized work, total, validity period, and terms.
Also called: Quotation, Price quote
Quote in practice
Quotes differ from estimates in certainty. Because the price is fixed, a quote should be based on a clear scope of work. Anything outside that scope is handled with a change order rather than a revised quote.
Accepting a quote usually forms a contract. For that reason, quotes often include terms about payment schedule, deposits, timelines, and what happens if the client cancels.
Example
A photographer quotes $1,500 for a six-hour wedding package, valid for 14 days. The couple accepts, and the photographer invoices a $500 deposit now and $1,000 after the event.
Frequently Asked Questions
Can a quote be changed after it is accepted?
Only by agreement. If the client asks for more work, issue a change order or a new quote for the additional scope. Raising the price for the original scope after acceptance is usually a breach of the agreement.
Should a quote include tax?
State clearly whether prices include or exclude tax. Business clients often prefer prices excluding tax; consumers usually expect the total they will actually pay.