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Estimate documents

Estimate vs quote vs tender.

These three terms are often used interchangeably but have distinct meanings in UK construction. Using the wrong one can create confusion about commitment, price certainty, and scope.

Who this guide is for

Builders and contractors preparing pricing documents, clients receiving them, and anyone who needs to understand the legal status of the cost figure they are presenting or reviewing.

What each means

Estimate: An approximate calculation of cost. It is not binding. The actual price may change as more information becomes available. Usually the starting point for discussion.
Quote (quotation): A fixed price offered to carry out defined work. If the client accepts, it becomes a binding contract. The contractor is committed to the quoted price.
Tender: A formal submission in response to an invitation to bid. It typically includes a priced document, methodology, programme, and qualifications. The client may accept, reject, or negotiate.

Miniature example

A client asks for a price to replace a flat roof. The contractor provides: an estimate of £2,500–£3,200 based on inspection (not binding). After a full survey and specification, a quotation of £2,950 is issued (fixed price). If the client is comparing multiple contractors through a formal process, each submits a tender with method statement and price.

Common mistakes

• Calling a fixed quotation an "estimate" and then disputing when the client expects a price change
• Issuing a quotation without stating its validity period
• Treating a tender submission as a final price when the scope has not been fully defined