Quotation

A quotation is a concrete proposal to a client. It states which work or delivery you offer, at which price, within which schedule, and under which conditions.

The difference from a non-binding price indication matters. Once accepted, a quotation becomes the basis of the agreement. What you do and do not write down therefore determines what the client is entitled to, which price applies, and when something may be treated as additional work.

What should a good quotation include?

A good quotation helps the client make a decision, but it also protects against misunderstandings. The more concrete the agreements are, the easier it is to compare quotations fairly.

1. Description of the scope: describe what you will deliver, which activities are included, and which items are excluded from the price.
2. Price and VAT: state whether the price is fixed, an indicative price, or based on provisional sums. Also state whether amounts include or exclude VAT.
3. Schedule and lead time: record when you can start, which delivery milestones apply, and which assumptions support that schedule.
4. Validity period: clearly state until which date the quotation is valid, especially when material or purchasing prices fluctuate.
5. Conditions: attach general terms and conditions and mention payment terms, warranties, cancellation, and liability.
6. Rules for additional work: define how extra work is requested, approved, and invoiced.

Quotation, estimate, or budget?

Many pricing disputes arise because it was not clear upfront whether the price was fixed or only an indication. Use the right document for the level of certainty you have.

Feature	Quotation	Estimate or budget
Purpose	Making a concrete offer that the client can accept.	Giving a preliminary indication of costs or work.
Price	Often fixed, unless deviations or provisional sums are included.	Indicative and dependent on assumptions, actual costs, or choices.
Risk	Ambiguities more quickly fall to the provider.	There is more room to adjust costs when information changes.
Use	For clearly defined assignments with enough information.	For early phases, renovations, or projects with uncertainties.

Practical rule of thumb: only provide a fixed quotation when the scope is clear enough. If there is still uncertainty, use an estimate, provisional sums, or clear assumptions.

When is a quotation binding?

A quotation becomes binding when the client accepts the offer within the validity period and according to the conditions in the quotation. Acceptance can happen with a signature, approval by email, or sometimes even verbally.

Written confirmation remains important. Without proof, disputes can arise about the exact price, scope, schedule, or conditions. In practice, a short confirmation such as "approved quotation 2026-001" is often useful, but a signed quotation is stronger.

From request to clear quotation

A strong quotation does not start with writing. It starts with clarifying the client's request.

1. Review the request: check what the client needs, which documents are available, and which choices are still open.
2. Record assumptions: state what your calculation is based on, such as quantities, drawings, material choices, or site accessibility.
3. Calculate realistically: include labour, materials, subcontractors, risk, overhead, and schedule in the calculation.
4. Write for the client: make clear which result the client receives, not only which technical work is carried out.
5. Follow up in time: discuss questions before the quotation expires and record any changes in a revised version.

Common mistakes

• No clear validity period: this can allow a client to accept later when prices are no longer current.
• Scope described too vaguely: if it is unclear what is included, disputes over additional work can arise.
• Terms not attached: referring to terms is not always enough. Make sure the client can read them before accepting.
• VAT stated unclearly: especially for consumers, it must be clear whether prices include VAT.
• Provisional sums not explained: state what is provisional, which amount is included, and how the final price will be reconciled.