What's the difference between a quote and an estimate for a tradie?

A quote is a fixed price for a defined job, and it generally becomes legally binding once the customer accepts it. An estimate is your best guess at the cost before the full scope is known, and it can change. If you want to be able to adjust the price later, call it an estimate and say so in writing.

What is the difference between a quote and an estimate?

A quote is a firm price for specific work. An estimate is an approximate price that can move as the job becomes clearer.

	Quote	Estimate
Price	Fixed	Approximate
Scope	Clearly defined	May be unclear or open
Can the price go up?	Only through an agreed variation	Yes, if you explained why it might
Binding once accepted?	Generally yes	Generally no
Best for	Set jobs: hot water swap, deck, rewire of one room	Unknown jobs: fault finding, renovations behind walls

State consumer protection agencies describe it the same way. Western Australia's Consumer Protection says a quote forms a binding contract when accepted, while an estimate is an approximate cost given before a firm quote. The Northern Territory government says an estimate is given without knowing the exact extent of the work or the cost of materials.

Is a quote legally binding in Australia?

Generally yes. A quote is usually binding once the customer accepts it, because it becomes a contract.

The Northern Territory government explains that a contract is formed when the trader offers work at a fixed price and the customer accepts that offer, including the conditions in the quote. That means if you quote $2,400 and the job takes longer than you thought, you generally can't charge $3,000 without the customer agreeing to it.

The exact rules differ by state, especially for residential building work, so check your state regulator for jobs over the local thresholds.

Can I change the price after giving a quote?

Only if the customer agrees, or if the quote itself says how the price can change.

Good ways to protect yourself:

• List what's included and what isn't. "Supply and install one 250L electric hot water unit. Removal of old unit included. Concrete or structural work not included."
• Name the assumptions. "Price assumes existing pipes are in serviceable condition."
• Use a variation. If the customer asks for extra work, write up the change and get a yes before you do it. Our guides for builders and landscapers cover how variations flow through to the final invoice.
• Set an expiry date. "This quote is valid for 30 days." Material prices move, and you shouldn't be held to last month's price forever.

When should I give an estimate instead of a quote?

Give an estimate when you genuinely can't know the scope until you start.

Examples: finding a leak, diagnosing an electrical fault, removing old lining that may hide damage, or any job where the customer hasn't decided what they want. Say it plainly: "Estimate only: $800 to $1,200 depending on what we find. I'll call you before going above $1,200."

Don't call an estimate a quote because it sounds more professional. Mixing the two up is how disputes start, and the Australian Consumer Law bans misleading or deceptive conduct in trade or commerce. Equally, don't call a quote an estimate to give yourself room to push the price up.

What should a quote include?

A written quote should be detailed enough that both sides know exactly what was agreed. Western Australia's Consumer Protection recommends a detailed description of the work, a materials list and any call-out or weekend rates. A solid trade quote also has:

1. Your business name, ABN and contact details
2. The customer's name and the job address
3. A clear description of the work
4. Materials and who supplies them
5. The price, with GST shown separately if you're registered (see how to calculate GST)
6. A start date or timeframe
7. Payment terms and any deposit (see payment terms for tradies)
8. How long the quote is valid, and how variations are handled

Queensland's building regulator, the QBCC, also advises customers to compare quotes like for like, meaning the same tasks, materials and timelines. A detailed quote helps you win against a cheaper but vague one.

How much deposit can I ask for on a quote?

For small trade jobs, you can usually agree a deposit with the customer, and it should be written on the quote. For larger residential building work, limits apply. The QBCC says that for domestic building work costing $20,000 or more in Queensland, the maximum deposit allowed by law is generally 5%. Other states have their own caps and licensing rules, so check yours before you set a deposit on a big job.

How do I turn a quote into an invoice?

Once the customer accepts, keep the quote and invoice from the same source so the numbers can't drift apart. Invogo lets you build a quote and convert it to an invoice, with GST and your verified ABN added automatically. The free plan covers 5 invoices or quotes a month, with no card needed. Details are on the tradies page, or you can sign up free.

This is general information, not advice. Check with your state regulator, your accountant or the ATO for your situation.