Both describe a price given before work starts, but they differ in how binding they are:
Quote: a binding price
A quote is a firm commitment: once the customer accepts it, that price applies — deviations are only possible in narrow cases, such as extra work the customer requests afterward.
Estimate: a non-binding approximation
An estimate, by contrast, is generally non-binding — it's an informed approximation, not a price guarantee. If it turns out during the work that the actual cost will be significantly higher, the business should inform the customer before continuing.
What counts as "significantly higher"?
There's no fixed percentage that triggers this duty to inform — it depends on the specific case. In practice, it's safer to inform the customer too early rather than too late.
Which one fits which job?
For clearly plannable jobs — known material needs, predictable working hours — a binding quote builds trust with the customer. For jobs with unknown scope, such as repairs with an uncertain root cause, an estimate is often the more honest choice, since it openly states the uncertainty. Either way, both start from the same realistic hourly rate.
