How to write a quotation
A quotation does two jobs at once. Commercially it has to persuade; contractually it has to define exactly what you are agreeing to do. Documents that do only one of those either lose the work or create a dispute.
This guide covers both, field by field.
Step 1 — Head and number it
The document should say Quotation, with a unique number in its own sequence — QT-2026-001. Keep it separate from your invoice numbering so the two do not collide when the quote converts.
If the price is genuinely approximate, head it Estimate instead. The distinction is meaningful: a quotation is generally binding at the stated price while valid, an estimate is not.
Step 2 — Define the scope precisely
This is the section that determines whether you have a dispute later. Describe deliverables, not effort.
Weak: Painting work — 300,000
Strong: Prepare and paint 4 bedrooms and 1 living room (approx. 120 sqm), two coats emulsion to walls and ceilings, gloss to skirting and door frames. Materials included. — 300,000
The second version tells the customer what they are buying and tells you what you have committed to.
Step 3 — State the exclusions
Name what is not included, in its own section. The items that most often cause arguments:
- Materials the customer is supplying.
- Permits, approvals and inspection fees.
- Making good, cleaning or waste removal.
- Work outside normal hours.
- Anything conditional on site access or conditions you have not inspected.
- Remedial work arising from existing faults.
Step 4 — Structure the price
Three approaches, each suited to different work:
- Fixed price — one figure for a defined scope. Simplest for the customer; you carry the risk of overrun.
- Itemised — priced per element, letting the customer see value and adjust scope. Best where the job has separable parts.
- Rate-based — a day or hourly rate with an estimated total. Appropriate where scope genuinely cannot be pinned down, but state the estimate and the trigger for revisiting it.
Where you offer tiers, make the middle option the one you expect most customers to take — it is typically the best converting.
Step 5 — Validity, lead time and deposit
- Validity — 14 to 30 days typically, shorter if material prices are volatile.
- Lead time — when you can start and roughly how long it takes. Often decisive.
- Deposit — 30% to 50% is standard for work requiring materials. State when the balance falls due.
Step 6 — Make acceptance easy
End with a clear instruction: what the customer does to proceed. “To accept, reply to this email confirming and we will issue an invoice for the 40% deposit.”
A quote that ends with a total and no next step leaves the customer to invent the process, which usually means doing nothing.
A worked example
| Field | Value |
|---|---|
| Document | QUOTATION |
| Number | QT-2026-031 |
| Date | 5 February 2026 |
| Valid until | 5 March 2026 |
| Scope | Supply and install 12 LED downlights, replace 2 sockets, test and certify |
| Materials | Included |
| Excluded | Making good to ceilings, replacement of existing wiring if found defective |
| Total | 185,000 |
| Deposit | 40% on acceptance, balance on completion |
| Lead time | Start within 5 working days, 2 days on site |
Frequently asked questions
What should a quotation include?
The word Quotation, a unique number, the date and validity period, both parties' details, an itemised scope, explicit exclusions, totals with tax, payment and deposit terms, lead time, and how to accept.
What is the difference between a quotation and an estimate?
A quotation is a fixed price, generally binding while valid. An estimate is an approximation given on limited information and is not binding. Head the document accordingly.
How do I stop scope disputes?
Describe deliverables rather than effort, and include an explicit exclusions section. Nearly every dispute traces to something the customer assumed was included.
Should I ask for a deposit on a quotation?
For work requiring materials up front, yes — 30% to 50% is standard. State when the balance falls due, and treat willingness to pay a deposit as a signal about the customer.
How should I price — fixed, itemised or rate-based?
Fixed for a clearly defined scope, itemised where the job has separable parts the customer may want to adjust, and rate-based only where scope genuinely cannot be pinned down.
How do I make it easy for a customer to accept?
End with the specific next step — what to reply, and what happens then. A quote that ends with a total and no instruction usually results in no action at all.