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Interesting question......

Discussion in 'Business Operations' started by Steiner, Jun 9, 2009.

  1. Steiner

    Steiner LawnSite Senior Member
    Messages: 409

    Had a customer ask me an interesting question which I thought might add some insight for contractors in this industry:

    I was called to give an estimate and I did, and the customer said they got a few quotes and a proposal. The customer and I were talking and she asked me, "What is the difference between a quote, estimate, and a proposal." I guess I had never thought about it before. Can they be use as synonyms?

    In my company I use the following:

    Estimate- A close/rough approximation of the final cost.

    Quote- Same as an estimate but gives less room for error, Spells out more specifically what is included and what is not.

    Proposal- Most specific, outlines all variables.

    What do you guys use for terminology? Is one more lawfully correct or afford the contractor less exposure for damages? Do states force us to use a certain wording?

  2. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    To me, an estimate is exactly what you said. A proposal and quote to me have the same meaning.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Most customers seem to use them all interchangeably. Whenever I give a true estimate, I give a range of prices so they realize the price is not set in stone.
  4. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,647

    Rather than concern over what its called, be concerned over an offer and acceptance. Once an offer is accepted, its a contract.

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