Proposal vs quote vs estimate: which to send

An estimate is a rough price range that can change. A quote is a fixed price for a defined scope. A proposal is a sales document that explains the problem, your approach and the price, and it is the one meant to win the work. Send an estimate early when you know little, a quote when the scope is clear, and a proposal when the client needs convincing or the work is complex. The words are used differently from country to country, so always say on the document what the number is and what it depends on.

The three documents in one table

That is the common reading. The real world is messier, because the sources do not agree.

Where the definitions disagree

Look at how different guides describe a quote. Bench says a quote is an offer to perform a job for a fixed price within a specific timeframe, that it is usually binding, and that an estimate is not (Bench). QuickBooks Australia describes a quote as a more detailed approximation that includes the cost of materials and says quotes are not binding, while a bid is the firm one. In its guide, a proposal is not binding on its own, but once accepted it is treated as the agreed contract (QuickBooks).

Government and legal sources lean toward the first view. New Zealand's consumer agency says a quote is an offer to do a job for a specified price, that an estimate is not a fixed price, and that the final cost should generally be within 10% to 15% of the estimate (Consumer Protection NZ). A Sydney construction law firm says quotes can be enforced under NSW contract law, estimates cannot, and a contract price is fixed unless both parties agree to change it (Contracts Specialist).

So what do you do with that? Do not rely on the label. A document called an estimate that reads like a firm offer, and is accepted as one, can bind you. A document called a quote with clear conditions and an expiry date may not. What counts is the wording, what the client accepted and the law where you work. This is general information, so ask a lawyer how it applies to you.

The practical fix is simple. State on the page which kind of number it is: "Estimate only, final price confirmed after discovery" or "Fixed price for the scope listed below, valid until 30 November".

When to send an estimate

Send an estimate when the client wants a number before you know enough to commit.

• The first call, where the client asks "roughly how much?"
• Projects with unknowns: a site with an old system to migrate, a renovation behind a wall, a campaign with no brief yet.
• Qualifying a lead. A range filters out people whose budget is far off, before either of you spends time on a full document.

Good estimates give a range, list the assumptions behind it ("assuming up to ten pages and client-supplied copy"), and say what would move the number. They also say what comes next: "After a paid discovery session we will give you a fixed quote."

Keep estimates honest. The NZ guidance says a provider must calculate an estimate carefully and not set it too low on purpose. A low-ball estimate wins the first meeting and loses the relationship. If you want to build ranges that hold up, see our guide on estimating a project accurately.

When to send a quote

Send a quote when the scope is clear and the client mostly needs a price to say yes.

• Repeatable services: a photo package, a logo design, a monthly retainer, a standard treatment, a fixed installation.
• Trades and jobs priced from measurements or a site visit.
• Clients who have already told you what they want and are comparing prices.

A quote works when it is short and exact. It lists what is included and what is not, the price, the validity period, the payment terms and what happens when the scope changes. Without that last part, you end up absorbing extra work. Say that anything outside the listed scope is a change that is quoted separately, and ask for approval before you do it.

Quotes often come with options. A good-better-best layout with three packages and a few add-ons lets the client choose instead of deciding yes or no. It also anchors the middle option, which is usually the one you want to sell.

When to send a proposal

Send a proposal when the client has to be convinced, or when the work is complex enough that the price alone does not tell the story.

• Larger projects with several stakeholders, where the person reading it has to forward it.
• Competitive bids, where the client compares your approach with two or three others.
• Work that needs explaining: a strategy, a rebrand, a multi-month programme, a team engagement.
• First projects with a new client, where trust is still being built.

A proposal usually opens with the client's problem in their own words, then your approach, the scope and deliverables, the timeline, the team, the price and the next step. It has more of you in it. Because it is long, put a short summary at the top that a busy decision maker can read in a minute.

A proposal should be easy to say yes to. If acceptance needs a printer and a scanner, you are losing deals. Let the client accept, sign and pay on the same page. For layouts and wording that work, see our proposal template guide and the roundup of proposal software.

Using all three in one sale

The documents are steps, not rivals.

1. First call: give a verbal or written estimate range.
2. After discovery: send a proposal that explains the approach and the price.
3. When the client chooses: confirm the final scope as a quote or contract with a fixed price, and collect the deposit.

For small, repeatable jobs, collapse steps two and three into one quote page with packages. For large jobs, add a paid discovery phase before the proposal. The more you do not know, the later you should fix the price.

Wording that protects both sides

Whatever you call the document, include these.

• Scope in plain language: what is included, and what is explicitly not.
• Assumptions: the things that must be true for the price to hold.
• Validity: a date after which the offer lapses, so you are not held to last year's costs.
• Changes: how extra work is requested, priced and approved.
• Payment: deposit, milestones and due dates.
• Acceptance: how the client says yes, and what that creates, ideally a signed contract.
• Your details: legal name, address and any registration or tax number your country requires.

These are a template, not legal advice. Have a lawyer check the terms once, then reuse them.

How Delivvo sends one document that closes

In Delivvo the document is called a quote, and it does the job of a proposal and a quote together. You build it from your catalogue of services: pick the packages and add-ons the client can choose from (a quote can hold up to six packages and twenty add-ons), add your intro and terms, and send one link.

The client opens the page, picks a package, toggles add-ons and watches the total change. The contract sits on the same page, so they can sign it there, and the deposit sits next to the signature, so they can pay it without leaving. You choose the closing preset: everything up front, half, 30%, thirds, or an amount of your own.

When the client accepts, Delivvo creates the won deal, the client record, the project, the contract, the invoice and the payment schedule for you. Nothing is retyped between the quote and the invoice. Every quote has a valid-until date and a status, and a response record shows who responded, when and on what device. If a quote goes unopened, an automation can nudge you to follow up.

Every quote, contract and invoice carries a verification code that anyone can check. Clients pay through your own payment gateway, and Delivvo takes 0% of the payment. Check the contract text with a lawyer before you reuse it widely.

A few habits make the page work. Keep the packages to three, write the scope in short lines, and set the valid-until date so an old price does not come back months later. Because the client picks and pays on the page, you stop chasing replies to a PDF in someone's inbox.

See how proposals and quotes work from first click to signed deposit.

Next, look at quotes and proposals or how the CRM fits around it.

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