Quote or estimate - what is the difference?

"Quote" and "estimate" sound alike, but they do not mean the same thing - and the difference matters when the bill is due.

When you give a quote, you commit to doing the described job at that price. If the work turns out more expensive than expected, that is generally your cost - not the customer's. That is why a quote needs to be fully calculated and complete.

An estimate is a qualified assessment of the price. It is used when the scope of the job cannot be pinned down precisely in advance - hidden damage, for example. But it is not a blank cheque: as a rule of thumb, the final price must not exceed the estimate significantly.

For consumer contracts in Denmark, exceeding an estimate by up to around 15% is typically considered acceptable. If it gets more expensive than that, you need to be able to document why - and you should inform the customer along the way, not just on the final invoice. Note that this is guiding practice, not a fixed statutory rule.

• Can the job be described precisely? Give a quote - it builds the most trust and causes the fewest disputes.
• Is there genuine uncertainty (hidden work, unknown scope)? Give an estimate, and state clearly that it is indicative.
• Either way: always spell out what is included, and what triggers extra work.

Call things by their proper name on the document. If you write "quote", you are bound by it. If you mean a rough figure, write "estimate" - and explain why. Clear communication here spares you most disputes over the final bill.