Quote vs estimate: what is the difference?

The short answer

What makes a quote binding

Business Queensland puts it simply: if the customer goes ahead, the quote forms part of a legally binding contract between you and them. Consumer Protection WA says the same: a quote forms a binding contract when accepted.

That cuts both ways. The customer has agreed to pay your price, and you have agreed to do the described work for it. The ACCC’s guide for service businesses gives the example of a removalist who asked for more money after quoting. The consumer only had to pay the amount originally agreed.

So a quote is only as good as its description of the job. If it says “replace hot water unit” and you find the valve and pipework need replacing too, whether that is extra depends on what the quote said was included.

Estimates: a best guess, not a wild guess

Business Queensland says estimates are not legally binding, and usually carry a note that the price may change. That makes them useful when you genuinely cannot know the cost: a leak behind tiles, wiring in an old house, a garden where you have not seen the soil.

An estimate is not a free pass. Consumer Protection WA says a tradesperson must use their skill and experience when estimating under the Australian Consumer Law, and that the actual cost should not be too much more than the estimate. A deliberately low estimate, given to win the job, can be misleading conduct.

Good practice is to label the document clearly as an estimate, say what could move the price, and tell the customer as soon as the job looks like going well over.

Which one to send: some examples

There is no rule that says which jobs need which. These are common ways trades handle it:

• Like-for-like replacement (a hot water unit, a ceiling fan, a tap): quote. You can see what is there and what goes in.
• Finding a fault (a leak, a tripping circuit, a blocked drain): estimate for the investigation, then a quote for the repair once you know the cause.
• End-of-lease clean with a known number of rooms: quote, with extras such as oven or carpet cleaning listed as options.
• Garden makeover or retaining wall: quote, with clear exclusions for things like rock or buried services, or an estimate if the ground is unknown.
• Ongoing maintenance or call-outs: neither on its own. Agree a rate card (hourly rate, call-out fee, after-hours rate) in writing first.

A middle path: a quote with clear exclusions

Many trades avoid the choice by quoting a fixed price for what they can see and listing exactly what is not included. “Price excludes rectifying any damaged pipework found behind the wall” tells the customer what could add cost, and keeps the rest of the price firm.

Optional extras work the same way. Instead of one total, list the main job and then the add-ons the customer can choose, each with its own price. They pick, the total updates, and there is no argument later about what was agreed.

What to put in a quote

Business Queensland, Consumer Affairs Victoria and Consumer Protection WA all recommend much the same contents:

• Your legal name and trading name, ABN, address and contact details
• A line-by-line breakdown and a total
• The GST included
• An expiry date. Business Queensland warns that without one you may have to honour a quote that will lose you money.
• What is and is not included: materials, labour, travel, call-out fees, weekend or public holiday rates
• How changes, delays and late payment will be handled

Consumer Protection WA notes that if a call-out fee is not in the quote, the customer does not have to pay it. Our free quote template covers each item, with versions for plumbers, electricians and other trades.

Extra work: get a yes before you start

Consumer Protection WA is direct about this: tradespeople must get the customer’s permission to do extra work, and cannot do the extra work first and ask for payment later. If the customer agrees, they pay for it.

Business Queensland recommends always providing a revised quote. A short written variation, even a message the customer replies “yes” to, with the extra work and its price, is far easier to rely on than a conversation on site. State building laws add formal written-variation rules for building contracts, so check yours if you do that kind of work.

Deposits on quotes

For ordinary service jobs there is no national cap on deposits. Consumer Protection WA advises consumers to pay a small deposit of no more than 10% and not to pay in full before the job is done. Under the Australian Consumer Law a business must not take payment and then fail to supply.

Residential building work is different. Most states cap deposits by law, and the cap can apply to trades such as plumbing, electrical, carpentry and landscaping when the work counts as building work. Some examples:

If your work might count as residential building work, check your state regulator before setting a deposit.

Show prices with GST for homeowners

The ACCC says prices shown to consumers must include GST and any unavoidable fees as a single total. Quoting “A$900 + GST” to a homeowner is risky. Prices for business customers do not have to include GST, but the ACCC calls GST-inclusive pricing best practice. Our GST for tradies guide has more on pricing with GST.

Two more rules worth knowing

• Door-knocking and cold calls. If you approach a consumer uninvited and agree a sale over A$100, the ACCC’s unsolicited consumer agreement rules apply, including a 10 business day cooling-off period. Jobs where the customer asked you to quote are not affected.
• Your terms and conditions. Since 9 November 2023, unfair terms in standard-form contracts with consumers and small businesses are illegal, with large penalties. Keeping a whole deposit for any breach, or giving yourself one-sided rights to change the price, are examples the ACCC treats as risky.

Quotes in Karya Falak

Karya Falak quotes are built for the way this guide recommends working:

• Every quote has a valid-until date, and shows as expiring soon in the week before it lapses.
• Optional extras can be ticked by the customer, and the total updates as they choose.
• The customer opens the quote from a link, signs with a finger and accepts online.
• A deposit can be set on the quote and paid when the customer accepts.
• The customer can ask for changes, and you send a revised version, with the history kept.
• Lines come from your price book, with markup on cost if you price that way.

General information, not legal advice

Rules checked 30 October 2026 against ato.gov.au, business.gov.au, ACCC and state regulator guidance. General information only, not tax or legal advice. For a dispute over a quote or extra work, contact your state’s fair trading or consumer protection agency, or a lawyer.