A quote is a price the builder commits to. An estimate is a best guess that can move. The trouble starts when a client hears one word and the builder meant the other.
This guide sets out how regulators in New Zealand, Western Australia, Queensland, New South Wales and Victoria describe the two, and how to word yours so nobody is surprised. It is general information, not legal advice. Check the rule that applies where you work.
The two words and what each promises
An estimate says: this is what I think the job will cost, based on what I can see today. It can come in higher or lower.
A quote says: this is the price for this scope of work. If the client accepts it, you are held to it unless the scope changes.
The same job can carry both. You might give a rough estimate at the first site visit, then a quote once the drawings, selections and site conditions are known. Problems come when the rough number is written down without a label and later treated as the price.
What the regulators say
The wording differs by place, but the shape is the same. Here is what each page says, in short.
| Where | Estimate | Quote |
|---|---|---|
| New Zealand | A rough idea of the cost, not a fixed price. The final price should generally fall within 10 to 15 per cent of it. | Generally a confirmed maximum price. The provider cannot charge more unless the client agrees to extra work or the scope changes. |
| Western Australia (Consumer Protection) | A best guess on the cost that can change. A tradesperson must use their skill and experience when estimating, under the Australian Consumer Law. | A total amount that forms a binding contract when accepted. |
| Queensland (QBCC) | Not defined on the page we read. | A formal statement of what the contractor will charge. Once accepted, in writing or verbally, it becomes a legally binding contract. |
| New South Wales | Not covered on the page we read. | Contractors should give a written quotation listing all the work, all materials and specifications that match the brief. |
| Victoria | Not defined on the page we read. | A contract exists whether the agreement is verbal or written. Be clear what the quote covers and agree how changes will be handled. |
Sources: NZ Consumer Protection, WA Consumer Protection, QBCC, NSW Government and Consumer Affairs Victoria.
Two things stand out. First, an accepted quote is treated as binding, and Queensland says that holds even if the acceptance was verbal. Second, the New Zealand page tells providers that an estimate must be calculated carefully and not set low on purpose.
Larger jobs also need a written contract on top of any quote. The thresholds differ by state. In Queensland, the QBCC says a domestic building contract over $3,300 must be in writing, dated and signed. In Victoria, the checklist for builders says to use a written major domestic building contract for work worth more than $10,000; Victoria’s contract laws were amended in 2025 and the new laws take effect by 1 December 2026, so check the current rules. Check your own state’s page before you rely on either figure.
Wording that makes it clear
Put the label at the top of the document, in the first line, and say what the number depends on.
A clear estimate reads like this:
Estimate only. This is our best judgement of the cost of the work described below, based on a site visit and without final drawings. It is not a fixed price. We will give you a written quote once the scope is settled.
A clear quote reads like this:
Quote. This is a fixed price for the work described below. It includes the items listed and excludes the items listed as exclusions. It is open for acceptance until the date shown. Changes to the work are priced as written variations before the work starts.
A few habits help in both cases:
- Say what is in. List the work, the materials and the specifications. The NSW page says a quotation should cover all the work and all the materials.
- Say what is out. Exclusions in writing are the cheapest protection you have.
- Show how provisional items work. Mark them as allowances so the client knows they can move.
- Put an expiry date on it. Material and labour costs shift.
- Say whether you charge for preparing it. The New Zealand page says providers must tell the client beforehand if they charge a fee for a quote. The WA page says some quotes carry a fee, so check first.
When the scope moves
A fixed price is fixed for a defined scope. When the client adds a window, upgrades the tiles, or you meet rock under the slab, the scope has moved and the price can too, but only through a change you both agree to.
The NSW page says all variations to the contract must be in writing and signed by both parties. The QBCC page says a Queensland contractor must give a variation in writing before the variation work starts, and sets a time limit of five business days from agreement. Western Australia’s consumer page says a client does not have to pay for extra work they did not approve.
The rule of thumb that works in any state: no written change, no extra work. This is general information, not legal advice: check with your regulator or a solicitor for your situation.
For an estimate, the movement is expected, but it still needs a limit. The New Zealand page gives 10 to 15 per cent as the general range. If your site is likely to be wider than that, because of soil, access or unknowns, say so in the estimate itself.
Quote, estimate and tender are not the same
A tender is usually a competitive price given against a fixed set of documents, often to several builders at once, so the prices can be compared line by line. It behaves like a quote: it is a commitment against defined drawings and specifications.
The word bid is common in the United States and often means the same thing as a quote or tender. In Australia and New Zealand, clients and regulators use quote and estimate, so use those.
Do not call a rough number a tender, and do not call a tender an estimate. The label tells the client what you will stand behind.
Where a paid early stage fits
The gap between a rough estimate and a firm quote is where most free work is lost. Pricing a job properly takes drawings, site checks, selections and trade pricing. Doing all of that for free, for a client who is still choosing between five builders, is a lot of unpaid hours.
Some builders close the gap with a short paid agreement, then deliver a firm price at the end of it. We cover when that suits and when it does not in free quotes vs paid preliminary agreements, and how to set the fee in charging for preliminary work. If a price goes quiet after you send it, see why quotes go quiet.
PreBuild Systems also follows up quotes for builders and trades, so a firm price does not sit unanswered.
Common questions
Is a quote legally binding?
On the pages we read, Queensland and Western Australia both say an accepted quote forms a binding contract, and New Zealand describes a quote as generally a confirmed maximum price. Check your state’s rules and your own contract terms. This is not legal advice.
Can a builder charge more than the estimate?
Yes, an estimate can move. The New Zealand page says the final price should generally be within 10 to 15 per cent of it and that the estimate must be carefully calculated, not set low on purpose.
Can I charge for a quote?
Often yes, but tell the client first. The New Zealand page says providers must tell the client beforehand if they charge a fee for preparing a quote.
What is the difference between a quote and a tender?
A tender is a quote given against a fixed set of documents, usually so several builders can be compared on the same scope.