What is the difference between a quote, an estimate, a bid, and a proposal?
The differences are mostly semantics, and in the construction trades, the use of these terms are often used interchangeably to convey the same basic concept. There are some distinct differences, and in the interest of clear communication knowing the connotation of these terms as they apply to this trade are important. A quote (or quotation) is a term that relates to an exact material price at a given time. Because lumber products are a traded commodity these costs will fluctuate with seasonal demand and availability. A quote in this trade is an established firm price for material orders placed within a window of opportunity generally limited to 30 days. An estimate relates to combined project costs of materials and labor. Because these estimates will include quoted material prices, they are also limited to the same snapshot in time as the quotations. In a nutshell…suppliers and lumber yards will quote material prices to a contractor who estimates overall project costs. Estimates are
Related Questions
- Among the criteria to reject all bids are that (1) the bid exceeds the project estimate, or (2) the bid exceeds the appropriation. Doesn’t the project estimate have to equal the appropriation?
- What if a vendor has a question while filling out a request for quote/bid/proposal document?
- What is the difference between a quote, an estimate, a bid, and a proposal?
