Am I legally required to honor an estimate?

Not typically — estimates are approximations. Bids are contractually binding.

When should I request a bid vs. an estimate?

Request a bid when the scope is clearly defined. Use an estimate for exploratory or diagnostic work.

📊 Estimating & BusinessSimpleAlso: quote vs. estimate, fixed price vs. approximate cost, proposal

Bid vs. Estimate

Definition

A bid is a firm, fixed price offer. An estimate is an approximation that may vary based on actual conditions. Clients often confuse the two, leading to disputes.

Common Questions

Real-World Example

A homeowner gets a $500 estimate for drywall repair and is surprised when the invoice is $620 due to hidden water damage.

Why It Matters

Understanding the difference helps manage client expectations.

Related Terms

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Scope of Work

A scope of work is a written document defining exactly what work will be performed, what materials w...

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Change Order

A change order is a formal written document that modifies the original scope, cost, or timeline of a...

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