Estimates vs. Quotes: They’re the same thing, right?

Introduction:

Often when a potential client reaches out to Buckingham Bath & Home Remodeling for their project, whether it’s a kitchen or bath renovation, finished basement, an addition or a whole home renovation, they would like to know what the project will cost. It makes sense considering most of the time, the investment will be more than that of a new car. Typically, when we ask how they are hoping we can help, we are asked for either an estimate or a quote. Many times, we hear these words being used interchangeably. Believe it, or not, these words have different meanings. While each one has its specific meaning, understanding these meanings will help navigate your project planning tremendously and make sure everyone is on the same page. Let’s unravel the mystery behind each one of these terms and explore their distinct characteristics and explain how we use each one.

Estimates: The Project Planning Foundation

An estimate is the first step in the planning process for any home renovation project. Estimates are important tools to help both the contractor and potential client know if the project is within their budget. They are a time saver for all parties. Our estimates are typically price ranges based on the available information provided to us from the contact form and historical data based upon past projects. At Buckingham Bath & Home Remodeling, we aim to provide an estimate over the phone during the Introductory Call. When potential clients reach out to us, we guide them to our website. When you visit our website and click on the Contact Us section, there’s a link at the bottom of the form to upload pictures. These pictures are not only extremely helpful, but they are important because they allow us to see what the potential client sees. Combining this with an understanding of their inspiration and expectation for what the finished product to look like, we can usually provide a range of what they can expect to invest in their project over the phone.

Key Characteristics of Estimates:

Non-Binding: Estimates are not a legally binding document. They serve as an educated guess, rather than a contractual commitment.
Flexibility: Estimates allow for changes as the project planning progresses.
Informative: Even though an estimate is not a definitive price, they provide a baseline to guide to a budget, as well as verifying the validity of a potential clients expected budget.

Quotes: The Connection Between Estimate and Commitment

After determining the budget and once the details of the project become more laser focused, a quote is typically sent to the potential client. At Buckingham Bath & Home Remodeling, this is done through either our On-Site Consultation or our Design Consultation, both of which are done at the client’s home. Here we spend as much time as needed taking detailed measurements, defining material selections, and dialing in the scope of work. Without these important details, it’s nearly impossible to provide an accurate cost for any project. It would be the equivalent of walking into a dealership, saying you need a new car, and asking for a price without them knowing what kind of car, options, budget, etc. Once we’ve dialed in these important details, we take that information back to our office and begin the process of putting together a quote. This is done through contacting our various suppliers and subcontractors and providing them with the important details of the project. Once we receive the information from them, we write a formal quote to present to the potential client that is typically good for a period of 30 days. Depending on the size of the project, this process could take anywhere from a week to two weeks. Because of the amount of detail required to provide a quote, there is typically a charge from the contractor to cover their time and expenses. Our On-Site Consultations start at $300 and our Design Consultations start at $1500

Key Characteristics of Quotes:

Specificity: Quotes provide more in-depth detail of how much the potential client will invest in the project. These contain all of the nitty-gritty information needed to complete the project.
Binding: While a quote may not be legally binding, a formal acceptance by the potential client could turn a quote into a legally enforceable agreement. Typically, the formal acceptance is done with a contract and any changes are done with a change order.
Validity Period: Most quotes are only valid for a certain period mainly due to fluctuations in the market. Our quotes are typically valid for a period of 30 days.

Conclusion:

As a consumer, knowing the difference between estimates and quotes is extremely important. Even though many times these are used interchangeably, they have very different meanings. Estimates are typically free and contain a range of values based upon the contractors prior experience. For us, after the potential client has agreed to the estimated investment in their project, to provide them with a quote, we move into either The Consultation Phase or The Design Phase of the project. Our Design Phase would include everything in the Consultation Phase plus guidance picking out colors, materials, layouts, and artists renderings. Once the quote is accepted, we move to the Contracting Step and begin work on their dream project.