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Construction quote template: what it is
A quotation is a priced offer made before any work or delivery: the buyer accepts it, usually with a purchase order, and the accepted terms become the contract. Phases, allowances, exclusions and a payment schedule.
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Example: a filled quotation
- The title says what the document is: a quotation.
- A reference from your own series.
- Your business name and address, and tax number if registered.
- Who it is for.
- Each line: description, quantity, rate and amount.
- Tax by rate.
- The total in the document's currency and format.
Worked example: the numbers behind the quotation above
| Item | Qty | Rate | Amount | Tax |
|---|---|---|---|---|
| Phase 1: site preparation and concrete slab for 14 x 20 ft garden studio | 1 | $6,800.00 | $6,800.00 | $0.00 |
| Phase 2: framing, sheathing and roofing | 1 | $9,400.00 | $9,400.00 | $0.00 |
| Phase 3: electrical rough-in and finish (licensed subcontractor) | 1 | $3,200.00 | $3,200.00 | $0.00 |
| Allowance: windows and exterior door, client to select | 1 | $2,500.00 | $2,500.00 | $0.00 |
| Subtotal | $21,900.00 | $0.00 | ||
| Total | $21,900.00 | |||
No tax is charged on these lines, so the total equals the value of the supply.
How to fill in the construction quote
- Describe the project and the site.
- Price each phase, splitting labour and materials if the client wants it.
- List allowances, exclusions and assumptions.
- Set the deposit and stage payments, then save.
Sections of a construction quote
- Project description, site address and drawings referenced
- Price per phase: site preparation, foundations, framing, roofing, services, finishes
- Allowances for items the client will choose
- Exclusions: permits, design fees, landscaping, furniture, unforeseen ground conditions
- Programme: start date and duration
- Payment schedule and retainage
- Change order procedure
- Validity period, insurance and licence details
Common mistakes
- One lump sum with no breakdown, which turns every variation into an argument
- No exclusions, so the client assumes everything is included
- No validity date while material prices are moving
- No written change order process
- Deposit terms that break the state's home improvement rules
What to put on a quotation, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "Quotation". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A reference number of your own series and the date. Quotes and proformas do not use the tax invoice series. |
| Your business | Name, address, and tax ID if your state or client needs it |
| Customer | Name, address, and tax ID if your state or client needs it |
| Lines | Description, quantity, unit and rate. Each line carries its own tax rate. |
| Tax | Sales tax where you must collect it, at the rate for the delivery address. |
| Totals | Taxable value, tax by component and the total, in the document currency. Amounts in words are customary in India. |
| Terms | Validity period, delivery time, payment terms and what is excluded. |
United States rules for a quotation
- A quote accepted in writing is a contract. State the validity period, what is included, and whether sales tax is extra.
Mistakes to avoid
- No validity date, so an old price can be accepted months later.
- Leaving tax out of the total without saying so.
- Vague scope: list what is included and what is not.
- Not converting the accepted quote into the invoice with the same lines.
Quotation vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
Should I separate labour and materials?
Homeowners often ask for it to compare quotes. Commercial clients usually want a schedule of values by phase. Either way the total must match.
What is an allowance?
An amount included for something not yet chosen, such as windows or kitchen fittings. The final cost is adjusted up or down when the client makes the choice.
How should payments be scheduled?
A deposit, then stage payments tied to milestones such as slab, framing, roof and completion, with retainage on larger jobs. Some states limit deposits on home improvement contracts.