What is Estimate?

An estimate gives a client an approximate idea of what a project will cost. It is not a binding price commitment — the actual cost may be higher or lower depending on the work required.

When to use an estimate instead of a quote:

• The project scope is not yet fully defined
• There are unknowns that could affect the amount of work required
• You are in early discussions and the client needs a ballpark figure
• The work is time-based rather than deliverable-based

A good estimate should include:

• Your name and contact details
• The client's name
• A clear description of the work being estimated
• The estimated cost (with a range if appropriate, e.g., "£2,000 - £2,500")
• Any assumptions or conditions that the estimate is based on
• A validity period (e.g., "This estimate is valid for 30 days")
• A note clarifying that the final cost may differ

It is good practice to state clearly that your document is an estimate (not a quote) to avoid misunderstandings. Some clients may interpret an estimate as a fixed price, so setting expectations upfront saves trouble later.

If the project scope becomes clear after initial discovery, you can convert your estimate into a firm quote or proposal. OwnedWork lets you create estimates and convert them into invoices once the work is complete and the final amount is confirmed.