Estimating & Proposals

What Is the Difference Between a Construction Bid and a Project Quote?

A construction bid is a formal offer with a fixed price to complete a project based on detailed plans and specs, typically used in competitive bidding situations. A project quote is an estimate of costs and scope provided to a client, often less formal and subject to change before a contract is signed. Bids are legally binding once accepted, while quotes are usually negotiable until finalized.

Understanding the Details

Understanding Construction Bids and Project Quotes

What Is a Construction Bid?

A construction bid is a contractor’s formal, written proposal to perform a specific job for a fixed price. It’s typically submitted in response to detailed project documents such as blueprints and specifications.

Legally binding once accepted by the client
Used in competitive bidding for commercial and public projects
Requires precise takeoffs and cost breakdowns

What Is a Project Quote?

A project quote estimates the cost and scope for a job, often used in residential or smaller commercial work. Quotes are generally less formal and may be subject to change during negotiation.

Not legally binding until accepted and a contract is signed
Used to give clients a quick price range
Details can be adjusted as project scope evolves

Key Differences

Bids are formal and binding; quotes are preliminary and flexible
Bids require detailed documentation; quotes can be based on walkthroughs or discussions
Bids are common in commercial/government jobs; quotes are typical for residential work

Example

On a public school renovation, we submit a bid based on architectural drawings and specs. For a homeowner’s kitchen remodel, we provide a quote after a site visit and discussion of options.

Practical Steps

How to Decide When to Use a Bid or a Quote

Assess the project type.
Use bids for government or large commercial jobs with strict specs. Use quotes for residential or small-scale projects.
Review documentation.
For projects with detailed plans, prepare a bid. For jobs with general requirements, offer a quote.
Clarify expectations with the client.
Ask if they need a binding price (bid) or a ballpark figure (quote).
Document everything.
Even with a quote, list all inclusions, exclusions, and conditions to avoid misunderstandings.
Confirm in writing.
Once the client agrees, formalize the agreement into a signed contract regardless of whether you started with a bid or a quote.

Frequently Asked Questions

When should I use a construction bid instead of a project quote?

Use a construction bid when the client provides detailed plans and specifications, and the job is being competitively awarded—common in commercial, government, or public works projects. Bids are appropriate when a legally binding fixed price is expected from all contractors.

Is a construction bid legally binding if accepted by the client?

Yes, a construction bid becomes legally binding once the client accepts it, obligating the contractor to complete the work for the stated price and terms. This is why accuracy and clear documentation are critical when submitting bids.

Can a project quote be changed after it’s given to a client?

A project quote is usually non-binding and can be adjusted before a contract is signed, especially if the scope changes or new information arises. Always communicate any changes in writing to avoid disputes.

What information should be included in a construction bid versus a quote?

A construction bid should include a fixed price, detailed scope of work, timelines, materials, labor costs, exclusions, and terms. A project quote can be less detailed but should still outline the scope, estimated price, and any important conditions or assumptions.

How do clients typically use bids and quotes to select a contractor?

Clients use bids in formal, competitive selection processes to choose the lowest qualified price for a well-defined project. They use quotes to compare estimated costs and scopes from several contractors, often negotiating details before making a final decision.

Contractor Community Q&A

Real questions from contractors like you, answered by experts and peers.

Featured

Carlos M. Electrician • Phoenix, AZ

What's the best way to handle estimates when I don't know exact material costs until I open up the walls?

31 found helpful 2 answers

EZcontractPRO Team Official

Use allowances! Give a budget range for the unknown portion (e.g., "Electrical rough-in: $800-1,200 allowance, final based on actual conditions"). This sets expectations and protects your margin.

Maria G.

I always add 15% contingency for remodel work. Clients understand old houses have surprises. Just explain it upfront.

Mike R. General Contractor • Austin, TX

How detailed should my estimates be for residential remodels? I've been doing simple one-line quotes but wondering if I'm losing jobs because of it.

23 found helpful 2 answers

EZcontractPRO Team Official

Detailed estimates almost always win more jobs. Clients feel more confident when they can see exactly what they're paying for. Try breaking down by room or phase - it also protects you if scope changes mid-project.

James P.

I switched to itemized estimates last year and my close rate went up about 20%. Takes more time upfront but worth it.

Sarah K. Kitchen & Bath • Denver, CO

Do you guys include labor as a separate line item or bundle it with materials? Clients keep asking me to break it out.

18 found helpful 1 answers

Construction Coach Expert

I recommend showing labor separately for transparency, but bundle it if you're worried about clients nickel-and-diming your hourly rate. Either way, be consistent across all your estimates.

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