Last edited 09 May 2019

Quote

In construction and other arenas of business, a quote (short for ‘quotation’) is a costed summary of the work to be undertaken, or the materials to be supplied or the services to be provided. Usually, the price stated in the quote will be an estimate that is based on information about the job given by a client to a supplier.

The accuracy of the quote will depend on the nature of the project involved. For example, to supply 1,000 bricks normally allows a supplier to write an accurate quote based on the known cost of bricks, the cost of delivery and any added tax. In contrast, a quote for the construction of foundations may be a rough estimate as it may not reflect any unforeseen circumstances that may occur during excavation and which could cause delay and incur extra costs for the builder. Though an early estimate, it is still a quote that may be recalculated when more information about the project comes to light.

A supplier usually prepares a quote as a direct response to a client who may be considering using the supplier’s services. If the client finds the resulting quote acceptable, they may award the supply of whatever the quote concerns.

In the field of investment, a quote is the price of a share or investment commodity that is ‘quoted’ to a client and is the last (latest) price that the share was traded at.

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