Quotation

A buyer asks what a project or set of goods will cost, and the seller responds with a quotation describing what it proposes to supply and the price; a good quote lets the buyer compare offers on the same basis and makes clear what is excluded, how long terms stay open and what happens next. The UN Convention on Contracts for the International Sale of Goods addresses offer and acceptance when it applies to an international sale, and Cornell's publication of the US Uniform Commercial Code illustrates another framework for sales of goods.

These rules differ and do not cover every service quote, so do not assert that every quotation becomes binding simply when a buyer says yes. Start with a precise scope that identifies product model, service tasks, quantities and specifications, because a line reading "office fit-out" with one total is hard to compare and can lead to change disputes.

State any assumptions about site access, client-provided materials or technical conditions. Price should identify currency, unit rates, total and applicable taxes, and a buyer needs to know whether freight, installation, permits or delivery are included.

If a quote includes an estimate rather than a fixed price, say so, and do not present a range as a firm cap without language supporting it. Timing matters too: give expected delivery or completion dates, lead times and dependencies, and state when the clock begins, such as deposit receipt or approved drawings, because a date based on immediate acceptance may move if the customer waits several weeks.

A vague promise of delivery as soon as possible creates different expectations. Payment terms affect the real cost, as a supplier may quote 50% upfront and 50% on completion while another invoices after delivery.

The buyer should compare cash timing and any security for advance payments, because a cheap headline price can carry expensive financing or operational risk. A quote's validity date can limit how long the seller intends to hold the terms, though its legal effect depends on the governing law and whether the quote is an offer, and if input costs change after expiry the seller may issue a revised quote, so the buyer should not assume an old price remains available indefinitely.

Approval needs a clear route, such as signing the quote, issuing a purchase order or paying a deposit, and the parties should define whether the seller must confirm acceptance before work starts. If the buyer's purchase order adds different standard terms, they should resolve conflicts rather than assuming both documents match.

Number each revision and note what changed, so a buyer does not approve an old draft while the supplier builds to a newer one, and keep the accepted version with the order and delivery records. For goods, check substitutions and availability, since a quote might be subject to stock at the time of order, and if an item becomes unavailable a comparable alternative still needs buyer agreement rather than the seller quietly replacing a specified component with a cheaper one.

A simple comparison divides total price by quantity where units are identical, so a quote of $50,000 covering 100 items averages $500 per item, but that arithmetic says nothing about warranties, delivery or quality, so compare the actual basket of goods and terms, ask whether installation, training, after-sales support and cancellation terms are included, and agree what evidence will confirm completion, because oral reassurance may be hard to prove later. A useful quote makes the proposed exchange specific and testable, so compare alternatives on total terms, not only headline price, and for binding effect read the documents and applicable law rather than relying on the word quote.