The difference between a quote and an estimate for building and repair work in the UK, what should be in writing, VAT, deposits and stage payments, extra work and price changes, and your rights if the bill is higher than expected.
Before you hire a tradesperson, you'll normally be given a price. Whether it's a fixed quote or a rough estimate makes a big difference when the final bill arrives. Here's what each means and how to protect yourself.
Quote or estimate?
- A quote is generally a fixed price for a defined job. If you accept it, the trader shouldn't charge more unless the job changes, for example if you ask for extras or something genuinely unforeseeable is found and you agree to the extra cost.
- An estimate is an educated guess. The final price can differ, but it should be reasonably close unless circumstances change.
The label doesn't always decide it: what matters is what was said and agreed. Under the Consumer Rights Act 2015, information a trader gives you that you take into account when deciding, including about price, can become part of the contract. If no price was agreed at all, you only have to pay a reasonable price.
What a good written quote includes?
- the trader's business name, address and contact details;
- a clear description of the work and materials, including brands or specifications where it matters;
- what's excluded, such as making good, decorating, or waste removal;
- the total price, and whether it includes VAT;
- how long the quote is valid;
- start and finish dates, or an expected duration;
- payment terms, including any deposit and stage payments;
- who obtains any permissions, such as Building Regulations approval;
- guarantees and what happens if extra work is needed.
VAT
Businesses registered for VAT must charge it at the applicable rate, normally 20%. Check whether a price is "plus VAT". Not all traders are VAT-registered: businesses below the registration threshold don't have to be. Be wary of anyone offering a lower price for cash with "no VAT" if they are registered.
Deposits and stage payments
- A deposit is common for materials on larger jobs, but avoid paying a large share upfront.
- For bigger projects, agree stage payments linked to completed work, such as when the foundations are done.
- Consider keeping a small retention until snagging is complete, if agreed in the contract.
- Pay by credit card where possible for extra protection on items over £100.
Extra work and changes
Changes are common. To avoid disputes:
- agree any changes and their cost in writing (email or text is fine) before the work is done;
- ask for an updated total;
- keep a running record.
If a trader finds an unexpected problem, such as rotten joists, they should tell you and agree the extra cost before carrying on, except in an emergency.
Comparing quotes
Get at least three written quotes for significant work, and compare like for like: the same scope, materials and inclusions. A much cheaper quote may leave things out or use lower-quality materials. A much higher one may include things others don't.
If the bill is higher than agreed
- Ask for an itemised breakdown and an explanation.
- Point to the written quote or estimate.
- Pay the amount you agree is due and dispute the rest in writing.
- If unresolved, use the trader's trade association, a dispute resolution service, or the small claims process.
Citizens Advice can help you write to the trader.
Day rates
Some traders charge by the day or hour. Ask for an estimate of the total time, agree how materials will be charged, and ask for regular updates on progress and cost.
Frequently asked questions
Do I have to pay for a quote?
Most quotes for domestic work are free, but some traders charge for detailed surveys or designs. They should tell you beforehand.
Is a verbal quote binding?
It can be, but it's hard to prove. Always get it in writing.
Sources and further reading
- legislation.gov.uk: Consumer Rights Act 2015, Part 1 Chapter 4 (services)
- Citizens Advice: Problems with builders and tradespeople
- GOV.UK: VAT rates
- TrustMark
Facts checked on 20 October 2026. Spotted an error? Tell us and we will correct it.
