What is the difference between an estimate, a quote, and a bid?
I can’t tell you how many times I’ve answered the phone, chatted with a homeowner, and heard, “I’d like you to come out and give me an estimate.” It’s a common request, which would often lead me to visit their home, take notes, and listen to their renovation ideas. Before I left, I would tell them, “I’ll gather pricing from my suppliers and send you a quote.”
Then, when I sent a document with the word “Proposal” written at the top, I would wonder why there was confusion over the terms of our agreement…
Unfortunately, this happens a lot in the remodeling industry. Contractors and homeowners alike often use words like “estimate,” “quote,” “bid,” and even “budget” interchangeably, which leads to a lot of confusion.
Let’s clear things up. If you’re planning to hire a contractor in the New Hampshire seacoast region, knowing the difference between these terms could save you from a lot of misunderstandings. Each term represents something slightly different, so let’s define them and explain what you should expect from your contractor.
What is a project budget and why does it matter?
A budget is the amount of money you’ve set aside for your project—whether it’s from a loan, savings, or just what you’re comfortable spending. It’s important because it gives both you and your contractor a clear idea of what’s financially possible for your project.
Your contractor might ask for your budget early on to avoid over-designing or under-planning your project. Having a clear budget helps you and the contractor make decisions that fit your financial goals. For example, if you want custom cabinetry, high-end finishes, and luxury fixtures, your budget needs to reflect that.
(Unsure about what your budget should be? Check out our Learning Center for articles like How much does a bathroom remodel cost?, How do I budget for a kitchen remodel?, and How much does it cost to build a closet?)
Remember, your budget is not the same as a quote or an estimate. It’s simply the amount you’re willing to spend, which helps guide the overall scope of the project.
What is an estimate and when should I ask for one?
An estimate is an educated guess. It’s a rough idea of what your project might cost, based on the contractor’s experience with similar projects and the basic information you’ve provided. Remodeling is complicated, and every home is different, so an estimate gives you a ballpark figure to start with—but it’s not set in stone.
There are two types of estimates: rough estimates and detailed estimates.
Rough estimates
A rough estimate is given early in the planning stages, often before design details or materials are finalized. It’s based on the contractor’s knowledge of similar projects. For example, if you’re thinking about remodeling your bathroom, the contractor might give you a rough estimate like, “A project like this typically costs around $50,000.”
A rough estimate is useful for making sure your project fits your budget. It’s not a guarantee, though. Before signing a contract, you’ll need a detailed estimate or a formal quote.
Detailed estimates
Once you’ve made decisions about materials, design, and scope, your contractor will take more time to calculate the costs for each part of the project. The contractor will look at every task and product involved to come up with a more accurate estimate.
For example, instead of estimating, “a kitchen faucet will be around $500,” the contractor will look at the exact faucet model you’ve chosen and factor in the specific cost. The same goes for labor, where the contractor will assess how long each task is likely to take.
A detailed estimate is more precise than a rough estimate but still not a guaranteed price.
What is a quote, and how is it different from an estimate?
A quote is a firm price for a specific scope of work. It’s not a guess—it’s a promise. Contractors offer quotes after thoroughly reviewing the project, including material selections, design details, existing conditions, and the timeline. When your contractor gives you a quote, you can trust that the price will stay the same unless the scope of work changes.
Quotes are typically provided for fixed-price contracts. This means you and your contractor agree on the project scope and a locked-in cost, giving you peace of mind that the price won’t spiral out of control.
For more information on the different types of contracts, and the pros and cons of each, check out our article: Which is better: a time and materials, cost-plus, or fixed price contract?
What is a bid, and when should I ask for one?
The term “bid” is more common in commercial construction, where multiple contractors submit offers based on the same plans and specifications. In residential remodeling, the process is often more collaborative, where contractors use their design expertise to work with you and tailor a quote to your project’s needs.
Bids are typically formal offers to complete the work for a specified price and timeline. But in residential remodeling, you might not hear the word “bid” as much. Instead, contractors tend to work closely with you to develop personalized quotes based on your specific project.
Does Rothrock Kitchen & Bath Remodeling provide estimates, bids, or quotes?
At Rothrock Kitchen & Bath Remodeling, we specialize in residential kitchen and bathroom renovations, and we follow a fixed-price model. Here’s how our process works:
Rough estimate
We start by offering a rough estimate early in the planning phase. This rough estimate gives homeowners a general idea of the potential cost before they invest too much time in planning. It helps you set a realistic budget, and if the estimate is out of line with your finances, you can make adjustments before diving into detailed planning. Our goal is to prevent you from spending valuable time planning a project that might be outside your budget.
Design & project development
Once we move past the rough estimate, we enter the design & project development phase. This is where we take a more hands-on approach. We’ll meet with you at your home, inspect the space, and provide our professional recommendations. We will assist you through the design phase, ensuring all of the details are thoroughly considered before construction begins.
We’ve found that rushing through this stage often leads to misunderstandings, cost overruns, and chaotic construction timelines. That’s why design & project development with us is a paid service. It allows us to spend the time necessary to truly understand your needs, plan thoroughly, and provide a detailed proposal that covers all aspects of your project.
Fixed-cost quote
After the design and project development are complete, we provide a detailed, fixed-price quote. This quote clearly specifies the scope of work, along with the products and finishes you’ve selected. By planning carefully and considering every detail, we can give you a guaranteed price, so there are no surprises once the work begins.
Frequently Asked Questions
Should I expect to pay for an estimate from a contractor?
Most contractors, including Rothrock Kitchen & Bath Remodeling, offer rough estimates for free to help homeowners get a general idea of what their project might cost. Rough estimates are useful for setting a realistic budget early on, but they typically don’t include detailed design work or specific product selections.
However, when you move beyond the rough estimate stage and into more detailed planning—such as selecting materials, creating designs, or taking precise measurements—contractors often charge a fee. This is because a detailed estimate requires time, expertise, and careful planning. It goes beyond just guessing a number and provides a clearer understanding of the project's scope and costs. A general rule of thumb: rough estimates are often free, but detailed estimates, which involve more in-depth planning, usually come with a fee.
Do contractors charge for quotes?
Yes, most contractors charge for quotes, especially when providing a detailed, fixed-price quote for a home renovation. Unlike rough estimates, a quote is based on a fully developed project plan. It typically involves design assistance, product selection, and sometimes troubleshooting potential challenges—all of which take time and expertise to ensure accuracy.
While some contractors do offer free quotes, these often lack critical details, such as specific materials or a defined scope of work. In other words, free quotes often function more like rough estimates—giving you a general idea but not the detailed information needed to move forward with confidence.
How long is a contractor’s quote valid?
Quotes usually come with an expiration date, typically between 5 and 30 days. This is because material costs can change over time, and contractors need to account for those fluctuations. Always ask how long the quote is valid, especially if you’re still in the early stages of planning and aren’t ready to move forward right away.
Which should I ask my contractor for: a budget, estimate, or quote?
There’s no one-size-fits-all answer to this. It depends on where you are in the planning process and what kind of project you’re undertaking. For homeowners in the New Hampshire seacoast, it’s important to clarify expectations with your contractor early on. Are you just looking for a ballpark figure to set a budget, or are you ready for a firm price?
Here are a few guidelines to keep in mind:
Ask for a rough estimate if you’re still in the early stages and need to know if your project is feasible within your budget.
Request a quote once the design is finalized, and you’re ready to commit to a contractor and a specific scope of work.
Get a detailed estimate if the design is finalized, but the work will be done on a time & materials basis.
Set a clear budget with your contractor so they can help guide your project without overspending or compromising on quality.
What should I look for in a contractor’s estimate or quote?
When you receive an estimate or quote from a contractor, there are a few things to keep in mind. First, make sure the scope of work is clearly defined. You should see a detailed breakdown of the tasks involved, materials to be used, and a timeline for completing the project.
You’ll also want to check that the pricing is transparent, with clear information about labor, materials, and any additional costs. A reputable contractor will be upfront about these details, so you know exactly what you’re paying for.
Should I share my budget with my contractor?
At first glance, keeping your budget hidden from your contractor might seem like a smart strategy. You might worry that if you reveal your budget, especially if it’s higher than necessary, the contractor could take advantage and inflate the costs. It’s an understandable concern but, unfortunately, this strategy can have unintended consequences.
At Rothrock Kitchen & Bath Remodeling, we believe the relationship between a contractor and homeowner should be a partnership—built on mutual trust and transparency. The alternative is to build the relationship on a foundation of mistrust, which can quickly lead to an adversarial dynamic that rarely benefits anyone.
When you openly share your budget, your contractor can work with you to find creative solutions that fit your needs. This process, known as value-engineering, allows the contractor to suggest materials, design choices, and features that align with your vision without exceeding your financial comfort zone.
On the other hand, if you withhold your budget, it becomes much harder to customize the project to meet your expectations. You could end up wasting valuable time on designs or quotes that don’t align financially. By communicating openly about what you’re comfortable spending, your contractor can help you get the most value from your budget—without cutting corners or sacrificing quality.
What should I do if my contractor uses my budget to try to take advantage of me?
If you feel that your contractor isn’t working in your best interest or is pushing you beyond your comfort zone, it’s okay to reevaluate the relationship. A trustworthy contractor will advocate for you, not against you. If they’re not willing to collaborate and help you stay within your budget, it might be time to find a new contractor. You deserve someone who listens to your needs and works with you to get the best results.
Final Thoughts
Understanding the differences between estimates, quotes, bids, and budgets can make hiring a contractor a much smoother process. Being clear on what you’re asking for—and what your contractor is offering—puts you in a better position to make informed decisions.
Ready to plan your next kitchen or bathroom remodel? Contact Rothrock Kitchen & Bath Remodeling today. We’ll guide you through every step of the process, from the initial estimate to the final quote, ensuring your project is completed on time and within budget.
