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You can make a clear quotation for free with an editable document template or a simple email. First define the work and its price, then state the terms and how the customer can accept. Use a fixed-price quote only when you understand the scope and costs; label an uncertain price an estimate instead. Tax, consumer-protection, and contract rules depend on where you and your customer are located.

What a quotation should do

A quotation is a priced offer for specified goods or work. New Zealand’s Commerce Commission describes a quote as “an offer to do a job for a certain price.” A customer’s acceptance can have contractual consequences, although the precise legal effect depends on the applicable law and the facts. Treat the document as a commitment you may need to honor, not just an informal price note.

An estimate is a reasoned likely price or range when the scope or costs are still uncertain. Explain what is unknown and what assumptions the amount depends on. Do not present a variable estimate as a fixed quote. An invoice is different: it requests payment for work or goods already delivered, or for an agreed milestone.

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How to make a free quotation

  1. Confirm the customer’s brief. Ask what they want done or supplied, what result they expect, and any requirements for schedule, materials, quality, access, or delivery. For work where a description or photos may not reveal important conditions, arrange an inspection or gather measurements and photographs where practical.
  2. Define the scope. Write down the work or products, quantities, deliverables, timing, and what is excluded. State assumptions that affect the price. If revisions, optional items, or variations may arise, explain how they will be handled.
  3. Work out the price. Account for relevant labour, materials and supplies, subcontractors, delivery, and other applicable extras such as permit or administration charges. Include applicable taxes and allow for operating costs and a sustainable profit. These are cost categories to consider, not a universal pricing formula.
  4. Choose the right label. Call it a quotation or quote if the details support a defined offer. Call it an estimate if significant costs or scope remain uncertain, and state why the amount may change.
  5. Set out the terms. Add the parties’ details, issue date and reference number, itemized prices, total, tax treatment, schedule, payment terms, validity period for a quote, and a clear acceptance method. Include any relevant terms and conditions reference. Which details are legally required varies by location and transaction.
  6. Review and send. Check names, scope, quantities, arithmetic, exclusions, tax, dates, and terms. You can prepare the document in an editable word processor or spreadsheet and save or export a PDF to preserve its layout. In your accompanying email, explain how the customer can accept and keep a copy of the version they approve.
  7. Get agreement to changes. If the customer requests different work or you discover additional work, describe the revised scope and price and obtain the customer’s agreement before proceeding. New Zealand’s Commerce Commission says extra work outside a quote requires agreement to change the price.

What to put in a basic quote template

Use these fields as a practical checklist, not as a universal list of legally mandatory items.

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  • Document identity: “Quotation” or “Estimate,” a unique reference number, issue date, and—for a quote—an expiry or validity date.
  • People and businesses: Your business name and contact details and the customer’s name and contact details. Add local business identifiers where applicable.
  • Work or goods: A specific description, deliverables or products, quantities, schedule, and exclusions.
  • Price: Clear line items for relevant labour, materials, subcontractors, and extras; subtotal; any discount; applicable taxes; and total. Make the units and charges understandable.
  • Payment and acceptance: Payment method and due timing, any agreed deposit or milestones where lawful and applicable, and a clear way to approve the offer, such as a signature or written email acceptance.
  • Conditions: Assumptions, a process for changes or variations, and a reference to relevant terms and conditions.

How to make the price and scope clear

A total without context can leave a customer unsure what is included. Break the amount into understandable charges and connect them to the described work. For example, separate labour and materials when that helps the customer see what they are paying for; include subcontracting or other extras when relevant. State the tax treatment clearly rather than leaving the customer to infer whether tax is included.

Be equally precise about the work itself. If a job depends on access, measurements, customer-supplied materials, or another assumption, say so. Identify optional work separately from the quoted scope. If the final amount cannot be set until an inspection or other information is available, use an estimate and explain the uncertainty rather than implying a firm price.

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How to compare quotations from different businesses

Before comparing totals, check whether the offers cover the same scope, quantities, quality, and exclusions. A lower total may omit work or use different assumptions.

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  • Compare the included work, deliverables, quantities, and exclusions.
  • Check itemized costs and whether taxes or extras are included.
  • Compare timing, payment terms, and quote validity periods.
  • Consider quality, service details, reputation, reviews, and whether the business can deliver the work—not price alone.

Why local rules matter

Quotation requirements are not identical worldwide. Tax identifiers and tax presentation, deposits, consumer protections, contract documents, and acceptance rules depend on jurisdiction and transaction. Check the current rules that apply to your business and the customer before relying on a template or terms copied from another location.

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Examples from official guidance

  • Netherlands: Business.gov.nl’s quotation guidance describes including the parties, date, number, activities, price, validity, possible prepayment, and terms reference. Its discussion of prepayment limits distinguishes among consumers, products, services, and business-to-business transactions. Verify current Dutch requirements for your particular case.
  • Queensland, Australia: Business Queensland recommends business details including an Australian Business Number (ABN), quote date, number and expiry, a cost breakdown, Goods and Services Tax (GST) component, variations, payment terms, timeline, and customer acceptance. These identifiers and tax references are specific to Australia.
  • New Zealand: The Commerce Commission says quotes should not mislead consumers, estimates should have reasonable grounds, and quote or estimate charges should be disclosed before agreement. Business.govt.nz’s construction-specific guidance says a residential quote over NZ$30,000 including GST requires a building contract and related documents. This example concerns New Zealand residential construction; check the current threshold and requirements before relying on it.
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Free tools are enough for a simple quote

For occasional quotations, an editable document or spreadsheet can provide the basic structure without dedicated quoting software. Review the figures and terms, then send a PDF or a clearly written email and retain the accepted version. Dedicated accounting or quoting software may be convenient if you prepare quotes frequently, but it is optional for making a basic quotation.

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