Explain the difference between a Quotation and an Estimate.

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7) Explain the difference between a Quotation and an Estimate.

• A Quotation is a formal offer from a supplier to provide specific goods or services at a fixed price within a defined timeframe. Once accepted by the customer, it is legally binding, meaning the price and scope of work cannot typically be changed unless both parties agree.
• An Estimate is an educated guess or approximation of the cost or time required for goods or services. It is not legally binding and the final price or duration may vary. Estimates are often provided when the full scope of work is not yet clear.

The main difference lies in their binding nature: a quotation is a firm, legally binding price, while an estimate is a non-binding approximation.