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Which term do you use? Does it matter?
In some cases, it means a great deal how you word your proposal to a client. Calling your proposal an estimate, job quote or statement of work (SOW) can mean different things to the client, and to the law.
- As estimate is a "guestimate" or an approximation. Estimates are flexible and in most cases, negotiable.
- A quote provides your client with an exact price for the job or project. Quotes are exact, and in some cases, more legally binding than an estimate.
- A Statement of Work seeks to define liabilities, responsibilities and work agreements between two parties. It allows you to manage expectations and add a layer of detail about what the project will and will not cover.
Freshbooks - Quote vs Estimate
Your Traderbase - Estimate vs Quote
Bradley Gross does a much better job of explaining these than I do. Check out two of his podcasts on this topic.
Technology Bradcast 41 - Quotes: How Long? How Detailed? How Terrifying!
Technology Bradcast 21 - Quote vs Proposal vs SOW: A Primer
Law Office of Bradley Gross – Business Technology Law
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Bradley Gross
Bradley Gross is the founding partner of the Law Office of Bradley Gross, P.A., a law firm that specializes in transactions involving technology service providers, VARs, technology solution resellers, cloud solution providers, IT professionals and technology companies worldwide. Bradley is one of the leading international legal authorities in the area of managed service provider transactions and has been named on fourteen occasions to the national list of ‘Super Lawyers’ in the area of IT & Technology Law. Having counseled thousands of MSPs across the country, Brad has "seen it all and done it all" when it comes to managed service transactions. Brad also runs the Technology Bradcast podcast, covering security, licensing and contract issues for MSPs.