Bid vs proposal vs estimate vs quote at a glance
| Estimate | Quote | Bid | Proposal | |
|---|---|---|---|---|
| What it is | Your calculation of cost | A fixed price for a defined scope | A priced offer on a formal solicitation | An offer to a request for proposals |
| Who asks for it | You, before you price | A customer or a contractor | An owner or agency; a GC from subs | An owner or agency |
| Is it an offer? | No | It can be, depending on its terms | Yes | Yes |
| Judged on | - | Price and scope | Mostly price | Price and other factors |
| Typical format | Spreadsheet | One page with terms | The owner’s bid form | Written volumes and a price |
Estimate: your number, not an offer
An estimate is the cost you calculate from a takeoff and your rates. It stays inside your company until you turn it into a quote, a bid or a proposal. See types of construction estimates.
Quote: a fixed price for a defined scope
A quote states the scope, the price, what is excluded and how long the price holds. Subcontractors quote GCs, and contractors quote homeowners. Use the contractor quote template.
Short on time? Send the RFP or bid documents and we do this for you. Fixed quote within 2 business hours. Plan review is free, and you pay only after you accept.
Get a fixed quoteBid: an offer on a formal solicitation
In federal contracting the Federal Acquisition Regulation draws the line. FAR 2.101 says responses to invitations for bids (sealed bidding) are offers called bids, responses to requests for proposals are offers called proposals, and responses to requests for quotations are quotations, not offers. FAR 14.101 describes sealed bidding as competitive bids, public opening of bids and award.
A bid goes on the owner’s form, with the price, unit prices, alternates and addenda acknowledged. Use the bid sheet template to build it.
Proposal: an offer judged on more than price
FAR Part 15 covers contracting by negotiation: a contract awarded by other than sealed bidding is a negotiated contract. The owner asks for a proposal and weighs price with other factors such as approach, schedule and past performance. Use the bid proposal template, or see RFP proposal preparation.
Which document does the job need?
| The job | What you send |
|---|---|
| Public sealed bid (invitation for bids) | A bid on the owner’s form |
| Request for proposals (RFP) | A proposal: written volumes plus price |
| Request for quotations (RFQ) | A quotation |
| Negotiated private job | A quote or a proposal letter |
| Sub pricing to a GC | A quote, often called a sub bid |
Every one of them starts from an estimate. See types of construction bids and what a bid package is.
Frequently asked questions
Is a bid the same as a quote?
Not quite. A bid answers a formal solicitation, usually on the owner’s form. A quote is a fixed price for a defined scope sent to a customer or contractor. In federal terms, responses to requests for quotations are quotations, not offers.
Is an estimate binding?
An estimate is your internal cost calculation, not an offer. What you send to a customer may become binding depending on how it is written and accepted; ask your attorney about your own documents.
What is the difference between a bid and a proposal?
A bid answers an invitation for bids and is judged mostly on price. A proposal answers a request for proposals and is judged on price and other factors.
What is the difference between an estimate and a proposal?
The estimate is your cost; the proposal is the offer you send, built on the estimate and adding scope, schedule, qualifications and terms.