What Should a Written Estimate Include?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

A written estimate tells the customer what you’ll do, what you won’t do, what the price is based on, what it costs, when it will happen, how they’ll pay, what warranty applies, and how to say yes. It should also say when the estimate expires. The Federal Trade Commission (FTC) tells consumers to get written estimates that describe the work, materials, completion date, and price, so many customers will expect all four.

What this means

An estimate is your price for one job based on what you know now. Some businesses use “quote” for a fixed price and “estimate” for a best guess. Whatever you call it, say plainly whether the price is fixed or can change, and how.

16.4.1 Scope

List the work that’s included. Be specific about quantities, areas, and materials. For larger jobs, attach a scope of work (see 11.1.4 Scope of Work).

16.4.2 Exclusions

List what is not included. This is the line that prevents most arguments. Examples: “Does not include drywall repair after the pipe is replaced.” “Does not include writing page content.”

16.4.3 Assumptions

State what the price depends on. Examples: “Assumes the existing wiring meets code.” “Assumes client provides logo files by June 1.” If an assumption turns out wrong, a change order follows (see 11.1.5 Change Order).

16.4.4 Price

Show the price, taxes, fees, any minimum charge, and the date the estimate expires. Material prices change, so an expiration date protects you. Show the full price clearly. Hidden fees can break consumer protection rules (see 11.3.2 Pricing Disclosures).

16.4.5 Schedule

Give the expected start date and how long the job should take, or the delivery date. Say what could delay it, like weather or parts.

16.4.6 Payment

State the deposit, any progress payments, the final balance, and payment methods (see 10.7.2 Deposits and 11.1.6 Payment Terms). The FTC tells homeowners not to pay the whole cost up front, and says some states limit how much a contractor can ask for as a down payment. Check your state.

16.4.7 Warranty

State the warranty that applies, or point to your written warranty (see 11.1.9 Warranty).

16.4.8 Acceptance

Give one clear way to accept: sign and return, click “Accept,” or pay the deposit. Record the date and the version accepted.

Made-up example: Northgate Fence Co. sends an online estimate for 120 feet of cedar privacy fence. It lists removal of the old fence as included, and permit fees and moving sprinklers as excluded. It assumes no rock under the post line. It shows the price with tax, a 40% deposit, and a 30-day expiration. It gives a two-week window to start and a one-year workmanship warranty. The homeowner clicks Accept and pays the deposit.

Why it matters

Customers compare estimates line by line. A clear one wins trust.
Missing exclusions become free work or a fight.
No expiration date means you may be held to old prices.
Some states and trades have their own estimate rules. Check before you write your template.

Who this applies to

Any business that prices custom work: trades, cleaning, landscaping, design, marketing, repair, and events. Businesses with fixed posted prices may not need estimates for standard services, but still need clear pricing.

How to do it

Build a template with a section for each line on this page.
Check state and trade rules. Your state attorney general’s consumer protection office and licensing board can tell you if there are estimate or deposit rules.
Visit or gather details first so the scope is based on facts, not guesses.
Write exclusions and assumptions for every estimate, even small ones.
Add an expiration date.
Show the full price with taxes and fees.
Give one clear way to accept and record it.
Link the estimate to your service agreement so the terms work together (see 11.1.1 Service Agreement).
Save every estimate in the customer record, accepted or not (see 15.7 Sales Pipeline).

What proof to keep

Each estimate sent, with date and version
The accepted version and how it was accepted
Photos and notes from the site visit or discovery call
Any revised estimates

Common mistakes

No exclusions. The customer assumes everything is included.
No expiration date.
A low “teaser” number that grows later. That breaks trust and can break pricing rules.
Starting work on a verbal yes.
Mixing estimates and invoices. Keep them separate.
Forgetting taxes or fees and adding them later.

When to get help from a pro

An attorney for your template, and your state licensing board for trade rules. Questions to ask:

Does my state have rules for written estimates or deposits in my trade?
Can my estimate be accepted electronically or by payment?
How should I word a price that may change?

Bill’s note

[Bill: add a short note. For example, how SiteSmarty writes estimates for website or Google Business Profile work, or an exclusion line that has saved you a lot of back and forth.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: the SiteSmarty estimate template and how clients accept it]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: a sample estimate with scope, exclusions, and expiration date]
[Result so far:]

Questions people ask

How long should an estimate be good for? Pick a period that fits how fast your costs change, often 15 to 60 days, and write it on the estimate. That range is a common practice, not a legal rule.

What’s the difference between an estimate and a quote? Many businesses use “quote” for a fixed price and “estimate” for a best guess. Say which yours is.

Can the final price be higher? Only under the terms you wrote down. Changes should be approved in writing first (see 11.1.5 Change Order).

Should I list exclusions? Yes. Exclusions prevent most scope arguments.

Audit check

Line	Question	Pass looks like	Fail looks like	Evidence to collect
11.1.2 Estimate	Is every custom job priced with a written estimate?	Template used for every job, saved in records	Verbal prices	Estimate template and sent estimates
16.4.1 Scope	Is included work specific?	Quantities, areas, materials listed	Vague descriptions	Sample estimates
16.4.2 Exclusions	Are exclusions stated?	Exclusions on every estimate	None listed	Sample estimates
16.4.3 Assumptions	Are pricing assumptions stated?	Key assumptions listed	None listed	Sample estimates
16.4.4 Price	Are price, taxes, fees, minimums, and expiration shown?	Full price and expiration date	Missing tax, fees, or date	Sample estimates
16.4.5 Schedule	Is timing stated?	Start and finish or delivery timing	No timing	Sample estimates
16.4.6 Payment	Are deposit, milestones, balance, and methods stated?	Clear payment schedule within state limits	Unclear or full payment up front	Sample estimates, state rules
16.4.7 Warranty	Is the warranty stated or linked?	Warranty terms included	None	Sample estimates, warranty
16.4.8 Acceptance	Is there a clear, recorded acceptance method?	Signature, click, or deposit recorded	Verbal yes only	Acceptance records

Where this fits

Do this first: 11.1.1 Service Agreement, 7.1.8 Direct Delivery Cost

Do this next: 11.1.3 Proposal

Sources

Federal Trade Commission, "How To Avoid a Home Improvement Scam" (checked October 17, 2026)
Google Business Profile Help, "Tips to improve your local ranking on Google" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.