Template of the Quote
A quotation (or quote) is a document in which a supplier sets out what they can deliver and at what price. Unlike an invoice or a purchase order, a quotation is not binding until the customer accepts it – it serves as a basis for decision-making. A well-prepared quote often determines whether you win the job or not. Here's what it should include and how to put one together so it looks professional and protects your interests.
What should a quotation include?
A quotation has no legally prescribed format in the UK. However, there is a core set of details without which it loses clarity and credibility.
Essential information
Document label – "Quotation" or "Quote".
Quote number – a unique reference for tracking and matching to the subsequent order and invoice.
Date of issue – the date the quotation was prepared.
Supplier details – business name, company number, VAT number (if registered), address and contact person.
Customer details – name or business name and address.
Description of goods or services – detailed line items with unit prices and quantities.
Total price – net amount, VAT (if applicable) shown separately, and gross total.
Validity period – how long the quoted price stands (typically 30 days).
Recommended additional information
Beyond the essentials, the following details make your quotation more attractive and precise:
Delivery terms – expected delivery date, location and method.
Payment terms – e.g. "Net 30 days from invoice date" or "50 % deposit on acceptance".
Discounts or promotional pricing – if applicable, show the original and discounted price so the customer sees the value.
Customer acceptance – a signature line or instructions on how to confirm (e.g. "Reply to this email to accept").
Scope exclusions – what is not included in the price (e.g. "excludes VAT", "delivery charged separately").
Important
A quotation without a validity date is a practical risk. The customer could accept it months later – and you may be obligated to deliver at a price that is no longer viable. Always state how long the quote is valid.
When and why is a quotation used?
A quotation is not a mandatory document, but in many situations it is practically essential:
Tenders and requests for proposals – The customer is comparing several suppliers and needs comparable documents. Without a formal quotation, you may not even be considered.
Complex or multi-item projects – For projects with multiple line items or stages, a quotation clearly defines what is included in the price and what is not – preventing scope disputes later.
New customers – A professional quotation builds trust. The customer sees that you operate systematically and transparently.
Price protection – A quotation with a defined validity period and clear scope protects you from customers demanding delivery at prices that are no longer current.
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Basis for a purchase order – An accepted quotation often becomes the foundation for a purchase order. The customer doesn't need to specify everything again – they simply reference your quote number.
Quote vs. estimate: In the UK, the two terms are often used interchangeably – but there is an important practical difference. A quotation is typically a fixed-price offer: you commit to delivering at the stated price, provided the customer accepts within the validity period. An estimate is an approximation – the final price may change if the scope of work changes. Choose the right label depending on whether you want the price to be binding.
