Quote vs Invoice: When to Use Each (And Why It Matters)

Using quotes and invoices incorrectly can cost you jobs and create payment disputes. Yet many contractors use these terms interchangeably — or worse, use the wrong document at the wrong time.

This guide will clear up the confusion once and for all.

The Basic Definitions

Key Differences at a Glance

When to Use a Quote

Send a quote when:

• A potential client asks "how much will this cost?"
• You're bidding on a job against other contractors
• The project scope isn't fully defined
• The job is large enough that the client needs to budget
• You want to establish expectations before starting

Quote Best Practices

1. Be detailed — Itemize labor, materials, and any potential extras
2. Include scope — What's included AND what's not included
3. Set an expiration — "Valid for 30 days" protects you from price changes
4. Get approval in writing — Email confirmation or signature before starting

When to Use an Invoice

Send an invoice when:

• Work is complete and you're requesting payment
• You've hit a milestone in a larger project (progress billing)
• You're collecting a deposit before starting (deposit invoice)
• The client has already agreed to the work and price

Invoice Best Practices

1. Invoice immediately — Same day as job completion if possible
2. Reference the quote — "As quoted on [date]" prevents disputes
3. Include payment options — Make it easy to pay you
4. Set clear due dates — "Due within 7 days" not "Due upon receipt"

Common Mistakes to Avoid

❌ Sending an invoice before work is approved

This confuses clients and makes you look unprofessional. If they haven't agreed to the work, it's a quote, not an invoice.

❌ Sending a quote after work is done

If you've already done the work, you need an invoice. A "quote" at this stage looks like you're making up prices after the fact.

❌ Not converting quotes to invoices

Some contractors send a quote, do the work, then send the same quote again as a "bill." Create a proper invoice that references the original quote.

❌ Changing prices without a change order

If the scope changes mid-project, document it with a change order or revised quote BEFORE doing additional work. Then invoice for the approved amount.

The Legal Difference

This matters more than most contractors realize:

Quotes are generally not legally binding unless they explicitly say so. The client can reject them, and you can revise them.

Invoices are legal documents requesting payment for services rendered. Once you've done the work and sent an invoice, the client has a legal obligation to pay (assuming the work was authorized).

This is why the order matters: Quote first (to get agreement), then invoice (to get paid).

Quick Reference: Which Document Do I Send?

• 🤔 "Client is asking what it will cost" → Quote
• ✅ "Client approved the work, I'm about to start" → Deposit Invoice (optional)
• 🔨 "I'm halfway through a big project" → Progress Invoice
• ✨ "Work is complete" → Final Invoice
• 📝 "Scope changed mid-project" → Change Order, then updated invoice

The Bottom Line

Quotes win jobs. Invoices get you paid. Use them in the right order, and you'll have fewer disputes, faster payments, and happier clients.