Contractor knowledge base
Contractor quoting glossary
A contractor quote is a defined offer to complete stated work for a stated price. These plain-English definitions help teams price consistently and explain commercial terms clearly to clients.
- Bid
- A contractor's formal offer to complete defined work for a stated price and timeline.
- Change order
- A written amendment that changes a project's scope, price, materials, or schedule after approval.
- Cost-plus pricing
- Pricing where the client pays project costs plus an agreed contractor fee or percentage.
- Deposit
- An upfront payment that reserves capacity and helps fund materials before work begins.
- Estimate
- A good-faith projection of likely project cost that can change as scope becomes clearer.
- Fixed-price quote
- A price commitment for a clearly defined scope, subject to stated exclusions and change orders.
- Gross margin
- Revenue minus direct job costs, expressed as a share of revenue.
- Labor burden
- The full employment cost beyond wages, including payroll taxes, insurance, and benefits.
- Line item
- One separately priced unit of labor, material, equipment, or service within a quote.
- Markup
- The percentage added to cost to produce a selling price.
- Margin
- The percentage of selling price remaining after direct costs.
- Material allowance
- A budgeted amount for materials whose exact selection or price is not final.
- Payment schedule
- Milestones that define when deposits, progress payments, and final payment are due.
- Progress payment
- A payment due when a defined project stage or percentage of work is complete.
- Proposal
- A sales document combining scope, approach, credentials, terms, and pricing.
- Quote
- A detailed offer describing the work, materials, terms, and price a contractor will honor.
- Scope of work
- The precise tasks, deliverables, responsibilities, and exclusions included in a job.
- Subcontractor
- An independent specialist hired by the primary contractor to complete part of the work.
- Takeoff
- A measured list of material quantities required from plans or site dimensions.
- Unit price
- A price per measurable unit such as hour, square foot, item, or linear foot.
- Validity period
- The number of days a quoted price remains open for acceptance.
- Warranty
- A written promise covering specified workmanship or materials for a defined period.