Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A quotation is a formal document setting the scope, quantities or lump sum, prices, VAT, duration, payment terms, exclusions, validity period and the documents it is based on.
Why it matters on a project
A clear quotation reduces disputes after award. Exclusions, validity and pricing basis matter more than the total when comparing.
Measurement and pricing
Either unit rates on a BOQ or a lump sum on a described scope, with VAT shown separately.
Common mistake
Submitting a total without a clear scope or exclusions, so the client later asks for work that was not priced.
Frequently asked questions
How long is a quotation valid?
As stated, often 30 to 90 days, shorter when material prices are volatile.
Should VAT be shown?
Yes, showing the price before VAT, the VAT amount and the total.
Related terms
- Tender evaluationComparing contractor offers technically and commercially to choose the best.
- Request for quotation (RFQ)A request sent to suppliers or contractors to price a defined scope.
- Unit rateThe item price per unit of measure, built from material, labour and equipment then indirect costs and profit.
- Lump-sum contractA fixed-price contract for a defined scope; the contractor carries the quantity risk.
Read next
Does your project need quantity take-off and BOQ pricing? Send the drawings or a short description and we reply within one working day.
Service detailsRequest a quote