What's the difference between a quote and an estimate from a builder?
Short answer
A quote is a firm price commitment — the builder agrees to do the specified work for the stated amount, subject to written variations. An estimate is an informed guess that's expected to be approximately right but isn't legally binding. The Consumer Guarantees Act treats quotes as binding promises; estimates carry weaker protection. Always get a written quote (not an estimate) for any job over a few thousand dollars.
Source: Consumer Guarantees Act 1993. Updated May 2026.
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Check a builderKey facts
- Quote — firm price, binding (subject to written variations)
- Estimate — non-binding approximation
- Both should be in writing
- Estimates can creep — by how much, the CGA requires 'reasonable' but that's contested
- Section 362K of the Building Act effectively requires a quote-equivalent contract for residential work over $60k
Which one you're getting
Look at the wording. 'Estimate' usually means: the builder is sketching costs based on initial information; final price may shift. 'Quote' usually means: the builder commits to the price for the scope of work named.
Even an 'estimate' can be binding under the CGA if the homeowner reasonably relied on it and the actual cost is significantly higher without good reason. Courts and the Tribunal both look at the context.
What a quote should include
Scope of work itemised. Materials specified by brand and grade where possible. Provisional sums marked clearly. Timeframe estimate. Payment schedule. Validity period (often 30 days). Variation process. Excluded items.
If any of these are missing, ask. A casual quote without scope detail is asking for variation disputes later.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
Related questions
Sources: Consumer Guarantees Act 1993; Building Act 2004 section 362K. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.