In short: a rough estimate is a non-binding price estimate before measurement, usually as a range (for example CHF 11’000 to 13’500 excl. VAT). It does not bind you only if the disclaimer is stated explicitly and the customer was bound to understand it. Without it, the figure can turn into a binding price.
“Roughly what will this cost?” is the first question on the phone, and it comes long before you have seen the property. The indicative quote, also called a ballpark offer, is the answer to it: an order of magnitude, usually a range, with no measurement and no commitment. It helps the customer set a budget and helps you filter out the enquiries that would never have become a job.
The hard part is not the arithmetic, it is the wording. The term has no legal definition anywhere. Whether a document counts as a non-binding estimate or a fixed price depends on what it says and on what the customer could reasonably have understood. That is where the misunderstanding starts: you name a ballpark figure, the customer hears a price, and three months later you are arguing about the final invoice. This guide shows how to avoid that.
Indicative quote, cost estimate, quote: the differences
The three terms get mixed up in daily use. They commit you to very different degrees, and the difference is in the wording, not in the length of the document.
| Term | How binding | Typical wording | When it fits |
|---|---|---|---|
| Indicative quote | Non-binding, as long as the reservation is in the document | ”Non-binding indicative quote, order of magnitude CHF 11’000 to 13’500 excl. VAT, without a site visit” | First enquiry, budget check, before you have been on site |
| Cost estimate | An estimate you will be measured against; if it is exceeded disproportionately the customer may withdraw from the contract (Art. 375 OR) | “Cost estimate after site visit, approximate figure CHF 12’300 excl. VAT, tolerance +/- 10 %“ | Scope known, individual quantities still open |
| Quote | A binding price you are held to for the validity period | ”Fixed price CHF 12’295.00 excl. VAT, valid until 31 October 2026” | Measurement done, scope and substrate clarified |
The order of the table is also the usual sequence: the indicative quote goes out over the phone, the cost estimate or the quote follows the site visit. Skip that step and start work, and you have effectively turned your indicative quote into a cost estimate.
When does an indicative quote bind you anyway?
The Swiss Code of Obligations does not know the indicative quote, but it does know the offer made without commitment: the offeror is not bound if they attach an express reservation to that effect, or if an intention not to be bound follows from the nature of the business or from the circumstances (Art. 7 para. 1 OR). That reservation is the whole difference. Without it, the rules on contracts for work apply, and there are three constellations.
You named a fixed price (Art. 373 OR). Where the price was determined exactly in advance, you are obliged to complete the work for that sum and may not demand any increase, even if the job took more labour or larger outlays than foreseen (para. 1). Only extraordinary circumstances that could not have been foreseen allow a court to grant a price increase or the dissolution of the contract (para. 2). The reverse works in your favour: if the work takes less effort than expected, the customer still owes the full price (para. 3). A single figure without a reservation can be read as exactly such a fixed price, even with “indicative quote” printed above it.
You only calculated approximately (Art. 374 OR). If the price was not determined in advance at all, or only approximately, it is set according to the value of the work and your outlays. That is time-and-materials billing, and for the indicative quote it is the good news: a figure clearly marked as approximate does not turn your estimate into a fixed price. The condition is that you can actually evidence the hours and the materials from your job records.
The approximate figure is exceeded disproportionately (Art. 375 OR). If an approximate figure agreed with you is exceeded disproportionately through no doing of the customer, they may withdraw from the contract, both during and after execution (para. 1). For buildings on their own land they may instead demand a reasonable reduction of the price or, if the building is not yet finished, take the continuation of the work away from you against fair compensation for what has been done (para. 2). This is the article that hurts, and it bites exactly when an indicative quote turned into a job without a proper quote in between.
The 10 per cent rule is a rule of thumb, not a law
The statute names no percentage. Art. 375 OR speaks of “disproportionate”, and what counts as disproportionate depends on the case: on the size of the job, on the kind of work and on how uncertain the estimate was to begin with. In construction practice, an overrun from around 10 per cent is treated as risky. That is a rule of thumb, not a threshold you can rely on. On a CHF 3’000 job, 10 per cent is CHF 300 and nobody notices; on CHF 300’000 it is CHF 30’000 and the conversation is a different one.
The practical consequence is simple: put the tolerance in the document yourself. A sentence such as “The amounts stated carry a tolerance of +/- 10 %. If a larger overrun becomes likely, we will tell you before we carry on” buys you two things: an agreed range instead of a judicial assessment, and a reason to pick up the phone early. Tell the customer as soon as you see the overrun coming, too. Art. 375 OR only gives them the right to withdraw if the overrun happens without their involvement. Someone who approved the extra cost in advance was involved.
How to word an indicative quote
Five rules, and all five together take less than half a page.
- The title says what it is. “Indicative quote” or “non-binding indicative quote” in the title, never “quote”. Calling an estimate a quote means you have given a price if it ever comes to a dispute.
- A range instead of a single figure. A single figure gets read as a price, even with “approx.” in front of it. Choose the range so the top end still holds when the usual surprises turn up.
- Quantities with “approx.” and the assumptions behind them. Write down what you based the numbers on: areas, heights, condition of the substrate, access. If reality differs on site, you have a factual reason for the new price instead of an argument.
- Tolerance and reservation, one sentence each. The tolerance gives the range, the reservation says what is missing: “Indicative quote without a site visit, based on the details you gave us. The binding price follows the on-site measurement.”
- Validity, VAT and the next step. A deadline shows the figures do not hold forever. Say whether the amounts are excluding or including VAT, and what happens next.
Example: an indicative quote for repainting a facade
Detached house, facade around 210 m2 according to the customer, two storeys, render in good condition, no site visit. Example prices.
| No. | Work | Qty | Unit | Rate | Total |
|---|---|---|---|---|---|
| 1 | Erect scaffolding, 4 weeks’ hire, dismantle | approx. 180 | m2 | 13.00 | 2’340.00 |
| 2 | Clean facade, make good cracks | approx. 210 | m2 | 6.50 | 1’365.00 |
| 3 | Primer and two topcoats, mineral | approx. 210 | m2 | 34.00 | 7’140.00 |
| 4 | Materials, protection, disposal | 1 | lump | 1’450.00 | 1’450.00 |
Indicative total around CHF 12’300, range CHF 11’000 to 13’500, all amounts excluding VAT of 8.1 %.
Basis: details provided by the client on 8 September 2026, facade around 210 m2, render with no visible damage, scaffolding can be erected from ground level. This indicative quote is non-binding and does not replace a site visit. The amounts stated carry a tolerance of +/- 10 %. Not included are sheet metal and window work, repair of cracks in the substrate beyond the usual extent, and permits and fees. This indicative quote is valid until 31 October 2026.
Four line items is enough. Writing twelve at this stage suggests a precision that does not exist without a measurement.
The email that goes with it
Dear Mr Berger
Thank you for your enquiry. Based on the details you gave us (facade around 210 m2, two storeys, render in good condition), we expect an order of magnitude of CHF 11’000 to 13’500 excl. VAT for the repaint, including scaffolding, cleaning, two coats and disposal. The breakdown is in the attached indicative quote.
This is a non-binding indicative quote without a site visit. I would be happy to come by on Tuesday or Thursday next week, take the measurements and check the substrate. You will then receive the binding quote with a fixed price within two working days.
Kind regards Andrea Furrer, Furrer Malerei AG
From indicative quote to binding quote
The range becomes a price in three steps.
- The site visit. Substrate, access, heights, parking, water and power, the condition of adjoining components. Photograph everything that could become an argument later.
- The measurement. “Approx. 210 m2” becomes the actual area, and estimated hours become calculated ones. The measurement is also the basis on which you justify any jump from the indicative quote.
- Fixed price or time-and-materials. If the scope is clear now, give a fixed price. If a genuine uncertainty remains, behind a wall or under an old floor covering, handle that part on a time-and-materials basis and state the hourly rate and estimated range for it separately.
If the quote comes in above the top of the indicative range, explain it in one sentence. If it comes in below, say so too, it builds trust for the next job. How a binding quote is structured and what belongs in it is covered in the guide How to write a quote; the print-ready document with your letterhead is the quote template.
The most common mistakes
- A single figure instead of a range. “About 12’000” is a commitment as far as the customer is concerned. Give two figures and it is clear that you are estimating.
- No reservation in the document. Without the sentence saying the indicative quote is non-binding and the site visit is still missing, the title alone does not help much (Art. 7 para. 1 OR).
- Calculating too precisely. Rappen amounts on an indicative quote imply a measurement that never happened. Round to the nearest hundred.
- Working on quietly when it gets more expensive. The right to withdraw under Art. 375 OR assumes the overrun happens without the customer’s involvement. A call beforehand costs you five minutes and protects the final invoice.
- Never replacing the indicative quote with a quote. If you do not follow up with a binding quote after the measurement, you are working off an estimate you never meant as a price.
The indicative quote becomes the quote
In MeisterOffice you enter the indicative quote as a draft and turn it into the binding quote with the same line items after the measurement, instead of writing the document a second time. The pricing is here.
Frequently asked questions
Is an indicative quote binding? No, provided it is clearly labelled as an indicative quote, gives a range rather than a single figure, and carries the reservation that the site visit is still to come. The Code of Obligations holds that an offer does not bind the offeror if an express reservation to that effect is attached to it (Art. 7 para. 1 OR). Without that reservation, a single figure can be read as a fixed price despite the title.
By how much may an indicative quote be exceeded? The statute names no percentage. Art. 375 OR gives the customer a right to withdraw where an agreed approximate figure is exceeded “disproportionately” without their involvement. As a rule of thumb, around 10 per cent is treated as risky, but that number is not binding. You are safer if you put the tolerance in the document yourself and tell the customer as soon as more becomes likely.
Does an indicative quote have to show VAT? The rules on stating tax apply to invoices, not to an estimate made before the contract (Art. 26 VAT Act). Write down anyway whether the amounts are excluding or including VAT, otherwise private customers will budget with the lower figure. The standard rate is 8.1 per cent (Art. 25 para. 1 VAT Act). If you are not entered in the register of taxable persons you may not refer to the tax in invoices (Art. 27 para. 1 VAT Act), and in that case you should not show VAT on the indicative quote either.
Indicative quote or cost estimate, which one do I write? If you have not been on site yet, it is an indicative quote. If you have visited and measured but individual quantities are still open, it is a cost estimate: an approximate figure you will be measured against (Art. 375 OR). Once the scope is settled, write a quote with a fixed price. What matters is that the term on the document matches what you actually calculated.