What is a Quotation? - Definition & Meaning
A quotation is a formal offer to a client describing services, costs, and terms. Learn how to create professional quotations.
Definition
A quotation is a formal, written offer in which a service provider describes to a (potential) client which services or products are offered, at what price, and under what conditions. It forms the basis for an agreement and becomes legally binding once the client accepts.
Technical Explanation
Quotations are generated via templates dynamically populated with project-specific information. Modern quoting software supports digital signatures (via tools like DocuSign or SignRequest), version control, and approval workflows. CRM integrations link quotations to sales opportunities and client profiles. Pricing calculations can be based on fixed prices, hourly rates, or a combination. Analytics show conversion rates from quote to order, average turnaround times, and profit margins per project type.
How Refront Uses This
Refront offers AI-powered quote generation. Based on a client request, the AI analyzes the desired scope, estimates required hours using historical project data, and generates a professional quotation. The client receives the quote through the portal and can digitally approve it, after which the project is automatically scheduled.
Examples
- •The AI agent analyzes a client request and automatically generates a quotation with hour and cost estimates per component.
- •An agency sends a quotation with three different options (basic, standard, premium) so the client can choose.
- •After digital approval of the quotation, the project is automatically created in Refront with the correct tickets and planning.
Related Terms
Frequently Asked Questions
What is the difference between a quotation and an invoice?
A quotation is a pre-work offer describing what will be delivered and at what price. An invoice is the post-work payment request for actually delivered work. The quotation precedes the work, the invoice follows after.
How long is a quotation valid?
The validity is stated on the quotation and is typically 14 to 30 days. After the validity period, the service provider can revise the terms based on current availability and rates.
Can AI help create quotations?
Yes, AI can generate a quotation based on the client request and historical project data with realistic time estimates and cost calculations. This significantly speeds up the quoting process and improves accuracy.
Ready to get started?
Try Refront for free and discover how AI automates your workflow.