Difference between an Estimate and an Invoice

The difference Between an Estimate and an Invoice

Payments for larger projects and jobs often vary with a wide range of costs. For example, an auto body repair job or a residential or commercial remodeling project may vary in cost greatly depending on a number of factors.

Everything from the type of job, quality of materials, complexity of the project, etc. can have a huge impact on its final cost.

This is why most professionals like building contractors in Kansas City or St. Joseph, Missouri offer estimates before they present you with a final invoice. However, sometimes people may get confused between the two.

Not anymore!

The main difference between an estimate and an invoice is that the former is an ‘estimated’ cost of services for a project, whereas the latter is the ‘actual’ cost of services."

- Blackstone Construction

Here we discuss the difference between an estimate and an invoice, so you never mistake one for the other.

What Is an Estimate?

Depending on who you talk to, an estimate may also be called a quote or a bid, but these are all the same things. Before you initiate a project or job, especially a residential or commercial new build or remodeling project, your building contractor will give you an estimate of expenses.

This is a way of giving you an idea of what the final bill may cost (according to all the previously discussed project requirements) if you decide to hire them.

It is a proposal of services, but it is not set in stone. Things can change during the course of the new build or remodeling project, including your requirements, that affect the final bill. For example, unexpected expenses like hidden mold or faulty plumbing can come up and increase the expenses.

In this case, building contractors in Kansas City or St. Joseph, Missouri may update the estimate, or simply add expenses for the extra services. However, nothing should be done without your approval.

What Is an Invoice?

Unlike an estimate/ bid/ quote, an invoice is the final bill of services that you owe the building contractor once you hire them to complete the project or job. This is the amount owed by you to the builder  at completion for their services.

The invoice typically comes with a breakdown of costs, showing you exactly all the expenses that added up to create the final cost price. The invoice price is rarely exactly the same as the estimated price.

However, experienced building contractors in Kansas City or St. Joseph, Missouri are good at creating estimates that closely match the final invoice price, provided no unexpected expenses come up during the project.

What Is the Difference between an Estimate and an Invoice?

The main difference between an estimate and an invoice is that the former is an ‘estimated’ cost of services for a project, whereas the latter is the ‘actual’ cost of services. An estimate is given before starting a project, whereas invoices are given at completion.

You do not owe the amount mentioned in an estimate, but you do owe the amount mentioned in an invoice.

Here is an example:

Let’s say you need some tile work done in your residential bathroom. You contact a couple of building contractors and discuss your requirements. They all give you an estimate and a time frame for completing your project.

You decide to hire the one you trust the most, or the one who gives you the lowest estimate, or the fastest completion time.

They start the tile work and finish in a timely manner with no unexpected expenses. Upon completion of the tile work, they hand you an invoice. This invoice amount is closely the same as the estimated amount, since there were no extra costs, and you pay the building contractor for their services once you are satisfied with their work.

The Bottom Line

An estimate and an invoice are completely different things, but expert building contractors are known to give the best estimates that closely match the final invoice amount. Do not be alarmed if your estimate changes due to unprecedented expenses, or if the invoice does not match the estimate exactly.

Contractors should inform you about all the developments of your project and get your approval before exceeding your budget or the estimated costs.

If you’re on the lookout for licensed and insured building contractors in Kansas City or St. Joseph, Missouri, look no further. Click here to get a free quote for your residential or commercial construction or renovation project from Blackstone Construction.