The difference between a price quote and a tender – a complete guide for construction
📌 Last updated: 15.11.2025: Reading time: approx. 3-4 minutes
Written by: Per Øystein Tovsen, buildit AS.
Many in the construction industry use the terms quote and tender interchangeably. However, the difference is both legally and practically important – especially when calculating prices, submitting documentation and protecting yourself against errors.
Briefly explained:
A price quote can be negotiated.
A tender is binding and part of a competition.
In this article you will get:
A simple explanation of the difference between a quote and a tender
What must be attached to make the offer complete?
Which builders are asking for what?
Legal highlights with links to legislation
How to create professional quotes and tenders
What is a price quote?
A quote is a price proposal that is not legally binding until the customer accepts it. It can normally be negotiated on price, scope and delivery, and is often used for smaller projects or direct contact between customer and supplier.
Typical characteristics:
Often given directly to one customer
Allows for negotiation after it is sent
Used for smaller projects or private assignments
Does not require extensive documentation
Example:
A builder sends a quote for the construction of a garage to a private customer. The customer wants some changes, and they agree on a new price and solution before signing the contract.
What should be included in a price quote?
For a quote to be complete and professional , it should contain more than just the total.
At a minimum, you should attach:
Brief description of the delivery (work, materials, standards)
Price and payment terms
Time estimate for start-up and completion
Offer validity period
Any reservations
Company information and contact person
Attachments such as drawings, product sheets, images or FDV
Tip: In my calc you can generate a complete price quote as a PDF with logo, text and attachments – all together and ready to send.
What is a tender?
A tender is a binding offer submitted in a competition where several suppliers participate. Once the tender is submitted, it cannot be changed or negotiated after the deadline – it must be accepted or rejected as it stands.
See Codex Advokat: Offers and tenders – rules, errors and legal assistance for legal elaboration.
Typical characteristics:
Used in competitions between multiple suppliers
Follows established requirements and deadlines
Legally binding upon acceptance
Common in public and larger private projects
Example:
A construction company submits a tender for the construction of a school for the municipality. After the deadline, all submitted offers are evaluated objectively based on price and quality – no one can change their offer after submission.
What should be included in a tender?
A tender may be rejected if documentation is missing. Therefore, the tender should contain:
A tender must be formally complete . If attachments or documentation are missing, the tender may be rejected.
A complete tender should contain:
Signed offer letter or offer form
Price and quantity summary (NS 3420/NS 3451 format)
Any forms from the builder
Progress plan
Company certificate, tax certificate and HSE self-declaration
CVs and reference projects
Technical descriptions, product sheets and quality procedures
FDV documentation (if required)
Any reservations – clearly and distinctly formulated
In my calc you can link all documentation directly to the estimate. You get a full overview of attachments, prices and standards, so you deliver a complete, tidy and professional bid every time.
How different builders use quotes and tenders:
| Builder type | Common practice | Type of request | Example |
|---|---|---|---|
| Private person | Direct contact | Price offer | Home renovation |
| Small businesses | Live/Competition | Price offer / simpler tender | Shop, office |
| Contractor/Developer | Formal process | Tender | Subcontracting |
| Public business | Regulated competitions | Tender | School, road, office building |
Why is the difference important?
The difference affects how you calculate price, secure margins and document the work.
A wrong understanding can lead to:
Contract risk
Lost competitions
Error in contract basis
Financial risk
Rejection in tender competitions
Mini-case: From quotation to tender
A carpenter sends a price quote for the rehabilitation of a school wing to the municipality.
The municipality responds that the project must be put out to tender.
With the my calc calculation system, the carpenter reuses the same calculation, adds the necessary documentation and sends a complete bid - without starting over.
Legal corner
A tender becomes binding when it is sent, cf. Section 2 of the Contracts Act.
A price quote is only binding once it has been accepted.
Digital offers and emails are also considered written offers under Norwegian law.
Public tenders are regulated by the Public Procurement Regulations (FOA).
How to create quotes and tenders with mycalc
Once you understand the difference, the next step is to make the calculation correctly and document it correctly .
With my calc you can:
Create quotes and tenders in no time
Use updated price database or import your own price lists
Calculate markups and margins automatically
Generate professional reports with company logo
Follow Norwegian standards (NS 3420, NS 3451 and NS 3459)
Three steps to a finished offer:
Import prices from suppliers or price bank
Add hours, materials and markups
Generate finished PDF with all attachments
With my calc , you reduce calculation time by up to 40%, get 95% accurate calculations – and always deliver complete documents.
FAQ
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A clear description of the delivery, price, schedule, reservations and contact information. Also read Codex Advokat: Offers and tenders – common mistakes.
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Offer letter, price list, progress schedule, certificates, CVs, technical descriptions and HSE self-declaration.
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No. A tender is binding and cannot be negotiated after delivery.
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Use a digital tool like mycalc for automatic calculation, price bank and reports.