Contracting Quotation Template: How to Price a Construction or Finishing Job (With Example)

A homeowner asks three contractors for a price to finish their villa. All three visit the site. One sends a single line: "Finishing works: 50,000 SAR". Another sends a clear quotation that lists every item with its quantity and unit price, says what is not included, splits the payment into stages and states how long the price is valid. Guess which one gets the call back, and which one ends up in an argument halfway through the job.

A contracting quotation is not just a price. It is the first draft of the agreement between you and your client. This guide shows what to put in it, how to price it, and gives you a complete example you can open in our free generator and edit in two minutes.

💡 Tip: you can make one in under two minutes with our free invoice generator: no sign-up, no watermark, PDF in English or Arabic.

If you are new to quotations in general, start with our guide on how to write a professional quotation. This one focuses on what is different for contracting, construction and finishing work.

What a contracting quotation must include

1. Your company details: trade name, commercial registration (CR) number, phone, and your VAT number if you are registered.
2. The client and the site: the client's name and the exact project location (villa number, plot, district). A quote without a site is a quote for nothing.
3. A quotation number and date, so you can refer to it later ("as per our quotation QT-2026-018").
4. The scope of work: one or two sentences that say what the job is and what it is based on, for example "interior finishing of the ground floor as per the site visit of 12 October".
5. A bill of quantities: every item with its unit (m², m, job), quantity, unit price and total.
6. Exclusions: what is not in the price. This line prevents most disputes.
7. Duration: how long the work takes and from when it starts counting.
8. Payment stages: how much is paid upfront, during the work and on handover.
9. Warranty: for example 12 months on workmanship.
10. Validity: how long the price holds, usually 15 to 30 days because material prices move.
11. VAT: shown separately in the UAE (5%), Saudi Arabia (15%), Bahrain (10%) and Oman (5%). Kuwait and Qatar have no VAT.

The bill of quantities: price per unit, not per job

The heart of a contracting quotation is the bill of quantities (BOQ): a table where each line is one type of work, measured in its natural unit. Painting is priced per square metre, skirting per metre, a door per piece, site cleaning as a lump sum ("job").

Pricing per unit protects both sides. If the walls turn out to be 680 m² instead of 650 m², nobody argues: the extra 30 m² are paid at the agreed rate. A lump sum for the whole job forces you to either add a big safety margin (and lose the job to a cheaper bid) or absorb the difference yourself.

Tips for each line:

• Name the material and the standard: "Interior painting, primer + 2 coats (Jotun or equivalent)" is clear. "Painting" is not.
• Say who supplies what: "tiles supplied by the client" changes the price completely.
• Keep labour and materials together on each line unless the client asked for them separately. It keeps the quotation short and easy to compare.
• Measure before you quote and write that the quantities are "as measured on site" or "to be confirmed by joint measurement".

Worked example: villa finishing in Riyadh

A contractor in Riyadh prices the interior finishing of a villa's ground floor. Prices are in Saudi riyals and the contractor is VAT-registered, so 15% VAT is added.

Under the table the quotation says what is not included (permits, electrical and plumbing works, materials not listed), the duration (6 weeks from the advance payment), a 12-month workmanship warranty and a validity of 15 days.

Open this example in the free quotation generator: every line, the notes and the payment terms are filled in. Add your company name and logo, change the quantities and prices, and download the PDF.

Payment stages that protect your cash flow

Never let the whole payment wait until the end. Materials and labour are paid every week; your client's money should follow the work. A common split for finishing jobs:

• 30% advance when the client accepts, before you buy materials: 16,511.70 SAR in the example.
• 40% at a clear milestone, such as "after plaster and ceilings": 22,015.60 SAR.
• 30% on handover: 16,511.70 SAR.

Tie each payment to something both of you can see (a finished stage), not to a date. On larger projects, contractors submit a progress claim (also called an interim payment application) each month for the work done so far, measured against the bill of quantities.

VAT on advance payments: in Saudi Arabia and the UAE, VAT becomes due when you receive a payment, including an advance. When the client pays the 30%, issue a tax invoice for that amount, not only at the end.

Retention: what it is and how to show it

On bigger projects, especially for companies and developers, the client often keeps back a retention of 5% to 10% of each payment until handover or until the end of the defects liability period (often 12 months). If retention applies, write it in the terms: "5% retention released 12 months after handover". Price it in: that money comes to you a year later.

Variations: the line that saves friendships

Clients change their minds: a different tile, an extra room, a niche in the wall. Add this sentence to every contracting quotation:

Any work not listed in this quotation will be priced separately and carried out only after written approval.

When the change comes, send a short variation quotation with its own number (for example QT-2026-018-V1) before you start. It takes five minutes and avoids the classic dispute at the final payment.

Common mistakes in contractors' quotations

• One lump sum for everything. The client cannot compare it, and you cannot defend it when quantities change.
• No exclusions. "I thought the electrical work was included" is the most expensive sentence in contracting.
• No validity date. A client who accepts a three-month-old quote expects three-month-old prices.
• VAT forgotten or hidden. If you are registered, show the amount before VAT, the VAT and the total. Our VAT calculator does the maths.
• Wrong decimals. Kuwaiti, Bahraini and Omani amounts have three decimals (12,375.500 KWD). See currency decimals on GCC invoices.

From quotation to invoice

When the client accepts, the same lines become your invoices. With a free GCCInvoice account every quotation is saved, and Convert to invoice copies the client and the items into a new invoice, so the advance invoice, the stage invoices and the final invoice all match the quotation you agreed. Read more about the difference between a quotation and an invoice.

Frequently asked questions

Is a contracting quotation a binding contract?

Once the client accepts it in writing (a signature, a purchase order or a clear message), the accepted quotation is strong evidence of what you agreed. For large projects, sign a separate contract that refers to the quotation and its bill of quantities.

Should I show VAT on a quotation?

Yes, if you are VAT-registered: show the total before VAT, the VAT and the total including VAT, so the client knows the real cost. The quotation itself is not a tax invoice; you issue tax invoices when you receive payments or complete the work.

How long should a contracting quotation be valid?

Usually 15 to 30 days. Use a shorter validity when material prices (steel, cement, copper) are moving quickly.

Can I make the quotation in Arabic?

Yes. Switch the document language to Arabic and the PDF uses a proper right-to-left layout. Many clients and every government entity in the Gulf prefer Arabic; see our English–Arabic invoice terms.

The prices in this guide are examples, not market rates. VAT rules can change; check with the tax authority or your accountant for your situation. Last checked: October 2026.