Sample of Estimate Letter

Cost estimate letter format, business letter and personal application letter formats in word file.


How to write an estimate letter and specifications


Whereas a quotation is an offer to sell goods at a price and under stated Conditions, an estimate is an offer to do certain work for a stated price, usually on the basis of a specification. Like quotation, an estimate is not legally binding so the person making it is not bound to accept any order that may be placed against it.

Estimate for installation of central heating

(a) Enquiry for cost estimate

In this enquiry the writer encloses a specification giving a detailed description of the work to be done and materials to be used. This will provide the basis for the contractor's estimate. The plan would consist of a rough sketch (drawn to scale) showing the required positions of the radiators.


Dear Sirs

Please let me have an estimate for installing central heating in my home at 142/xx, Dubai. A Plan of the home is attached showing required positions and sizes of radiators, together with a specification showing further details and materials to be used.

As you will note from the specification, I am interested only in first-class workmanship and in the use of best quality materials. However cost is, of course, a matter of some importance. It is essential that this work is completed by 30 September at the latest.

Your replies please include a firm completion date.

Your prompt reply will be appreciated.

Yours faithfully



(b) Specification



1 Installation of the latest small-bored central healing, to be carried out with best quality copper piping of 15 mm bore, fitted with ‘Ryajand' electric pump of fully adequate power and lagged under floor to prevent loss of heat.

2 Existing boiler to be replaced by a Glow-worm No 52 automatic gas-fired boiler, rated at 15.2 kW and complete with gas governor, flame failure safety device and boiler water thermostat.

3 Installation of a Randall No 103 clock controller to give automatic operation of the central heating system at predetermined times.

4 Existing hot-water cylinder to be replaced by a calorifier-type cylinder suitable for supplying domestic hot water separately from the central heating system.

5 Seven `Dimplex' or similar flat-type radiators to be fitted under windows of five rooms, and in hall and kitchen according to plan enclosed; also a towel rail In bathroom. Sizes of radiate and towel rail to be as specified in plan attached to my letter dated 25 Aug 2011 addressed to yourselves.

6 Each radiator to be separately controlled, swivelled for cleaning and painted pale cream with red-lead undercoating.

7 The system to be provided with the necessary fall for emptying and to prevent air-locks.

8 All work to be carried out from under floor to avoid cutting or lifting floor boards, which are tongued and grooved.

9 Insulation of roof with 80 mm fiberglass.

David Rarian

25 August 2011



(c) Contractor's estimate letter sample

The contractor can calculate costs from the information provided, and will send an estimate with a covering letter. The letter should provide the following information:

  • a reference regarding satisfactory work carried out elsewhere which will give the customer confidence.
  • a promised completion date
  • a market prices and wages adjustment clause to protect the contractor from unforeseen increases that may raise costs and reduce profits.
  • a hope that the estimate will be accepted.

In this letter note that the contractor aims to inspire confidence by referring to work done elsewhere and the promise to arrange an inspection if required.