# Estimated Price > Estimated Price means the projected cost of an undefined product, property, or service. **Term:** Estimated Price **Last updated:** 2026-07-29 ## Definition ## What Estimated Price Means in a Contract An Estimated Price is a contractual figure that represents the anticipated cost of goods, property, or services before all relevant details have been finalized. It is not a fixed, binding sum but rather a working approximation that helps both parties plan budgets, allocate resources, and begin negotiations before the full scope of work or specifications are locked down. Because the underlying product or service is often undefined at the time the estimate is given, the Estimated Price functions as a placeholder figure. It signals to both parties that further clarification, measurement, or agreement is required before a firm price can be set. This distinguishes it from a fixed price or a guaranteed maximum price, both of which carry stronger contractual commitments. In many agreements, particularly those involving