The present invention provides a quotation mechanism for service environments where the service level is negotiated. A client makes a request for a type, quality or volume of service. The service provider provides a response in the form of a quote. A quote binds the service provider to providing a service at a specified price. The quote also contains parameters of type, quality, or volume of service that the service provider can provide at that price. The client, after evaluating the quote, can either accept or reject a quote. The client can also obtain quotes from multiple service providers and enter a service contract with the service provider of its choice. This choice will not be based solely on price, but also on the levels of service quoted, since the service provider might not be able to supply the service at the requested level.