How to Create Construction Estimates in Word?
Estimates are much-needed documentation when starting or undertaking Construction jobs. No matter if it is for a home, commercial, or remodeling project, estimates makes it easier for both owner and contractor to agree on a budget. If you need to create a cost estimate for your construction company's clients, just follow these five few tips.
1. Prepare an Initial Outline and Summary of Project Budget
Prior to making estimates on your computer, it is best to write them down on a piece of paper first. Creating an outline will make it easier for you to try and complete every detail necessary for your document. Think of it as a preliminary estimation that you can use as the basis of your final estimate document. An outline is also excellent when you are still gathering data and rounding up numbers for Construction Budgets because you won't have to worry about making irreversible mistakes. Here, you can add information without getting overwhelmed because you can erase them immediately when it is needed.
Many people incorporate estimates when they are making bid proposals, like a price quote, for different Construction Projects. It can be a budget calculation for ongoing construction work or as a labor and materials acquisition assessment. That is why you need to indicate the purpose of your estimate by giving a brief and accurate summary. Such a method will be beneficial to the project owner and other contractors to understand the flow of the document contents. Also, if the budget for the project comes from a bank loan, you need to specify the allocated credit.
2. Know Who Will be Working on the Project
If you are working on a big Construction Project as the general contractor with lots of sub-contractors to help with the construction, you will need to include their services in your estimates. If they have submitted their estimates to you before the beginning of the project, you can incorporate their budget cost in your document to make up for the total amount. This is applicable when engaging in the services of individual workers who are not associated with any company because you need to include their labor costs in your estimate.
3. Get a Blank Cost Estimate Template
With data at hand, your next step is to download a blank template. A cost estimate template is designed with a sheet and space where you can write down company details, project information, owner data, and well-researched stipulated terms. If you want to do your task quickly, better get a printable template. If you have multiple projects that also need estimates, you can just use the template again, giving you the privilege of saving time and money.
4. Enter Description and Numbers Accurately
When you have your sheets or tables, you can enter the information you had on your draft in the document. There is a space to write descriptions on the sheet; all you need to do is similar group tasks in one line, so it's easier to follow the sequence. You can start with groundwork if it is a new construction project, or if you are also working on the licenses, begin from there. If your estimates concern labors, then in the description, you need to specify to whom these laborers are for proper identification. If it's material-related, then name the materials and their kind. Writing an accurate description will make your document look professional and detailed, which the client will thank you for.
When entering the numbers, make sure that they are in the correct boxes. Item codes, the proposed budget for each material or services, the actual budget amount (applicable when your cost estimate is done after the project or acquisition of materials), the final balance, should be indicated with the right currency. Double-check the total amount after calculation.
5. Terms and Conditions
Should you want your client to read the document but would need them to return it to you after verification or grant their approval for the cost estimate, you need to provide the condition. You can also include here a statement where you can ask them for suggestions, or if they have further inquiries about the document.