What is a Job Estimate?
A job estimate is a written document that outlines the services that you are going to contribute to a project. Additionally, a job estimate lays out the possible expenses that a client will have to spend to complete a task or project. Since it is only an estimated amount, the data written may either be lower or higher than the actual job expenses.
How to Create a Job Estimate
According to SlideShare, cost estimates enable small firms to find out how much a venture will cost them. It also helps in the development of startup companies while allowing the clients to allocate for the project. Whether your clients are old or new, a job estimate is crucial to provide them with an idea of the services to be rendered and the possible expenses.
If you don't know where to start in making your job estimate, scroll down to see the list of steps that we have provided for you.
1. Review the Scope of the Project
Do not begin drafting your estimate until your client understands what he needs. Oftentimes, clients don't know what they need and will only provide you with the intended outcome. If this is the case, you will have to provide suggestions to the client for them to make up their minds regarding what they want for the project. If you are a consultant, you can visit the worksite to see exactly what the work will entail.
2. Estimate a Timetable
An estimate usually requires a timetable, but it is essential to also include a rough deadline for your client. A timetable is necessary to determine how much a particular job should be paid based on the job's duration. Also, make sure to stay on the progressive side when a timeframe is provided. However, managing service standards is crucial to know how much time is allotted for you to finish the job.
3. Hire Contractors If Necessary
Contract workers are highly needed in large jobs, especially if you're operating independently and not in a group. This is why you have to be practical about the things that you are capable of. For instance, a blog writer might need to employ a copy editor to review and revise their work to ensure quality blogs for audiences. If you are bombarded with so many tasks, it's always advisable to hire contractors to help you out.
4. Estimate Price of Equipment
You should study how much the materials and supplies cost, and incorporate the information in your calculation. If you feel like buying specific equipment is too costly, you may rent them instead to save money, especially if the equipment is for short-term use only. If you still don't have enough resources to compensate for the products, then look at other financing options. Just make sure to keep away from business loans with high interest.
5. Study the Competition
When the competition is tight, businesses study their competitors to identify flaws and come up with strategies to stand out. Areas that are commonly taken into consideration include the competitor's fees and the scope of their services. If you think you are capable of offering a wider scope of service for a more reasonable price, feel free to mention it in your project estimate.