What is an Estimate?

A printable estimate is a document that provides an approximation, prediction, or a projection of an amount base from an information provided. This is an educated guess that describes how much a job may cost to account possible unexpected developments during a project.

How to Make an Estimate

When you are unsure on the size of the job, or if you are unable to pinpoint exact prices for your materials and labor, this is where you use estimates. Studies shows that ambiguity on your financial statements can lead your business into a dilemma in tracking down your progress and achievement on a target cost. To avoid this dilemma, we give you simple steps to create a printable estimate.

1. Determine Your Project

There is a possibility that you are handling different types of projects for your clients. Is your company offering contractor estimates? Landscaping estimates? Roofing estimates? Lawn estimates? Or perhaps a painting estimate? Determine what type of service your company is offering and then you identify your clients. Specify the period of time needed to complete your project and check for additional assistance needed to accomplish the job on time.

2. Check the Materials Needed

Now that you have transacted your project, begin to check the materials you need and write them down. Determine their cost and current availability. Can you easily purchase the materials you need or do have to rent them? Make sure that your materials are within reach of your clients' allocated budget and has a good quality to meet their standards.

3. List Down Your Estimate

Next step is to create your estimate forms. Indicate a good letterhead for your business, and include your company's information and contact details. This may consist of your company name and address, as well as your telephone number, and job description. Introduce your company logo and your license or accreditation to show the credibility of your company. At the same time, list down your clients' information to keep tract with your transaction.

4. Label Your Estimates Clearly

It is best to label your estimates as clearly as possible to avoid confusions. It is preferable to place the word "ESTIMATE" directly below your letterhead to inform your clients that this is an estimate and not a quotation. Take note that these two documents are different from each other. Then provide your terms and conditions with the necessary disclaimers to inform your clients on the possible differences between the original price and the estimated price. You may include a few alternative estimates in case your clients are unsatisfied with your current estimate.

5. Breakdown and Total Your Estimate

Provide a step-by-step breakdown on your estimate and properly describe your items to avoid future conflicts with your transactions. Separate your estimated amount of materials from your estimated amount of labor. Include additional charges such as tax, as well as incentives for special cases. Then, total your estimate and determine your profit margin. Once everything is reviewed and settled, have your estimate signed by both you and your client to complete the transaction.

Read More