What are Project Estimates

As its name implies, project estimates are formal written documents that consist of cost and budget estimates regarding a certain project. The projects at the concern of these project estimates can take many forms, it could be a construction project, a software development project, a business expansion project, and many more. Moreover, creating project estimates is an essential step in any form of the project management process. Project estimates are not easy to create. For this reason, project managers educate themselves with various project estimation tools and project estimation techniques that can really help them.

Here in Template.net, we have a wide variety of project estimation templates that might suit your needs as a project manager. We have the Construction Estimate, the Interior Design Project Estimate, the Project Budget Estimate, and so much more.

How to Create Project Estimates

project estimates template

As said earlier, project estimates are not easy to create. However, the difficulty is lightened with the use of templates. But still, you need to create them with paramount care. With that in mind, we have gathered a few tips to help you create project estimates.

1. Understand How Your Project Works

The most basic step you must undergo before creating a project estimate is to understand how your project works. In fact, you can't even create any document in relation to your project without first understanding it. Once you've fully understood how your project works, you can then make assumptions about its possible total costs.

2. Study Previous Similar Projects

Previous projects with similar characteristics with the one you're about to do can give you a lot of insight into its possible estimates. You can analyze the project plans of your previous project and use it as a basis for your current project estimate. Try to study how all of the angles of your previous project unraveled as it progressed, especially its financial flow.

3. Formulate a Work Breakdown Structure

Projects are a cumbersome process, hence it's likely that it can be broken down into different phases. If you can do so, you'll have a map of its workflow, and ultimately allowing you to create a time schedule and estimate each specific phase. This should help you significantly in creating an effective project estimate.

4. Use a Reliable Format

Using a reliable format with the right features and tools gives you convenience when making your project estimates. Some of the formats have features that can help you deal with the calculation of numbers and analysis of financial situations. Microsoft Word, Microsoft Excel, and Apple Pages are among those reliable formats. Other good alternatives as suggested by techradar.com are WPS Office, LibreOffice, and Focus Writer.

5. Review Your Project Estimate

Once you've finished creating your project estimate and you deem it ready for presentation, consider going over it first from start to finish. Make sure that all the project analysis you've made and all the variables you've included on it connects accordingly.

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