What Is a Simple Estimate?

Sometimes an estimate can be mistaken as a quote or the other way around. Though both tackles about price and calculation, but the two are different from each other. To set things clear, the main difference between a quotation and an estimate is that a quotation is an agreed fixed price while an estimate is an approximate price that may change over time. In addition, an estimate is basically a rough educated guess based on what a job may cost. Often it is supplied either before you know all the details of a particular piece of work.

How to Make a Simple Estimate

It is important to keep in mind that an estimate is an informal idea of price based on limited information. Consider it a starting point in terms of costs, which can go up or down. Estimates can't be used as a legal standpoint for price. Moreover, having an estimated price for projects handled by contractors will be a handy tool in hitting targets for a construction project. In making a reliable simple estimate, we have made a step-by-step procedure to guide you.

1. Know the DIfference of a Quote from an Estimate

Now that we provided you the difference between a quote from an estimate, you are now ready to make a reliable estimate. However, if you want more information comparing a quote and an estimate, do research and gather as much information that you need to kick off your estimate making. If you have old estimate sheets that you refer to, study the document and take note some important points that you need to ponder.

2. Plan your Estimate

An estimate is a very vital tool for project managers. As someone who looks over a project, a project manager must know the entirety of it. And as an estimator, before beginning an estimate you must know the project even its tiniest details. With this, you will know what kind of resources you will use to establish the project—the most desired quantity, target amount, and project longevity. By this time, you can break down the resources that are needed in the project into smaller components or itemize them accordingly. Make a rough draft your project estimate.

3. Outline Your Simple Estimate

Outlining your simple estimate means visualizing your estimate sheets in actual form. Estimate sheets are usually done using tables so that every item can be enumerated properly. Also, having columns can help in designating quantity, cost, and bulk amount.

4. Choose a Template

Handwritten documents are still acceptable, but you should ensure that these are both readable and professionally presented. However, making your estimate from scratch has a high tendency to decipher illegible scrawl and you must avoid that to not to turn off a potential client. Download a simple estimate template here in Template.net because it is easy to use and ready-made.

5. Fill in Your Template

Since estimates are rough approximations of the cost, they should be reasonably clear but don’t have to be as detailed as a quote. Describe the job clearly in general terms. Estimates should always include a disclaimer that the price is subject to change.

6. Finalize Your Simple Estimate

Finalize your simple estimate and make necessary alterations if needed. Make sure all your information are correct.

Read More