Preparing a cost estimate for a job is an important part of owning and operating a business. A job estimate should cover all expected costs of completing a project and should take into consideration the complexity and size of the project.
Instructions
Preparing a Job Estimate
1. Communicate with your potential customer about the project and ask any questions that you feel are pertinent to have a better idea of what they expect. Making sure you understand what they want is necessary to preparing an accurate job estimate.
2. Consider all of the phases of the project and break it down into steps as necessary.
3. Write a list of essential material you will need. For instance, if you are a writer, include costs such as Internet, access to a database or a specific software. If you are renovating, write out the list of supplies that you will need. Be sure to consider applicable travel costs or telephone expenses to meet with a client. Research any costs that may change to make sure that you are providing an accurate estimate and that you will not lose money.
4. Detail the expenses that you will incur from the job and use this budget to help with your plans for deciding on a job estimate. Prepare a spreadsheet to document these projected expenses.
5. Plan for possible delays and contingencies when preparing a job estimate. This will help you come up with an accurate delivery date and estimate for a job. If you help someone develop a website, take revisions and modifications into consideration and be sure to outline that you have put aside x amount of hours for revisions. Anything above that would then be added at a later time.
6. Estimate the number of hours that you and any other employees might spend on the project. Find the average rate charged for your area of expertise or go with your regular per hour charges. Multiply these figures to get the cost of manpower for the project.
7. Add these numbers together and outline each figure under a heading, such as "Labor" or "Parts" to ensure that you maintain the integrity of your business practice. This will also help when explaining your job estimate so that you are sure you have the figures right.
8. Prepare a final budget using a template or software and make sure that it looks professional before you deliver the job estimate to a potential client.
9. Outline any potential clauses, such as the bid is only good for 10 days or that a deposit is required within 10 days to hold the estimate. Make sure that you write these clauses or conditions out clearly to ensure that you communicate effectively with your customer.
10. Deliver the job estimate to the client as promised. Time is important when preparing a job estimate. If you say that you will have an estimate prepared within 24 hours, be sure to follow that deadline. Taking longer may cost you work.
11. Follow-up with your client to answer any questions they may have about your job estimate.
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