Estimate templates: the simple way to create job estimates
Blog: Monday Project Management Blog
Estimating costs probably isn’t the part of your job that you enjoy. Unfortunately, preparing estimates is key to landing projects and completing them successfully.
If your estimate is too low, you could lose money. If your estimate is too high, you might scare off the client. If your estimate is inaccurate or unprofessional, that could also scare off the client.
An estimate template can help you create an accurate estimate that makes a good impression. Even better: it makes estimates quick and easy to write. This article will talk about how to write a good estimate and how the monday.com estimate template can help you do it.
What is an estimate template?
Before a client hires you to do contract work, they’re going to have some questions. The biggest one is: how much will this cost me? An estimate is a document that breaks down approximately how much a job or project will cost.
In addition to providing the total price tag of the project, an estimate usually goes into detail about the project timeline, the materials that will need to be purchased, and other information. Estimates are written by businesses and individual contractors and are common in many industries, from construction to event planning to graphic design.
Estimates can be a hassle to compile if you don’t have a good system, but they’re essential for landing work as a contractor.
Much of the information in an estimate document is the same for every project. Using an estimate template that already has these fields can make your job easier and reduce errors.
Why use an estimate template?
The value of an estimate starts before the client ever sees it — creating the estimate can help with your planning process. By the time you land the contract, you already have a clear idea of what materials you need, what expenses you’ll have, and how much time the project will take.
This process of cost estimation and compiling your estimate document ensures that you’ll charge the right amount for your services. You can offer a fair and competitive price that will also be profitable. If your estimate isn’t accurate and comprehensive, you might undercharge or overcharge.
When your planning and cost estimation is complete, it’s time to present the estimate to your prospective client. The estimate communicates to your client the scope, timeline, and cost of the project. It sets expectations from the start and answers a lot of questions the client might have about how you’ll complete the work.
It can be hard to remember everything that needs to be included in the estimate. Using a template solves that problem. Plus, if your estimate template automatically calculates the total, it helps ensure accuracy. The estimate may even be what secures the contract for you.
A well-written professional estimate makes you look organized and trustworthy. It helps you set a competitive price. And if you complete the work close to your estimated cost and timeline, it will help you build a positive reputation in your field.
Using a template means that you don’t have to reinvent the wheel every time you create a new estimate. Every estimate you create will look professional and impressive — and all you have to do is enter new numbers.
What are some examples of estimate templates?
Estimates are standard practice in a wide variety of industries and situations. Here are just a few common ways that estimate templates are used.
Construction estimate template
Contractors often create estimates before building, repairing, or renovating properties. Multiple estimates are commonly made over the course of completing a large project.
For example, there might be a preliminary estimate before the project specifications are available and a detailed estimate after drawings are made. Additional estimates might be provided as the work progresses. Templates for each type of estimate can save hours of work.
Event planning estimate template
When clients hire an event planner, they often don’t realize all of the details that go into putting together an event. Writing an estimate is an opportunity for the planner to demonstrate their value.
It’s also a chance to clarify what exactly the client wants. The caterer they mentioned is twice as expensive as other local options — are they committed to their choice, or would they rather switch?
Departmental budget estimate template
So far, we’ve only talked about estimates provided to external clients. But you can use the same type of document to estimate your team or department’s expenses. Filling out an estimate template for your internal work isn’t just helpful for managing your spending — it could be used to pitch a budget increase or outline a new project.
monday.com’s estimate template
We’ve discussed why accurate estimates are important. But they’re also a lot of work! If you’re a small business owner or self-employed person, spending too much time writing free estimates for clients can take valuable hours away from your real work.
That’s where the monday.com estimate template comes in. Like all monday.com templates, this one is fully customizable. That means you’re never locked into a format that doesn’t fit with your business. Your estimates will reflect the work you actually do.
There’s no need to get out the calculator when you make your estimates. The template can automatically add your line items together to ensure accuracy (and save you time).
If you have more than one team member working on the project, the monday.com estimate template will allow you to collaborate effectively. You can share the estimate board, assign items on it to a specific team member, or comment on items if you have questions. It’s also possible to give view-only access to stakeholders.
Writing job estimates is just one part of what you do. As a Work OS, monday.com can fit estimate creation seamlessly into your workflow.
For example, you could have a high-level board that keeps track of all of your projects. You can link this board to each of your estimates, allowing you to keep all of your project information in one place.
Tips and tricks for creating estimates
You have the template, and you’re ready to get started — what now? Here are our top 4 tips for creating estimates that win contracts.
1. Get all the details from your customer
Before you start the estimate process, make sure you know what your client wants. The more you learn in advance about client expectations, desires, and limitations, the easier it is to create an estimate that matches their vision for the project.
2. Include contingency
You want to provide a competitive price to your client, so it’s tempting to only include the best-case scenario in your template. But as you know, things don’t always go according to plan. Additional materials and labor may be needed, or the price of supplies might go up. A project delay might incur costs.
That’s why many businesses add a certain percentage to the cost to cover the unexpected. How much you increase the price will depend on your industry and the type of project.
3. See the estimate as a sales tool
An estimate should be accurate first and foremost. But it should also sell the client on your services. That means it looks professional, clearly communicates the details of the project, and gives the best price you’re prepared to offer based on your cost estimation. Customers are more likely to trust you if they know what you can provide for their money.
4. Deliver your estimate quickly
When potential clients are interested in your work, don’t leave them hanging while they wait for your estimate. If you take too long, they’ll probably go with another contractor. Using an estimate template will help you get estimates finished and in your client’s hands faster.
FAQs about estimate templates
How do you create an estimate document?
Here’s an example of how you could use the monday.com estimate template to put together a project estimate:
- Talk with the client about their vision for the project.
- Make a master list of every project expense. To make sure you didn’t miss anything, consult your past monday.com boards for similar projects.
- Enter each area of expense into your monday.com estimate board.
- Enter the cost of each item (or assign the item to a team member to research).
- Let the template calculate the total project cost.
- Share the estimate with your client.
- Be prepared to answer questions or adjust the details of the estimate.
What should be included in an estimate?
The details of your estimate will depend on its purpose, your field, what the client wants, and other details. But common information on an estimate includes:
- Date of estimate
- Your contact information
- A description of the project
- Materials cost
- Labor cost
- Total cost
- Names of any suppliers and subcontractors to be used
- Project timeline
- Estimated completion date
Does Google Sheets have an estimate template?
While Google doesn’t offer an estimate template in its template gallery, you can find free estimate templates that work with Google Sheets from various third-party sources. On the plus side, this is a simple way to make and share an estimate, especially if you already use Google Sheets. But we suggest the monday.com estimate template for a better way to collaborate on estimates and integrate the estimate process with your other tools and workflows.
What’s the difference between estimates, invoices, and quotes?
An estimate is a guess of how much the project will cost. It’s an educated guess that will hopefully turn out to be quite accurate, but it’s still a guess. The estimate may be adjusted as the project progresses.
A quote provides the exact price for a job. For some projects, you don’t need an estimate. For example, if you’re going to spend a few hours designing a poster, the project cost is unlikely to change, so you can send the client a quote.
When the project is finished, you provide the client with an invoice. An invoice lists all final costs and requests payment within a designated time frame.
The post Estimate templates: the simple way to create job estimates appeared first on monday.com Blog.
Leave a Comment
You must be logged in to post a comment.
