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  • Writer's pictureMy Project Estimating Ltd

Understanding Your Estimate.

Updated: Aug 31


 

My Project Estimating Building Estimating Service

Understanding an estimate, particularly in the context of a project or service, is vital for both parties involved. An estimate provides a projection of the costs and time involved in completing a particular task or project. It's essential for planning, budgeting, and ensuring that both parties have a clear understanding of what is expected. Here is a guide to help you read and understand an estimate, and to ensure everything is included:


1. Basic Information:

  • Client Details: This includes the name, address, contact information of the client.

  • Service Provider Details: This covers the name, address, contact information of the service provider.

  • Date: When the estimate was created and its validity period.

  • Estimate Number: Unique identifier for referencing.

2. Description of Work or Service:

  • Scope of Work: This provides a detailed description of the work or services to be performed. It should be clear and specific.

  • Timeline: This outlines the start and end dates or duration of the project.

  • Location: Where the work or services will be provided.

3. Cost Estimate:

  • Materials: An itemised list of the materials required, including quantities and costs.

  • Labor: The projected hours and rates for the labor required.

  • Overhead: These are indirect costs associated with the project, like administrative costs, utilities, etc.

  • Subcontractors: If applicable, details about the work and costs of subcontractors.

  • Taxes and Fees: Applicable taxes and additional fees.

  • Total Cost: Sum of all the above, sometimes including a contingency allowance for unforeseen circumstances.

4. Terms and Conditions:

  • Payment Terms: The method and schedule of payments, including down payments.

  • Warranty Information: Any warranties or guarantees.

  • Cancellation Policy: Terms under which the project can be canceled by either party.

  • Exclusions: What is specifically not included in the estimate.

5. Attachments and Supporting Documents:

  • Drawings, Plans, Specifications: These might be included or referred to in the estimate.

  • Legal Agreements: If there are any legal agreements associated with the project.

6. Verification and Acknowledgment:

  • Signatures: Both parties may need to sign the estimate to indicate agreement.

  • Follow Up: If there are any questions or need for clarification, make sure to follow up before proceeding.

What to Look For:

  • Accuracy and Clarity: Ensure all details are correct and clearly defined.

  • Completeness: Verify that all necessary aspects have been covered.

  • Alignment with Expectations: Compare with what was discussed and agreed upon verbally.

  • Potential Hidden Costs: Look for anything that might lead to additional costs not covered in the estimate.

  • Legal Compliance: Ensure that everything complies with local laws and regulations.


By carefully analyzing these components, you can ensure that the estimate accurately reflects the project's scope and that both parties have a clear understanding of what to expect. Always feel free to seek professional advice if you are uncertain about any aspect of an estimate.



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