Cost Estimate Template
Presenting an accurate cost estimate to your clients is essential in any project. Using the free cost estimate template from Billed, you can quickly and easily create an estimate that accounts for every project detail.
Get Your Free Cost Estimate Template
Creating estimates quickly and accurately is essential for every business. But the problem is time wasted on creating, sending, tracking, and handling paperwork.
Luckily! The free cost estimate template from Billed is a tool that makes this process easier and faster. Download now and start creating high-quality and detailed estimates quickly and ideally.
Our beautiful and editable cost estimate templates are available in Google Docs, Google Sheets, XLs, Word, and PDF, edit them, and email them to your customers.
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- What is a cost estimate?
- Difference between estimate, invoice, and delivery note
- What is cost estimates in PMP?
- Why Use Our Estimate Templates?
- What are the five methods of project cost estimation?
- What is the expiration date of the estimate?
- Estimate making rules
- Tips While making an Estimate
- How to make a Cost Estimate?
- Some Other Templates
- Download The Cost Estimate Template For Free
What is a cost estimate?
A cost estimate is an approximate calculation of the total cost of a project. It is based on known labor and materials prices and possible costs that may arise during the project. Cost estimates determine how much money a project will need to be completed successfully. They also help identify potential risks associated with a project and can be used to compare estimated costs with actual costs throughout the project’s duration.
Difference between estimate, invoice, and delivery note
Estimates, invoices, and delivery notes have different characteristics in commercial transactions.
The estimate is prepared before the contract transaction. It is not a document that must be prepared under the Civil Code, the Companies Act, and the Tax Law but is created and issued based on business customs.
The invoice is created after the contract transaction and is mainly used for payment collection. Whether the invoice itself is legally valid depends on the circumstances, but tax law requires that it be retained for a certain period. Depending on the level of the company or business, there is a storage obligation of up to 9 years.
The delivery note is a document that accompanies the contract transaction and is the legal basis for the delivery date. The obligation to pay the ordering party’s price will occur after the delivery date, and the order receiving party will have the right to receive the payment after the delivery date.
What is cost estimates in PMP?
Cost estimates in Project Management Professional (PMP) methodology are vital in project planning and control. They are the calculated projections of the financial resources required to execute a project within its defined scope. However, cost estimation is much more than just crunching numbers. It systematically assesses and forecasts the various elements essential for project completion, such as materials, labor, equipment, and overhead expenses.
These estimates provide a solid foundation for determining a project’s budget and enable project managers to make informed decisions, monitor costs, and ensure financial success throughout the project lifecycle. By considering historical data, industry standards, expert judgment, and the project’s unique characteristics, PMP professionals can develop accurate and reliable cost estimates that align with the project’s objectives and constraints.
These estimates serve as valuable tools for effective financial planning, resource allocation, and cost control, allowing project teams to confidently navigate the complexities of budget management and achieve project success.
Why Use Our Estimate Templates?
Every client and project has different requirements and budget-levels. To meet all the levels of budgets and requirements, you need to create a quote that fits all your and your client’s needs.
That’s why you need to use accounting software that fulfills all your business needs. Luckily, Billed is a powerful tool that can centrally manage and streamline the business, and SMEs, like sales management, payment management, grasping sales forecasts, cash flow forecasts, as well as creating quotations and invoices.
- Create quotes in bulk
- Automatic calculation
- Alert function to prevent billing omission
- Reduce the psychological stress of paperwork
What are the five methods of project cost estimation?
Several techniques can be employed for project cost estimation to provide accurate and reliable estimates. These methods empower project managers and teams to plan and control project finances effectively. Here are five of the best project cost estimation techniques:
Expert Judgement:
Leveraging the expertise and insights of experienced professionals is invaluable. Project teams with specialized knowledge and experience in similar projects can provide informed cost estimates based on their domain expertise.
Analogous Estimate:
This technique involves drawing parallels between the current and previous projects with similar characteristics. Using historical data, such as cost records or metrics from comparable projects, estimates are derived based on past performance and outcomes.
Three-Point Estimate:
This method introduces a range of possibilities by considering optimistic, pessimistic, and most likely scenarios. By estimating the best-case, worst-case, and most likely durations or costs, a more realistic and comprehensive estimate can be obtained. This approach is utilized by techniques such as PERT (Program Evaluation and Review Technique).
Parametric Estimate:
This technique identifies and analyses project parameters or variables to establish a relationship between these factors and the project cost. By using statistical models, algorithms, or historical data, cost estimates are derived based on the quantifiable parameters specific to the project.
Bottom-Up Estimate:
This detailed estimation technique involves breaking down the project into smaller components, work packages, or tasks. Each element is then individually estimated, considering resource requirements, labor hours, material costs, and other relevant factors. These estimates are aggregated to provide a comprehensive cost estimate for the entire project.
By combining these project cost estimation techniques, project managers can enhance the accuracy and reliability of their estimates. It is important to select the most suitable method based on project-specific factors, available data, and the level of detail required. Practical cost estimation is crucial for budgeting, resource allocation, and decision-making throughout the project lifecycle.
What is the expiration date of the estimate?
There is no fixed one. It depends on the product and service. If the price of the material fluctuates, shorten the expiration date. As much as possible, it is better to add the expiration date.
Estimate making rules
When making an estimate, first calculate a rough amount and present it to the other party.
After that, you will create proposals and specifications to ensure that both parties do not misunderstand and then further squeeze the estimate’s contents.
When presenting the estimate, you must accurately describe the items, quantity, unit price, etc.
Tips While making an Estimate
Estimates are the last barrier for prospects to trust and turn into customers. Here are some key tips to keep in mind to make an estimate that your prospects can rest assured of.
Is the estimate easy to understand?
Make sure you can see the essential parts in an instant. The estimated amount will come to your eyes first, but you need to write the details clearly to understand the rationale clearly.
If there is a discrepancy with the items to be confirmed, it may cause trouble later. You can avoid problems by creating an easy-to-understand estimate for each opportunity step.
Is there a basis for estimating the delivery date and price?
It is a common problem that the delivery date and price stated in the estimate deviate from reality. Sales reps should not overdo it to get an order. The delivery date and price of the estimate will be decided in consultation with the person in charge of development and the person in charge of the entire project.
If you find that the delivery date and price set in the estimate cannot be completed in the middle of the process, we will consult with the customer again at that stage and approve the change in the delivery date and the billing amount.
Can you provide it as soon as requested?
Depending on the prospective customer, we may have already collected information on the website, etc., and are considering purchasing specifically. Other prospects want to know how much it will cost as the first step in their consideration. Therefore, it’s a good idea for sales reps to be ready to offer when they enter a deal.
How to make a Cost Estimate?
The estimate does not have a specific format. The purpose of the estimate is to consider the transaction conditions and decide whether to accept the order, items, unit prices, quantities, units, and subtotals. Minimum items such as are required.
- Download the Free Cost Estimate Template from Billed
- Enter “Estimate” as the title of the document.
- Date of issue of the estimate
- Contents and quantity of products and services targeted for an estimate
- Unit price and the total amount of products and services targeted for an estimate
- The delivery date of products and services targeted for quotation
- Estimate expiration date
- Submitter’s company name, address, phone number, etc.
- Submitter’s company seal
Download The Cost Estimate Template For Free
Download the free cost estimate template from Billed. The template is customizable and easy to use and can be used for any project or industry.
The template includes step-by-step instructions to help you create an accurate cost estimate.
After downloading the template, fill in all the necessary information and follow the instructions to create a complete project cost estimate.
