Job Estimate Templates and Work Quotes

Can’t I Just Use Pricing Software?

Technology has its place in running, or working in, an effective and efficient business. However, it may not be the best option for you and your business. BuildSoft, a construction software provider, explores the pros and cons of using estimating software in construction:

Estimating Software Advantages

• Streamline business processes, boost efficiency, and save time and money with appropriate software.
• Manual entry of tasks and incidents of human error are reduced.
• You can be more accurate when calculating labor costs, volume of materials needed, and the overall price.
• Comparing similar projects to create efficiencies by basing estimates and quotes on previous projects can save time and money.
• Estimating software enables you to manage and schedule your labor more effectively by measuring the delivery time of materials.

Estimating Software Disadvantages

• Estimating software can be expensive and may be an investment that is just too costly for your business, particularly if you are a sole trader.
• If you’re not tech-savvy, learning to use the software could take a significant amount of time.
• The software you purchase may not include regular updates or upgrades. The ever-changing nature of the construction industry means that the software package may soon become outdated.

What Should a Job Estimate Include?

Having outlined the differences between estimates and quotes, it’s time to show how this can be put this into practice. The main difference between a job estimate and a quote is the level of detail. Although not as detailed as a quote, a professional job estimate should include the following items:

1. Your company information

   – To create a professional-looking document, make sure to include your company’s logo, name and key contact details such as postal address, email, and phone number.

2. Customer details

   – Make it clear who you’re providing the estimate for by inserting available customer information including their name, address, email, and contact number.

3. Estimate/job number

   – Including “Job Estimate” or “Work Estimate” at the top of the document is important. Displaying the term “Estimate” in a prominent position ensures that you have clearly outlined that the estimate is exactly that and the pricing is therefore not legally binding.

4. Date

   – This is the date that you have provided the written estimate to the customer, not the date the project was scoped. Aim to give a written estimate within a few days of scoping the work; timeliness means that you come across as professional and the customer is less likely to seek additional estimates from other service providers.

5. Project description

   – This is where the bulk of the information should be. When scoping the work, aim to gather as much information as you can about what needs to be done to complete the job. Is the site easily accessible? Are there specialized tools or materials required? A detailed project description upfront will enable you to provide a more accurate estimate and may prevent potential misunderstandings and disputes later on.

6. Line items

   – Sometimes, it is better to provide a detailed breakdown of the overall cost, both for transparency and to demonstrate value to the customer. Common line items used include materials, labor, and number of hours to complete the job.

7. Tax details

   – Is tax applicable to the job? If so, include the tax rate and amount as a separate cost line item.

8. Total work estimate

   – This figure is the overall price for the work required and includes line item costs and any applicable tax. Be clear about which currency you are dealing in and bold the total to make it stand out.

9. Terms and conditions

   – This section usually goes at the end of the document and can be a standard statement used for all jobs. You may wish to include your payment terms such as when and how the customer should pay you once the work is satisfactorily completed. It is also a good idea to add a brief reminder that the document serves as an estimate only and that the given pricing is subject to change.

Lastly, it’s a nice touch to thank customers for their business at the end of a written estimate. Not only does it humanize an otherwise formal document, but it also gives a subtle hint to the customer that the business transaction has already commenced and that you’re keen to provide the requested service. If creating a document that includes all of this information seems daunting, our free job estimate templates, found at the end of this article, are there to simplify the process. We also provide sample construction estimate templates, as well as templates for many other kinds of projects.

What Should a Job Quote Form Include?

A written job quote is very similar to a job estimate but has some important differences. In addition to the items listed above for work estimate templates, consider the following:

1. Quote/job number

   – Instead of using the term “Job Estimate” or “Work Estimate”, a written job quote will have the words “Job Quote” or “Work Quote” clearly displayed. If an estimate was previously provided to the customer, use the same job number for the quote. In doing so, both forms are linked and you can easily see how the job has progressed from the project initial estimate to a more detailed quote.

2. Expiry date

   – As mentioned, a job quote is valid for a period of time, and this should be clearly stated. The customer must accept the quote before the expiry date if they want you to complete the work at the given price. If they don’t accept within the required timeframe, another quote with revised costs and new quote validity date will need to be provided.

3. Terms and conditions

   – Unlike a job estimate, the statement at the end of a job quote will not include anything relating to potential pricing changes. Acceptance of a quote is a legally binding contract between you and the customer. To formalize acceptance of the quote, include a section in which the customer is required to sign and date the estimate form.

Again, don’t forget to thank your customers, and be sure to check out our free job quote templates at the end of this article.

Construction Job Estimates

Construction estimates are similar to the general estimate template format, but may include more detailed information based on which estimating method you have chosen to use. Michael Stone, with Construction Programs & Results Inc., writes about two methods that are frequently used when documenting construction estimates:

Stick Estimating Method

1. List various aspects of the job
2. List number of hours each part will take
3. List materials to be used
4. List required subcontractors
5. List other items that may be needed e.g. permits, rentals
6. Put a cost against each line item
7. Finally, have someone check your estimate

Unit Cost Estimating Method

1. Compile line items for the job
2. Put a unit cost against each line item
3. Total the costs, and have someone check through your figures

Both methods involve applying your markup to the total cost before providing a final price estimate to the customer. Stone argues that unit cost estimating is a much quicker method than the stick estimating method, and is just as accurate. If your business involves providing construction estimates, consider which method you may prefer to use.

Free Downloadable Quote and Estimate Templates

To take the stress out of providing project costs for potential customers, we have created a range of free job estimate templates, job quote templates, all available for you to download. We hope they will help you create a professional document and will make the process of creating a price quote much simpler, quicker, and error free. We also offer a variety of free invoice templates, which will help you provide professional documents at each stage of the project.