How to Write an Estimate for a Job

As a tradesperson, writing effective estimates for jobs and projects is key to landing clients. Luckily, with just a little direction, you can easily write an estimate for a job. In this article, we’ll walk you through everything you need to know about writing an estimate.

Want to take the hassle out of estimates, quotes, and invoices?

Short on time? Skip ahead!

• 1. What is a job estimate
• 2. Job estimates vs. quotes vs. proposals
• 3. What to include in your estimates
• 4. Tips for writing a job estimate
• 5. The easiest way to estimate

1. What is a job estimate?

A job estimate is a document that contractors and businesses give to potential customers so that they can get a better idea of what they’ll be looking to pay for a certain job.

It’s important to note that job estimates are simply an indication of the approximate cost of services, so it’s by no means set in stone or a guarantee of the final cost. It’s a good idea to emphasise this to your customers, so there aren’t any disputes further down the track.

2. Job estimates vs. quotes vs. proposals

An estimate for a job is a little different from a quote or proposal. While an estimate is more of a ballpark figure, quotes are often more thorough and can even be itemised. It’s appropriate to use an estimate when a customer wants to get a general idea of costs, or in situations where the actual cost of the services rendered may vary based on uncontrollable factors such as supply shortages.

A proposal, on the other hand, is more of a detailed presentation of the work that will be conducted, along with a fairly accurate rate. Proposals are more in commercial work and are often used when there are multiple trade businesses looking to win a job.

All of these types of documents can be followed by an invoice and/or a contract to formalise the agreement between the customer and the service provider.

3. What to include in an estimate for a job

There aren’t many rules when it comes to the format of your estimate, but there are a few basics you should try to follow every time. These include:

• An approximate total price.
• Itemised costs (fees, materials, etc.).
• Relevant dates (timelines, deadlines, expiration dates, etc.).
• Summary of services rendered (and what’s not included).
• Contact information.
• Payment terms and next steps.

One of the most important things you need to nail with your estimate is the look and feel of the document. For a customer to trust your numbers, it’s important to present an estimate that looks clean and professional. Thankfully, we have an estimate template to help you do exactly that.

4. Tips for writing a job estimate

Now that you know a little more about writing an estimate for a job, let’s review some of the top tips for creating great job estimates.

Price strategically

When you provide an estimate for projects or jobs, it’s important to price strategically. You can’t just throw a price out there and hope your prospective client likes it. Doing this doesn’t make sense from a sales perspective or a finance perspective.

Knowing your labour costs and the number of employees or subcontractors you’ll be using on a particular job will enable you to accurately provide job estimates, particularly when your workforce is highly specialised.

Luckily, there are tons of great tools that can help you with this. For example, an HRIS system will assist you in making labour cost calculations, setting hourly rates, choosing and allocating workers, and determining whether you have the resources required for a certain job.

Make it specific

As you write your job estimate, make sure it’s specific. While it isn’t common to have a highly detailed estimate, creating one may help you beat out the competition early on.

Be sure to include an itemised breakdown of the costs associated with the job. This might include the cost of your time and any other expenses you’ll incur while providing your services. Itemisation has become the norm for pretty much anyone these days, from tradespeople to online doctors. 

Include your branding

When you create an estimate for a job, make sure your document is clearly identifiable and distinguishable from the competition. Not only will this make your document stand out from the pile of other estimates, but it will add a professional look that could just win you the job.

5. The easiest way to estimate

Writing an estimate for a job can be a bit overwhelming, especially if you're new to contracting or service providing. But with the right tools and a bit of practice, you'll be able to create accurate, compelling estimates that will help you land more jobs and win long-term customers.

Remember to be strategic in your pricing, specific in your breakdown of costs, and always put your branding at the forefront. And don't forget to include relevant dates, demonstrate your understanding of the client's needs, and set yourself apart from the competition!

If you want to tick all the boxes when it comes to your estimates, but don’t want to spend valuable time creating them, then check out Tradify. We can bring your business into the cloud and get you sending out perfect, personalised estimates in no time. 

Tradify features:

• Quoting & Estimating - Create quotes & estimates quickly from any device — on-site, on-the-go, on the couch, or in the office.
• Invoicing - Create professional-looking custom invoices quickly, so you can get paid faster.
• Scheduling - Get a real-time view of project schedules, active jobs, and the locations of staff or subcontractors for real-time collaboration.
• Job Tracking - Keep track of time spent on jobs, organise work, and create individual tasks for your staff or subcontractors. Make team collaboration easier than ever before.
• Timesheets - Create and submit digital timesheets and use the live job timer to record hours and track time.
• Enquiries - Easily respond to enquiries wherever you are and whenever you like.
• Automated Payment Reminders - Automatically send follow-up emails for unpaid invoices and get paid faster.
• Subcontractor Management - Connect with subcontractors, organise jobs, and send/receive important job information.
• Creating an Instant Website - Easily create a custom website tailored for your business and potential customers.
  
  

This is a guest article written by Ian David, an SEO, eCommerce, and digital/content marketing specialist.