Cost estimation is used to predict the quantity, cost, and price of the resources required to complete a job within the project scope. Cost estimation is done by breaking the scope of the project down into manageable parts and using all information available (previous experience, similar jobs, expertise in the industry) to arrive at a total expected cost. They are used to bid on new business from prospective clients and to inform your job and budget planning process.
How do you use a Cost Estimate?
A Cost Estimation is used to:
- Decide whether the finances for a project are enough
- Create a clear project outline or roadmap with accurate timelines.
- Work out the approach to the project based on budget and resources.
The benefits of Cost Estimation:
- Accurate Planning: Proper cost estimation enables one to plan the subtasks required to complete a task correctly. You can develop a work breakdown structure more efficiently and ensure your project team adheres to the project timelines.
- Increased profit margins: Poor planning and unexpected events make it impossible to finish the job on time and within budget. However, proper estimating helps one account for both expected and unexpected costs, thus protecting profit margins.
- Management of resources: With an insight into the tasks and timelines at hand, this can ensure you have the skills to identify resource gaps, hire people as needed and take on projects with confidence.
- Better reputation: Proper planning helps a builder finish the projects on time and within budget. This fosters stronger relations with the client and wins the builder's repeat business.
After downloading this template and filling in the blanks, you can easily customize the style, typography, details, and appearance of your Cost Estimate template. If this ain't the right budget template that you are looking for, then certainly take a look at the other letters that Bizzlibrary.com has to offer. We have many forms ranging from bugets to cost estimates.
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