A Job Estimate is given by a would-be contractor as a forecast or an assurance or even a commitment to finish the job at the rates quoted. It is calculating the cost of a job to be performed. As it is, a job estimate is not a contract but on acceptance by a client it becomes one and the client may then be billed as and when the work gets completed. While making a job estimate the contractor ought to make certain that he has calculated all the costs related to various jobs. The contractor should not overlook anything that concerns the job because even tools like blueprints and specifications often are not enough to go by since they do not include costs. Making a profit often depends on quantifying and identifying all costs. Not doing so may result in lesser profits.
While estimating a job it is wise to cover the following topics:
As-built plans, business and occupational fees (B&O), engineering/working drawings, equipment rental, field office, guarantee/warranty, insurance - special, miscellaneous, mobilization, OSHA compliance, out-of-town expenses, parking fees, permits and inspection fees, recycle fees, shop time, storage/storage handling, subcontract expenses, supervision cost, temporary power and lighting, testing, and trash disposal.
The grouping and categorization of costs contained in a job should be designed in a manner that is consistent with the method of performing the job. Each job may be broken down in different ways, each suiting the type and level of each job. In addition, all expenses will have to be systematized with their connected quantities. Furthermore, a budget for each job may be created which will allow defining costs for
each take-off quantity. The budget may also help setup a job and then provide a road map that compares budgeted costs with the standard user cost information.
With the help of job estimates it is also possible to have an audit trail that oversees all aspects of the system. A job estimate form usually requires the name and address of the customer, his contact phone numbers as well as a description of the nature of work desired to be estimated. It shall also include measurements of the various parameters for each item of work to be performed. It shall also state the extent of the job as well as include any comments from the customer that further defines the scope of work. This will help the contractor to give as best a job estimate as possible based on the information provided by the customer.
To get a job estimate does not mean that it is the same as entering into a contract but is only an idea of what the job will cost. It will help both the contractor and the customer fine tune the specifications of the job on hand. With the easy availability of job estimate forms there is great scope for customers to purchase one that will exactly fit their needs and get a job estimate without any fuss or bother. These job estimate forms even have the capability to calculate amounts based on simply inputting rates and hours worked. It is indeed worthwhile obtaining a job estimate form from vendors who have a wide variety of job estimate forms which cater to all needs and different specifications.
Author Resource:-
Wade Anderson is a CPA and operates DigitalWorkTools.com
Click to view a Job Estimate Form
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