What is a job estimate?

A work estimate, also known as a job estimate, is a written document that offers potential clients an approximate cost for a particular project or service. It is essential to distinguish the difference between a job estimate and a quote.

A quote is a legally binding agreement, where the price remains fixed once the client accepts it. 
Conversely, a job estimate is non-binding, the final project cost may vary, either higher or lower than the estimate, depending on the actual extent of the work involved.

How to write a job estimate?

Writing an accurate and detailed job estimate for a potential client isn’t difficult. Just follow these simple steps:

 

  1. Add customer details – Add as much customer information as you can; this acts as a record if you need to contact them again for any reason.
  2. Define a detailed description of the scope of work – What will you be doing? Be as specific as possible so that there is no confusion later on 
  3. Determine the material costs required – Will you need any special materials or tools to complete the project? If so, factor those costs into your estimate 
  4. Come up with an estimated timeline – How long do you think it will take you to complete the project? Make sure to add a cushion so that you don’t end up going over budget due to unforeseen circumstances 
  5. Calculate your labour costs for the project – How much do you charge per hour? Make sure to include any taxes or fees associated with your services 
  6. Add up all of the costs – Once you’ve calculated all of the individual costs associated with the project, add them up for a total estimate Include your contact information – Don’t forget to include your name, company name, address, phone number, and email address in case the client has any questions about the estimate!
  7. If you are VAT registered, ensure you include any sales tax in the estimate.
  8. Include payment terms
  9. Add a disclaimer at the end of the document to state that the job estimate is not binding and that the final cost may be higher or lower than the estimate, depending on the actual work.
  10. The final step is to send the estimate to the client. You can do this via email, electronically, hand-delivered or post.


Producing a detailed estimate will look more professional to a potential client, and if you include the company contact details, the client will have a record of who to contact.


How to use our job estimate template?

Add the following relevant details to the estimate template:


  • Client details
  • Estimate Number
  • Estimate Date
  • Enter a brief project description
  • Unit cost
  • Quantity
  • Add any notes – this might include a project timeline or estimated date for the work.
  • The disclaimer is included; change it if required
  • If you do not charge VAT, delete the 2 cells, and they will be excluded
  • The final price is calculated for you


Save this as the final job estimate and send it to your customer.