We cannot give standard price for all kind of goods or services alike. It is due to different skills, expertise, time, cost and material required for a job that is inconsistent depending on different factors. These factors may include anything from customer’s defined specification to trends, seasonal needs to size of project, and many more. To get an estimated price and preliminary assessment for a particular project, a quotation document is prepared for customer/client’s reference that is called Job Estimate. A Job Estimate ensures the client that the project will be delivered within defined time frame and budget.
If a Job Estimate is taken as over optimistic in its estimates, the project may overrun or over-spend to great extent. It means that estimating right is very important in project management. When you start planning your Job Estimate, start from the actual cost and time required to complete the job/project, i.e. when to start it. Keep in mind and note all possible variations coming in the way that can be inside or outside of your control. Initial financial estimates of the project should be established first. It is good to take assistance or hint from the previously completed projects of similar nature about how to set financial resources, what are the specific needs of each initial, and how to save it from going into dark.
Instead of planning a new Job Estimate for each and every client every time, it is convenient to make modifications to an estimate already prepared for similar job. In other words, using Job Estimate templates can save your valuable time by making the estimation process easier. Most importantly, one thing that makes a Job Estimate accurate and efficient is how effectively the risk management plan is taken care of. So building and maintaining a financially sound project development quotation is necessary to help compensate the unforeseeable costs and risks. Learning from the prior projects can help you in risk management and moderate the unexpected scenario that may arise suddenly. Every Job Estimate needs to contain some sort of risk assessment of outputs and maximum level of your confidence.
Sometime a situation occurs when the clients continuously changes their project needs or make addition to their specifications. It makes the finance and cost estimation more complicated. It also causes the difficulties in meeting the real goals and deadlines within defined budget of Job Estimate. This situation can be prevented by making clear communication with clients and assisting them in making informed and reasonable decisions.
Low quality material or untested technologies can also become risk factor and reason to failure of a Job Estimate. It straightforwardly increases the cost and budget of a project. A Job Estimate should be based on true and honest prices especially in a case where a client suggests some unique considerations. Cost of efforts cannot be neglected at all while planning a Job Estimate. Experts’ opinion must be taken to get advantage of their extensive experience and get more reliable Job Estimate. Every client wants to be offered with a real and optimistic Job Estimate for their industry. So the leader of project must be capable of foreseeing any probable financial hurdles or bad circumstances that may arise during the course of project. Project leader must make it sure for the client that project would be accomplished fully within defined time and budget.