Budget deficit is a risk many construction businesses evade by ensuring project cost estimates are 100-percent accurate. But drafting a construction estimate spreadsheet from scratch is no walk in the park. Needless to say, it is a tedious and time-consuming task for contractors.
Fortunately, this is where the convenience of using pre-built templates can help construction businesses like yours simplify project budgeting.
Here, we’ve rounded up the benefits and best practices for using construction estimate templates. We’ll also offer you an integrated software to help your company produce accurate estimates.
The Importance of Accurate Construction Estimates
Ensuring that your construction estimates are accurate can set you apart from your competitors. After all, an accurate cost estimate is the cornerstone of every successful deal in the construction sector. As such, accuracy and precision in estimating construction costs is important for the following reasons:
Prior to producing a cost estimate, to come up with a realistic project budget, accurate cost estimates are a must. A well-laid-out budget plan provides the financial guidelines for the whole construction process.
This includes a budget for labor, procurement, materials, and equipment. Conversely, an inaccurate project cost estimate may lead to delays or contract termination.
Knowing what the project requires and the cost that comes with it ensures the proper allocation of resources. With an accurate estimation, you can guarantee that the project will be completed on time and within the projected budget.
Another importance of having accurate estimates is how it helps to form a realistic project timeline. Hence, error-free estimations will allow you to complete a project in a timely manner and without delay. The result would be the opposite if your estimations are erroneous, which would adversely affect the profitability of the project.
Cost overruns are common in poorly estimated construction projects. It happens if the estimates were either too low or, mid-way through the process, the project requirements change. You can avoid these unwanted scenarios If estimates are fully accurate from the very beginning. It’s also ideal that adjustments are made before a project’s inauguration.
Finally, accuracy in cost estimation is indispensable for project success. Providing your clients with accurate estimates is instrumental in building client confidence and trust. By establishing a legacy of trustworthiness, credibility, and quality performance, this will lead to winning more business opportunities.
Types of Construction Estimates Templates
There are various construction estimate templates used by industry professionals, each depending on the project requirements. These are as follows:
Preliminary Estimate Template
This template type is used during the initial phase of the construction project. Its purpose is to provide a rough and essentially inexact estimate of the overall project price. Moreover, it’s based upon the preliminary information a potential client provides, such as the project size, type, and location.
For example, your client only wants to know the basics and general information about a prospective construction job. In this case, a preliminary estimate template is your best option. This can also serve as a binding contract where you can lay out the terms and conditions of the agreement.
Detailed Estimate Template
If there is more information available, such as engineering and architectural sketches, a detailed estimate template is preferably used. This template includes sections for a breakdown of itemized costs to come up with a more precise estimate. It consists of prices for the materials, manual labor, equipment, and other potential expenses.
Time and Materials Estimate Template
Sometimes the project scope is not clearly defined and necessitates factoring in time and materials to complete the project. In this case, a time and materials estimate template is the most suitable to utilize. It comprises an estimation of the hourly rate for labor and a complete list of materials needed for the project.
Bid Estimate Template
As the term suggests, this template is used when submitting a construction bid proposal for a prospective construction project. Ideally, the contents of this estimate template must include a detailed but concise breakdown or itemization of the project cost. In addition, it must contain a brief summary of the work to be rendered and the estimated completion date.
Order Estimate Template
When adjustments need to be done to the original project scope, this type of template is the appropriate choice. A change order form includes an accurate estimate of additional costs alongside the timeline for accomplishing the change order.
Best Practices for Using Estimate Template for Construction
Choosing the right estimate template provider can help produce effortless cost estimates without compromising quality and accuracy. Below are just some best practices to bear in mind when using a template for your construction business:
- Use a template that matches your project requirements. There are a varied range of templates available online. Needless to say, not all are designed and catered to the same purpose. Therefore, you must pick the most suitable template that matches your project requirements.
- Provide detailed but concise information. Be brief but comprehensive with dispensing information in your chosen template. Besides the costs, it’s important that all other information, such as project scope and timeline, is also incontestably accurate.
- Break down the costs. In order to have a neat presentation of actual costs, break it down into categories. This includes the materials, equipment, labor compensation, permits, and other associated fees. With this approach, it can help you easily justify the project cost to your clients.
- Double-check your calculations. Arguably even the most prolific estimators can commit mistakes if they fail to double-check. So, whoever is in charge of the estimations, a careful recalculation guarantees impeccable cost accuracy.
- Include contingencies. Including a contingency line item in the estimate template for unexpected expenses or adjustments is only reasonable. Make sure to talk this out with your client to avoid disputes or miscommunications.
- Review the estimate with the client. Disputes often turn up because the concerned parties lack proper communication. To ensure that both parties are on the same wavelength, conduct a thorough review of the estimate with the client. Adjustments or negotiations can also be entertained during this stage before any contract signing.
Benefits of Using Construction Estimates Templates by Fill
Fill is a trusted electronic signature solution that offers free and customizable templates for every industry such as construction. Using our integrated tool’s construction cost estimate templates offers you the following benefits:
- Simplification: All of Fill’s construction estimate sample templates are equipped with the necessary details designed to simplify the drafting process. You won’t need to take pains figuring out what should be included in your estimate. Fill includes everything you need in an estimate form while giving you the flexibility to customize it.
- Specificity: Our paperless tool is armed with a diverse selection of templates for construction-related transactions alone. From our template collection, you can pick one that is best tailored to your specific needs.
- Consistency: For a specific transaction, you can use the same Fill template consistently and follow the same format. You can also put your company logo to reflect your brand.
- Professionalism: Our platform’s templates are well-designed and well-worded, and certainly will give the impression of professionalism in your cost estimates. For this reason, it can help boost your company’s image and reputation as a whole.
- Adaptability: All our templates are flexible and adaptable to any changes in scope, timeline, or costs. In essence, Fill templates can serve as a guide on what you should include in your estimate. But still, you’d have the choice to tailor it according to your needs and preferences.
Win More Deals by Utilizing Fill’s Estimate Templates for Construction
Fill’s wide array of templates is convenient and valuable for your construction cost estimates. From templates for contracts, general agreements, quotations, and estimates, you name it, Fill offers it.
Aside from professionally created templates, our paperless solution boasts other equally vital features for your business. This includes being able to electronically sign contracts, agreements, and estimate and payment forms without hassle and delays. You can also request eSignatures from the counterparty anytime, anywhere, from any device.
What’s more, you’ll never fret about losing access to your high-level contracts and agreements in our cloud-based, centralized storage. And with military-grade encryption and multiple verification protocols, your documents are utterly safe from unauthorized access.
Experience convenience and efficiency when managing your cost estimate forms without sacrificing industry regulations compliance. Invest in our integrated tool for free and sign up now.