Project estimation in contracting is the process of predicting the costs, resources, and time required to complete a project.
This process involves the estimation of direct and overhead costs, as well as markups added to the total estimated cost to ensure the company makes a profit on the project.
Project cost estimation and markups are crucial for preparing accurate and competitive quotations.
There are two ways to create project estimates:
- You can create project estimate directly form the project by click create/edit current estimate button or by clicking Generate > Project Estimate
- Go to the Project Estimates document list, open Project Costing > Project Costing Documents > Project Estimates and click
Creating a Project Estimates document. The Main tab
On this tab, you can enter general information about the project's estimate: the project, customer, project type, entity, and the employee who is responsible for the project. Also, you can specify whether you need to split estimates by planning period.
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In the Comment text box, you can enter any information related to this project's budget.
Creating a Project Estimates document. The Revenue and Costs tab
This tab is used for building the project budget using the Calculation of Revenue Based on Costs calculation method. The tab contains the following two panes:
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The Amount Incl. Markup column shows the cost with markup for this cost/expense.
Creating a Project Estimates document. The Overheads tab
This tab is used to enter the estimates of overhead costs for the project. This tab is available if the estimation method is Independent Calculation of Costs and Revenues.
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