Buildings and infrastructures do not stand stall throughout the course of time, if not because of the materials and labor spent on shaping them. So whether you are handling a construction project, remodeling project, or renovation project, their success all goes down to one common item: a good cost estimate. That's why we're offering 100% customizable Cost Estimate Templates in Microsoft Word as they are essential in helping you in finishing a project without going over or under the budget! These templates have easily editable content which is also professionally written so that you won't have to deal with the hassle of having to make a cost estimate from scratch. They can also be downloaded anytime, anywhere. Convenient, right? So, start downloading any of them now!
How to Make a Cost Estimate in Microsoft Word
Cost estimates are primarily used to calculate the possible cost of a projects such as house renovation, building construction, office remodeling and more. The document contains prices and quantities of materials, equipment, labor, etc. According to the US Bureau of Labor and Statistics, there is an expected 9% increase in the employability of cost estimators in 10 years from 2018. So, if you have been tasked to create a cost estimate, we have provided a guideline that can teach you how to properly make one.
1. Add the Primary Details
Write the essential information in the sheet before you do the actual estimation. Start by putting the cost estimate number followed by the project name, date issued, validity date, and who it's estimated by. You can include your company's logo, name, address, and contact details above the stated details if you are working under a company. Also, you can indicate the basic information of the document's recipient.
2. Construct a Table
Build a table so that you can organize and present the details of your document well. The number of rows and columns depends on the result of your estimation. Some of the general information that needs to be in your table include things such as materials, human resources, software, tools, quantity, unit price, estimated cost, and total. Also, you can customize the table by filling the labeled cells with colors for better organization.
3. Do the Computations
Since this is a cost estimate, an accurate calculation is necessary. This is extremely important as cost estimations mean the handling of money. You may use software for better and more exact results. For example, if the project being estimated is one for house construction, then start by listing the materials along with their quantities and unit prices. Be sure to also list down the services, tools, equipment, and other things needed. This step is significant because over or underestimation of costs is not good for both contractors and clients.
4. Place the Content
Add your estimate to the table. Make sure that all parts are complete from the definitions to the rates the calculation of each item so clients can budget effectively. Label each component first so you can plot the data easier. Afterward, begin writing the items in their corresponding cells. For the prices and total amount, you may use the dollar sign or the symbol of your local currency.
5. Include Contingency Fund
There are unforeseen situations that may delay or interrupt the process of the project that we will most likely not avoid. These situations can be a unit price increase, labor rate raise, under budget, equipment rent increase, etc. This means that you will need to include a contingency fund in your estimate. The amount of your emergency fund is directly proportional to the size of the risk that your project will be facing. Be sure to calculate that accurately and then place the amount into the document.
