An estimate is a document describing all the costs of performing a certain type of work. The most common example is construction estimates. Preparing to perform certain works, the investor needs to determine the cost of the investment project. For this, an estimate is drawn up. Thus, the estimate is a plan for future costs.
Instructions
Step 1
Take an estimate and view all the stages of the work, from large to small, the duration of each stage, the materials required to complete the work, and their cost. Purchase consumables, the necessary equipment and tools strictly according to the estimate, both in quantitative and cost terms.
Step 2
As a rule, estimators take into account possible fluctuations in market prices and can indicate average amounts in the estimate based on average market prices, laying in the estimate about a ten percent stock of prices. Similarly, a certain supply of consumables is provided. Finding an excess of funds allocated for the purchase of materials, buy exactly as much as indicated in the estimate. In other words, if the estimate indicates 10 rolls of wallpaper, and the allocated funds are enough for 11, still buy 10 rolls.
Step 3
The difference between the estimated cost of materials and the actual costs incurred can be kept in reserve in case of a lack of funding for other works and materials within the same estimate. Often, the building contract provides for additional payments to the contractor in case of savings in comparison with the original estimate. This is usually a certain percentage of the savings. However, remember that when translating the estimate into real costs, you should not get too carried away with the savings.
