Estimation

Project estimation is simply an assessment of how much it will cost the client to carry out the project from A to Z. The following are taken into account in the estimation:

• material costs,

• settlement of employees’ working time,

• purchase or rental of specialized equipment,

• additional costs incurred during implementation.

Each prepared estimate presented to a potential client determines the estimated amount that he will have to bear for the implementation of the project. The estimate sets the budget and scope of work according to which its individual stages will be implemented step by step.

REMEMBER: The way you make the estimate affects how accurately the project cost will be estimated and its profitability and effectiveness in implementation.

NOTE: You cannot delete estimates entered into the system for which the project status has been marked as “We were chosen for implementation” or any status following it.

Creating a project estimate

You will make a project estimate in the system according to the description below:

1. On the “Contracts → Projects” list, select a project and change its status to “In the process of estimating” or create a new entry on the list with the same status, for which the meaning of the fields has been described here, excluding additional fields, which concern:

• Generate offer number: Assigning a serial number for the offer being created.

  • Choosing the option “No” - enter the offer number manually in the “Offer number” field according to the established way of marking numbering.

  • Choosing the option “Yes” - the offer number will be automatically generated by the system in accordance with the applicable order.

• Received an invitation to submit an offer: Determine whether the potential client himself applied for the creation of an estimate, or whether you are creating the estimate yourself, for example, due to a tender in which you want to participate. When choosing the option “Yes”, provide the “Date of receipt of the invitation”.

• Deadline for submitting the offer: The final date for sending the estimate to the potential client.

• Time and material: Choose the method of settlement according to which the estimate was created.

• Choosing the “No” option - the project estimate includes the calculation of individual work scopes, where the value of the service has been calculated individually or based on the rate per unit (m2) or working hour multiplied by the number of working days or the number of units to be performed. This method of valuation may also include the quantity and value of materials needed to perform the service order (Additional materials).

• Choosing the “Yes” option - applies to situations where the service is to be settled only on the basis of an agreed hourly rate and settled according to the hours worked by the employees. The materials are provided by the investor or are invoiced according to consumption.

REMEMBER: You can add subsequent “Work scopes” and “Additional materials” to the valuation using the “New” button and remove them using “Delete”.

REMEMBER: Values for work scopes are automatically generated by the system in accordance with the settings of the administrator, creating the so-called “Price list of services”. If you click in the selected field with the mouse cursor and it will be active, you will be able to edit the value visible in it.

REMEMBER: Values for additional materials selected from the list, defined as “Material from our warehouse” will be filled in by the system with their last purchase prices.

NOTE: If the price per unit of material used from the warehouse is to be higher by a margin set for all types of materials, mark the slider in the “Add margin” field as “Active”. In this way, even with changes in purchase prices, the valuation will have a safe reserve for used material.

• Percentage margin on additional materials: The value of the margin added to the value of additional materials.

• Estimated equipment costs: Optionally specified consumption or rental costs of equipment.

• Other costs: Additional costs necessary for the implementation of the project, e.g. extracts of geodetic maps from the office, insurance or appropriate permits.

• Estimated additional working days: Optionally specified additional number of working days necessary to implement the project.

• Summary: Total valuation value, calculated based on the data contained in the form.

• Offer amount: Value for the created valuation, which is to be presented to the client.

2. Verify the entered data and save it using the “Confirm” button.

NOTE: After changing the status to “We were chosen for implementation”, an additional field “Contract amount” will appear in the “Valuation” tab, which determines the contractual amount accepted by both parties of the contract.

NOTE: “Contract amount” is only visible to users with appropriate permissions in the system. By default, only the Administrator, Manager, Project Manager, Estimator, and Accountant see the contract value.

NOTE: If the scope of work changes from the valuation to the signing of the contract, it should be updated when changing the status to “we were chosen for implementation”. The scope of work is later used when planning work on the project.

Example: Valuation for the replacement of the roof truss with the installation of 4 roof windows, without insulation and finishing the attic.

1. In the “Contracts → Projects” menu, we enter the valuation according to the scheme described here.

2. We define “Scopes of work”, choosing:

• Roof: The hourly rate for the service is 200.00 PLN, which translates into 48 hours of work (6 days, 8 hours each). The estimated cost of laying the roof will be 9600.00 PLN.

  

• Window installation: The rate for installing one window is 150.00 PLN, which translates into the total cost of installing four windows, i.e. 600 PLN.

  

3. We add “Additional materials”, choosing:

• Mounting foam: 6 packs at 40 PLN/pc. Together 240.00 PLN.

• Wooden rafters: 120 pieces at 60 PLN/pc. Together 7200.00 PLN.

• Mounting accessories: 500 pieces at 3.00 PLN/pc. Together 1500.00 PLN.

4. We enter “Estimated equipment costs” (rental of a crane - 3000.00 PLN) and “Other costs” (Health and Safety - 800.00 PLN).

NOTE: If a margin percentage is to be added to the materials, in the “Margin percentage on additional materials” field, you should enter the percentage value by which the values of the entered materials are to be automatically inflated.

5. At the end of the valuation, the following fields are visible:

   • Summary - the total price calculated automatically for the above-mentioned scopes of work and materials.

   • Offer amount - Your proposed service cost - it can be the same or different from the amount in the summary.

   • Contract amount - the value of the service fee agreed with the client - the field should be filled in after negotiations with the client and signing the contract.

REMEMBER: If you as an administrator change the rates in the scope of work settings after generating the valuation, the system will not take into account the new rates - the rates are saved in the project at the time of making the valuation.

NOTE: Interrupting the valuation creation process without saving the form will result in the loss of existing data.

Valuation in PDF format

The system allows you to generate a valuation in the form of a PDF file, which can be directly sent to a potential client by email.

To prepare and save a valuation in PDF format, follow these steps:

1. Go to the preview of the selected valuation by clicking on its name with the cursor.

NOTE: You can only create a valuation in PDF format for a project in which there is at least one “Scope of work” and a final “Offer amount” is given.

2. Select the “Valuation” tab and apply the “Download PDF” function button.

   

3. Specify the valuation details that should be visible on the document in the PDF version, by selecting one of the options below:

   

• Yes: Detailed valuation, including “Scopes of work” in which labor costs and material costs have been taken into account.

  

NOTE: If the “Offer amount” exceeds the “Summary”, then generating a PDF with such a valuation will be impossible.

• Display what was taken for valuation, but without giving prices: Valuation with hidden detailed costs for individual “Scopes of work”.

• No: The valuation only includes the offer amount, without revealing the “Scopes of work” and the costs associated with them.

3. Download the generated file and save it in the target location on the disk.

REMEMBER: You can immediately send the prepared valuation by email by clicking the “Send email” button instead of “Download PDF”.

Importing a valuation from a Norma PRO (ATH) file

To meet the needs of our clients, we have made it possible to import files with cost estimates prepared in the Norma PRO program. This will automatically fill in the fields for valuation in Contractors.es, eliminating the need to retype the cost estimate.

You can import the valuation from a Norma PRO file according to the following scheme:

1. Go to the “Contracts → Projects” menu and select the project to which the data import is to apply.

REMEMBER: This can only be a project during valuation or a project that has a preliminary valuation prepared.

2. Click on its name with the cursor and in the preview go to the “Valuation” tab.

3. Use the “Import valuation” function button.

   

4. Fill in the form, the meaning of the fields is as follows:

• File type: Norma PRO, the possible import format is (ATH).

• File: Select a file in the required format that was previously saved on the disk. A correctly imported file will be marked with a green “checkmark”.

  

• Clear previous scope of work and materials: Set the slider to “Active” to clear the previously created project valuation.

REMEMBER: With each import, it is worth marking the option to clear previous data in order to avoid their duplication in the valuation. If the valuation is stage-based, e.g. performed by 2 cost estimators in 2 different files, then the previous valuation should not be cleared for the second file.

5. Save the form using the “Submit” button.

6. On the list in the “Estimation” tab, the names of the estimation stages will be imported according to the record used in the Norma PRO program.

   

NOTE: The values generated in the Norma PRO program round off the estimation amounts differently, so the value in the “Summary” may slightly differ from the final value generated by Norma PRO. In a sample scenario, this difference will be about 2 PLN for the entire estimate.

Changing project statuses

Changing statuses in projects allows tracking progress from the very estimation and informs about readiness for the next steps, such as approval or handing over the estimate to the client.

REMEMBER: You can change the status in the estimate by clicking with the cursor on the name of the current status and selecting the next one from those available in the form to save.

Example illustrating the next possible statuses to choose from, after the “During estimation” status.

• Offer submission suspended: Temporary suspension of the estimate submission with the possibility of continuation and making changes in the current estimate, taking into account the change of its status to: “During estimation”, “We are not interested”, “Preliminary estimate has been sent” and “Offer sent”.

• We are not interested: Resignation from submitting the estimate. The estimate disappears from the “Active” list and goes to the “Closed or completed” list. You can change its status to “During estimation” or “Preliminary estimate has been sent”.

• Preliminary estimate has been sent: The created estimate has been sent as a price offer to a potential client, where, taking into account his decision, you will be able to change the status to: “During estimation”, “Works lost by the general contractor”, “Works lost”, “Offer sent” and “We were chosen for implementation”.

• Offer sent: The stage of waiting for the client’s reaction based on the received offer. You can change its status to: “Works lost by the general contractor”, “Works lost” and “We were chosen for implementation”.

• We have been selected for implementation: The price offer has been selected and we are starting the design work. At this stage, you can still change the quote by selecting “Offer sent”, carry out the project “In progress” or resign from the work by setting the status “Work cancelled”.

REMEMBER: For quotes with the status “We have been selected for implementation”, it is necessary to provide the “Contract amount” before starting work.

NOTE: Changing the status to “In progress” blocks the ability to edit general project information.

REMEMBER: A project that has been implemented and completed should always be marked in the system as “Closed”. Only then can you pass it on to accounting for financial settlement with the client.