Project managers need to understand how estimates are useful for managing projects and how Web Suite handles them. Estimates support later-stage marketing efforts with a bid to provide specified services. An estimate is a proposed task list with estimated service hours, expense units and computed amount for each. A budget is the same except it is used for internal purposes and you can assign an employee or a vendor (or group) to a task. Creating an estimate is like creating a bid, grant or proposal. Writing an estimate is very similar to writing an invoice.
For many professional services firms – architects, engineers, IT consulting, surveyors, computer consultants, etc. – the estimate is what they send to the client as part of their bid proposal. You can assign estimates to projects and phases. Typically, companies start with an estimate or proposal, which can go through multiple iterations until the client signs off. After being signed off and project begins, it usually becomes the foundation for a project contract or engagement letter. When accepted, some companies convert it to a budget and keep track of the budgeted project. You can convert a budget to an estimate and vice versa.
You can copy items from an existing estimate to a new one. Here are some examples:
An architect creates an estimate for a restoration project and then uses it as the basis for the project budget after winning the job. When bidding on another restoration project, the first budget becomes the foundation for a new one and then you can convert it into an estimate.
An IT consulting firm sets up multiple budgets for network installations and related training based on size of company and other factors. After identifying a new project, the client is set up, a marketing project created, and one of the budgets assigned to it. You can then convert the budget to an estimate as a starting point for negotiations.
An accounting firm creates a standard budget for accounting services, identifying bank reconciliation, review and other tasks and the ‘standard’ hours they should work. Reviewing the Budget Comparison report, they can determine what factors contributed to the success of the service or where it needs skill improvement.
Estimates in Web Suite include separate services and expense portions. Both can draw bill rates from a service fee schedule and expense fee schedule. Web Suite provides many reports containing information from estimates such as Estimate Details. Often, project managers drill down into details by reviewing job costs, amount spent and project profitability reports. You can export estimates directly to Microsoft Excel or convert them to PDF, Word document, etc.
Decimal values are displayed in the Estimate grid based on the settings specified in Global Settings. For example, if you specify 2 as the number of digits after decimal, the grid will display values rounded off to two decimal places (2500.666 will be displayed as 2500.67). However, placing your pointer in the field will reveal the true value. If you specify 9 as the number of digits after a decimal, the grid will display values rounded off to nine decimal places (2500.666 will display as is).