When should the estimate be completed? What's the best way to create an estimate? Can additional job tasks be added from the Estimate window? The Estimating FAQ has all the answers:

Q. Does every job have to have an estimate?

No, but it's a good business practice. The estimate represents an agreement between you and your client. It gives clients a summary of what will be included on the job. An estimate helps you avoid forgotten tasks and missed costs that could cut into your profits. With a written estimate, there should be no surprises on the job for either you or your client. Unless the job is one of those that's in-and-out of your shop in a day or two and is routine and predictable, your shop could be at risk for unbillable costs without signed job estimates. Learn how to create an estimate for a job in this C&P ASAP Tutorial video.  

Q. What's the best way to create an estimate?

When estimating a new job, review similar jobs that your agency has completed to help determine how much the job will cost. Examine past jobs to determine why a job went over estimate, and then prepare a better estimate for the new job. Remember that good estimating can take time, but the financial gains will be worth the effort.

Q. How do I create an estimate without opening a job ticket?

First, you need to add a job ticket before creating an estimate. If an estimate is on speculation only, then give the new job ticket a status code that reflects the speculative nature of the work. If an estimate is not accepted by the client, then close the job and give it a status code such as "Closed, Never Approved" or "Canceled, Never Started." You will have a record of the estimate in the database. If the client ever changes their mind and decides to go ahead with the job, you won't have to recreate the job from scratch. Just reopen the job ticket or open a new job.

Q. When should the estimate be completed?

The estimate should be prepared and signed by the client before work on the job begins. Of course, this may not always happen. An estimate should be signed before you spend any money with vendors or before a significant amount of your staff's time has been invested in a job. It is a process of training your staff and training your clients. Make sure that everyone involved understands your agency's policy.  

Q. How can I keep people from adding time or costs to a job when the estimate has not been approved?

Use status codes. The status code list (Lookup > Status Codes) includes status codes for jobs with unapproved estimates.

Q. What is budget amount used for?

It reflects the amount that you expect to spend in hard costs on a job. It usually doesn't include the cost of your staff's time unless you manually enter it. The budget amount is used to compare actual to budgeted costs. It is also used on some Profitability reports that show Projected Gross Margin.

Q. Is the job's initial budget related to the job tasks' budget amounts?

No. The initial budget appears on the printed job ticket, which is usually printed as soon as the job is opened. It is used as a reference point for preparing the estimate. Both the initial budget and the tasks' budget amounts are optional as well as for internal use only (i.e., they don't appear on the printed estimate).

Q. Can additional job tasks be added from the Estimate window?

No. They can be added from the Job Ticket window only. Choose Production > Job Tickets, find the job, then click the Add Task button to add tasks to your job. You can learn more about adding tasks in this C&P ASAP Tutorial video.

Q. What should we do when a client makes a change after signing off on the job's estimate?

You can revise the estimate and print out a new copy of the estimate for the client to sign -- or, better yet, add a change order. You'll add a change order each time the client makes a substantial change, even if it doesn't cost anything. The change order only shows what the client wants changed, not the job's original estimate. It includes signature lines to document the client's approval of the change.