At a glance
An estimate is a versioned model of proposed work, not a guess at a final number. Record what is included, where each quantity and cost came from, which facts are assumed, how margin or markup is defined, and what changed before the quote was accepted.
01 / 01 · Define
Freeze a scope before you build a price.
Describe the deliverable, quantity, dimensions, finish, location and route to completion. Beside every important fact, record whether it was measured, supplied, confirmed or assumed. Include exclusions and dependencies—such as survey access, electrical information, artwork approval or a third-party permit—where the estimator and reviewer can see them.
The worksheet is deliberately blank. Use current supplier evidence, approved internal labour and overhead rules, and your own professional review; it contains no generic market rates.
| Input group | Record | Decision question |
|---|---|---|
| Scope | Deliverable, quantity, dimensions, finish, location | What exactly is being priced? |
| Evidence | Survey, drawing, supplier quote, rate source and date | Which inputs can be checked? |
| Responsibility | What the customer, supplier and sign business each provide | Who owns the next missing fact? |
| Boundary | Inclusions, exclusions, dependencies and review needs | What prevents release? |
02 / 02 · Calculate
Expose the cost build-up and commercial method.
List material and bought-in work separately from workshop labour, finishing, packing, transport and installation. Show yield, waste or setup allowances rather than hiding them in a round total. Keep the evidence date and owner beside provisional or volatile inputs.
Markup is gross profit divided by cost. Gross margin is gross profit divided by selling price. Because the denominators differ, the same percentage produces a different selling price. State the method explicitly and use approved business targets—not a percentage copied from a generic guide.
- Direct cost = materials + labour + bought-in work + installation/delivery
- Cost base = direct cost + the business's stated overhead or other allocation
- Selling price at target gross margin = cost base ÷ (1 − margin)
- Selling price at markup = cost base × (1 + markup)
- State tax, rounding, payment terms and contingency treatment separately
03 / 03 · Worked example
Follow one synthetic fascia estimate end to end.
This teaching example uses fictional amounts—not market rates or customer data. Materials are £720; bought-in illumination components £280; workshop labour is 18 hours at an illustrative £38 internal rate (£684); installation/travel is £460. Direct cost is £2,144. A stated 12% internal allocation adds £257.28, giving a £2,401.28 cost base.
Using a fictional 32% gross-margin target, the selling basis is £2,401.28 ÷ 0.68 = £3,531.29 before tax, terms and final rounding. The open access assumption means this is a reviewable estimate, not a production instruction.
| Line | Basis | Synthetic amount |
|---|---|---|
| Materials | Illustrative supplier evidence | £720.00 |
| Bought-in components | Illustrative supplier evidence | £280.00 |
| Workshop labour | 18 hours × £38/hour | £684.00 |
| Installation/travel | Initial access assumption | £460.00 |
| Overhead allocation | 12% × £2,144 direct cost | £257.28 |
| Selling basis | £2,401.28 ÷ (1 − 32%) | £3,531.29 |
04 / 04 · Revise
Issue a new version when the basis changes.
In the fictional survey, the original access assumption is wrong. Installation rises by £320 and workshop planning adds two hours (£76). The revised direct cost is £2,540; with the same stated 12% allocation, the revised cost base is £2,844.80 and the 32% margin calculation gives £4,183.53.
Retain the first version as superseded. The new version should identify the trigger, changed lines, current proof, remaining open conditions, reviewer and acceptance record. Commercial acceptance, artwork approval and production release are separate decisions even when they happen close together.
05 / 05 · Learn
Compare actuals against the accepted version.
The fictional actual direct cost is £2,571: materials £745, components £280, workshop labour £741 and installation/travel £805. The same 12% comparison allocation gives £2,879.52—£34.72 above the revised £2,844.80 cost base.
Do not collapse that result into one unexplained overrun. Separate approved customer change, material variance, labour variance, travel/access, supplier change, rework and estimating assumption. Preserve the quote version used for the comparison so the business learns from the right baseline.
| Comparison | Revised estimate | Synthetic actual | Variance |
|---|---|---|---|
| Direct cost | £2,540.00 | £2,571.00 | +£31.00 |
| 12% allocation | £304.80 | £308.52 | +£3.72 |
| Comparable cost base | £2,844.80 | £2,879.52 | +£34.72 |