One of the most important parts of the project
Estimation is an extremely important part of dealing with any project. Poor estimation can blow a project budget and extend timelines, frustrating clients and the team. Therefore, due attention should be paid to this process.
There are the following estimation techniques:
– Top-Down Estimation. Businesses usually use this technique early in a project. The essence of top-down estimation is in determining the project budget first and then dividing it up between different stages or tasks. This is a quite suitable estimation technique for small projects that allows project managers to let a client know whether their budget will work for the project and specific tasks. However, it is not accurate and it is mostly based on the assumption. The top-down estimation technique also doesn’t account for possible changes in the project and the budget.
– Bottom-Up Estimation. In the bottom-up estimation technique, each part is estimated individually and then summed up to determine the total cost of the project. It is the most accurate estimation due to a lot more information about the project on hand and a full understanding of the requirements. This technique is suitable when the scope and components of a project are clear. Among its disadvantages are the time-consuming and requirement of a quite huge effort and resources to get such amount of information.
– Analogous Estimation. With this technique, the budget of the new project is based on the previous one. However, it works if the previous and new projects are similar. It is a great approach when all the manager need is a rough number. Analogous estimation is fast and doesn’t require a ton of information. However, it is worth remembering about the risks and a large share of inaccuracy.
– Three Point Estimation. This technique involves taking an average of three scenarios of estimation: best case, worst case, and most likely. Managers can adjust a special formula for such an estimation process. This technique takes more time and some specific knowledge but delivers a more accurate estimate.
A solution to optimize estimations in the field
Snappii understands that accurate estimations set the stage for a thriving business. Therefore, we have created the Job Estimator app to generate professional estimates in minutes without paperwork. The app provides the pre-made mobile estimation form, automatically makes all calculations, allows users to generate and send reports, and more. You can find more detailed information about the Job Estimator app here. Moreover, there is a short video demonstrating how it works. Recently we have updated the app with some new features.
1. All the jobs, tasks, items, and equipment are now automatically saved from all the forms for future usage
2. Users can choose between hourly rate and sq ft rate
3. The time spent and items costs on a project are summed up when generating an invoice
4. Increased number of lines for the equipment table
5. Currency selection