What should a professional estimate contain?
Essential Components:
Title – “Estimate”.
Business details – company name, address, contact details, VAT number if applicable.
Estimate number – unique identifier for tracking.
Date of issue – when the estimate was prepared.
Customer details – name and, if relevant, address or contact details.
Description of work/services – outline of tasks, materials, or services.
Estimated costs – breakdown of items or services with approximate prices.
Estimated total – overall projected cost.
VAT – displayed separately if applicable.
Optional Components:
Validity period – how long the estimate is intended to be accurate (e.g. 30 days).
Assumptions and exclusions – conditions under which the estimate was prepared.
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Estimated timeframe – how long the work is expected to take.
Tip
Always make it clear that an estimate is not a fixed price. Use phrases such as “approximate total” or “final cost may vary” to avoid misunderstandings.
When and why is an estimate used?
Unclear scope – when the full extent of the work cannot be determined in advance.
Flexibility – gives businesses room to adjust based on real costs.
Customer planning – helps customers budget before committing to a project.
Transparency – provides customers with an early indication of likely costs.
Professionalism – even though it’s approximate, a well-structured estimate builds trust.