Believe It Or Not, Project Cost Estimation Makes Quotation Easy!

How often have you heard your sales representative say, "we need to price this project for our client?" Well, you are probably replying with "great" and a "thumbs up" and start calculating and estimating the cost so far, aren't you? But you, also, know that project cost estimation isn't just pure maths? In fact, it takes a lot of effort; it implicates the client's inputs, holds your head together with the team, and accurately understands attributes, business priorities & values, some glad-to-haves, and whatnot! Do you know poor assemblage requirements & inferior management are two major causes of project failure worldwide? Many companies waste an average of 114 million dollars for 1 billion dollars. 

So what is your take on this? How would you manage all this? It seems challenging, isn't it? We've got a scoop for better project estimation and pricing to solve the budget overrun issue. Cost estimation tool it is! 

Wait… 

Now, what is this cost estimation tool?

In the project management sphere, cost estimation is an advanced approach to estimating all the costs involved in completing a project within the fitting spectrum and in line with the timeline. Not only does it evaluate the whole worth of the project, but it also acts as sales quoting software! You know how important business quotations are! This tool authorizes you to frame an effective, professional quote around your clients' references, seals the deal with rich content and full technical specifications, and helps you make customized quotes.

What’s the need of a cost estimation tool?

Being a project manager, how long will you rely on spreadsheets for cost estimation? And what about the human errors that come along with those mighty spreadsheets? 

It's a fact that an ideal cost estimate is one that contains both direct and indirect costs associated with bringing a project through till its fulfillment. Initially, the project managers can manually conduct project planning and its earliest stages; there's no need for high-level estimates. But once a project is approved and the company decides to move forward with it, the need for more detailed and granular cost estimates becomes a must-have! Indeed, the project cost estimation tool helps to do things right and on time! In order to allocate various resources appropriately, project estimators must use these tools. Based on particulars, a perfect cost estimate only exists if it includes:

• Obvious overhead costs like utilities and labour costs (both time & wages) 
• Materials, resources, and supplies costs
• Vendor’s fees 
• Third-party workers, contractors, and freelancers cost (if included in the project)

Below are the reasons we have mentioned that'll make you think about cost estimation tools as a necessity:

In project management, project cost estimates turn out inappropriate more often; the main reason is the time when they're created! During the proposal phase, you know very little about the project, plus many other factors that compromise the quality of cost estimates and end up in inexact estimates. Other common snags you must watch out for which can destroy the accurateness and reliability of your estimates are:

The trouble is when proactive predictions every seasoned project manager makes! 

Every estimate is premature if it's created a long time in advance; it directly turns into a guess estimate that will hardly be relevant then (when it's actually needed).

Shortage of proficiency on similar projects is a limitation too!

Undoubtedly, better cost estimations come only with experience on similar projects. Comparable projects inform your subsequent estimation conclusions by clearly comprehending how the new project can be ceased in a better way.

Most of the time, lack of requirements becomes the major hurdle in project management!

Frankly, having an idea of what the project is all about is sufficient to provide an accurate estimate. This helps estimators plot an estimate including every element in the project as specified by the client. Indeed, staying on the same page with your client will help you break the project-related tasks into sub-parts. Working on large projects becomes easy with this approach, and chances are zero that you'll miss out on any requirements and specifications.

The crux is…

Choosing a project cost estimation tool helps you make better evaluations and derive actionable results with accurate reports. Well, now is the time for us to introduce you to QDV (Advanced Estimating Tool)! It is the world’s most influential and flexible advanced estimating tool every government agencies, commercial contractors, and small businesses use. Why don't you try this?