How In God’s Name Do You Write An Estimate?

By / August 14, 2008 /

By Grinder

Typically this is something that I would ask my friends and peers about. However, this time I thought I’d open up this discussion to a few more people. So at the risk of sounding like a totally green designer, how do you write an estimate?

On the surface this seems like a stupid question. It is most certainly a complicated question, one which may be too complicated to address in a single post. So let me try to narrow down the question a little. I’m not looking for how much do I charge for this or that. I’m looking for what the content should be. What do you say in an estimate? What do you need to say and how do you say it?

Here’s where this is coming from. I’ve made many bad decisions and mistakes when it comes to estimating projects. Haven’t we all. This has led me to develop a rather robust estimate that I use on all my freelance projects in an attempt to avoid all those ugly situations I found myself in before. My estimate is an adaptation of AIGA’s “Standard Form of Agreement for Graphic Design Services.” Actually it’s a combination of that and the AIGA “Standard Terms and Conditions for Designer / Client Relationships” that I have adapted to suit my individual needs. Both are found in AIGA’s book “Professional Practices in Graphic Design.”

The original forms are far more detailed than I need them to be and I’m a pretty detail oriented person. I think for the most part my freelance projects are not on a scale that needs so much information or details. However, even though I have pared it down it takes me way too long to estimate a project because I’m trying to complete my damn form.

My estimate is broken down into four sections each with their own subsections. Here is an outline of what my estimates include now:

1. PROJECT
1.1 Project Description

2. COMPENSATION
2.1 Estimated Cost of the Project
2.2 Payment Schedule
2.3 Project Expenses (out-of-pocket)
2.4 Third Party Services
2.5 Early Payment Discount
2.6 Late Payment

3. PROJECT SCHEDULE & OUTLINE
3.1 Project Phases Responsibilities & Presentations a. Design Phases b. Deliverables (in each phase) c. Client Responsibilities (in each phase) d. Revisions Allowed (in each phase)
3.2 Project Timeline

4. OBLIGATIONS RIGHT & RESPONSIBILITIES
4.1 Client Responsibilities
4.2 Usage Rights
4.3 Samples
4.4 Project Cancellations Rejections & Terminations
4.5 Dispute Resolution
4.6 Client Agreement
4.7 Designer Agreement

Now you can see why I hate doing estimates. I’m looking at breaking this up into two documents. An estimate that clearly and simply states how much and what you’ll get for your money and having a contract once an estimate is approved that covers all the other details that are in my Estimate and Standard Agreement for Design Services now. I used to think I had the bare minimum of what needed to be covered in an estimate. But now my estimate is getting in the way of estimating projects.

So, how do you estimate? What do you feel are the key components to an estimate? (Please do not share an actual estimate with pricing and client details.) Have you found any other good resources out there with guidelines on writing estimates? Share the knowledge, share the love.