Finishing a Project on Time and Budget: Estimation and Proposal with Archdesk (2023)

To finish a project on time and within budget heavily depends on the early stages, during which the level of costs, the scope of work, and the project's timeline are established.

That's why today, we focus on the project phase called estimation and proposal to show you how you can use Archdesk in different ways to improve this process.

Understanding the Complexity of Estimation and Proposal Preparation

Creating pricing documents usually starts when a specialist contractor decides to participate in tendering and submits a tender to offer the execution of a part of their projects.

A specialist contractor who wants to submit a proposal for the tender needs to prepare the following financial documents:

• Proposal: external document with prices for a defined scope of work which is sent to the general contractor or real estate developer (the company that sent the request for proposal/quotation)
• Estimation: internal calculation of the cost of the scope of work defined in the Invitation. In this document, the specialist contractor specifies how many hours, employees, materials, how much waste, and logistics will be needed and their costs

Everything looks nice and easy on paper; however, we understand that preparing these documents might be a challenging and lengthy process in real life.

After all, an employee responsible for preparing documentation has to calculate all the costs, include changes of time, calculate the competitive margin, and fulfil all needed requirements. 

So, how can we manage it?

Understanding Differences in the Process among Construction Companies

Even though every specialist contractor needs two types of financial documents - internal and external - the whole process can vary significantly depending on the company.

Moreover, the names of the documents can be different too.

A proposal can often be called a quote, bid, or proposal of quotation, while estimation can be referred to as BOQ (Bill of Quantities) or BOM (Bill of Materials).

When it comes to the process itself:

• Estimation and Proposal can be issued in one document, but with different visibility for the client and the internal use
• Estimation and Proposal can be two different pricing documents created separately
• Estimation is created first, and then a proposal is issued based on the data in the estimation
• The proposal is prepared from pre-calculations based on similar projects completed in the past. Then once the general contractor accepts the proposal, a detailed estimation is issued.

Just as the same process's names may differ significantly, the process itself in various companies might differ as well.

However, no matter how you capture the estimation and proposal process, Archdesk is one tool that can support each path, with tailored solutions to your needs.

Not convinced yet? Let's see how it works in practice.

How Archdesk Can Support You in the Process

Remember: Here, we present the main paths of managing your Estimations and Proposals. 

However, there are many possibilities inside each of them to customise the process according to your company's needs.

To discover all of Archdesk's functionalities, schedule a call with our specialists.

• One Document for Estimation and Proposal with Variable Visibility

Imagine that you are requested to deliver ten office chairs in your scope of work as a fit-out company.

While estimating, you want to have a clear comparison of predicted costs, planned margins, and the final price for the client.

However, at the same time, you want to avoid creating tons of files and unnecessary documentation.

How can Archdesk help?

In Archdesk, you can create a quote with all the needed information that will serve both internal and external purposes.

Thanks to variable visibility, you can send a proposal directly from the software without giving away internal details.

In the end, you can benefit from both pricing documents in one file, clearing out the whole process and avoiding additional documentation.

If your scope of work is the whole conference room fit-out, you can conduct the process with Archdesk as well.

In the proposal for the client, you can specify only the final cost of the project (or define it more, aligning with the client's needs).

Then, thanks to the advanced item feature, you can determine internally what exactly will be needed with aligned costs.

The flexibility of Archdesk gives you the possibility to manage it all in one without giving up data required for internal purposes.

• Proposal Created After Detailed Estimation of The Project Cost

Before sending their proposal to the potential client, some companies prefer to calculate project costs precisely. Such a pattern is very beneficial for general contractors as it eliminates the risk of underestimating the costs. However, such a detailed analysis is, without doubt, both time and energy-consuming.

How can Archdesk help?

If a company has described types of projects (e.g., house, installations) with predefined costs, it is possible to set a quote template in Archdesk.

Thanks to that, once you click on the specific type of project, you have all sections and items of a particular type already added.

Every time there is a possibility to change this structure and customise it to the specific project's needs, but such automation gives you a benchmark to start from.

Creating internal estimation once the client accepts the proposal can also be done with the support of Archdesk.

If you want to find out how it works in detail, request a demo of our software.

• Calculations in Excel Outside of Archdesk

After reading the headline, you are probably wondering if I keep my calculations in Excel the same as now, why do I need this software at all?

It turns out that even in this combination, Archdesk can support your processes.

We understand that sometimes after many years of working in spreadsheets and setting up complex Excel calculations, you might not want to change it directly for a new digital solution.

How can Archdesk help?

To facilitate the whole process, Archdesk can be set up to read your Excel spreadsheet and import the data.

Later, you can add some crucial information in the system and issue a proposal for a general contractor or create a purchase order from that point.

Also, you can pull in items from the catalogue of products, where you can define sub-items needed for the specific product by using formula features.

In the end, you can keep some parts of calculations in Excel, but thanks to Archdesk's solutions, you can streamline the upcoming steps of project delivery.

Sounds Estimating Practices: The Key to Future Project Success

A project's success depends on the successful early stages of the delivery. Proper estimation and quotation are crucial.

That's why Archdesk is a flexible tool that helps you improve this process according to your company's needs.

If you want to discover the Archdesk software and its configurable solutions, please contact our team to schedule a demo and explore how it can benefit your company.