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How to prepare a project estimation and not drown in adjustments?

Clients often expect a ‘fixed’ price, saying: "I have 5000 for this project, and that’s all I care about."

Sounds familiar?!

How many times has your dream project, which you’ve already celebrated with friends before even starting, turned into a never-ending story with a very bitter ending? Let’s be honest – either you swallow your pride and push through to the end for zero profit because the hours keep adding up and you’re finishing the 45th round of changes, or you face a frustrating battle with a new enemy.

The solution?

Two simple scenarios and rules you need to follow.
Add a note to your estimation. You can do this in ESTEAMATE, in the "PDF note" field, using one of the following options.

Model 1

The estimation includes 2 rounds of changes.
All further changes and enhancements will be billed
at an hourly rate of [rate]$.

Model 2

The estimation does NOT include the cost or time for changes.
Changes are billed at an hourly rate of [rate]$.

As soon as you get the client’s approval, set up 2 projects in ESTEAMATE:
the first as a 'fixed price' project, and the second for changes under
the "Time & Material" model.

Don’t forget to add important info

• Offer valid until xx.xx.xxxx or days.
• The estimation excludes taxes and is a net price, e.g., VAT.
• You can also add a confidentiality clause. It’s worth consulting a lawyer to prepare 2-3 sentences to protect your business and your offers.

Sample clause you can add to your estimate

Additional support after project completion, as well as further development, will be charged according to the agreed hourly rate. Each request will be preceded by a work estimate.
The above prices are subject to an additional 23% VAT. Additional elements not specified in the estimate will be subject to a separate cost estimate. The estimate may change depending on the final functionalities accepted for implementation. Any changes made after the acceptance of a given stage will be subject to an additional cost estimate.
The estimate is valid for 15 days.

What do you gain?

• Transparency – You’ll see exactly how much time you spent on the project and changes.
• Clear expectations – You and the client will be aligned on what the changes mean and how they’re handled.
• Better estimation in the future.
• Shared project engagement – The client’s feedback will be more thoughtful, and they’ll focus more than just saying, "That’s not it."
• Time – Your project will progress at a better pace.

Invest extra time to ensure that both you and the client understand "changes" in the same way. Regardless of the type of service you provide, changes are a broad and time-consuming part of any process, so don’t overlook them!

Now you see why this confirmation is so important for your business, and you can imagine how much of your hard-earned money it can save!

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