Estimated Quote Costing

1. Estimated Quote Costing

A Quote will show its estimated costs in the bottom right corner.

To see the cost breakdown, click on the ellipsis next to the cost field

This article will explain how each field is calculated.

2.  Labor – On-Site

The first two categories, Labor – Lead Tech, and Labor – Addt’l Wrkr are calculations of on-site labor costs.

On-site labor costs are calculated by taking the estimated on-site hours multiplied by the estimated hourly rate.

   Labor - On-Site    =    estimated on-site hours      X      estimated hourly rate   

Let’s break that down

a. Estimated on-site hours

On-Site labor hours pull from the task estimated time.

The total estimated time pulls from the estimated time on each Quote tasks. To see this field, modify a Quote tasks.

*Remember that this field represents total man hours*

Also note the “Expected Add’l Wrks” field. If additional workers will be needed on this Job, the total estimated hours will be divided amongst all users evenly, so you can see the costs associated with the lead and the additional workers.

Example:

If there are 16 total estimated hours, and three technicians (one lead, and two additional), the lead tech will get 5 hours 20 min, and the Addt’l Wrkr's will get 10 hours 40 min (5 hours 20 min for each tech).

b. Estimated Hourly Rate

The hourly rate used, will be calculated by looking at all field tickets within 30 days of the Quote date. However, this rate can vary based off of the cost approach.

• Low – will use the lowest rate entered for a lead or additional worker.
• Medium – will take the average rate among all leads or additional workers.
• High -- will take the highest rate entered for a lead or additional worker.

To learn more about user rates see Define User Rate of Pay

3.  Labor – Travel

The cost of travel labor is calculated by taking the estimated travel hours multiplied by the travel rate (high, medium, or low).

  Labor – Travel    =     estimated travel hours     X     estimated travel labor rate   

Let’s break that down

a. Estimated travel hours

a1. We first determine how much time it takes to drive from the office to the jobsite.

a2. We then multiply those hours by two, to find our round-trip hours.

a3. We then multiply the round trip hours by the number of techs.

a4. We are able to predict if a Job will take more than one mobilization, by utilizing the estimated on-site time. We assume eight hours of on-site time for each day.

a5. If multiple days are expected, the hours calculated above are multiplied by the number of days.

b. Estimated travel labor rate

The hourly travel rate used, will be calculated by looking at all field tickets within 30 days of the Quote date. However, this rate can vary based off of the cost approach.

If the Cost Approach is…

• High – the highest travel labor rate will be used.
• Medium – the average travel labor rate will be used.
• Low – the lowest travel labor rate will be used.

 To learn more about user rates see Define User Rate of Pay

4.  Labor Cost

The labor cost is simply the total of Labor – Lead Tech, Labor – Addt’l Wrkr, and Labor – Travel.

   Labor Cost    =    Labor – Lead Tech    +     Labor – Addt'l Wrkr    +    Labor – Travel   

5. Part & Mat. Costs

The parts and material costs, come from the Part/Materials tab.

When adding a part or material, there is a field for estimated cost.

6.  Vehicle Costs

Vehicle costs are calculated by taking the estimated travel hours or miles (discussed above in Labor – Travel), and multiplying it by the lowest, average, or highest vehicle cost on record.

   Vehicle Costs     =     estimated travel hours     +     estimated vehicle cost     

a. Estimated travel hours

a1. We first determine how much time it takes to drive from the office to the jobsite.
 

a2. We then multiply those hours by two, to find our round-trip hours.

a3. The round-trip hours are then multiplied by the number of technicians (lead and additionals: they all need to be paid for travel time)

a4. We are able to predict if a Job will take more than one mobilization, by utilizing the estimated on-site time. We assume eight hours of on-site time for each day.

a5. If multiple days are expected, the hours calculated above are multiplied by the number of days.

b. Estimated vehicle cost

Vehicle costs can be found by going to File > List Management > Fleet Vehicles > Fleet Vehicles > “Add’l Info” tab > Job costing

The vehicle costs used for our estimate will be based off of all vehicles on field tickets within 30 days of the Quote date. These costs can vary based off of the cost approach.

If the Cost Approach is…

• High – the highest vehicle cost will be used.
• Medium – the average vehicle cost will be used.
• Low – the lowest vehicle cost will be used.

7.  Worker’s Comp. Costs

Worker’s Comp. costs are calculated by taking the estimated task hours, and multiplying it by the Worker’s Comp. rate for that task.

   Workers Comp Costs    =    estimated task hours    +    task workers comp rate   

To learn more about setting up Worker’s Comp. rates see  Workers Comp

8.  Additional Costs

The additional cost field allows you to enter additional costs not captured by the existing fields.

9.  Admin Overhead

Admin overhead is a percentage of the sale price.

   Admin Overhead     =     sale price     X     admin overhead percentage   

To set up this percentage for your company go to File > Company/Branch Info > “Modify” your branch > “Misc 2” tab > Admin Overhead.

10.  Total Estimated Costs

This field is a total of all above fields.

   Total Estimated Costs    =    labor costs    +    part/material costs    +    vehicle costs    +    Worker's Comp. costs    +    additional costs    +    admin overhead   

11.  Markup and T&M Sell Price

These fields allows you to see the sell price with different markup percentages.

   T&M Sell Price    =    total estimated cost    +    (total estimated cost * markup percentage)   

Example:  If I enter 30% in the markup field, the T&M sell price will display the total estimated cost plus 30% of the total estimated cost. In other words, the total estimated cost multiply by 1.30.