Getting Started with Simple Estimate

Rate Cards

Use Rate Cards in the left-hand navigation to manage roles and hourly rates. We recommend using rate cards because it is simpler to manage hourly line item rates within this estimate and across multiple estimates as needed.

If you need to customize a rate or add a custom role for an estimate, type in a custom role name that isn’t on the rate card, and then you can edit the rate.

Estimation Hierarchy

Simple Estimate uses a hierarchy of Sections, Tasks, and Line-Items to help you create structure to your estimate. Let’s take a look at each element of the hierarchy.

Sections

Section Names roll up the totals of all of its tasks and line items.

Sections Structure

Tasks

Tasks include the work required to complete each Section. They contain nested pricing line items, sub-tasks and notes. Use tasks to create sub-totals under Sections.

Sections Task

Line Items

Hourly Estimates are a type of line Item. It helps you estimate time required to complete a task. Hourly Estimates use the Rate Card associated with your estimate. There are other types of useful line items like a fixed price estimate. Create as many line items as needed to estimate the resource, hours and price associated with completing the work.

Sections Line

Estimation Points and Totals

We designed Simple Estimate to help you create accurate estimates quickly. We support three estimating methods: 1-point, 2-point, and 3-point estimates. We recommend using the 3-point method because it results in the most accurate estimate. We explain the different approaches below. Regardless of your choice of estimating method, we roll up line item estimates into totals at the task level. Similarly, task totals roll up into section totals.

Getting Started Points

1-point estimates
The simplest approach is to use 1-point estimates. In this approach the totals are a simple sum of your hours and amounts. This is a great approach to build estimates quickly but they are the least accurate of the three options.
2-point estimates
2-point estimates calculate the Likely amount as the average of your Low and High estimates. This approach is less accurate than a 3-point estimate but still incorporates some uncertainty and risk for improved accuracy.
(Low + (4 * (High+Low)/2) + High)/6
3-point estimates (Recommended)
We recommend using 3-point estimation because it improves the accuracy of your estimate by factoring in uncertainty and risk. With this method, you estimate three scenarios: low, likely, and high. The estimate calculation follows the PERT formula:
(Low + (4 * Likely) + High)/6
 

Click here to learn more.

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