Estimates & Budgets
Estimates are the bridge between project planning and project execution. They define exactly what resources are needed to execute each scope of work, how much those resources will cost, and whether spending against those resources should be controlled through budget limits.
What Is an Estimate?
An Estimate in JobNext is a detailed breakdown of the resources required to execute a specific Scope. Estimates answer the question: "What will it cost us to do this work?"
Every estimate is always created for a Scope. You cannot create an estimate without first having a scope to attach it to. This enforces the discipline of estimating at the activity level, which produces more accurate and actionable cost plans.
Estimates are not just planning documents. They feed directly into procurement budgets, material requisition approvals, subcontractor work order limits, and cost variance reports. Accurate estimates are the foundation of effective cost control.
Five Resource Factors
JobNext categorizes all resources into five factors. Every line item in an estimate belongs to one of these categories:
| Factor | Description | Examples |
|---|---|---|
| Labour | Human resources required for the work, including skilled and unskilled workers directly employed by the contractor. | Mason, carpenter, bar bender, helper, site supervisor |
| Material | Physical materials consumed or installed during the work. These are items procured through the Procurement module. | Cement, steel, sand, bricks, pipes, cables, paint |
| Machine | Equipment and machinery used for the work, whether owned or hired. Tracked through the Equipment module. | Excavator, crane, mixer, compactor, generator |
| Subcontractor | Work that is subcontracted to an external party rather than executed by the contractor's own team. Managed through the Subcontractor module. | Waterproofing works, HVAC installation, electrical wiring |
| Overhead | Indirect costs that cannot be attributed to a specific resource but are necessary for the work. Often expressed as a percentage or lump sum. | Site office rent, safety equipment, transportation, insurance |
Estimate Line Item Fields
Each line item in an estimate contains the following fields:
| Field | Description |
|---|---|
| Resource Factor | One of the five factors: Labour, Material, Machine, Subcontractor, or Overhead |
| Resource | The specific resource (e.g., a material from the Material Master, or a labour category) |
| Unit | The unit of measurement for the resource (e.g., Kg, Cum, Hours, Days) |
| Quantity per Unit | How much of this resource is needed per unit of scope quantity |
| Total Quantity | Automatically calculated: Scope Quantity x Quantity per Unit |
| Rate | The estimated cost per unit of the resource |
| Total Amount | Automatically calculated: Total Quantity x Rate |
Budget Flag
The Budget flag is a critical control mechanism in JobNext. When an estimate line item has its budget flag enabled, the system enforces spending limits based on that estimate during procurement and other transactions.
How Budget Control Works
- When a material requisition is created for a job and scope, the system checks the budgeted quantity and amount from the estimate.
- If the requested quantity exceeds the budgeted quantity, the system displays a warning or blocks the requisition (depending on configuration).
- Purchase orders are similarly validated against budgeted amounts.
- Budget utilization reports show how much of each budget has been consumed, committed, and remaining.
Budget control only applies to estimate line items that have the budget flag turned on. If you create estimates without enabling the budget flag, the system will not enforce any spending limits for those resources. For effective cost control, always enable the budget flag for material and subcontractor line items.
Budget States
| State | Description |
|---|---|
| Original Budget | The initially approved estimate amount |
| Committed | Amount allocated to approved purchase orders or work orders but not yet spent |
| Actual | Amount actually spent through posted transactions (MRNs, payments, etc.) |
| Available | Remaining budget: Original Budget - Committed - Actual |
Scheduled Rates
Scheduled Rates provide a shortcut for creating estimates. Instead of entering resource details from scratch for every scope, you can pre-define standard rates for common activities and apply them with a single action.
A Scheduled Rate is essentially a pre-built estimate template for a specific type of work. It contains all five resource factors with their quantities and rates already defined. When applied to a scope, the system automatically generates the estimate line items based on the scheduled rate, adjusted for the scope quantity.
- Navigate to Projects > Scheduled Rates to view or create rate schedules.
- Create a new scheduled rate by defining the resource breakdown for one unit of work.
- When creating an estimate for a scope, choose Apply Scheduled Rate instead of manual entry.
- Select the appropriate scheduled rate from the library.
- The system generates all estimate line items automatically, multiplied by the scope quantity.
- Review and adjust individual items if needed for job-specific conditions.
Review and update your scheduled rates periodically to reflect current market prices. Outdated rates lead to inaccurate estimates, which undermine budget control and profitability analysis.
Estimate Workflow
Estimates follow the standard document lifecycle:
- Create the estimate for a scope, either manually or using scheduled rates.
- Review all line items, ensuring quantities and rates are accurate.
- Submit the estimate for approval.
- The designated approver reviews and approves the estimate.
- Once approved, the estimate becomes the official budget for that scope (if budget flags are enabled).
- During execution, actual spending is tracked against these budgets.