Converting an estimate to a budget
As we described in the previous Issacon #1335
- An estimate is prepared in the way an estimator goes about his or her business
- An estimate may or may not include an allowance for "contingencies"
- A "good" estimate will be targeted
- At the "most likely cost"
- A budget needs to be structured
- To feed into the organization's General Ledger accounts
- But more importantly, in the way the work will be done
- With a bottom-line total that is achievable