Product Overview

Summary: This Project Estimation Standard Operating Procedure provides a clear, repeatable framework for accurately scoping and pricing projects in line with Australian industry expectations. It helps your team produce consistent, defensible estimates that protect margins, support WHS resourcing, and build client confidence.

The Project Estimation Standard Operating Procedure is designed to bring structure, transparency and discipline to how your organisation prices and plans work. In many Australian businesses, estimating is heavily dependent on individual experience, leaving you exposed to under-quoting, scope creep and inconsistent inclusion of WHS requirements. This SOP sets out a step-by-step, documented approach so that every estimate is prepared, reviewed and approved using the same robust methodology, regardless of who completes it.

Covering everything from initial client brief and site information capture through to risk allowances, WHS provisions, indirect costs and final approval, this procedure supports more accurate forecasting of labour, materials, subcontractors and overheads. It also embeds consideration of statutory obligations, including appropriate allowances for safe systems of work, supervision, training and compliance with Australian standards. The result is a more reliable pipeline, fewer disputes, stronger cash flow and a clear audit trail that demonstrates how each estimate was developed and why key assumptions were made.

Key Benefits

• Standardise how estimates are prepared, reviewed and approved across projects and teams.
• Improve accuracy of labour, material and subcontractor allowances to protect profit margins.
• Reduce the risk of under-quoting by systematically identifying scope, risks and contingencies.
• Strengthen compliance by embedding WHS, quality and legislative requirements into every estimate.
• Enhance client confidence with transparent, well-documented assumptions and inclusions.

Who is this for?

• Project Managers
• Estimators
• Construction Managers
• Operations Managers
• Business Owners and Directors
• Quantity Surveyors
• Commercial Managers
• WHS Managers (for resourcing and risk allowances)
• Contracts Administrators
• Bid and Tender Managers

Included Sections

• 1.0 Purpose and Scope
• 2.0 Definitions and Key Terms
• 3.0 Roles and Responsibilities (Estimators, Project Managers, Reviewers, Approvers)
• 4.0 Pre-Estimation Requirements (Client Brief, Site Information, Documentation Review)
• 5.0 Assumptions, Inclusions and Exclusions Framework
• 6.0 Scope Breakdown and Work Breakdown Structure (WBS) Development
• 7.0 Labour Estimation Methodology
• 8.0 Materials, Plant and Equipment Estimation
• 9.0 Subcontractor and Supplier Quotation Management
• 10.0 WHS, Compliance and Regulatory Allowances (Supervision, Training, PPE, Controls)
• 11.0 Overheads, Profit, Contingency and Risk Allowances
• 12.0 Use of Estimation Tools, Templates and Software
• 13.0 Internal Review, Peer Check and Approval Process
• 14.0 Version Control, Record Keeping and Audit Trail
• 15.0 Variations, Revisions and Re-estimation Triggers
• 16.0 Communication of Estimates to Clients and Internal Stakeholders
• 17.0 Continuous Improvement and Post-Project Review of Estimation Accuracy

Legislation & References

• ISO 9001:2015 Quality management systems – Requirements (as adopted in Australia)
• AS ISO 31000:2018 Risk management – Guidelines
• Work Health and Safety Act 2011 (Cth) and corresponding state and territory WHS Acts
• Work Health and Safety Regulations 2011 and corresponding state and territory WHS Regulations
• Safe Work Australia – Model Code of Practice: How to Manage Work Health and Safety Risks
• Australian Standard Method of Measurement of Building Works (where applicable to construction and building)
• AS 1181: Method of measurement of civil engineering works (where applicable)