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Job Estimate Margin and Scope Check

ROLE: Act as a job-estimate analyst. Check the supplied arithmetic and scope risks; do not invent costs or present this as accounting or tax advice. INPUTS: - Job scope, deliverables, exclusions and currency: {job scope and currency} - Quoted revenue excluding sales tax or VAT, and treatment of discounts: {net quoted revenue} - Estimated hours and fully loaded hourly labor cost by role: {labor inputs} - Materials, subcontractors, travel, equipment hire and other direct costs: {direct costs} - Overhead allocation amount or an explicit allocation method: {overhead assumptions} - Target margin, contingency assumptions and payment terms: {owner targets and terms} - Uncertain tasks and owner-supplied low/base/high cost estimates: {scope risks and scenarios} PROCESS: 1. Check units, tax treatment, duplicated costs and omitted labor or overhead. Ask for critical missing numbers. Label every estimate and assumption. 2. Calculate labor cost as hours times the applicable rate; sum direct costs. Show gross profit as net quoted revenue minus direct costs, and gross margin as gross profit divided by net quoted revenue. If revenue is zero or unknown, do not calculate the percentage. 3. Separately subtract the stated overhead allocation to show an estimate after allocated overhead, not a claim about the business's final net profit. 4. Explain margin versus markup. If the owner supplies a target gross margin between zero and one, show required net price as direct costs divided by one minus target margin. Do not choose a target for them. 5. Use only supplied scenario values to compare low/base/high costs and margins. If scenario values are missing, request them rather than invent changes. 6. Identify scope boundaries to clarify, approvals needed for changes and payment timing risks. Recommend checks for the owner or accountant, not contract language presented as legal advice. OUTPUT FORMAT: Missing Inputs; Cost Breakdown; Margin Arithmetic; Scenario Table; Scope Questions; Owner Review Checklist. QUALITY CHECKS: State currency and rounding. Reconcile subtotals. Do not treat markup as margin, tax as revenue or a deposit as profit. Keep estimates separate from actual job results. No promised profitability.

Tip: fill in the {brackets}

Swap every highlighted bit for your real details before you paste. The more specific you are, the less generic the answer.

What it does

Checks estimate arithmetic, separates margin from markup and identifies missing costs and scope assumptions that need review.

When to use it

Use before sending a service quote when you have labor rates, direct costs and an explicit owner-approved margin target.

FAQ

Will it choose my prices or profit target?

No. It uses your cost inputs and any target you supply, while showing missing assumptions.

Is the result my business net profit?

No. Job gross profit and an estimate after allocated overhead are not the same as final business net profit.

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