Separate labour and external costs
Multiply estimated hours by the assumed rate for each task. Eight hours at €50 gives an estimate of €400. Record licences and purchases separately.
Update the estimate after the first delivery
Compare estimated and actual hours. For a retainer or a performance component, record the period and calculation method separately.
Working template
Task [ ] Estimated hours [ ] Assumed rate [ ] Subtotal [ ] External costs [ ] Estimated total [ ]