# Machine Build Engineering Hours Estimate Worksheet

> Source: https://netray.co/tools/oem-engineering-hours-estimate-worksheet
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

An editable estimate of engineering hours by discipline and task for an engineer-to-order machine, with rates, contingency and cost per line.

## Category

cost-finance

## Industry

Industrial Machinery

## Audience

- Sales engineer
- Engineering manager
- Project estimator

## Tool

**Kind:** worksheet

**Mode:** editable

**Currency:** $

**Columns:**

#### Discipline

**Key:** disc

**Type:** select

**Options:**

- Mechanical design
- Electrical design
- Controls software
- HMI / SCADA
- Safety / compliance
- Documentation
- Project management
- Commissioning

#### Task

**Key:** task

**Type:** text

#### Base hours

**Key:** hours

**Type:** number

**Format:** decimal

#### Contingency %

**Key:** cont

**Type:** number

**Unit:** %

#### Rate per hour

**Key:** rate

**Type:** number

**Format:** currency

#### Hours with contingency

**Key:** tot_hours

**Type:** number

**Expr:** hours * (1 + cont / 100)

**Format:** decimal

#### Cost

**Key:** cost

**Type:** number

**Expr:** hours * (1 + cont / 100) * rate

**Format:** currency

**Rows:**

**Disc:** Mechanical design

**Task:** Frame, guarding and conveyor layout

**Hours:** 160

**Cont:** 15

**Rate:** 95

**Disc:** Electrical design

**Task:** Panel layout and schematics

**Hours:** 90

**Cont:** 10

**Rate:** 90

**Disc:** Controls software

**Task:** PLC program and motion

**Hours:** 140

**Cont:** 25

**Rate:** 105

**Disc:** HMI / SCADA

**Task:** Operator screens and recipes

**Hours:** 50

**Cont:** 20

**Rate:** 100

**Disc:** Safety / compliance

**Task:** Risk assessment and technical file

**Hours:** 60

**Cont:** 10

**Rate:** 100

**Disc:** Documentation

**Task:** Manuals and spare parts list

**Hours:** 40

**Cont:** 10

**Rate:** 75

**Disc:** Commissioning

**Task:** FAT and site start-up

**Hours:** 80

**Cont:** 20

**Rate:** 110

**Totals:**

#### Base hours

**Key:** hours

**Agg:** sum

**Format:** decimal

#### Hours with contingency

**Key:** tot_hours

**Agg:** sum

**Format:** decimal

#### Total engineering cost

**Key:** cost

**Agg:** sum

**Format:** currency

**Summary:**

#### Contingency hours added

**Key:** contingency_hours

**Expr:** sum_tot_hours - sum_hours

**Format:** decimal

#### Blended rate per hour

**Key:** blended

**Expr:** sum_cost / sum_tot_hours

**Format:** currency

**Primary:** true

**Notes:** Give controls software the largest contingency when the process is new to your team. Replace the example rates with your fully loaded cost rates, not the customer sell rates.

## Content

**Intro:** Engineering hours are the biggest unknown in a custom machine quote. This worksheet breaks them into tasks by discipline, adds contingency where uncertainty is highest and rolls everything into a cost you can defend.

**Sections:**

#### How to use the estimate

**Body:** List the work as tasks, not as a single number per discipline. For each task enter base hours from history, then a contingency percentage that reflects uncertainty. Add the fully loaded hourly rate for that discipline. The worksheet computes hours with contingency and cost per row, then sums them. Export to Excel, drop the totals into your quote and keep the file as the baseline for comparing actual hours after the job.

**Bullets:**

- Use history from similar projects as the base
- Raise contingency for new processes and unclear specs
- Include project management and documentation, not only design
- Keep a copy as the baseline for post-project review

#### Setting contingency

**Body:** Contingency should reflect specific uncertainties, not a flat tax. A repeat design with proven code may need 5 to 10 percent. A new process, a customer specification still in draft or an unfamiliar PLC platform may justify 25 percent or more. Controls software and commissioning usually carry the most risk because problems surface late. Write the reason for any contingency above 20 percent in the task name so reviewers can challenge it.

#### Reading the blended rate

**Body:** The blended rate divides total cost by total hours and shows the real average cost of an engineering hour on this job. If the mix shifts toward senior controls work, the blended rate rises even when no individual rate changed. Compare the blended rate with the rate you quote to the customer to see the engineering margin. In the example, the contingency hours show how much risk is being priced in.

#### Common mistakes

**Body:** Teams often leave out documentation, safety compliance, and site support, or estimate only design time and forget revisions after FAT. Another frequent error is using sell rates instead of cost rates, which double counts margin. After each project, compare actual hours by discipline against the estimate and update your base numbers so the next quote improves.

**Cta:** If actual engineering hours are logged in your ERP or timesheet system, Netray can help compare them against estimates automatically. Ask for a short review.

**Faq:**

#### How accurate should an engineering estimate be?

**Answer:** Early quotes are often within a range of plus or minus 20 to 30 percent, narrowing as the specification firms up. The aim is a documented, challengeable basis rather than a perfect number.

#### Should software hours be a percentage of mechanical hours?

**Answer:** Ratios can serve as a sanity check but should not drive the estimate. Software effort depends on I/O count, motion axes, recipes and integration with customer systems, not on frame size.

#### Which rate should I enter?

**Answer:** Use the fully loaded cost rate, including salary, overhead and tools. Add margin later in pricing so the estimate shows your real cost of delivery.

#### How do I track actuals against this?

**Answer:** Log time against the same disciplines and tasks in your timesheet or project module. Export both datasets and compare hours per row to find where estimates are consistently low.

## Search terms

engineering hours estimate template, custom machine engineering cost estimate, engineer to order estimating worksheet, machine design hours estimate excel, controls software hours estimate, project engineering budget template

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