Machine Build Engineering Hours Estimate Worksheet
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.
| Discipline | Task | Base hours | Contingency % (%) | Rate per hour | Hours with contingency | Cost | |
|---|---|---|---|---|---|---|---|
184 | $17,480 | ||||||
99 | $8,910 | ||||||
175 | $18,375 | ||||||
60 | $6,000 | ||||||
66 | $6,600 | ||||||
44 | $3,300 | ||||||
96 | $10,560 |
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.
Compare estimates with actuals
Optional review of pulling timesheet and project cost data from your ERP for estimate accuracy.
Optional. The tool and every export work without this. No spam.
How to use the estimate
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.
- 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
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
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
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.
Frequently Asked Questions
How accurate should an engineering estimate be?
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?
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?
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?
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.
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.
Related Tools
Machinery Project Change Order Request Template
A change order request for engineer-to-order machinery projects, recording the scope change, price and schedule impact, and customer approval.
Costing & FinanceMachine Warranty Reserve Calculator
Estimate expected warranty claims and the reserve to book per machine and per year, and see how warranty length changes the cost.
Industry TemplatesMachine Punch List Tracker Worksheet
An editable punch list for machinery projects: log open items found at FAT, SAT or start-up, rank by severity, assign owners and total the cost to close.
Safety & WorkforceMachine Safety Function Register Worksheet
An editable register of safety functions with required performance level, achieved performance level, category and validation status for the technical file.
More Costing & Finance tools
See all- Project Milestone Billing Worksheet for Machine Builders
- OEM Warranty Reserve Accrual Calculator
- Percentage of Completion Cost-to-Cost Revenue Calculator
- Spare Parts Attach Rate Aftermarket Revenue Calculator
- Machinery Price from Target Margin and Contingency Calculator
- Advance Payment Guarantee and Performance Bond Cost Calculator
- SAP QM Inspection Effort and Cost Calculator
- SAP Standard Cost Estimate BOM Rollup Calculator
- Legacy ERP Retirement Cost and Payback Calculator