Estimate, change order and cash exposure

First step

Estimates, change orders, and cash exposure connect through one running ledger. Method: list each fictional scope item, then add a column for what you must pay out before the customer pays you. Define margin as profit divided by selling amount, and markup as profit divided by cost, so the two never share a cell. Bring the quote, any change order drafts, and supplier terms. Ask your supervising Master or the business's bookkeeper to check definitions. Common misconception: margin and markup are the same number. Correct practice: label every figure with its base and recalculate after each change order. Transfer: if the paper case adds a late scope change, append a new row and recheck cash exposure.