Overage Estimates

Overage estimates get us paid for any financial changes after the job amount is officially approved via signature or purchase order. Be careful not to approximately declare an overage amount until officially sending in the overage estimate for approval. This overage estimate requires approval of its own PO or a revised original PO reflecting the revised costs. 

Protect yourself with an overage estimate. After bidding on a job and securing it, production begins, but the job might not have started yet. If the client makes changes, you need to provide an overage estimate.

Here’s a lesson I learned the hard way this morning: We made some changes, and I gave the client an immediate amount based on my initial thoughts. I should have waited to complete the full estimate process, as that’s when you consider additional details and costs. The client received approval from their ad agency based on the initial amount I provided, and I didn’t realize they would act on that before I finalized the estimate.

To avoid this situation, don’t provide a specific price immediately. Always present an overage estimate first to ensure you’re covered for any additional costs.