What is a body leasing cost estimate?

Components of the cost estimate

A typical body leasing cost estimate should take into account several key elements:

• Profiles of specialists: Identify roles, levels of experience (seniority) and key technological competencies of hired specialists.
• Number of specialists: An indication of how many specialists of a given profile are needed.
• Period of engagement: Expected duration of engagement with each specialist (e.g., number of months, days or hours).
• Billing model: An indication of the model adopted, most often time & material (T&M).
• Rates: Provide the agreed rates for the work of specialists, according to the billing model adopted (e.g., hourly rate, daily rate or monthly lump sum). Rates may vary for different profiles of specialists.
• Estimated total cost: Calculation of the expected total cost of the service, resulting from multiplying the number of time units (hours, days, months) by the respective rates for all professionals involved.
• Additional costs (optional): Include any additional costs, if provided for in the contract, such as travel, lodging (if specialists are working in another location), specific software licenses or tools.
• Payment terms: Information on the dates and method of invoicing and payment.

Costing in T&M vs Fixed Price model

In the case of the T&M model, which is dominant in body leasing, the cost estimate is an estimate because the final cost depends on the actual time worked. The cost estimate is then an estimate based on the anticipated commitment. In the rarer cases of a fixed-price model (e.g., a fixed monthly lump sum for a specialist), the cost estimate can accurately determine the fixed costs over a given period.

Relevance to the customer

For the client, the cost estimate is an essential tool for financial planning and project budget control. It allows you to compare the cost of body leasing with other options (such as full-time employment) and assess the profitability of the investment. It also makes it possible to monitor actual expenses against assumptions during the course of the cooperation.

Transparency of the cost estimate

A good body leasing provider should provide the customer with a transparent and detailed cost estimate, clearly explaining all its components and assumptions. Transparency in financial matters is the basis for building trust and a long-term partnership. The cost estimate is often an appendix to the service contract.