# Approving an Estimate Approval is the most consequential moment in the bidding phase. It's the line between "we're still figuring it out" and "we have an agreement." When you set an estimate version to **Approved**, you're declaring in PAI that this plan — this scope, this schedule, these numbers — has been formally authorized. Work can begin. Money can be spent. Everything PAI does from this point forward is measured against that decision. --- ## What Approval Means PAI is built around agreements — with your client, with your vendors, and with yourself. Approving an estimate is one of the most important agreements you'll make in the system. It says: this is the plan, this is the scope, these are the numbers, and we're locking them in. Everything PAI does from this point forward is measured against that locked agreement, which is exactly what allows you to protect your margin. Margin protection in PAI isn't a passive feature — it's the direct result of being explicit about what you agreed to. Once the approved estimate is in place, PAI has a baseline to work from. As production unfolds, it compares everything you're spending against that baseline and shows you the variance — positive or negative. You came in under on equipment. You're over on labor. Something changed. PAI can tell you that precisely because it has something fixed to measure against. What to do with that information is your call. In most cases, variance points to a conversation: did the client request more than what was agreed? That might mean a change order or overage is warranted. Are you running under? Worth understanding why before you assume it's efficiency. PAI isn't making those decisions — it's making sure you have the information to make them yourself. --- ## How to Approve a Version There are three ways to approve an estimate version: **Action button** — The button in the top-right corner of the estimate is dynamic: it always reflects the next logical step based on the version's current status. If the estimate has already been sent, that button will read **Approve**. Clicking it confirms the approval. If it hasn't been sent yet, the button will show **Send Estimate** instead. **Action menu** — To the right of the action button is a menu with additional options, including the ability to approve directly. This is useful if you need to move a version straight from Draft to Approved — for example, on an internal project that doesn't require a formal send step. PAI expects estimates to be sent before approval in most cases, but the action menu doesn't enforce that and gives you a direct path when you need it. **Status dropdown** — You can also set the status to Approved via the version's status dropdown. Note that the Approved option in the dropdown is only selectable if the version has already been marked as Sent. If it hasn't been sent, the option will be blocked. Use the action menu if you need to bypass the send step. PAI shows a confirmation before completing the approval — review it before confirming. **What happens immediately:** - The version is locked from further editing - PAI assigns a **Project Number** (P###) to the project - The **Start Project** button becomes available on the approved version - Any previously approved version is automatically moved to **Abandoned** Only one estimate version can hold **Approved** status per project at a time. If you need to approve a revised version, approve it — the previous one will be abandoned automatically and the new version becomes the baseline. > [!note] > The project number assignment happens at approval, not at project creation. Until a version is approved, the project exists in PAI without a P number. --- ## Locking on Approval Like versions marked **Sent**, approved versions are locked. The lock preserves the integrity of the agreement — the approved version is a record of what was authorized. If adjustments are needed post-approval, the right path is a change order or overage, not editing the approved version. This isn't an obstacle; it's PAI protecting the baseline. If you ever need to reconcile what was agreed to versus what actually happened, the approved version is the answer. --- ## Changing the Approved Version If the agreement itself changes — client renegotiates scope, internal plans shift, new numbers are worked out — you can approve a new version: 1. Create or identify the version that reflects the new agreement 2. Set it to **Approved** 3. PAI cancels the previous approved version and sets the new one as the baseline 4. The project number carries over — it doesn't change The new version becomes the baseline for all budget variance tracking going forward. If a budget has already been generated, approving a new estimate version updates the internal total for variance tracking, but does not automatically modify existing expense lines in the budget. See [Overages and Change Orders](./Overages-and-Change-Orders.md) for how to handle changes after budget generation. --- ## After Approval Once a version is approved, the project is ready for the next step: converting the estimate into a working budget. See [Generating the Budget](./Generating-the-Budget.md) for how that works and what to expect from the conversion.