“When the seat gets numb, the brain gets dumb.”

Electrical Cost Estimating

In this text, I will share effective techniques for estimating, along with tips and tricks to save you hours of work. We will equip you with the tools necessary for success in the estimating field. By reading and applying the lessons in this book, you can leverage my 38 years of trial and error, avoiding the hard lessons I had to learn. Your desire to improve your estimating skills, as shown by your choice to read *Keys to Successful Estimating: A Better Way to Estimate*, is all we ask for; we will do the rest. Additionally, I highly recommend another essential read: *Steps to A Successful Business: How to Start or Improve Your Business.* Bid estimating software is also a powerful tool.

**Starting an Estimate**

Bidding is about covering all costs while minimizing expenses. It’s easy to come up with a price that covers the costs of a project; the challenge lies in being the lowest bidder on bid day while still making a profit.

Everything begins in the planning stage, which is where your company must excel. You need to learn how to install work in your area based on current market prices. Remember, the bid isn’t solely about the cost itself. Relying on being the lowest bidder for every project is not a sustainable strategy. You submit bids to get in the game, making it clear how easy it is to work with your company and the quality of your work.

Your company’s reputation within the industry plays a significant role, so strive to be a leader in your community and field. Upholding high standards and a strong work ethic will make your company the preferred choice among contractors and owners. Customer satisfaction spreads quickly; happy customers tell one person, while unhappy customers share their experiences with five.

All buildings will eventually require some form of electrical work, creating opportunities for quotes. The individual responsible for preparing these quotes is known as an estimator.

**The Need for Electrical Estimators**

There are various types of electrical estimators, including senior, residential, and commercial estimators. Senior electrical estimators manage and train others and require extensive experience in estimating and project management. Residential electrical estimators determine the costs of electrical systems or upgrades in homes, while commercial electrical estimators bid on construction projects as subcontractors. Many utilize estimating software, such as Best Bid electrical bidding software, to assess costs associated with larger projects. Visit www.bestbidestimating.com to watch a video demonstrating how it works.

As you begin your journey as an estimator, it’s crucial to choose your projects wisely. Initially, it may be tempting to bid on every opportunity that arises, but this approach is not advisable. Select projects that match both your expertise and that of your team. Avoid bidding on jobs located far from your office or those that require more manpower than you currently have.

Once you decide to bid on a job, request the contractor send you the drawings and specifications. Review these plans thoroughly to ensure you have all the materials necessary for your bid. While the electrical work will be detailed on the electrical plans and in Division 16 of the specifications book, it’s wise to examine other sections of the plans, especially those related to mechanical equipment. You will likely need to wire significant mechanical equipment, which may not appear on the electrical plans.

*Keys to Successful Electrical Estimating* explains the electrical estimating process from every angle, including take-offs, creating assemblies, estimating man-hours, material pricing, and compiling the bid summary. Begin by reviewing the entire set of building plans before starting. Electrical drawings can often be cluttered with symbols and wiring data. By first examining the architectural plans, you will gain a clearer understanding of the intended function of the space, leading to a more accurate estimate.

To initiate a commercial bid, start with the **scope of work.**

Request a complete set of plans for the electrical systems along with the specifications. Here is an outline of the estimating process:

**The Review:**
– Examine the electrical plans.
– Read the general conditions in the specifications and bidding instructions, if provided, as these often contain information that can significantly impact your pricing. Watch for details regarding wage scales, night work, work in occupied spaces, and any bond premiums or requirements. Make sure to factor the costs of these items into your price.
– Study the project specifications, which serve as the manual for most construction documents. Read the section that pertains to your trade, as well as the preliminary sections outlining general project conditions.

**Doing the Take-Off:**
Perform a material take-off for each electrical system, including site work, lighting, switches, receptacles, stub-ups, branch circuits, feeders, and gear. This process involves counting the number of items indicated in the plans.

**Requesting Material Pricing:**

Request a quote from your supplier. You will receive estimates based on the quantities you’ve counted or from your electrical bid software. Use these estimates to determine your total material cost.

**Calculating Material Costs:**

Select the best vendor for the project by choosing the one with the lowest price. **Adding Labor Costs:** Determine how many hours will be needed for each type of installation. Add a man-hour to each piece of material, including supervision and laborers as necessary. Calculate your labor costs by multiplying the total man-hours by the hourly rate you plan to charge.

**Adding Labor Costs**
To determine labor costs, first estimate how many hours you’ll need for each type of installation. Add a man-hour for each piece of material. Make sure to include the cost of supervision and laborers as needed. Once you have the total man-hours, multiply by your desired pay rate to calculate the labor costs.

** Including Other Costs**
Add other expenses, such as storage trailers, permits, rental equipment, and plans.** Calculate Job Cost**
The job cost is calculated by summing the total material cost (including tax), other costs, and labor charges.

 **Determine Selling Price**
To arrive at the selling price, add overhead and profit to the job cost.

** Review**
Carefully review your results, noting any bonds or extra fees associated with the project.

**Proposal Preparation**
Prepare your proposal by clearly listing the scope of work included in your pricing.

** Submit Your Bid**
Finally, submit your bid. Be sure to consider alternatives for cost savings and value engineering.

**Dissecting an Estimate**
Estimating can involve various techniques. In this guide, we will cover multiple approaches to help you find what works best for different jobs. Estimating will be broken down into easy-to-understand sections.

** Starting a New Project**
When starting a new project, ensure you have all relevant sheets for your trade, a specification manual, and copies of any addenda and changes. If possible, request the mechanical and architectural drawings in addition to the electrical prints, as details in these drawings can affect your pricing. Review the entire set of plans before initiating your estimate. Record the scale and double-check it, as using the wrong scale can lead to missed jobs.

By reviewing the architectural plans first, you will gain a comprehensive understanding of the building, allowing for more accurate estimates. Note the names of the engineers who stamped the drawings. They often use a standardized set of specifications, which can help you become familiar with their specific requirements. Take special note of who is responsible for utility fees, minimum raceway sizes, fitting types, raceways allowed, device types, temporary lighting and power, home run groupings, deadlines, and potential liquidated damages.

**General Conditions**
Read the General Conditions in the Specifications Book and in the Bidding Instructions, if applicable. These often contain information that can significantly increase your estimate. Look for details on wage scales, night work, and work in occupied spaces, as well as bond premiums or requirements. Be sure to incorporate these costs into your pricing. Pay close attention to the Instructions to Bidders, as many low quotes are dismissed simply for not following them. Completing an envelope with the required information should be straightforward—don’t alter the instructions. If they ask for an item to be listed first, make sure it is. If they request a bid package number, include it.

**Site Visit**
Sometimes existing conditions can greatly influence a bid. For example, you might encounter a conduit installation that seems routine but is complicated by being underwater. Highlight important points on the drawings, such as firewalls. Material comprises all components necessary for the installation, including conduit, wire, fittings, devices, boxes, screws, plates, plaster rings, straps, and wire nuts. For this context, “material” can also refer to rough-in materials, even if some products will be used during trim-out.

 

 

 

 

 

 

 

 

 

**Material Pricing**
Material pricing can be handled in several ways:
A. Send a complete list to a supply house for current pricing.
B. Use an in-house pricing sheet for your materials.
C. Subscribe to a pricing service.
D. Utilize software for instant, real-time pricing, integrated with services like NetPricer.

**Tips for Material Specification**
Always specify materials as outlined in the specifications. Some key items to consider include:
A. Fitting type: set screw, compression, or die-cast steel.
B. Device and plate type.
C. Minimum raceway size.
D. Rigid 90s vs. PVC 90s for slab work.
E. Is MC cable allowed?
F. Weatherproof GFI covers, which can range from a few dollars to several hundred.
G. Is grouping of home runs allowed?
H. General duty vs. heavy-duty disconnects.

**Quotes**
Quotes refer to products purchased for the project, typically in packages. On most jobs, there will be a lighting package and a gear package. Other than in design-and-build projects, where you control all materials, you will follow a lighting and gear schedule.

If you need help please visit Best Bid. The best commercial electrical estimating software.