Free Electrical Estimating Training #4
Continued from Lesson #3
**Tip**
Over the years, it’s important to remember that no matter how skilled the employees are, two people will not do twice the work of one person, and four people will not perform twice as much work as two people, and so on.
**Sub Quotes:**
Often, you will need to hire external companies to complete parts of your project. Examples of such contractors include:
A. Fire Alarm Contractor
B. Security Contractor
C. Cable Contractor
D. Fiber Contractor
E. Telephone Contractor
F. Data Contractor
G. Excavation, Backhoe, Trenching, Tamping Contractor
H. Crane and Operator
I. Bucket Truck and Operator
**Tip:**
When a systems contractor provides you with a price, it may be either a turnkey cost or what’s referred to as “parts and smarts.” In most states, you typically do not include tax on the labor portion of the quote. Make sure to have the quote broken down into materials and labor. Usually, you will only add tax to the material portion of their quote.
**Miscellaneous / Other costs**
These are real costs to the project that are not necessarily shown on the drawings. Some of these may include:
A. Permits
B. Temporary lights
C. Temporary power
D. Utility charges
E. Lost time
F. Storage and Job trailers
G. Temporary Office
H. Clean up
I. Bonds
J. Plans
K. Lifts
L. Scaffolding
M. Tie wire to independently suspend fixtures
N. Overhead and Profit.
So far, we have addressed the cost raw cost of materials and labor. Once you arrive at the raw cost of a project, the next step is to add OVERHEAD. Overhead is the cost of doing business. This is covered in detail in our book entitled Steps To A Successful Business “How to start or improve your business.” The final step is to add profit and submit your bid. Submit Bid Follow all instructions to bidders. I can’t emphasize this enough. Whenever possible, clarify your scope of work in detail. Make sure you qualify as much as practical:
1. Include your terms of payment.
2. Qualify that work to be performed is during normal working hours only
3. List of items you will be including
4. Underground or overhead service
5. Size of service
6. Wiring is to be as per NEC requirements
7. Pricing is valid for 45 working days from the Proposal date.
8. Change Orders to be priced at:###
9. Miscellaneous / Other Costs
These are actual expenses related to the project that may not be reflected in the drawings. Some of these costs may include:
A. Permits
B. Temporary lighting
C. Temporary power
D. Utility charges
E. Lost time
F. Storage and job trailers
G. Temporary office space
H. Cleanup
I. Bonds
J. Plans
K. Lifts
L. Scaffolding
M. Tie wire for independently suspending fixtures when needed
**Quotes**
So far, we have discussed the raw costs of materials and labor. Once you determine the raw cost of a project, the next step is to add overhead. Overhead refers to the expenses involved in running a business, and this topic is covered in detail in our book titled *Steps to a Successful Business: How to Start or Improve Your Business*.
The final step is to include profit and submit your bid.
**Submit Bid**
Follow all instructions provided to bidders; this cannot be emphasized enough. Whenever possible, clarify the scope of work in detail and ensure that you qualify the information as much as practical:
1. Include your payment terms.
2. Specify that the work will be performed during normal working hours only.
3. Provide a list of items to be included.
4. Clarify if services are underground or overhead.
5. Indicate the size of the service.
6. Ensure wiring complies with NEC requirements.
7. State that pricing is valid for 45 working days from the proposal date.
8. Change orders should be priced at:
[Add details for change orders here.]
** Exclusions**
Please include the following exclusions in your estimates:
1. All concrete work
2. Painting and patching
3. Utility fees
4. Engineering fees
In some cases, you may only present a total dollar amount without excluding any items. You will be required to perform the work as outlined by the working drawings and specifications, including all addendums.
** Summary of Estimation Phases**
The estimate consists of several key phases:
A. Materials
B. Quotes
C. Labor
D. Sub Quotes
E. Miscellaneous
F. Overhead and Labor
G. Submit Bid
In the following chapters, you will learn the intricacies of each of these phases. Today’s successful contractors often utilize estimating software. We will discuss computer estimating in detail, but it’s important to first understand how to estimate using pen and paper.
After testing various electrical estimating software titles, we found that **Best Bid Electrical Estimating Software** stands out as the best option. For a complete overview, visit www.bestbidestimating.com/x.html. In future publications, we will thoroughly dissect the Best Bid Estimating System, covering every feature in detail.
**Lighting Takeoff**
We recommend starting with the lighting takeoff, as it is typically the first section of the drawings following the site pages. The lighting quote usually takes the longest to receive, so doing this step first allows the supply house ample time to source competitive pricing. Using a takeoff sheet is advisable, and the **Electrical Solutions Takeoff Sheet** is an excellent tool for this purpose.
I begin every estimate using a systematic approach to ensure no items are overlooked. Start by copying the lighting tags from the lighting schedule onto the takeoff sheet. We will also discuss the use of digital takeoff software, such as **Digi Count Takeoff Pro**, which enhances accuracy and eliminates the need for paper plans.
Utilize a series of highlighters, along with a handheld counter (like a thumb clicker or tally counter). As you begin with the first tag, select a color and mark it on the lighting schedule. Color in the corresponding lights as you count. It’s beneficial to count all of one tag before moving on to another. Depending on the project’s scale, you can tally each floor or phase separately. For instance, you may count:
– 100 A-Lights on the First Floor (E1)
– 100 A-Lights on the Second Floor (E2)
– 100 A-Lights on the Third Floor (E3)
By breaking down the project into smaller phases, you gain several advantages. This approach allows you to track labor more effectively, as knowing the man-hours and number of light fixtures per floor helps when stocking supplies and managing labor tracking.
Not all tags may be used, and certain fixtures may not be clearly marked. If you have doubts, send a Request for Information (RFI) as soon as possible. It’s also good practice to ask your supply house for their counts after they perform a lighting takeoff to ensure your counts are accurate.
Once you have counted the lighting tags and finalized your request for a lighting quote, remember to include all necessary bulbs and hangers for installation. Additionally, all substitutes must meet the specifications, or modifications will be the supplier’s responsibility. Most lighting packages are not quoted as specified, so it is the supply house’s responsibility to ensure that the engineer accepts the alternate lighting package as equivalent.
**Tip**
Create your own code of difficulty to identify the labor complexity of each fixture. For example:
A. **S** = Standard — Troffers installed in a lay-in ceiling 9 feet tall or less.
B. **M** = Moderate — Recessed lights installation.
Over time you will become very efficient and estimating will become second nature.
