A construction project is not complete without electrical estimation. There are many, many factors a business has to consider while determining the cost of the project before it starts.
That is why construction companies and contractors go with electrical estimation to determine a fair price in a systematic way.
This article will help you learn more about electrical estimating, the various electrical estimating methods, and why it is necessary to perform it before construction.
What is electrical estimating?
Electrical estimating is the process of finding the cost and resources needed for electrical construction projects. It looks at different parts of the project, like materials, labor, equipment, and other costs, to work out how much it will cost to do the electrical work.
The goal of electrical estimating is to know how much money a project will cost. This helps contractors, project managers, and clients make decisions about budgeting, bidding, and planning.
Here are some of the common steps involved in electrical estimation.
- Project Evaluation
- Quantity Takeoff
- Pricing and Cost Analysis
- Estimation Documentation
- Review and Adjustments
- Finalizing the Estimate
The different types of electrical estimation methods.
Here you will find different ways to find the electrical estimation. Each method has its own pros and cons to make sure that you consider other factors before starting estimate.
1) PER-POINT METHOD:
This method counts each fixture as a point with a common value.
A light switch is worth $100, so the project estimates 100 points. The whole project would be quoted at $10,000.
This way of estimating is easy, but manual calculations are also inaccurate. It doesn’t account for labor costs.
If your contractor has done similar projects, this method may work for you because it’s simple.
2) LABOUR-UNIT METHOD:
A labor unit is the average cost of labor per unit of output.
In this method, a value is assigned to the labor required to install the fixture or hardware.
Let’s say one labor unit is worth $50. Installing a power socket is one unit of labor while installing a sensor is three.
There are two ways to get labor estimates: the shop average and the job average.
The first method divides the total field labor rate over the last 12 months by the total number of labor hours. The latter estimates costs based on job complexity.
3) ASSEMBLY ESTIMATING METHOD:
Electrical estimators often use this method to include labor unit and material costs. Instead of seeing materials as one thing, they are seen as made up of many parts.
Pre-build estimation is more accurate than labor unit method takeoffs. The units for assembly estimation are for the whole project.
However, there are still risks with the aforementioned per-point technique.
The pre-build method is an advanced version of the per-unit method.
4) DESIGN AND CONSTRUCT METHOD:
This method integrates the design and estimating processes, allowing for a collaborative approach between engineers, designers, and estimators. The design-build team works together to develop the project design while considering cost implications at each stage. Continuous feedback and cost analysis help in optimizing designs to meet budgetary constraints without sacrificing project requirements.
Since it is a complex method, electrical contractors are usually involved in the design and execution process.
Aside from assigning costs to materials required, these electrical estimators are also tasked to complete details of the project, including design methodology and equipment expertise.
This estimating method has more control over the project, resulting in the estimate of the costs being more accurate.
5) GUESSTIMATE:
This method is not for complex projects or industries that require accurate cost estimates. So, if you’re good at estimating, go with this method. If you’re new to this, don’t use this electrical estimation method.
Small contractors often use their past projects as a reference for future electrical estimating.
However, if you want to do a good job, the process is more complicated than guessing.
6. ELECTRICAL ESTIMATION SOFTWARE:
Electrical estimation software is the best choice for small and big electrical estimation projects. These tools can automate the complex calculations, reduce the manual errors and save time for estimators. They have the ability to generate accurate material list, labor costa and project timelines. Electrical estimation software simplifies the estimation process to help create competitive bids and deliver high quality services to the clients.
If you want to transform your bidding process, contact TurboBid. Our trusted electrical estimation software frees up valuable time so that you can focus on a task that matters the most.
What is the Best Method?
Though there are many electrical estimation methods but the best is the one that fits the requirements. Every estimation method has its pros and cons. We hope the above-mentioned methods will help you provide accurate estimates that help contractors win bids, plan resources, and successfully execute electrical construction projects.
Also Read: Estimating Software for Electrical Contractors to Streamline the Process