Mike Holt Business Newlsetter Series
Mike Holt
Estimating is a skill that can make or break a career or company. Understanding the estimating and bidding processes is essential for your business to remain profitable.

This is newsletter #24 in the series. If you have missed prior newsletters, and are enjoying the series, we encourage you to purchase the complete Electrical Estimating Program. Click on the coupon at the bottom of this page.

The Estimating Process - Estimate and Bid Notes

If you don’t understand something in the drawings or specifications, you might have the tendency to delay the estimate until the last minute. This will result in a late bid, or worse yet, bidding the job at the last minute without all of the correct information.

Whichever method you use to take notes (notepad or electronic file), keep it handy and write down any questions you have as you proceed through the estimate. You will keep these notes after you have completed the bid so use a text document, legal pad, or binder to keep them organized. If there is anything that is unclear, get the answer as soon as possible—don’t wait until the last minute. Submit a request for information (RFI) to the architect or engineer if necessary, but do it immediately. An RFI often requires days to be processed so that a formal response can be provided. Never submit a bid based on verbal answers to questions. Always capture the conversation in email or other written response. If you’re keeping paper job records make sure to print out the responses to these questions and add them to your file.

Keep a request for information (RFI) log in your job folder and include this with your proposal.

Using e-mail instead of the phone can save a lot of time, and will create an electronic documentation trail. If you use text messages or the phone, make sure you write down the answer to your question on the notepad (or the electronic file) when you receive it. Follow up a phone call or text message with an e-mail noting key details, “Per our conversation today, the following will be included in my proposal.” If you don’t receive satisfactory answers to your questions, then either list the exclusions in your proposal, or withdraw your request to bid the job at all. It's better to not bid a job at all than to be left in a difficult situation where you may lose time, money, or ruin a relationship with a vendor or contractor.

Estimating Forms and Worksheets
To quickly and accurately estimate a job, use proper estimating forms and worksheets. They will save time, create consistency, and help reduce errors. They also help serve as a reminder of items that are easily omitted or forgotten.

Different types of construction, such as residential, commercial, or industrial lend themselves to different types of estimating forms or worksheets. In addition, different types of forms and worksheets are required for different parts of the estimate. For example, a worksheet used to determine lighting requirements is different than those used for feeders and service equipment.

Author’s Comment: Estimating software usually contains customizable preset forms for printing and/or emailing your proposals. You can also use a computer to design custom worksheets or order customized forms from various vendors online.

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We'd love to hear from you about this series, and the ways you're using it. Send us your comments and feedback by clicking on Post a Comment below. Look out for the next part in this series a month from now, and please share with your colleagues.


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