Mike Holt Business Newlsetter Series

Mike HoltThe following is the next in the series on my methodology for electrical estimating. This is a skill that can make or break a career, and make or break a company, and I want to help you understand the estimating and bidding processes so that your business can be profitable.

In this monthly series on electrical estimating, I'll explain how to determine the material cost, labor cost, and the calculation of direct job costs, overhead and profit, so that you know going into a job how you can avoid failure - which in some cases might mean not taking the job!

The following content is extracted from Mike Holt's Guide to Electrical Estimating.

About Estimating - Part 2

2.3 Duties and Responsibilities of the Estimator


To prepare an estimate properly, the estimator must have the ability to mentally visualize the material items required and the order in which they are installed to complete the job. While it is possible to accurately estimate a job without electrical experience, it is unlikely for anything but the simplest of jobs. Even then, it will only be a matter of time before the lack of experience will cause an estimate to be terribly wrong.

Because electrical work is complex, the estimator needs to have electrical construction experience (preferably as an electrician) to envision the need for special equipment and/or services that will be required. Equipment such as scaffolding, man lifts, cranes, trenching, rigging services, and so on, must be included in the estimate in the proper quantity and duration.

Not only do you need to know what is required to complete the job, but you must be comfortable with numbers and math as they pertain to NEC electrical construction and design calculations. You need that in order to best determine the cost of the job and offer value engineering to the customer when it's appropriate. Besides determining the cost of the job, the electrical estimator is often responsible for material purchases and project management information and tracking.

Purchasing Material
Since the estimator is usually most familiar with the job requirements, he or she is often expected to order the material required to do the job and set the delivery schedule. It's important to have good negotiating skills with suppliers to get a competitive price. It's also important to have experience using alternate materials in case there is a problem obtaining timely delivery of any materials required for the job.

Computer-Assisted Estimates. A computer-assisted estimate can easily and quickly provide the material items and quantities needed (Bill Of Materials) for this purpose.

Project Management/Tracking
Often the estimator needs to pass the estimate information on to the project manager so that he or she can manage the material and labor efficiently. Most estimating software can integrate with project management software to make the process seamless if the estimator is willing to take the time to enter the estimate data in detail and keep it current. This information is also essential for job costing once the project is complete.

Computer-Assisted Estimates. A computer-assisted estimate will allow you to organize the scope of your work by providing information about what is needed for each phase of the job.

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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.

This content is extracted from Mike Holt's Guide to Electrical Estimating textbook.
To review or catch up on previous newsletters on Management and Business click here

Comments
  • Todays world is computer based, if you arn't doing estimating on one I dont know how a job can be tracked for future estimates. The software that I use lets me break the takeoff into differant categories & I use them to set differant labor rates & job scheduling. If done correctly the takeoff and schedule should be helpful for the super that is given the job. Review is also easer if time is taken while doing the estimate and enteries are identified. This is all differant from the days of counting outlets and service size that grew up with. The company that I work for does heavy industrial work, change orders are common. If the takeoff items are labled pulling a run out of the takeoff is easy for the credit and it will also give a base for the additional C.O. cost.

    StB  June 11 2019, 12:34 pm EDT
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