The electrical contracting industry is experiencing faster than average growth currently and is expected to grow by 6% in the decade between 2019 and 2029, which is faster than average for all occupations. Homes and businesses are more reliant on complex electrical systems that require reliable electricity distribution. Electrical contractors design, install, and maintain, electrical systems that power residential, commercial, and community functions.
Successful electrical contractors will be able to bid on and win larger commercial jobs that are driving the market thanks to technologies like electrical estimating software, which helps electrical contractors quickly and accurately estimate the labor, materials, and difficulty of each job.
Greater adaptation of technology like electrical estimating software helps even the playing field because accurate estimating eliminates guesswork and ensures your margins are in place. That means that small contractors can compete for and win large projects.
To break into larger commercial electrical jobs, you need reliable, accurate electrical estimating software. But that’s not all. Read on for tips to help you level up and win more commercial electrical jobs and grow your company.
If you’ve been using spreadsheets and other manual methods to calculate your electrical estimates, you risk making errors that could cost you your margin on the job. But integrating technology like electrical estimating software automates calculations so you can submit precise estimates.
Most software programs come with comprehensive databases that make it easy to access up to date material and labor costs so you can eliminate guesswork.
With consistent and uniform estimates, you can build client trust in your professionalism, and easily match the type of estimates produced by larger companies.
Creating bids for larger, more complex jobs takes time, unpaid administrative time. However, you can more easily and more quickly turn around complex estimates by using technologies like estimating software.
A quality electrical estimating software includes a substantial database of electrical assemblies and the ability to create your own assemblies and use them as you takeoff the estimate. The software will also allow you to generate a complete materials list using assemblies, assign material prices and labor units to items, and adjust for the difficulty of the job by factoring in a percentage of labor hours on the completed bid.
Using software allows you to reduce the amount of time spent manually calculating material and labor costs. This means that you can focus more on business development by identifying jobs that will be a good fit for your team, as well as on project management of your existing jobs.
Great electrical estimating software will allow you to complete a detailed cost analysis and enable you to create various markup scenarios based on actual job plans. Running different pricing scenarios will allow you to create the most competitive bid and win jobs more often.
Flexible software helps you adjust your markups based on real time data and market conditions so that you’re more likely to win the commercial electrical jobs you bid on.
One of the best ways to improve your ability to bid and win larger commercial electrical jobs is to expand your network. One of the criteria for choosing to bid on a particular job should be the ability to receive client feedback on your estimate. If you simply submit bids to a website that gathers estimates from any contractor, you’re unlikely to learn the reasons why your bid was successful or not.
Feedback from potential clients helps you understand what types of bids are winners in a competitive market. Furthermore, you should also have a process to include a post project review so that you can compare your initial estimate with the actual job costs.
Another way to boost your bidding ability is developing good relationships with two or three electrical wholesalers who will provide you with competitive pricing and reasonable pricing on lighting and switchgear.
It goes without saying that larger jobs require a higher up front financial outlay for electrical materials. Make sure you have a line of credit with your trusted electrical wholesalers so that you can easily acquire the materials you will need for the job.
And a larger job will also require a larger workforce. If you need to hire additional hands to complete the job, you want to be totally certain you have cash on hand or a credit line so you can pay your increased staff.
Larger commercial electrical jobs have a lot of variables that can change over the course of the project. Staying on schedule and managing your costs are key to maintaining a good profit margin.
Keeping a close eye on project management will help you allocate and manage your resources throughout the course of the job.
Tracking your project costs in real time shows you when you’re making money. But it’s also important to track and review critical job cost data because it can help you create better bids in future.
If you’re a small electrical contractor who is looking to grow your business, don’t shy away from bidding larger commercial electrical jobs. Small businesses can level the playing field using tools like electrical estimating software. Using electrical estimating software provides small contractors an advantage by streamlining bidding, creating more accurate bids, and saving valuable time.
In addition to bidding smarter and faster, contractors can improve their ability to deliver on more lucrative commercial jobs by maintaining a working relationship with electrical materials wholesalers, using estimating data to manage their projects more efficiently, and analyzing job cost data to get better at estimating overall. If you invest in electrical estimating software, you will have valuable tools to help you create a more competitive and successful electrical contracting business.