Table of Contents
Use Consistent Takeoff Sheets
Adjust Assemblies
Using Bid Breakouts
Review Your Extension Sheet
Use Electrical Estimating Software
Electrical estimating is all about details. As estimators, we need to get the facts, or the facts will get us. When we are looking for these facts, they need to be right, as the wrong facts will hurt us.
The process of checking an electrical estimate for accuracy starts before the bid documents even arrive at the contractor's office. For a contractor to be consistently competitive they need to have consistent estimating processes in place. A good start often is a written business plan. A business plan is a contractor's rudder for their ship; without a rudder it is difficult to navigate the seas. This is true regarding a business plan for a contractor. Married with this business plan is a written pre-bid evaluation for every project. The business plan assists a contractor by guiding them toward their firm's expertise and bid opportunities that follow that knowledge. The pre-bid evaluation will pinpoint those projects that are most likely to be a proper fit for their firm. I use sixteen questions in my pre-bid evaluation; these sixteen questions are the items that most affect our firm's competitive advantage. Each question has four possible answers: extremely desirable, desirable, undesirable and extremely undesirable.
Use Consistent Takeoff Sheets
Estimating procedures should include consistent takeoff sheets. These takeoff sheets will help an electrical estimator consistently takeoff a project in the same manner, job after job. The colors you use to highlight a project are important as well; I want an estimator to absolutely know by the color used what has been taken off. This soon becomes a pattern that helps the bid reviewer, field staff and helps with customer negotiations when a pre-award meeting is warranted. How a project is taken off builds accuracy, confidence and consistency.
Adjust Assemblies
When estimating, assemblies that are used need to include the actual materials used routinely. It makes little sense to take off a receptacle using a 4S box, 4S single gang ring and a Caddy H23 box support when you are actually going to use a 4S bracket box and a 4S single gang ring. Adjust your assemblies so that they are accurate whether estimating manually or with an electrical estimating software system. Along the same line of thinking, use labor units that match your firm's capabilities. Most computer estimating systems come preloaded with labor units for some or all of their available labor columns. While this may be a good place to start, contracting firms need to adjust their labor units to their own capabilities.
Using Bid Breakouts
Bid breakouts make reviewing an estimate relatively easy. When I bid a project I typically use three levels of breakouts. My first breakout is usually the base bid, alternates, value options or temporary power. My second is fixtures, switchgear, fire alarm, special systems, feeders, branch, devices, etc. This second list can become rather long, depending on the complexity of a project. My third level will generally be the drawing number. For large projects where a floor may have sectioned areas, I insert a fourth breakout between the systems and the drawing reference where I will insert the section area. The use of these breakouts will play a major role in the review of an estimate because they break a project into smaller, more manageable sections which are easier to understand and verify.Upon re-estimating the project I found that his estimate had missed the top four floors for all branches. This included all conduit, fitting, wire, labor, overhead and profit that should have been included in this project. Breaking out his bid would have shown this problem.
Several years ago, a contractor asked for a consultation. He had a new ten-story building, and during the bid process he had an excessive amount of conduit in his bid. He did not verify quantities or have his bid broken out even per floor. He turned out to be low bidder and was awarded the project. When I first reviewed it, the job was being completed on the eighth floor and the contractor had been out of conduit for some time. Upon re-estimating the project I found that his estimate had missed the top four floors for all branches. This included all conduit, fitting, wire, labor, overhead and profit that should have been included in this project. Breaking out his bid would have shown this problem.
Review Your Extension Sheet
When my bid is complete, I always print out my extension sheet from my estimating system. Once printed, I scroll down each sheet looking for correct materials, quantities that seem incorrect, correct material pricing, labor units and the ever-important multiplier that is used for all materials and labor units. I do this with a red pen and a 12” ruler and verify every sheet for accuracy on each bid. Once I have completed this check, I make corrections for every item needing repair. I then repeat the process to make sure that everything is correct. Remember, you only get one opportunity to be the low bidder, so you want to make sure your estimate is correct. If estimating manually, this process is just as important if not more so, as all items will be manually input and calculated, thus multiplying the odds of a mistake.
Use Electrical Estimating Software
If using electrical estimating software when completing your estimate, there are several items you should have preloaded into your system. I have used computer estimating programs for years, and all of these items are present on my system. However, I still keep a written copy of all of these items in a three ring binder. This is a throwback to the days when I estimated manually and reviewed this material while completing every estimate.
Have all of your labor rates (including burden) preloaded along with the overhead and profit levels that you expect to use. Any of these numbers can be adjusted quickly on the fly if a change is warranted.
Your typical non-productive labor, direct labor costs and any rental tool items regularly used should also be preloaded into your computer estimating system to act as a checklist to remind you of any possible expenses that may be required. Again, changes to these items for most electrical estimating software systems are typically adjusted at the last minute quickly.
My reviews begin before starting the estimate, when I set up the procedures used to estimate it in the first place. For me, this is working proactively and well worth the time and effort. When both the actual takeoff and entry into the estimating system are completed, it is a standard practice to review my efforts and make any changes needed.
Many contractors have wanted to know the secrets of my success, and this is one of them.