Category: Blog

Electrical Estimating Apprenticeship – B.A.D.A.S.S. (Day 3)

The electrical estimating apprenticeship Day 3 started with a review of take-off components which we call B.A.D.A.S.S.

Be a B.A.D.A.S.S.

Years ago, we developed this acronym for our new estimators to remember all the components of bidding documents.

B – Invitation to Bid and Bid Forms

A – Allowances and Alternates

D – Drawings

A – Addenda

S – Scope of Work

S – Specs

B stands for Invitation to Bid and Bid Forms

Just because you receive an Invitation to Bid doesn’t mean that you should bid the project. We discussed having the time, tools, and resources to be able to complete the job per the requirements. Needless to say, if you are deficient in any area, you may have to reconsider bidding that project. 

The Invitation to Bid is your first introduction to the project. It will include project name, location, and bid date, as well as what trades will be required on the project. It will also include information on pre-bid meetings and walk-throughs. Pay attention if attending the walk through is mandatory in order to submit a bid! Also, look around and see who is there. It will give you a good idea of which competitors are considering bidding the project.

Minority participation may be also be required. If you are bidding as a prime, you will have to be sure to satisfy the minority requirements. If you are a minority contractor, pay attention to the bid forms and what your advantage will be. Often you will receive a 10% consideration for the work.

The Invitation to Bid will also include information about whether bonding will be required. We discussed bid, payment and performance bonds. Simply, a bid bond ensures that “you will complete the job for the quoted price.” A payment bond ensures “a contractor will pay your subs and suppliers.” A performance bond ensures “a contractor will complete the job as stated.”

Jobs can either be public or private. Public jobs are bid strictly by “plans and specs” and no exceptions are made. Private jobs, on the other hand, have a lot more latitude.

A stands for Allowances and Alternates

Always review the bid documents, including the bid form and front end specifications for allowances and alternates. Allowances could be required for just about anything. Sometimes it will be a fixed dollar amount to be “used at the discretion of the GC” sort of like a pre-paid change order. Other times, the specs will state to carry a dollar amount for a system that is not designed.

Look at the alternates before you start your take-off so that you can identity the areas of the alternates before you start your take-off. Believe me; this is a time saver!

D is for Drawings

If I have said it before, I will say it again. Always ask for a full set of drawings because you will be responsible for anything electrical regardless of what drawing it is on. Look at the drawing index and make sure you have all the drawings. Review the RCP’s for ceiling type and height and the architecturals for wall construction.

If you follow a systematic approach to your electrical estimating process, you will undoubtedly identify the true cost of the project, which is the estimator’s role.

Day 4 follows with more BADASS tips! Stay tuned!

 

 

Electrical Estimating Apprenticeship – Profit is not a dirty word! (Day 2)

Day 2 of the electrical estimating apprenticeship focused on three things. First, profit is not a dirty word! Second, relationships are important, and finally always ask for a full set of drawings!

Profit doesn’t happen by accident!

In terms of profit, it really is the goal of any “for profit” business. Profit doesn’t happen by accident though. A good estimate will ensure that all costs are covered. Effective project management will assure a profit is made when the job is finished. There are several variables that will determine if a profit is made; material costs and labor costs. Material costs include commodity material costs and quoted (packaged) material cost. Your estimate should include material pricing that is within 3 to 5% of your “buy” price.

Vendor relations are important for quoted (packaged) items!

How to ensure that you get the “right” price for your lighting, switchgear or fire alarm package on bid day? That’s right….relationships. It is imperative that when you send your counts and specs over to your vendor that you include the right bill of material. It’s no secret that the “first counts in” are the ones that the vendors quote, but that isn’t to say that you should sacrifice accuracy for speed in getting the counts out. How do you get that “whisper number” on bid day? Cultivate relationships with your suppliers and be sure to “spread the work around” among the vendors you use.

Labor is the most variable part of a project’s costs.

Labor efficiency relies on the human factor, making labor one of the most variable project costs. An average person works 40 hours per week, during daylight hours. Any variance to the “average” can and will result in labor inefficiencies. When you bid your project, be sure to account for things that can effect labor performance. Labor can be effected by labor schedule, weather, building height, project size and so much more.

It is the project manager’s responsibility, along with the help of the job superintendent and foreman, to ensure the labor goals are met. Generally, when you are 90% complete with a project, you should have approximately 20 to 25% of your labor hours left to complete the project. I know that sounds like a lot, but the electricians are generally the last craftsmen off the project, and a lot of work is required once other trades complete their work.

Relationships, Relationships, Relationships!

Never underestimate the power of a good relationship with the general contractors you work with (or want to work with) and your vendors. Cultivating relationships is important. It is certainly much easier to conduct business with someone with whom you have a good relationship, and it may open doors to private projects that never “hit the street” so to speak. How do you build relationships? A good way is to join business networking groups, or even civic groups such as the Rotary Club or social clubs such as the Elks. It will vary from place to place.

Have you ever noticed how happy people are when you bring them something that they don’t expect? A box of donuts may not get you a job right away, but it may help you get in the door of a contractor that won’t take your phone call. Sometimes the little things make a big difference. Be creative!

Access to a full set of drawings is critical in the estimating process.

At the risk of this blog getting too long winded, I have to mention that when you start a project, make sure you have a full set of plans. Although you will be bidding on primarily the electrical drawings, you typically are responsible for anything shown on any of the drawings. For example, some projects will have electrical, lighting design, and interior design drawings, all showing lighting fixtures. These drawings may not be coordinated so you may have to count off three different drawings for the same area!

Read the drawing index.

A quick review of the drawing index will be the roadmap to the drawings you should really review. Yes, you are responsible for anything electrical that is shown on the drawing, regardless of whether it is shown on an architectural or mechanical drawing. Make it a habit to review all the drawings, using the index as your guide. Remember, it is the estimator’s role to determine the true cost of a project. Sometimes it’s a puzzle and you never know where you’ll find the missing piece.

Stay tuned for this week’s thoughts on the electrical estimating apprenticeship!

Look for Safety Protocols in the Specs

A seasoned estimator will know to look for injury prevention and safety protocols in the bid documents. Some contractors will require that all construction site workers attend a “stretch and flex” meeting every morning. On a recent job that we bid, due to the size and duration of the project and the number of workers this bid line item accounted for a cost of over $1 million over the life of the project! This is something that a company would not want to omit from their job costs before they submit a bid.

From an operational standpoint, avoiding employee injuries is paramount. Check your specs for safety protocols for your jobsite! Here are some tips:

  • Educate employees on safety. Ongoing safety meetings are required on many construction sites. Make sure all employees know how to properly use and store equipment.
  • Provide protection equipment. Some jobs require protective equipment; be sure it is provided to employees. Hard hats, safety vests, and glasses are usually a requirement on most construction sites.
  • Don’t take shortcuts. Taking shortcuts may save some time initially but in the long run, an injury will cost the business owner time and money. Or it could injure (or worse kill) a worker.
  • Monitor safety measures. Check periodically that everyone is in compliance with safety regulations. This gives the business manager the opportunity to correct bad habits before an injury occurs.
  • Keep the workplace organized and clean. Make sure equipment is properly used, and then stored.
  • Have a safety and wellness plan. By having a plan in place, employees should know how to act in case of an emergency.

Businesses should require their to always use safe practices when working, no matter how big or small a job is. With the proper investment in safety protocols and injury prevention measurements, accidents can be prevented, saving a business time and money.

OSHA reports that nearly 6.5 million workers are employed at approximately 252,000 construction job sites in America on any given day. With all of these workers, it is crucial that you are committed to job site safety. OSHA lists five of its safety standards that are most frequently violated.

Include 5 Safety Standards when estimating injury prevention

  • Scaffolding Safety
  • Fall Protection
  • Excavation Safety
  • Ladder Safety
  • Hazard communication

In terms of estimating, review the safety protocol for each job you are bidding. You may find that there are safety requirements and training for field workers that must be covered in your estimate. When it comes to injury prevention, it is better to be safe than sorry.

The 2014 National Electrical Code as been Published

The NFPA has officially released the new 2014 National Electrical Code.  The code is updated every 3 years, so the next one will not be published until 2017.  For any states adopting the NEC on an annual basis, the new code will take effect on January 1, 2014.  Please note, however, that some states do not automatically adopt the latest code.  Check with your location authority having jurisdiction for your local requirements.

If you would like to order a copy, please click here and you will be directed to the NFPA site.

 

Candels Boards the Train to Essex, CT

Candels is on the move!  After nearly 10 years of having an office in Niantic, CT, the Candels team has officially moved to Essex, CT as of July, 2013.

Our new office is located in a historic mill building that once housed the E.E. Dickinson Company, a family owned company established in the 1860’s for the production of witch hazel, a mild astringent which was used as a family remedy for a variety of minor ills.  The company operated on this site from the mid-1800’s until the mid 1980’s when the family sold the business.  What remains of the original site is the large water tower, the main office building, and a tank building, where our office is located.  Our new office is also steps away from the historic Essex Steam Train and River Boat Ride, owned by the Valley Railroad Company.  Here you can board a real steam powered train from the Essex Station, built in 1892.  The scenic ride takes in lovely views along the Connecticut River and stops in Deep River for passengers to disembark and take a ride on the Becky Thatcher down the Connecticut River.

There certainly is a lot of history behind our move….both our company history and the historic nature of the Essex area.  With that in mind, we look to the future and our next 10 years in business with hope and aspiration.  And many thanks to our customers who have been with us throughout our journey.  Cheers!