Electrical Estimating – Page 3 – Candels Estimating & Training

Construction Proposal Letter

Construction proposal letter: This document spells out a detailed picture of everything involved to submit a solid bid. A good portion of the estimating process involves completing the take-off, checking it for accuracy, making labor adjustments, applying your overhead and direct job expenses, and deciding how much, if any, profit you want to put on the job to come up with your sell, or bid, price.

Now that you have that completed, there is a very important step before you send your price to the general contractor or construction manager. It’s called a proposal, or scope, letter. In effect this document becomes the first legal correspondence of what your price includes and does not include. You can always rely on this letter if you prepare it properly.

Construction Proposal Letter- The “must do’s”

Most companies have a standard format for completing the proposal letter.

Always state the project name, address and a job number, if available.
List the drawings and their respective dates on which your proposal is based.
- This is very important since you want to make sure that, if by some chance you received the wrong set of drawings, as least you have documented the set you were working with. Accordingly, if you received any addenda or bid clarifications, be sure to list what you received with the date, again to cover yourself in case you did not receive a particular document.

Construction Proposal Letter: State what is included

In the proposal letter, list all the items that are included in the proposal. There is a fine line between not listing enough and listing too much, but I always like to include standard and “big ticket” items.

Standard items would be lighting, lighting controls, branch devices; state what you carried and what the wiring methods are for these items. For example, “lighting with branch run in MC cable with EMT home runs as specified.”
You can also do the same for mechanical equipment connections (don’t forget to state whether you carried the disconnects), fire alarm, tel/data, and other low voltage systems.
For feeders, state what you carried for the primary conduits, secondary conduits, all the way to the last point of distribution. There is typically a lot of money involved in the distribution system, so be specific about what you carried.
If the specs call for Schedule 80 versus Schedule 40 for the primary, make sure you spell that out in your proposal instead of generically stating “incoming service primary run in PVC.”
If there are any special or unusual items in the take-off, mention them in your scope letter. These could include items such as conduits to the roof for a satellite dish, spare conduits for future equipment, or special systems.
If your job includes fees, permits, sales tax, utility company charges, make sure that you state that in your proposal.

Construction Proposal Letter: State what is excluded

Detail the items that are excluded from your proposal.

Examples: cutting-patching-painting of walls, concrete housekeeping pads, transformer or generator pads, site pole bases, and concrete encasement of duct banks. If any items are existing, exclude them and make a note that they are existing.
If any work is by the general contractor or other trade, exclude these as well and mark them “by others.” This acknowledges the item rather than ignoring it and hoping that the general contractor will intuitively know what you are talking about.

Construction Proposal Letter: State your terms and conditions!

At the end of your proposal, state any “terms and conditions” upon which your proposal is based.

Length of time for which your proposal is effective
Typical working hours such as Monday through Friday, 7 am to 3:30 pm, excluding major holidays.
This may sound like overkill, but you never want to get stuck paying your crew overtime because you did not exclude overtime work from your proposal.
Finally, make sure you clearly state what your proposal price is. I know some contractors that not only list it numerically, but actually write out the dollar amount–“proposal price is $850,000 (Eight hundred fifty thousand dollars).” Be sure to list any alternate pricing, as well, as either an add alternate or a deduct alternate price.

You have completed your bid, written your proposal letter, and now it is time to submit your price.

The Bid Process & Following-up

Construction Bid Process: Our estimating process has now taken us to the point where we are ready to submit the bid.

Our take-off is complete and checked for accuracy
We applied labor adjustments
We included and reviewed our quotes
A detailed scope or proposal letter is written to support our price

There are two bidding situations that are likely to occur: either a public bid opening or a private bid.

Public Bid Process

If your job is a publicly-funded project, it will be a public bid opening at a specified place and time meaning your are bidding “plans and specs” and usually no exclusions can be taken. In a public bid situation, you might be bidding as a prime or a sub, depending on how the job is being put together. In other words, you might be bidding on the electrical bid package or you may be submitting your electrical price to a general contractor who will be bidding as the prime. In either scenario, you typically do not get a second chance. The low number wins the job, precluding any problems in the scope review, which we will discuss later.

Private Bid Process

For privately-funded projects, the bid process is quite a bit different. You prepare your proposal the same way, but what happens when you submit your price is anyone’s game. Again, you may be bidding as the prime contractor or as a subcontractor to a general contractor or construction manager. And there is a careful strategy about to whom you submit your price, when you submit it, and the numbers you actually submit.

For example, if you have a good working relationship with a general contractor, you will probably give him a better price than someone with whom you have never worked. Even if you have worked with a contractor before, please be careful about submitting your price too early! By doing so, you make yourself a “target,” or that “number to beat.” If you get hounded for a number early, you may want to respond with something vague like, “I am think around $1 million; does that number look in the ballpark?”

Ask the GC for Feedback

Based on the feedback you get, you may have some inside information about how your bid number actually looks. Although you will have a specified date and time at which the bids are due, unlike a public bid opening, your numbers will not be read in public, and oddly enough, the low bidder may not actually be awarded the job.

How could this happen, you might ask. Well, simply, the answer is negotiation.

Before a job is awarded, the entity who has solicited the proposals will conduct scope reviews, typically with the three lowest bidders. During this process, the plans and specs are reviewed, and you will be asked whether or not you covered certain items in your scope of work. This process helps “level” the playing field and determine whether the low bidders actually covered the specified scope of work. In a private bid situation, you can “exclude” items from your bid, unlike the public bid opening arena.

During the scope review, you will have a chance to clarify why you included or excluded an item, and subsequently you may be requested to add something to your bid based on the outcome of your scope review.

“What can I do to get the job off the street today?”

There can be a lot of game playing in the bid process. The general contractor may tell you that “your price is in the mix, but someone else is lower.” In these situations, there are a number of strategies you can employ.

The one we recommend is the direct sales approach. Ask the question, “what do I have to do to get this job off the street today?” Remember, the idea is to actually close the deal! At the same time, I would caution you:

Never chase someone else’s number unless you are sure you can do the job for that price.
You should always complete a detailed take-off before you bid any job so that you know your costs.
Never bid a job below your cost, thinking you are going to make it up in change orders. Although change orders still are issued on jobs, the economy is not like the “good ol’ days” when the value of the change orders often exceeded the original contract value.
- Sometimes there are bidders that put out an extremely low number. Once this bid is submitted, it now becomes the number to beat because let’s face it, everyone wants to put as much money in their pocket as possible. Again, this is a dangerous situation. The general contractor will want to buy the job for this price, yet, this low number probably was not based on a take-off, and if it was, something was undoubtedly “missed.” This may be a tough situation to combat, and again, don’t chase someone else’s number unless you can do the job for that price.

Sell your Strengths!

However, if you are privy to information about that low bidder that may affect his job performance, then by all means, sell your bid with your company strengths versus your competition. As they say, “it ain’t over, ‘til it’s over.” As with most things, persistence is key. Never give up unless you know the job is really gone.

The next and final article will summarize everything and give you some thoughts to ponder.

Design-Build Projects: Clear Communication Is Key

What is a design-build project?

A design-build project is one that is not necessarily drawn or engineered, but one that has some sort of written scope and building footprint to use.

Design. (di zīn’)(verb). To prepare plans for work to be executed

Build. (bild) (verb). To cause to be constructed.

Design-build. (di zīn bild) (verb) To prepare plans resulting in construction.

Design-build estimates are often confused with budgets. They are not the same. (That is not to say that a budget cannot turn into a design-build.) Because most owners have fiscal restraints that affect their capital investment, they depend heavily on the estimator to develop accurate cost forecasts at every stage of the project. Therefore, an estimator must have a comprehensive understanding of the costs of labor, materials and equipment, and the means and methods of both design and construction in order to accomplish the “design-build” task.

How do design-build projects come about?

Often design-build projects will result from a municipal or state Request for Proposal (RFP) based on a written scope. Relationships between general contractors, building owners, and an electrical contractor may also result in the parties developing a design-build project. Relationships are not only key to developing a solid business, but can lend a comfort level to owners or GCs to the point where that comfort level influences project development. An electrical contractor might “be in the right place at the right time.” Or, an electrical contractor submitted a budget price for a project based on conceptual scope which later turns into a design-build project. The design-build process may be faster and more efficient than a conventional design-bid-build project.

What/who is involved in a design-build project?

The complexity and scope of design-build projects will vary based on the needs of the owner or ultimate user of the building. There is a huge scope/cost difference between a project requiring simple “lights and plugs” versus one that involves the entire infrastructure of a building, including the electrical service, HVAC requirements, circuiting, lighting, branch power, and any customer needs for wiring of specialty machinery. Depending on building use (e.g., an office building versus an industrial or manufacturing plant), the complexity of scope will change as well. Building use should always be taken into account when completing a design-build project.

Better results will ensue when everyone involved in the project is involved early on and communicates their goals clearly. This team might include the owner/developer, general contractor, electrical contractor, mechanical contractor, plumbing contractor, fire protection contractor, the site contractor, architect, and engineer. All of these players may not necessarily be involved in every project. Involvement simply depends on the scope of work and the expectations of the client.

Understanding your client expectations and needs (and also code issues!)

Client expectations for design-build projects should be determined as early as possible, saving time and money for everyone involved. Communication cannot be underestimated! Ask questions! Ask questions! Ask questions!

Example: a line from an RFP that states “lights and receptacles to code” and the project is a proposed office building. To some, this may mean 2’ x 4’ lay-ins to equitably light each room and at least one receptacle on each wall, and telephone/data outlets.

Local and national codes dictate a certain foot candle output based on occupancy, but not necessarily the style of the light fixture itself. Esthetics cost money!! Again, client expectations come into play. They may expect direct/indirect aircraft cable hung fixture versus an industrial shade or simple 2’ x 4’ lay-in. Parabolic lenses are more expensive that prismatic. Does the customer have the expectation of a parabolic lens because the office is for the president of the company? Exit and emergency lighting must also be considered because by code, exits must be marked and emergency lights help mark the path of egress from a building in case of an emergency. However, there is a huge cost difference between providing light fixtures with emergency ballasts versus wall mounted emergency battery units.

There are no placement requirements for receptacles in office buildings. However, the expectations of the client might be at least one on each wall, probably more. Also, will there be a need for special receptacles, such as GFIs or IG receptacles? Will the proposed building have a dedicated computer room that might potentially need a special grounding system underneath the floor?

What is the ultimate goal of a design-build project?

The goal of a design-build project/estimate is to identify the true costs of items to determine along the way if the cost of that item is feasible to the owner or developer. Identifying the proper scope will always be a crucial element of this process. A minimum/spec job will cost less than a building designed to purpose/function. Code issues and utility company requirements must be considered.

What kind of building is it?
What is the building construction?
What are the needs of the potential tenant(s)?
Did the customer give you a list of equipment that will need wiring?

Cost efficiencies and energy rebates of certain types of fixtures may be important. If the design-build project were to be based strictly on “cost to install,” the developer may be satisfied but the owner or tenant may not be. In the long run, the total life cost of the fixture will be more important, especially as energy costs rise. The installed cost of a T5 fixture will be higher, but the life cost will be lower due to lower energy consumption and utility company rebates.

CAD drawings and engineer’s stamp

In the process of a design-build project, you will be relying on a CAD operator to draw the building and its systems for you. CAD drawings are efficient since any changes or modifications can be easily made and replotted for further review. You can expect to pay, depending on your area, about $50-$75 an hour for CAD services.

Once the customer is satisfied with the design and the drawings are done, an engineer will need to review them and provide an engineering stamp. Please ensure that the engineer you use is licensed in the state where the project is taking place. If not, see if the local jurisdiction will accept an engineer’s stamp from another state. Engineers typically charge by the page, with fees ranging from $200 to $400 a sheet, or a percentage of the total electrical cost. Check around. Ask your local businesses who they are using for this task.

What are the risks and potential pitfalls?

The largest risk an electrical contractor takes in design-build projects is doing all the work, only to have the developer take the design and proposal and put it out to bid. The lighting and switchgear vendors who have helped the electrical contractor may lose out too. Word to the wise, be careful! No one likes to work for free but if developers can get a building designed for free, they will!

Sometimes an architect will be involved in the early design phases of a project. If so, the architect should be involved in all stages of the process as well. Many times accent lighting, illuminated handrails or landscape lighting will not be defined early in the process; this can become an issue after all the building loads have been calculated and subsequent switchgear has been designed. If you have given the client a Guaranteed Maximum Price (GMP), you should be aware that these architectural design changes will impact your bottom line!

Finally, electrical contractors should always consider whether they can actually meet the needs or requirements of the RFP. Please consider all parts of the scope of the project. If the project requires high/medium voltage work, do you have the experience level or have you established partnerships with other electrical contractors in your area with that expertise? This is especially critical for a smaller EC who takes on a larger project. Other systems to consider are tel/data, low voltage systems, and specialty communication..

Can I make any money working on design-build projects?

You most certainly can! The key to design-build projects is to foster communication about expectations, code requirements and design requirements throughout the project. If you have detailed your proposal/scope (as a lawyer would), you should have no problem being comfortable with your price and margin. If you have done a detailed take-off from your plans, you will have identified your true cost, which is the starting and ending point of any electrical project.

The design-build process can be a rewarding one, especially if you have made a profit! The key to success is to fully understand your client’s needs, the building use and construction, and the team that will be involved in the process. Clear, continuous communication with all parties will ensure that the project is completed on time to the team’s satisfaction. There is a huge difference between designing to a minimum/spec versus designing to a purpose/function. As long as you understand what type of project you are involved with, you will then understand how to proceed and ultimately make a profit.

Electrical Estimating and Take-offs: Feeders

Heavy material cost and labor dollars in the feeders!

As we continue to discuss the electrical estimating and take-offs, the most material-cost-intensive part is the electrical feeders. Pay special attention to wiring methods. Most of the time, you will be providing copper conductors, either in PVC, EMT, or GRC depending on the application. If the GC asks for an alternate for aluminum wire, you will have to upsize the wire and conduit sizes since aluminum wire does not carry the same ampacity ratings as copper. Make sure that the panel will accept the upsized wire. Although the National Electrical Code may state that you can use aluminum wire under certain conditions, the local code or the building’s standard may not. Confer with the AHJ if there is any doubt. Look at the riser. Often engineers upsize the conduit. If the project is a public bid opening, you should price exactly what you see on the drawings. However, for private jobs, you can size the conduit to code, but make sure that you qualify this in your proposal.

Switchgear and Panelboards

When applying labor to switchgear and panelboards, many estimators spend time “building” a panel, making sure they have all the labor for breaker fill. In my professional opinion, this is a waste of valuable estimating time. As an estimator, determine the average time to install a 200-amp panelboard, and use that in your estimate.

Make sure that you give your switchgear vendors enough time to quote the switchgear. Review your quote for completion. Beware of incomplete quotes! For generators, ensure that your quote includes the ATS’s, expensive load banks and testing.

Think about your electrical estimating and take-offs: How will you get your switchgear, etc. into the building? For existing buildings, is there room to bring these items in? For a new building, will you need rigging or a crane to set these items in place? If you are hiring a crane, check with your local jurisdiction about road closures and permits. Will they have to be set on a weekend, incurring extra costs? All should be factored into your take-off.

If mechanical disconnects are shown on the riser but will be provided on the equipment, make sure that your switchgear quote does not include them; and likewise, if you have to provide them, make sure your quote reflects that. We generally exclude generator fuel, start-up and testing. If you don’t exclude what you don’t “own,” you might end up owning it anyway.

Utilities

Another good chunk of your material costs with electrical estimating and take-offs will be the incoming utilities. Know your local code and what your local utility company provides. Often, the electrical contractor will own the incoming conduits, and the utility company owns the primary wire and transformer. Read the specs carefully to ensure that you are estimating the appropriate site conduit, noting the difference in price between GRC, Schedule 80 or 40 PVC. Do you own trenching and backfilling? That usually depends on the area of the country you are in. Do you own the transformer pad?

Reviewing the above items will help ensure you’ve done your homework with this part of electrical estimating and take-off.

Construction Estimating Process Starts Earlier than you Think

Construction estimating process: Mistakenly, many construction professionals believe that the estimating process starts with the take-off. In reality, the estimating process starts much sooner than that, and it requires careful thought and consideration of many factors. So before you unroll that set of plans and uncap a highlighter, consider the following.

Start with knowing your business

It would stand to reason that contractors know their own businesses, right? Yet every day, we speak with owners and managers of businesses that do not know their overhead, labor or material costs, or even how much money they made (or lost) on a project. We’ve even met a few contractors that think that if there is money in the checking account at the end of the week, all is well!

Realistically, a contractor should not even consider bidding any projects, until they know the costs of running their company, and how much revenue they need to generate in order to cover their annual overhead. This is where a good relationship with your accountant comes into play. Quite frankly, if you don’t have a good relationship with your accountant, try to make it better or find a new one! Your accountant is the person that can help navigate your business into successful waters. That starts with knowing your overhead costs, and how to apply that to your estimates to make sure that your costs are covered. You can apply your overhead as a percentage rate at the end of your bid, or you can carry a “fully burdened rate” when you apply your labor rate/costs to an estimate. Either way works, but your accountant can explain the benefits of using one method or another for your company.

Analyze what project size you can handle

What types and sizes of projects have you successfully managed in the past? Many projects require bid, payment, and performance bonds, so another person critical to your company success is your insurance/bonding agent. Each company should understand its bonding capacity, both per job and the aggregate amount. If you cannot bond a project of a certain value, why chase it? Your insurance agent can also advise you on the steps to take to raise your bonding capacity over time.

Consider your labor force

In the construction estimating process, labor is the biggest variable in a construction project because of the human factor. You can estimate and predict material prices, but you cannot always ensure that your field labor will perform to the standards that you have estimated. Labor composition is important to your success! Both union and non-union contractors have unique circumstances with labor. Union contractors rely on the union labor available at the start of the project. (That isn’t to say that a union worker cannot be employed continuously by the same company for many years and many projects, just to clarify.) Non-union contractors must be able to continuously employ or recruit qualified workers. In either case, company management must evaluate the level of experience and competency of the workforce, when deciding the type and size of projects to bid.

It would stand to reason that a company will bid on projects on which they have the experience to complete the project and turn a profit. If a company has absolutely no experience in a type of project, they should probably think twice about bidding it. Of course, the only way to get experience is to take a project to gain the experience. A company may make a strategic decision to do this to break into a market, knowing that for the first few projects, there will be a learning curve and the anticipated profit may be low.

The labor component also includes subcontractor labor. A general contractor estimator will solicit bids for various pieces of construction such as site/civil, concrete, structural, mechanical, electrical and more. Having good relationships with subcontractors will ensure that a fair price will be reached, and that the work will be performed to the specifications. In many cases, the work of the subcontractors will make or break a project. The better the relationship and the communication between parties, the better the process goes.

Finally, estimators of every trade have their own methods to determine the cost of material on their projects. An important part of that is making sure that commodity material pricing is constantly updated in the construction estimating process to ensure that your estimate includes realistic prices, whether you are estimating a project yourself or putting together an estimate based on a multitude of subcontractor proposals.

You know your company now! Do your customers (or potential customers) know you?

Getting to the point of knowing your business, its costs, and its strengths leads to the point of wanting to find the right work for your company. One thing that your company should consider is: Do your potential customers know you? This is probably something that a lot of company management doesn’t think about too much because they may be fortunate enough to work for a long-term, well-established company with a great reputation. However, every company starts somewhere. What if a company is young? How does that company gain a reputation that will enable them to get more work?

The power of relationships

When a company solicits a bid from several companies and they have knowledge and/or experience with two out of three companies, guess who has the better chance of project award? It’s probably going to be one of the two companies with a relationship. Relationships can also help your company find private projects and jobs that the customer already has. Contractors who put time and effort into building and maintaining relationships with their client base, making it an integral part of their business, are generally more successful than those who don’t. On the whole, this is an advantage in the construction estimating process.

Also, do not underestimate the power of advertising! Granted, advertising has changed a lot over the years, and it is much easier to been seen and known within the realms of social media. That’s a good thing. However, the old “tried and true” methods of industry events, trade shows and the like are still viable ways to build your brand. It really does make a difference! Industry associations, such as NECA or IEC (union vs. non-union electrical associations), Associated Builders and Contractors (ABC), Associated General Contractors (AGC), American Society of Professional Estimators (ASPE), the Consulting Estimators’ Roundtable (CERT), and even local civic organizations are all great networking options. Pick the organizations and advertising methods that you think will work best for your company and can support you with the construction estimating process.

When to bid, when not to bid…

Company management must decide what to bid based on the size and scope of each project as it is important for the long-term success of the company. Some of the factors that a contractor must consider determines whether the project will be desirable to bid, and ultimately be profitable. Where is the location? Is it close to the contractor’s office or will a significant amount of travel time be required, adding extra expense to the cost of the project? Does the company have a relationship with the entity soliciting the bid? Are they reasonable to work with and do they pay their bills? What is the size of the project? Can the contractor handle a project of that size and do they have experience in that type of work? Does the contractor have the manpower, equipment and materials required to complete the project on time and within budget? What is the estimated time to complete the project? If a schedule is compact, labor efficiency will be lessened due to possible overtime work and stacked trades on the project. Finally, what are the liquidated damages if the project is not completed on time?

Ultimately, a contractor must decide if the potential rewards outweigh the risks of the project. And, the “right” project for one contractor may not be the right fit for another contractor. The ultimate goal is for each contractor to know their strengths (and their weaknesses) and to capitalize on projects that can ultimately earn a profit. After all, isn’t that why we are all in business?

Is it worth it to sink time into the “budgeting” phase?

When a project is in its infancy, a company may decide not to engage in the project because a project is rarely awarded in the budgeting phase. A company may expend a lot time and effort into a budgeting a project, while running the risk of never being awarded the project. It is frustrating for contractors who budget the same project many times in hopes of an eventual project award, to only then find out that the construction documents are issued and they are bidding against companies that did not put any effort to get the project to that point! Certainly there are no guarantees of a project award, but when a company budgets the same project several times, it would stand to reason that the company would receive some special consideration in bidding the project. The only way that this is guaranteed is in a design/build project where the entire construction team works together to design and build the project.

Construction contracting can be tricky. Knowing your company’s strengths and weaknesses will guide your company to bidding the “right” projects, and ultimately make a profit. Relationships with your customers, vendors, subcontractors, accountant, and your bonding agent enhance the estimating and construction process, and will lead to a more successful business.

Quotes and Expenses: Checking your take-offs for accuracy

Quotes and expenses are highly detailed and an important step throughout your estimating process. Check your take-off for accuracy with these steps!

Summarize your estimate
Sort the material cost from high to low
Does everything that is supposed to have a cost associated with it have one?
Does anything look unusual? (Sometimes in our rush to get things done, we type fast and “fat finger” an entry…for example, you might have wanted to enter a quantity of “7” but you ended up typing “77” or worse yet “777,” which can really throw things off.)
Sort your labor column from high to low. Does everything look normal?

Some other tips!

For every 100’ of EMT in your estimate, you should have at least 10 couplings.
For every junction box, you should have an average of 3 to 4 wire terminations.
For every 100’ of pipe (EMT, PVC, rigid), you should have at least 3 times the wire, or 300’ plus slack, plus 100’ of ground wire.
For an average job, your material cost plus quotes should equal 1/3 of your cost.
For every project, you should know the square footage. The ratio of labor hours to the project square footage can be telling. For a labor intensive job, this ratio should be 20-25%. Conversely, for a less intensive job (building core/shell), this ratio could be 10% or a little lower.

Generally, you should always complete a detailed take-off versus “square footing” the cost of a job. However, if you keep good historical data, an average cost per square foot for a particular building can be helpful to check to see if your numbers are “in the ballpark.”

Quotes

When you receive quotes (especially for lighting), check the quantities.

Does the quote match the counts that you provided the vendor? Often the vendor uses the first set of counts that he is provided, but they may not match yours. Differing quantities (high/low) can make a difference in your bid price (and the bid price of others), so be careful!
For gear quotes, check the bill of material.
Does it contain all the items from the riser?
Is it the right manufacturer?
Sometimes the items that a particular vendor doesn’t carry are simply excluded from his quote, and he might not tell you about it to make his price look “better.”
If your project requires “attic stock” or “spare materials,” make sure those are included in your quote.
Specialty testing can be an expensive item to miss. Make sure you know what you own, and be sure to include the price in your estimate.
Buyer beware! Ultimately it is the bidder who is responsible for everything on the drawings, not the vendor!

One last word about vendors. If you do not cultivate relationships with your vendors, they will be less likely to work with YOU on bid day. In today’s bidding world, you need every advantage you can get, so relationships become even more important. You won’t get the “whisper” number on bid day if you do not have a relationship with your vendor.

Direct Job Expenses

Direct job expenses (DJE) are costs that are directly related to the project. This includes:

Lifts, scaffolding, staging or ladders.
A place to store your material for the project which may include a trailer for a field office with fax/phone/network connections, computers, phones, copiers and furniture.
A site vehicle/shuttling costs. Depending on the site, you may also have to include money for parking or if the lot is remote, money to shuttle your workers from the lot to the site.
Depending on the tools being used on the project, it may include the appropriate training and certification that your electricians will need in order to work on the site.
- This could include lift specific training, harnesses and PPE, and NFPA70E and OSHA 10-30 training. If your project requires this, it is best to cover these expenses, and make sure you can have the training completed in time to start work on the job in case you are awarded the project.
If there is a generator or large switchgear on the project, rigging should be included as a DJE, as well as the cost of permits to complete the rigging such as “over the road” or “wide load” permits.
Check for “factory witness testing” and load bank testing also. Often general contractors will require a designated person at the factory to witness the testing of the generator.
Finally, don’t forget to include money for small tools! They can account for 2-3% of the labor cost of the entire project.

As with the take-off phase, checking your take-off and applying quotes and direct job costs takes time.

Lighting Fixture Take-offs & More

Lighting fixture take-offs need serious consideration.

The lighting is counted, the branch is wheeled, and you, the estimator, have sent your lighting counts to your vendors. Before you move on to the next system, let’s talk a minute about take-offs in the estimating process for lighting and dimming controls, daylight harvesting, and occupancy sensors.

Occupancy Sensors

Occupancy sensors can be like a simple switch. The light goes on when someone enters the room, and if the sensor does not “sense” anyone in the room, the light turns off. However, lately we have seen that there are many types of occupancy sensors which work in concert with lighting control and dimming systems. I must say, the first few times I saw a lighting control riser, I thought it was complicated and intimidating! However, when you break down the pieces, you realize that generally, for each item in the system, you need a stub-up or a box or both. And you must assign a labor factor to each as well as a material quote from your vendor, and carry the labor and material for the wire. That’s it. More daylight harvesting systems are shown lately, as a way to save energy on bright, sunny days. In this case, the sensor detects the presence of daylight, and adjusts the building’s lighting accordingly to save energy.

Branch Devices

Moving on to branch devices, take-offs for these items are pretty straightforward. The things you want to watch out for are notes pertaining to tamper-proof receptacles. They are not as expensive as they once were, but still a good deal more than a standard duplex. Leviton Decora devices and faceplates are certainly more costly than standard devices. Sometimes there are keyed notes or a schedule for items requiring something other than a standard duplex, even though the symbol on the drawing would indicate a standard duplex. Again, it always pays to read the drawing keyed notes before you start so you can be aware of anything “special” you might have to take off.

The same is true of kitchen equipment. There is usually a schedule that will either state the proper receptacle. Or, you will be provided with information regarding voltage, amperage, and the number of wire. Then you will have to cross-reference this information with the NEMA configuration chart. This can be found either in the NEC code book or in one of the cross reference books, such as Ugly’s. I guess my point is…completing a take-off is more than counting. You have to know what you are looking at and what to look for.

Branch Wiring

Do you wheel off your home runs? What do you carry for each item? You can certainly review the drawings to see what you should carry for an average length for a receptacle, and then take the cable or wire off as you do take-off each device. Always wheel off the branch for specialty outlets to ensure that you have enough cable for these items. I look at the specs and determine how many circuits the specs say to carry in a conduit. If there is no information about this in the specs, then I do my conduit fill to code. Keep in mind that you should run your lighting home runs in separate raceways from your power and certainly from your low-voltage wiring.

Mechanical

Take-offs with mechanical equipment can be made much easier if you print the mechanical schedule and put your lengths next to the schedule as you find the equipment on the floor plan. Often, however, the electrical drawings will contain a mechanical schedule from which you could do the same thing. This is handy because you will be able to determine the wiring and voltage requirements of the unit, and whether or not you will have to carry the disconnect. Keep in mind that even if you do not have to carry the material cost for the disconnect, you will still have to carry labor for wiring the disconnect and any control wiring. Pay special attention to whether the equipment is inside or out. Anything outside will need a NEMA 3R disconnect, which is much more pricey than a NEMA 1 disconnect. If the item is in an area designated as “explosion proof,” then you’ll need to use the appropriate wiring method for the Division and Class, and use the appropriate explosion-proof fittings, devices, and disconnects. This can add additional cost to your job. In any event, you want to be sure to cover your costs appropriately.

Installation

The installation of feeders, switchgear and panels is often where most of the money in your job is. It is not just a matter of wheeling off the “from and to” this panel and that. You must ensure that you are using the appropriate method of running the conduit, be it in the slab, on bar joist or on steel beam. Many younger estimators wheel the feeders very tightly, but you want to be sure that you cover your cost and cover extra wire for terminations. Don’t forget to labor your panels and switchgear as well.

Many software programs offer an option to “build” your panel with the appropriate breaker fill. We have found that it is much more cost-effective to come up with labor hours that work for you. For example, we carry 6 hours for 100 amp panels, 8 hours for 200 amp, 10 hours for 400 amp, and this formula works for us. Be sure you know how the panels are going to be mounted. Will they sit on a pad or will they be mounted on the wall? If mounted, will you have to carry Unistrut for mounting? Also, do you have to carry the housekeeping pads? Probably not, but you should always be sure to exclude concrete work if you know you don’t have to carry it. The same would be true of the transformer pad or, if applicable, the generator pad. Speaking of the generator, don’t forget to carry the rigging; and determine whether you need to carry generator fuel, start-up, and testing. If you are not responsible for it, please exclude it from your proposal.

Does your project have emergency feeders? Please read the specifications carefully as emergency feeders may have to be run in MI cable, or they may have to be run in EMT that will be concrete encased. Again, be sure to exclude the concrete work if you know you don’t own it. If you have not bid a job with MI cable lately, call your supply house or check your material pricing service to ensure that you are carrying the right price.

Utilities

Incoming site utilities are generally run in Schedule 40 PVC, but read your specifications and drawing notes to ensure that you can use Schedule 40 PVC, as opposed to Schedule 80 PVC, or PVC coated rigid. In the event that there is a conflict between the drawings, the notes and the specs, submit a Request for Information (RFI). Certainly there is an appreciable labor and material cost difference between these methods, and while you want to cover your costs, you also want to be sure that you do not artificially inflate your labor or material cost. Also, while you will have incoming power requirements, you may also have incoming telephone, CATV or fiber, so be sure to carry what you should. Read the specs to see if you are responsible for manholes or pull boxes, too. Site lighting–are you responsible for site pole bases?

Low-voltage systems may or may not be part of your bid package on any particular job. Be sure you know what to carry: whether it’s simply “rings and strings” and EMT stub-up, or a full-blown system including device installation, pipe, and wire.

Construction Take-offs: Much More than Counting

There’s much to review before you start counting

When it comes to estimating construction take-offs within the estimation process, there’s much more involved than just counting.

A thorough review of the specifications helps you, the estimator, map out the entire bid process and set up your take-off. Most estimators want to “get the counts done” before they really review the job. That’s because they feel like the sooner they get this information, the more likely they are to get the quotes submitted on time. Although I agree that getting the counts out is important, I recommend “walking the drawings” before you even uncap your highlighter. By taking a proactive approach with this step of the process, you can get a feel for the scope of work and building layout – and quite possibly determine anything that seems to be missing from the drawings. You will also determine if there are alternates and allowances that must be addressed.

Construction Take-offs – Review the whole set of drawings

You may find upon your initial flip-through of the drawings that there is no fire alarm shown. It may be that fire alarm equipment/systems are not part of your scope. However, it could also mean there are separate fire alarm drawings you may not have downloaded – or maybe there’s no fire alarm on this particular job at all. Now is a good time to get whatever is missing from the general contractor so you don’t lose any precious estimating time.

Once you review the electrical drawings, you should also review the architectural drawings, looking for information regarding the building construction details. This step is critical in estimating construction take-offs because not only does this information help you determine the appropriate wiring methods as listed in the specifications, but it also gives you valuable data regarding ceiling heights and elevations.

For example, the specs might read “MC in concealed areas, EMT where exposed or subject to physical damage, and Schedule 40 PVC in the slab or underground.” With this spec – and a building made of steel with metal studs and a poured concrete deck with acoustical ceilings in most areas – you’d run your lighting and branch circuits in MC with EMT home runs, running as much as possible in the slab to save time and money. It’s always good to know the building construction up front because you will want to count those items that need to be surface-mounted separately from recessed, and you can measure the slab work “as the crow flies” versus surface EMT that runs parallel with building construction.

Other drawings you should quickly review are the civil drawings, which usually show the location of the incoming utilities, the transformer, and sometimes even site lighting. The mechanical drawings are handy to examine as well because they contain information regarding the equipment specifications and whether or not the disconnects are provided with the equipment.

Before you uncap that highlighter, I must mention one more thing when it comes to estimating construction take-offs. Every general contractor, construction manager, or building owner will tell you that you “own” everything on all the drawings, not just what is shown on the electrical drawings. Many times, items are “hidden” on another trade’s drawings, which is why I suggest you at least glance at the other sets, familiarizing yourself with the job as a whole.

Counts

Now that we’re finally ready to count, you may be asking what’s next in the estimating process. Should you pick up a piece of paper, a pencil, and a highlighter or let one of those snazzy “counting software programs” do the legwork for you? The answer is really up to you. Because I own an estimating consulting firm, we have to be absolutely certain that our counts are correct; therefore, we count or measure items manually with the use of an on screen take-off program. We do not use the “auto count” feature.

I usually count the lighting items first to ensure that I give my vendors plenty of time to get me a quote. On some smaller projects, when I count luminaries, for example, I will put the count directly into the computer software program. However, on larger jobs, we keep the counts in the on screen take-off software. Keep in mind that many estimating programs have count sheets built in, so you never have to use a piece of paper again if you don’t want to. Regardless of the method you choose for the estimating process and construction take-offs, you should always list the fixture types across the top and the drawing numbers down the side so you can easily isolate where you found a specific luminaire. Because you have already reviewed the building construction, ceiling types and heights, you know which luminaires you will have to assign a higher labor factor to, such as high ceilings, other areas that may be difficult to access, or locations where you’ll need to use an aerial lift.

Once your counts are done, it’s time to send them off to your vendors. I know I have mentioned this many times before, but if you do not have a relationship with your vendors, start working on them sooner rather than later. They are the ones who will ensure you get the “right” price on bid day. When you receive your quote, please review it to ensure the vendor has quoted “your” quantities.