Electrical estimating: Which method is best for you?

Electrical estimators play a crucial role in determining the direction and budget of electrical projects. Clients rely on their accurate estimates to decide on contractors and project scopes. However, creating precise estimates can be challenging due to the numerous variables involved. The choice of estimating methodology significantly impacts the accuracy and ease of producing an estimate.

Below are some common electrical estimating methods, along with the pros and cons of using them:

Per-point method

In this approach, each fixture (e.g., power points, switches, sensors) is assigned a common dollar value as a "point." The total project cost is calculated by multiplying the number of points by the dollar value per point. Although this method is quick and straightforward, it can lead to inaccuracies due to its "one-size-fits-all" nature, particularly regarding labor costs.

Labour unit method

This method assigns a value (in units) to the labor required for each hardware item's installation. The total project cost is obtained by multiplying the total number of labor units by the unit value. Although this approach allows for a more accurate labor cost calculation, pitfalls include overlooking labor burden costs and failing to account for differing work conditions.

Pre-build (assembly estimating method)

This method simplifies the counting of takeoffs by packaging elements together and assigning a unit price, which includes necessary materials. However, similar to the per-point method, it can also result in inaccuracies due to improper labor calculations or not considering travel costs.

Design and construct method

This comprehensive method involves the electrical contractor in both the design and implementation of a project. It requires detailed knowledge of design methodology, construction, labor, materials, and equipment. While this method offers a high level of detail, its complexity leaves room for errors at various stages.

Guesstimate

The least accurate and most error-prone method, guesstimating relies on gut feelings rather than thorough analysis. Although experienced professionals may provide accurate estimates using this approach, it is not recommended for those with less experience.

Steps to Electrical Estimating: Review the project and drawings: Begin by gaining a holistic understanding of the project, reviewing specifications, pricing schedules, and supporting architectural or mechanical information. Identify any potential impacts on the project, submit information requests, and note areas that may affect markup and labor costs. Perform takeoffs on your drawings: Modern estimators use automated takeoff software to count items on drawings, saving time and reducing errors. Countfire is an example of such software, offering a comprehensive takeoff sheet with item quantities broken down by drawing and level. Import items from takeoffs to estimates: Transfer item counts from your takeoff to your estimate, including default overheads and markups. Also, determine an hourly rate for the project's labor cost. Assign costs to items: Group items into disciplines (e.g., lighting controls, containment, luminaries, and fire & security) and assign material costs and labor hours. Countfire's intelligent automation speeds up the process by pricing items based on previous estimates, allowing you to quickly confirm or edit kits. Request additional product prices: Obtain quotes from suppliers for items that need pricing. Build strong relationships with suppliers to expedite this process. Countfire allows you to filter products requiring costs and download them into a spreadsheet, which can be sent directly to suppliers for pricing. Add markup: Set markup percentages for materials and labor costs. You can add markups individually or in bulk, ensuring flexibility across the project. Review and ensure accuracy of markups at both discipline and overall project levels. Perform accuracy checks: Quality and accuracy checks are crucial to avoid costly mistakes. Countfire has built-in checks throughout the estimating process, from takeoff to final profit margin. Utilize different views, such as Profit view and Products without material price view, to ensure accuracy. Account for revisions, changes, or new information: Adapt to changes, such as revised pricing schedules or drawings, using Countfire's flexible features. The software allows you to easily integrate new information, overlay drawings from different disciplines, and compare revised drawings. Create your final estimate: Double-check that your estimate aligns with the provided pricing schedule and meets all original scope requirements before submitting it alongside your full tender proposal.

To improve speed and accuracy in electrical estimating, using reliable takeoff software like Countfire can be beneficial. The software not only simplifies counting takeoffs but also assists in generating ballpark figures for estimates based on previous projects, ensuring a more robust and data-driven approach to estimating. Ultimately, the chosen estimating method should be based on good data, experience, and the specific requirements of each project.