It has been said that estimating is more of an art form than a science. Engineers have to make sure that everything works on paper, Project Managers ultimately need to ensure that the finances and labor hours are in order and on track, and field electricians need to build it in reality. Estimators are in a strange position of trying to balance these things while also anticipating foreseen (and unforeseen) construction and schedule challenges, all while remaining competitive–and producing the estimate in just a few weeks with only a chance of actually winning the project.
What is exactimating? It is when an estimator begins to use their estimate to “construct” a project to perfection. It’s not just capturing all the takeoff–it’s capturing every last, conduit, box, wire, nut, and bolt, as well as every last unproductive hour and restroom break.It is when an estimator is no longer producing an estimate.
Many new estimators and seasoned estimators understandably struggle with the balance of being detailed enough to cover costs, while also being flexible enough to finalize an estimate without getting bogged down in the lack of information.
The Temptation to Be Exact
There is a great temptation to be exact as an estimator–especially if the estimator has any sort of field experience or engineering experience. There is already an understanding of how things could go wrong, so there is a well-meaning desire to head off the potential shortcomings of an imprecise estimate.
Accountability and the Blame Game
For estimators who have extensive office or engineering experience, there is normally an expectation of accountability to their estimate. At various stages, the Chief Estimator will review their estimate and look for holes and misses in the takeoff. Together, they’ll work through details and specifications to see if crucial and expensive details were missed, overlooked, underestimated, or overestimated. This can be an intimidating experience depending on the reviewer, as well as the company’s desire to win a particular job, and if there is an aggressive bid deadline.
Once an estimate is finalized, a bid is submitted, and a job is won, there is typically a handoff of the project from the estimating department to the operations and field team. The finances and budgeting of the project, as well as the constructability of the project, will be reviewed by these two teams. This is another intimidating challenge to the estimator. Will the Project Manager be happy with the various budgets that have been allocated to the project? Will he feel that enough time has been granted to him and other support people to properly support the project? Does he feel that the labor hours are generous enough to help him grow profit margins?
Estimators know that if a project goes sideways, there is a high possibility of blame being placed on their initial estimate.
Can We Build It?
For estimators with field experience, they will find themselves questioning if they have fully captured the installation requirements for all sorts of devices–no matter how big or small, and no matter if the impact to the job is pennies, or thousands of dollars, or millions of dollars. In many ways, they become their own worst enemies in the takeoff process as they second guess, double check, and revise their approach to the takeoff.
During handoff meetings, the Foreman will have similar concerns as the estimator with field experience. How did the estimator approach getting material into challenging locations? How many crews will the Foreman have to manage? How did the estimator foresee installation in various challenging conditions? Did the estimator properly takeoff materials and labor hours for more nuanced switchgear, disconnects, devices, and lighting control systems? Ultimately, will the foreman have enough labor hours to get the job built?
Consistent Scrutiny
No matter the experience level and background, an estimator is consistently expected to be able to explain and sometimes defend their approach to an estimate. There is nothing wrong with this, and it should be expected of the estimator. However, this constant questioning can lead an estimator to desire to be as exact and as detailed as possible–and that desire is, in fact, quite good! Being exact and detailed only becomes a hindrance when it leads to indecision and missed deadlines.
The Realities of Estimating
In reality, estimators are only human, and they have limited time, knowledge, and resources to be able to produce a very complex estimate.
Here are some of the simple realities of the life of an estimator.
Not Enough Information
There is never enough information at nearly every stage of the estimating process. Estimators will always want for a better detail, a more descriptive narrative, a clearer scope of work, and a more detailed drawing. Perhaps the only information that estimators don’t want would be a more detailed bid form, but everything else would be quite helpful. The truth is that, even if an estimator submitted every RFI possible, they likelihood of getting a clear and helpful response before bid time is unlikely.
It is best for an estimator to find or obtain the crucial information, ask about the heavy risk items, and clarify or exclude the non-negotiables. For everything else, estimators would be wise to make reasonable assumptions in good faith in order to finish the estimate. For riskier decisions, it’s a good idea to write down the approach and explain it to the Project Manager and Foreman during the project handoff, that way they can get ahead of the potential problem as much as possible.
Not Enough Time
Technology has made it easier to access people and distribute drawings and bid packages. While the speed of delivering these materials has increased, actually producing the estimate has not. Owners, clients, and General Contractors may understand this simple truth, but their deadlines do not always match this understanding. Estimators today are expected to produce complex estimates, coordinate with multiple subs and vendors, check other disciplines’ drawings, and breakout pricing with more complex bid forms, all in a shorter timeframe than ever before. At a certain point, there simply isn’t enough time to slow down to be exact and detailed when a bid needs to get delivered. An estimator must make use of typicals, standards, averages, and rules-of-thumb to get an estimate across the finish line.
Small Chance of Success
In most competitive commercial bids, estimators bid against at least two other companies. That gives them a 33% chance of success–and that’s if the General Contractor has already won the project. As more General Contractors vie to win a project and other success-related variables get thrown into the mix, the chance of success is often reduced down to roughly 10% or less. How many resources does an estimator really want to throw at a project with less than a 10% chance of winning? But even so, estimators will still put their blood, sweat, and tears into producing an excellent estimate.
A wise estimator will find the razor’s edge of commitment to a job: not too committed so that they’re wasting precious resources on a potential loss, but not too indifferent as to heavily inflate–or worse, deflate–their estimate (nothing stings more than a win with an estimate that doesn’t have enough money in it).
Business development people, return customers, and negotiated projects can heavily increase the success potential of a project, but they can’t always be relied upon. For this reason, an estimator must push through the fear of failure to submit a bid–hoping for a win, but knowing that they may have to move on to the next opportunity.
Narrowing the Gap: Technology
Estimating software, onscreen takeoff, and Ai-powered software is quickly changing the ability of estimators to be more detailed and exact. Where once highlighters, paper drawings, and manual calculations reigned supreme, estimators now have digital tools available to them that can greatly speed up the process, as well as allow them to quickly find errors and anomalies.
The closer an estimator can get to the true cost of a project, the better they will be able to determine their pricing strategy. This article is not necessarily a criticism of detailed and exact takeoff, but it is a criticism of being detailed and exact at the cost of producing an estimate. After all, that’s what estimators do! We estimate.
If you’re interested in optimizing your takeoff and getting more detailed with your takeoff while saving time, take a look at DRAWER.AI. Drawer is capable of identifying devices and routing branch so that you can focus on more pressing matters and produce a complete and competitive bid by the bid date.
Get started with DRAWER.AI today! Click here.
