AI
The Preconstruction Process
Those who are new to the electrical contracting world might be confused by the word “takeoff.” The jargon in the Electrical Contractor business can be confusing (and ambiguous) at times. How are electrical estimators supposed to simply perform “takeoff?”
We’re going to address that question and put it into the greater context of what we do as estimators: perform complete construction takeoff, build an estimate, and deliver a bid to a General Contractor. “Takeoff”, or Construction Takeoff, is simply one cog (though a very important and costly cog) in the greater machine of an estimate.
What is Construction Takeoff?
Construction takeoff is, very simply, counting stuff. To be more technical, construction takeoff is the method of determining the material cost and labor hours associated with the project that an electrical contractor is bidding. To do this, an estimator will quantify the number of devices and lengths of feeder/branch runs on any given project, and then calculate the cost by using the proper means and methods of installation as described in the project specifications, and confined by electrical code.
The goal of construction takeoff is to determine the true cost of a project. It is nearly impossible to be 100% accurate, but the closer that an estimator can get to the actual cost of constructing the project, the more helpful the estimate will be. Once a true cost is understood, an electrical contractor can make well-educated business decisions in their pursuit of the project. Risk can be more clearly identified, value-engineered options can be more easily considered, and other cost-saving measures (within the realm of specification requirements and code requirements) can be more easily discovered.
Electrical contractors have different ways of capturing takeoff. The most traditional way is to print off drawings and use highlighters. In recent years, a new industry standard has been established using on-screen takeoff software, which allows an estimator to use digital versions of their drawings and software-based tools to count and measure their takeoff. And now the next wave of innovation is upon us with AI-based tools where an estimator can upload their drawings to the software, and the software will accurately determine simply counts and measurements all by itself. The estimator then performs some light quality assurance work and manually captures those elements that only a human can perceive, at least for now.
Construction takeoff is foundational to building an estimate. Without solid takeoff, you may as well start rolling dice, or crossing your fingers, or wishing on lucky stars, or knocking on wood, or consulting mediums, or–well, you get the point.
What is an Estimate?
During the early bidding stage, an estimate is an evolving cost of the project based on the estimator’s understanding of the scope. The construction takeoff is the core component of the estimate, but more is needed.
Quoted material (such as switchgear, generators, and light fixtures) are captured in the estimate. Subcontractors performing even more specialized work (Fire Alarm, Security, and Structured Cabling) also must be captured. Equipment costs and rentals must also be captured. These elements are relatively simple to capture (barring the need to verify the Bill of Materials and assure proper scope is covered).
The more complicated task is determining the work of supervision both for the field and for the office. And what about any additional support staff for BIM, engineering, or specialized lighting control systems? How will this estimate account for a particularly challenging installation location? What about any lost time or project-specific challenges that might be anticipated?
It should be noted that without proper construction takeoff, however, it becomes extremely challenging to properly estimate anticipated crew sizes, crew scaling, supervision (especially field supervision), scheduling, equipment rentals to match the crew sizes, and other indirect and incidental costs.
The estimate is an attempt by the estimator to capture all of the aforementioned: commodity materials, quoted materials, direct labor, indirect labor, incidental labor, equipment rentals, subcontractors, general expenses, contingency, overhead, and markup.
What is a Bid?
Once an estimate has been well developed, it is ready to be submitted to the General Contractor. At this point, the estimate becomes a bid. The bid is a formal, binding offer made to complete a project at a specific price based on the documents provided at the time of bid. As such, it is important to make sure that the bid is well understood internally (so that everyone feels comfortable with the final number), and easily understood by the General Contractor (so that they’ll pick you). This is often where bidding gets competitive, and contractors will vie for the perfect blend of aggressive and profitable pricing.
The bid is often delivered in the form of a proposal, which contains important information such as:
- The General Contractor’s name and the specific contact who issued the Request for Proposal (RFP)
- The name of the project
- A list of the bid documents provided at time of bid
- The Electrical Contractor’s interpretation of the scope of work
- A bid breakdown (depicting the cost of various items of interest, often at the request of the General Contractor)
- A final overall base bid number, along with any additive or deductive alternates/allowances
- Qualifications, Clarifications, Exclusions, and General Terms.
Putting it all together
Estimating is an artform: no two estimators are alike and, similarly, no two estimates are identical. Everyone will have different ways of interpreting the drawings, specifications, and the supervision requirements of a job. The easiest way to get a consistent estimate and to have confidence in bids is to start with a solid, thorough construction takeoff. If an estimator can consistently develop a thorough construction takeoff, it becomes significantly easier to make reasonable business decisions as you develop your estimate. As an estimate develops by capturing scope, subcontractors, quoted materials, and supervision, an estimator can begin to have great confidence with the final bid and the various breakdowns that the General Contractor might require.
If the construction takeoff is slow, sluggish, and untrustworthy, electrical estimators might find that they feel rushed through their estimate, and that the final bid isn’t quite ready for the General Contractor’s bid due date. This can often lead to adding contingency, with the hopes that additional funds, plugs, and swags will cover errors and omissions in the takeoff.
Work smarter
Digital tools can vastly help improve accuracy and speed in construction takeoff. All things considered, is it much easier to look at a spreadsheet and digital markups on a computer screen than to flip through giant drawings while deciphering highlights on the drawings with scribbles on a handwritten takeoff pad.
It is even easier to upload drawings to a web-based application like Drawer.AI that will review the drawings, learn its own internal symbols, and quickly produce device counts and the most efficient branch routing possible. Tools like Drawer.AI can even allow users to determine how many circuits they want in a homerun, and how/when to combine or isolate circuits. It keeps proprietary information safe and secure, while also referencing code to ensure electrical code compliance. And it works fast–within minutes, electrical estimators can have a device count and branch routing ready for review.
Need to get out a fixture count so that your lighting representatives can get working on a quote? Tools like Drawer.Ai can get estimators this information while they’re on the phone with their client, or while they’re driving to their next jobwalk. When in the office, this fast and accurate tool frees up an estimator to look at those small nuances or pesky keynotes that make the difference between being a check-number and becoming the winning bid.
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