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“Everybody makes mistakes.” Very true, but in the world of construction mistakes are typically quite expensive. In this article we’ll identify some common (and often costly) estimating mistakes that electrical contractors should avoid.
Mistake 1: Inaccurate Quantity Takeoff
Simple and easy to avoid, but extremely costly–especially on smaller projects. Missing a few devices on very large jobs is recoverable, but on small jobs these misses can quickly reduce your profit margin.
How to Avoid Inaccurate Quantity Takeoff
- A thorough review of the drawings, scope of work narratives, and project specifications. This also implies a thorough takeoff of whatever is there. Pay attention to Architectural, Mechanical, and Plumbing drawings, too, as there may be electrical scope that is not shown in the Electrical drawings.
- Never trust a scale. It is all too easy to assume that the scale is correct and begin to takeoff branch and feeder lengths. But when a scale is incorrect, the error is different by orders of magnitude. When this error occurs, an estimator is often double or half of what their branch should be. The cost implications are great: the estimate is either too heavy and potentially too costly for the General Contractor, or the estimate is woefully short and while you might win the job due to this error, it will come at a painful cost.
- Streamline the process. Do the same thing every time. Use the same colors and the same tools in the same way on every project. It is helpful to think of an estimate like an experiment in a lab. The goal for every estimator should be to eliminate variables and create controls.
- Continually improve the process. Evaluate your methods and determine if there are faster, more efficient, or more thorough ways to complete your takeoff. Digital on-screen takeoff is quickly becoming the industry standard, and software AI-powered like Drawer.AI is not only able to accurately count devices on commercial projects, but it can also takeoff branch routing in the most mathematically efficient ways while constraining itself to code and user-defined “no fly” zones. Implementing tools like these can quickly improve quantity takeoff.
Mistake 2: Overlooking Scope Changes
Scope changes are often presented in updated drawing releases or addendums. Estimators are often asked to revise their pricing when these updates are released. While it can be tempting to overlook these scope changes for the sake of time, it is important to review these changes. Engineers will often release a short narrative that describes the changes, but they can also make errors and overlook certain changes.
How to Avoid Overlooking Scope Changes
It is important that the estimator conduct a thorough review of any new drawing releases and addendums. Look for changes and adjustments to the electrical scope and determine if the estimate needs to be adjusted accordingly.
Mistake 3: Not Accounting for Site Conditions
Drawings are limited in what they can communicate to an estimator. There’s only so much that an engineer can draw, notate, and explain. For more complex projects, or for tenant improvement projects in existing spaces, there may be challenging site conditions that are not easily communicated via the drawings. Sometimes these challenging site conditions aren’t even the site itself, but rather the area surrounding the site–things like parking, site access, and site storage.
How to Avoid Not Accounting for Site Conditions
If a site visit or jobwalk is available, take the opportunity to visit the site. An estimator should also thoroughly review logistics plans, project schedules, and the General Conditions section of the project specifications. There are often hints or explanations of challenges throughout those documents. An estimator can also simply ask the General Contractor about any potential challenges. Once any challenging site conditions have been identified, an estimator should determine a way to capture any costs related to them.
Mistake 4: Underestimating Labor and Overhead Costs
This is one of the most challenging mistakes to avoid. Labor is often the greatest driving factor of pricing in an estimate, as well as the most challenging to predict. Even when detailed project schedules are provided, it can be difficult to know what challenges, setbacks, and windfalls that the field may encounter, as well as how the project management team will manage these various occurrences.
How to Avoid Underestimating Labor and Overhead Costs
Thorough, trustworthy takeoff will help to determine the direct hours associated with the project. The schedule will determine the timeline. A few simple math equations will help determine the average crew size. These things can help reduce the risk, but it would also be helpful to speak to
ny field foreman or journeymen electricians who can help think through the actual physical construction of a project. It is also helpful to speak to project managers familiar with projects of a similar size and type to capture any insights that they may have.
Mistake 5: Relying on Outdated or Incomplete Plans
Estimating from unclear, incomplete, or outdated drawings and documents can be detrimental to an estimate. It will lead to inaccurate estimates and disputes with the General Contractor and Client. In some instances, it can cause rework, and in almost all instances, the estimator will likely need to update their pricing to the latest documents anyway.
How to Avoid Relying on Outdated or Incomplete Plans
While performing takeoff, pay attention to the dates on drawings, documents, and specifications. Check for any new drawings on the web-portal or FTP for the project. Communicate with the General Contractor if there seems to be outdated drawings or incomplete plans and determine the best course of action as a team.
Mistake 6: Failing to Review Subcontractor Estimates
Subcontractor estimates and proposals often come in the latter stages of developing an estimate. It is easy to find their final number and plug it into the estimate, but doing so can lead to inflated or lacking estimates, budget issues, and potential disputes not only with the subcontractor, but also with the General Contractor and Client. The subcontractor spends time developing their estimate, proposal, clarifications, and exclusions just like any other trade, and it is important to spend the time understanding the way they viewed their scope.
How to Avoid Failing to Review Subcontractor Estimates
Simply, take the time to review subcontractor estimates and proposals. Ensure a proper understanding of their scope, and level them against their competitors. If a question presents itself, ask the subcontractor about it. A question on one proposal often leads to a question on their competitor’s proposal, too.
Mistake 7: Not Using Digital Tools for Estimating
This is a controversial mistake, as many estimators may still feel most comfortable with highlighters, printed drawings, and takeoff sheets, but digital tools allow for greater efficiency, speed, and precision than manual tools. Continuing in manual tools will make the increasingly more complex bid breakdowns more challenging to address, and the faster deadlines that much more difficult to meet.
How to Avoid Falling Behind
Learn about new tools, both existing and emerging, that will keep you and your company on the cutting edge of industry. The more precise and thorough the takeoff, the more accurate the cost of the project, and the more options your company will have for finding a competitive final price for your bid. Digital tools like Drawer.AI can significantly speed up your takeoff and streamline your process. AI-based device identification, device counting, and branch routing can increase your accuracy and efficiency, and QA/QC tools will ensure that an experienced estimator is able to review everything and make adjustments when necessary.
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