“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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Get a Demo today and see why the Drawer AI simple electrical takeoff software is the future of electrical estimating.