I Need Help With Estimating

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i don't have a particular job to estimate. i want to learn how to estimate off of drawings. should i invest in software? are there courses that i can take? how did you learn? did someone just teach you in the shop? please, help. i am new to contracting. i want to be able to bid larger jobs such as office build outs and renovations. i might very soon need to bid a fast food establishment, but right now i don't have any idea where to start once i see the drawings. my main concern is accuracy. i can't afford to under estimate and i don't want to over estimate and miss a good opportunity.
 

dmagyar

Senior Member
Location
Rocklin, Ca.
More info needed

More info needed

It isn't noted in your profile how much experience you have and how long you've been a contractor. I say that because, estimating is a learned procedure where each item which has both a cost associated for the material and a labor element, which is also added as cost, these are then incorporated into the "Bid". Without a solid understanding and basis for setting both the material and labor elements you could be biting off more than you can chew, in your quest to bid larger projects. The specifications will outline what type of installation and the materials that are expected and what isn't approved. The spec's can dramatically affect the cost of a job, and If a mistake happens with interpreting the spec's, it will be costly.

The next element is the new arena that you'll be in, instead of homeowners that don't know too-much of anything you'll be dealing with people that see costs from many electrical contractors, yours will just go into the pile. Then the games start, they may not reveal anything of use regarding how a bid turned out. They may just outright lie and say that your competition was $$ under you, when in fact they weren't. But there are some good General contractors, and alot in another catagory, both will provide more of an education than you may be seeking.

I learned to estimate by doing takeoffs and change orders which increased in complexity over time. You'll need to attach a reality factor to labor units, which there's no short cut to learning. Over the years I've attended several of the schools which were put on by those respective companies selling the estimating software. I've also attended some of the NECA schooling available on estimating.
But there's no one class that can prepare you for what you're setting out to accomplish.

I don't know where you can learn from "scratch", but others may have more helpfull comments. Good luck, but proceed cautiously.
 
how about this: if i need to install a 100 amp panel recessed new construction 100 foot of pipe from XFMR (already installed for simplicity) in a clean ceiling of an office building. i will be using 1/0 cu feeders and a main breaker. how would you go about initiating the bid process?
 

tkb

Senior Member
Location
MA
Get price of material.
Add hours multiplied by labor rate.
Add overhead.
Add profit.
Add all together for the total.

Estimate done.
 

~Shado~

Senior Member
Location
Aurora, Colorado
As stated earlier....not knowing how much experience or what kind you have, or how long you have been in the trade limits how much info can be offered.

We will assume at least 5 years with both resi and commercial experience. With this history you should have enough knowledge from past work and jobs to help guide you.
While running jobs I would think you had an idea of daily work output for yourself and any crew you ran. Along with prints to plan and base from.

Labor units are the key to bid right as stated earlier also. But, everyone has to start somewhere, until you aquire enough history and job cost data to dial everything in to suit your company requirements.
Get a labor unit book, NECA, Durand...anything. You can start with this to compare labor units to what you think will work for you.
Next download a Decimal hour to Minutes conversion table. This will help you see actual time being alotted for a task.

You can make your own estimating program with Excel or purchase a commercially available one...your choice. ( I use both....my own Excel workbook and purchased software.)

Now....the biggest thing....what others are charging, bidding,etc....and what you need to keep your doors open, pay your bills and make a living are TWO seperate things!. Remember this and commit it to memory!!!

Once you have these in functioning fashion.....the rest rolls from there.

Like tkb said...


p.s. - scour these forums and learn from others...there are alot of knowledgable, experienced, and succesful folk here.
 

Article 90.1

Senior Member
Get price of material.
Add hours multiplied by labor rate.
Add overhead.
Add profit.
Add all together for the total.

Estimate done.

And don't forget sales tax, because your state wont! Find out first, though, what your state requires you to collect sales tax on. Around here it is the material only and not the labor (Labor is treated as "service" in these parts). But definitely speak with YOUR CPA first.
 
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