What is the ideal organizational hierarchy for an Electrical Contractor?

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N844AA

Member
Location
Los Angeles
What is the ideal internal structure for an electrical contractor? When I say ideal, I'm thinking in terms of ease of management, fewest number of people not involved in production, ease of scaling up or scaling down the size of the organization in response to market forces, fewest number of vehicles required, smallest size of shop needed, etc... I'm talking non-union here.

Granted, much of this is subjective and dependent on what type of electrical work you do, but there certainly must be some common traits any EC would desire in his business.

For example, I tend to think that 1 skilled electrician working with 2 helpers is a pretty efficient and economical crew. If you had 4 such crews (12 men) you might need a Project Manager who would meet customers, bid jobs and layout work for the crews. If you had 8 crews, you might need 2 Project Managers, maybe 24 crews would need 3 PM's and a driver/parts guy to deliver materials, etc....

I once knew an EC who only hired journeyman level electrician, no helpers. Fewer problems when everyone's a journeyman but very expensive payroll.

If you guys could run the perfect shop, what would it's internal structure look like?
 

walkerj

Senior Member
Location
Baton Rouge
Clones of me. :cool:


When we are in the weeds I always ask what I can do to help.
Bossman says I need to go clone myself.

Just what an electrician needs, a bigger head:grin:


To the OP:

My ideal crew is 3 helpers and myself.
One good helper and two zombies(tweedle dee and dumber)

Me as PM, Journeyman, Foreman, Delivery Driver, Estimator, Material Procurer, and Coffee Drinker
 

480sparky

Senior Member
Location
Iowegia
.........To the OP:

My ideal crew is 3 helpers and myself.
One good helper and two zombies(tweedle dee and dumber)

Me as PM, Journeyman, Foreman, Delivery Driver, Estimator, Material Procurer, and Coffee Drinker

So who brings doughnuts?
cookie.gif
 

N844AA

Member
Location
Los Angeles
When it's just you running 2 or 3 helpers, the work get's done quick and it gets done right but how does this business model grow? What would be the next logical step?

There is a very serious problem being a small contractor: You are competing with other very small contractors, 90% of whom have no idea what to charge or why. This "stupid factor" creates pressure to price jobs very low, too low in fact to effectively grow a business.

If you had 100 electricians, you would be competing against other electrical contractors with 100 electricians, there is no "stupid factor" here, you will seldom find yourself bidding against people who will work for $20 an hour. Trunk slammers don't bid on large commercial projects or massive custom homes.

So, if you have 1 truck and 3 helpers, you can hustle and make decent money, but how do you get larger? And for that matter, what is the optimum size for an electrical contracting business?
 

480sparky

Senior Member
Location
Iowegia
When it's just you running 2 or 3 helpers, the work get's done quick and it gets done right but how does this business model grow? What would be the next logical step?

There is a very serious problem being a small contractor: You are competing with other very small contractors, 90% of whom have no idea what to charge or why. This "stupid factor" creates pressure to price jobs very low, too low in fact to effectively grow a business.

If you had 100 electricians, you would be competing against other electrical contractors with 100 electricians, there is no "stupid factor" here, you will seldom find yourself bidding against people who will work for $20 an hour. Trunk slammers don't bid on large commercial projects or massive custom homes.

So, if you have 1 truck and 3 helpers, you can hustle and make decent money, but how do you get larger? And for that matter, what is the optimum size for an electrical contracting business?



So how does one start a 100-man operation from scratch?
 

tkb

Senior Member
Location
MA
I don't know about elsewhere, but we can only have a 1-1 ratio of journeyman to apprentice.
Some places it is 1-1 and then 3-1 after the first two employees.
You could have 1 journeyman and 1 apprentice together, but not 1 journeyman and 3 apprentices.
 

readydave8

re member
Location
Clarkesville, Georgia
Occupation
electrician
When looking at what other electricians have done and how sucessful getting large has been, only consider the ones that have been at that level for 10 years, the others are still unproven. May be very sucessful, but you can't tell yet.
 

walkerj

Senior Member
Location
Baton Rouge
When looking at what other electricians have done and how sucessful getting large has been, only consider the ones that have been at that level for 10 years, the others are still unproven. May be very sucessful, but you can't tell yet.


I agree and that is why I give it my all everyday I want to be part of one of the ones that goes all the way.
 
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