New to Estimating

[traderx]

Hello all? I am in the process of creating my own company (have my Admin card ? WA and all of my bonds and insurance but only plan on doing commercial) but I have no clue as to how to estimate jobs. I have done small service calls for friends and the like but want to do small complete jobs for starters.

I have ordered the Mike Holt books on estimating but are there any others that any of you can recommend, I have also ordered the national electrical estimator. Also, what are the steps that you do, in order to create your bid and any useful tips and trick would be helpful.

I have heard of others using excel for take offs and bidding, would any one be will to share so I can get a feel on doing this so I can build my own template. Without knowing how one should look like, it?s hard to know how to start one.

Thanks to all the reply

 

[mtnelectrical]

well my friend welcome to contracting business. This topic has been discussed before and everyone of us have really differents expenses, overhead, insurances etc, but try to see old treads about estimating. Wish you the best

 

[jimmyglen]

I know you might be ready to jump in the pool, but before you jump into the deep end you might think about getting a job as an estimator / project manager and learn more of that end of the business

there are great electricians, great business men, great estimators - but it takes being all 3 (and more) to be a great contractor

I am doing my time working for others to get the experience at all ends of this business

best of luck

jim

 

[dodgeup]

same problem

same problem

hello my friend, Iam having the same problem. I don't think you have to work for someone estimating jobs if people with the experiance would get off the ego wagon and help one another. Send me a note and lets help each other .

 

[R2006]

Hi And Welcome To The Contracting World. I Do A Lot Of Residential But Couldn't Agree With Dodgeup More. But There Are A Lot Of Contractors Here Who Will Help If They Can. Just Remember All Situations Are Diffrent. How Big Are The Jobs Your Planning On Bidding? Start As Small As Possible (smaller Job Smaller Mistakes)at First. My Rule Of Thumb If It Helps Materials + Markup + Labor+ Overhead + Profit = Bid. I Know Some Commercial Companys Using Quick Books For Billing And Estimating. Again Good Luck Hope All Works Out For You.

 

[Greg Swartz]

I'm new too...

I'm new too...

Well, it's good to see a thread like this.

I started in March, and am still working with a company, while starting to branch out on my own.

I understand, being a good electrician, and a good foreman has almost nothing to do with etimating a job.

My rule of thumb is the same as R2006:
Material + Markup + Labor + OH/P = Bid.
The sad thing is, I haven't lost a bid yet. (That scares me too.) Am I bidding too low? I've also made a profit on every job. So, I don't know.

I try to figure out how much material I will need to use. Then I use a book from durandassociates.com to calculate my labor units. They have nearly everything I can think of in it. And USE the book. Don't think... "I can do it in x hours." I didn't have the book for my first jobs, and I almost went into the red. (That's when working for free comes in! )

I started out with service work, then got a few $5k jobs, now I've got a few $10k jobs going. It can be hard.... especially in the beginning.

(That, and I'm trying to finish college. So I want to slow this thing down, but it keeps speeding up.)

If you're interested, Please PM me


Greg

Edited to remove e-mail address

 

[romexking]

Traderx and dodgeup,

I certainly understand the desire to jump right into it and get working, but one of the first things you need to do is complete a business plan. By doing so, you will create a roadmap to your future. Success usually does not happen by accident. You will also gather a lot of insight into you new company's costs, available capital, management structure, your local market economy, and other important aspects of your business. You will take a hard look at yourself and those around you to determine if you are the right type of person to start and run a business (not everyone is).

Take your time evaluating your circumstances before you start bidding work. There will always be a need for electrical contractors, so don't feel like you are "missing the boat." The info we could give you about bidding would take an awful lot of posts. I suggest reading a couple of books on the subject. I don't have the titles handy right now, but there are tons of books (some by Mike Holt) on the subject. Get them, read them, practice before you submit your first real bid. I will give you a couple of little hints...use the right take off forms. These can be purchased or created in Excel. And be consistant! Create a system that works best for you, and do it on every bid. This way you will find that you are more efficient, and tend not to overlook anything.

good luck, and I wish you a prosperous future.

Rich

 

[marcerrin]

Traderx,

I'm also from Washington, and started my company 4 years ago. The first, and I think most important step, is to make an appointment with a good CPA or bookkeeper and ask questions! Keep good records, and let the pro's do the tax end for you.
I do my own state and local taxes, but I let my cpa do all federal taxes. All your state and locals can be done via internet, and it couldn't be any easier.
Good luck!

 

[g@friendly]

know your break even before you bid

know your break even before you bid

Goodluck in your new business! I highly recommend that you get Number Cruncher so you know what your bottom line is exactly. Without that, you can never really make money. There is alot to do business. Permits, inspection, calls, orders, billing, van repairs, call backs, employe no-show, and those are just a few examp. that you have to take into consideration. I know what my bottom line number or break even is and I was shocked, so once again good luck and there is alot of software out there, but it is only as good as the infomation you but into it. I askk everyone do you know your break even.

 

[Design Electric Inc.]

Good Luck

Good Luck

If your so inclined to start a commercial contracting business: estimating is quite different than residential.
Although I had 10 years prior estimating experience, job costing will be your survival. IE. set up cost codes for paticular labor tasks such as lighting, service equipment, conduit installation and pulling wire, etc. Then set up more specific cost codes for each labor task.
Ask your electricians to report their time per cost code and record it in what ever software U use.
Then do history reports after a year or so. This will give U YOUR labor estimating values.
IE. My cost code for lighting is 16500.
My employees report their labor hours when installing lighting under cost code 16500.
I enter it into quickbooks.
Later I compare it to my estimated labor hours for that cost code.
After a few years, I can adjust my estimating labor take off's to fit MY company's employee's production and use the historical information to adjust what all the media publications and software thinks it should be

In the interm: use trade services, estimation, or other leading software...just adjust their data base after reviewing your historical info.

Regards

 

[satcom]

There is a lot of good information in these posts, take your time and plan well.

 

[satcom]

Ask your electricians to report their time per cost code and record it in what ever software U use.
Then do history reports after a year or so. This will give U YOUR labor estimating values.
IE. My cost code for lighting is 16500.
My employees report their labor hours when installing lighting under cost code 16500.
I enter it into quickbooks.
Later I compare it to my estimated labor hours for that cost code.
After a few years, I can adjust my estimating labor take off's to fit MY company's employee's production and use the historical information to adjust what all the media publications and software thinks it should be

In the interm: use trade services, estimation, or other leading software...just adjust their data base after reviewing your historical info.

Good post Design!

Keeping track of job actuals, is one of the best ways to learn both estimating, and costing, the actuals reports, will give you all the information, to operate your business in a growth mode.