Tools & Consumables

[Alwayslearningelec]

On larger jobs say around $500k or more how do you calculate these items?

Do you analyze closely and calculate? Do you put a % against material or labor dollars as I heard some others do?? Thanks.

 

[Eddie702]

Experience is the only way you will know. I would always add something in for tools even a sawzall blade cost a few bucks now. All the little items add up. I probably would do it as a percentage of the whole job labor and material. Or I would add a MISC. # to the invoice.

 

[petersonra]

I am a big fan of charging whatever you spend on a project to the project instead of overhead. A percentage may not cut it. PMs and field people can be really clever if they know certain things are basically free.

 

[Fred B]

On larger jobs say around $500k or more how do you calculate these items?

Do you analyze closely and calculate? Do you put a % against material or labor dollars as I heard some others do?? Thanks.

Generally, an evaluation of typical expenditures over time would give you the best answer. Percentages can work out over time, some jobs will take more consumables others less. If needed to be able to calculate very specifically for individual jobs best to analyze and calculate with a +% for potential issues. You list Occ. as Engineer, are you doing this for just one company or are you making estimates for multiple companies? It would make a difference as to just a percentage or calculation.

 

[cdslotz]

Generally, an evaluation of typical expenditures over time would give you the best answer. Percentages can work out over time, some jobs will take more consumables others less. If needed to be able to calculate very specifically for individual jobs best to analyze and calculate with a +% for potential issues. You list Occ. as Engineer, are you doing this for just one company or are you making estimates for multiple companies? It would make a difference as to just a percentage or calculation.

If I was estimating for another company, all I would provided is total material and labor hours. The rest of the final bid tabulation should be on the customer (job expense, quotes, labor rates, NP labor, consumables, OH&P, etc)

 

[cdslotz]

Oh....and we used to include consumables as a percentage of productive labor dollars.

 

[Fred B]

Oh....and we used to include consumables as a percentage of productive labor dollars.

what percentage did you use?

 

[Alwayslearningelec]

Generally, an evaluation of typical expenditures over time would give you the best answer. Percentages can work out over time, some jobs will take more consumables others less. If needed to be able to calculate very specifically for individual jobs best to analyze and calculate with a +% for potential issues. You list Occ. as Engineer, are you doing this for just one company or are you making estimates for multiple companies? It would make a difference as to just a percentage or calculation.

My occ is estimator. One company. Thanks.

 

[Alwayslearningelec]

Oh....and we used to include consumables as a percentage of productive labor dollars.

Consumables would be % of install labor dollars not material? What % would you use roughly? Thanks

 

[cdslotz]

Consumables would be % of install labor dollars not material? What % would you use roughly? Thanks

It's been a while (retired)...I want to think it was something like 5-6% so a $100,000 labor dollars would be $5-6K.
But this was from a system where small tools, ladders, benders etc were charged to the job. Actual consumables like tape, soap, etc were around 2%. Again....this is if I remember correctly

 

[zbang]

How do folks count for the use of durable tools, like ladders, benders, testers, etc? Charge new/replacements ones to the job, put a pro-rated "rental fee" into the Misc line, or call that "overhead"? More specialized gear, like higher-end test equipment or lifts (even if owned), would rent to each job, but what about the smaller stuff?

 

[cdslotz]

How do folks count for the use of durable tools, like ladders, benders, testers, etc? Charge new/replacements ones to the job, put a pro-rated "rental fee" into the Misc line, or call that "overhead"? More specialized gear, like higher-end test equipment or lifts (even if owned), would rent to each job, but what about the smaller stuff?

See my post.....the 6% accounted for small tools, ladders, etc. The smaller stuff is in around 2% for consumables

 

[zbang]

Is that for replacement or for the use of those things?