Every estimator fears inaccuracy in Electrical Project Cost Estimation. To master electrical estimation you need to have an intricate knowledge about electrical systems as well as the construction process. An accurate budget requires skill and dedication. But more importantly, it requires keen attention to detail.
Let this article guide you in creating accurate estimations by following simple steps.
Guide to Accurate Electrical Project Cost Estimation
1) Understanding Electrical Needs
Electrical project cost estimation can only be created after you have information about the project. Each project comes with its requirements. You must understand what is asked of you. Is it a residential project or a commercial one? Does it involve any repair or remodeling work? Are there any special demands from the client? You can also hold meetings with the client to learn about their perspective regarding the project.2) Performing Material Take Off
Accurate quantification of the project leads to accurate estimates. Material take-off needs to be on point. So make sure that you. That you take accurate measurements of the construction site. To further increase your accuracy, you can double-check these dimensions to make sure that there isn’t any mistake. Larger projects such as commercial or industrial buildings are more tricky due to their size. Some Commercial Electrical Estimating Providers use drone technology to have an aerial view of the construction site. The high-resolution images from the drone can help to increase the accuracy of material takeoff. SMA Estimating LLC makes adequate use of technology in their estimations which is why they are so accurate.3) Calculating Material Cost
The next step for electrical estimation would be to calculate the material cost. After you have quantified the materials, it is time to price them. For this step, it is necessary to know the type of materials that are going to be used for the construction. Every material comes with its price range. To accurately assess the expense of materials, it is better to survey the market. The market prices can change over time, so you need to know the recent rate. Moreover, it is important to account for regional differences as well.4) Calculating Labour and Equipment Costs
The most common mistake during electrical project cost estimation is underestimating the labour expense. Labour costs are usually calculated by the cost of labour in the time taken to complete the project. Make sure to account for indirect labour costs as well, such as insurance, overtime pay, and other benefits. Equipment cost means to include all the purchased and rental equipment in your predicted budget. You also need to consider any maintenance costs that may arise during construction.5) Include Overhead Expenses for Accurate Electrical Project Cost Estimation
Overhead expenses are the costs that are not directly associated with the structure of the building. But they impact the overall construction cost. Such as- Permits
- Legal fees
- Taxes
- Utilities
- Administrative expenses
- Office Supplies
6) Contingency Plan
Always make sure to add a contingency plan in your budget preparation. A contingency plan usually includes 10 to 20% of the total cost. Civil Engineering Estimating and Cost Agencies, such as SMA Estimating, always include a contingency plan In case of any unforeseen or hidden expense in the construction process the client won’t go over budget due to the contingency plan. It saves the construction process from any extra expenses that may arise. It is important to acknowledge the fact that even after all the budget planning, there may still be a certain factor that you overlook.General Tips for Precise Electrical Project Cost Estimation
- Instead of relying on manual calculations make sure to use a digital cost estimating software. For example Xactimate, Stack, Planswift, etc.
- Use 3D model technology to enhance the visualization of the process to avoid any indecisiveness or structural problems.
- Make sure that you are aware of the local building codes and regulations.
- Build connections with material suppliers to get the best price and increase your profit margin as well.
- Use attractive templates to create comprehensive bid proposals for the client. Avoid bidding too high or too low.
