Project Estimation

By Adam Knebel & Thomas Roberts

Estimating the cost of our project◦ Cost of Materials

◦ Labor Estimates

◦ Prime Cost

◦ Overhead Costs

◦ Bid Price

Project Analysis◦ Cost Distribution

◦ Material Cost Analysis

◦ Labor Analysis

1. Understanding the Scope of Work

2. The Take-Off

3. Determining the Bill of Material

4. Pricing and Laboring Material

5. Extending and Totaling

6. The Estimate Summary

7. Applying Profit and Other Costs

8. Bid Accuracy and Bid Analysis

9. Bid Proposal

Complete and Current Set of Blueprints

Project Specifications

Visit the Job Site

Quickly and Accurately Estimate a project

Estimation Software ◦ Microsoft Excel

Counting Devices and Fixtures

Measuring Circuits Lengths

Upper Level Power Plan

Visualize the installation

Complete and Total Material Count

Unit Cost and Unit Extension

MATERIALS LABOR

Understanding the project specs and Customer Requirements

Strong Vendor Relationships & Competitive pricing

Delivery of Materials vs. Will-Call pick up

Labor Break down (labor units)

◦ Fixture Assemblies

◦ Switch Assemblies

◦ Receptacle Assemblies

◦ LV Assemblies

◦ Cable & Conduit

Assemblies

◦ Service Entrance

Assemblies

Labor Units – Fixture Assemblies

Determine the projects break even cost.

Totals from material cost and man hours

Consider any additional labor, (Demo, trenching, as-built plans, etc.)

Determine Labor Rate

Apply overhead costs

Break Even Cost of $47,036.81

Profit Additional Costs

Net Profit is The Bottom Line

How Much Profit is reasonable?

Factors to Consider:◦ Competition◦ Current State of Economy◦ Job Size ◦ Risk

CYA!

Understand all of the bid conditions◦ Allowances/

Contingencies

◦ Back-charges

◦ Bonds

◦ Completion Penalty

◦ Finance Cost

Project CalculationsEstimated Break Even Cost = $47,036.81

Profit Margin = 15%

Total Bid Price = $54,092.33

Bid Accuracy is Key

◦ Double Check your Work

◦ Verify that no common errors occurred

◦ Perform a Final Team Review Include PM’s, Senior

Management, and Field Supervisors

Q. - How do I ensure that the bid is valid?

A. - Analyze the Cost Distribution◦ Labor

◦ Materials

◦ Direct Costs

◦ Profit

Vs. Total cost

Written Proposal◦ Legal Binding Document

Must Clarify what is included & what is notincluded

Non-Compete Clause

Performance

Warranty