When it comes to electrical systems, it is top listed in the list of systems that are mandatory to the functional and operational workflow of any construction project. In the same manner, electrical estimation is as crucial as itself for the project. An accurate electrical estimation is essential that determine the feasibility of a project financially or practically. Its estimation doesn't refer only to equipment and material but also to the labor rates, overhead, contingency and much more to consider.
Here, one of the most important markers where the project accuracy meets _ is the method of electrical estimation. Do you think it matters? Obviously it is, setting the tone of your project towards profitability or unprofitability by influencing the cost factors either directly or indirectly.
Let's delve deeper into the different electrical estimation methods, a detail that provides insights for the contractors or estimators or electrical takeoff services provider to make informed choices that fit your project.
The accurate estimation and the smooth workflow of the project go hand in hand, steering the project towards winning opportunities. It is a crucial part of project estimation that is required from lighting and power distribution to communication systems, and safety devices. An incorrect cost estimation hurts the baseline of your project in many ways, such as:
Hence, electrical budgeting is the phase of project management where your success lies, determining the viability and competitiveness of the project in the market.
Before heading towards the electrical estimation methods, it is necessary to have an understanding of what electrical cost estimation refers to. Let's have a look at the components that make up an electrical estimate:
A major cost driver that enlist all the deliverables required for the electrical installation such as power distribution (circuit breakers, transformers), lighting system (LED fixtures, dimmers) and devices and control (ground roads, ground bars), grounding system (ground roads, ground bars), wiring and cabling (conduits, wires and cables) communication and special systems (data and voice cabling, CCTV ) and miscellaneous items.
Refers to the cost required for the installation of electrical systems that depends on various factors like regional labor rates, complexity of work, time duration, and the level of skill required.
It is one of the indirect cost factors required for the smooth flow of a project. It includes jobsite costs incurred at construction sites such as site office, temporary power, equipment rent, transportation etc. Additionally, the operational cost like office salaries, rent, utilities and insurance.
Refers to unexpected costs such as design changes, material price fluctuations, unknown site conditions and estimation uncertainties. If overlooked in cost estimation may lead to financial constraints.
An ultimate requirement of every project that depends on an accurate and transparent estimation. Added to ensure the business earns money on the job. It is usually a percentage of the total cost.
In the market of construction market, there are dozens of estimation methods for electrical systems. Depending on the scope of the project, complexity of the project, and financial status, etc. Each of the methods offers unique advantages of your choice and aligns with the project efficiently. Let's map out the methods that are commonly in practice :
It is usually practiced when the estimators do not have enough detail to finalize the estimate for the project especially in the early stages of project planning. The aim is to provide a know-how about the project budget beforehand on the basis of historical data.
Example:
If an estimator performs an electrical estimate of a residential building recently with a cost of $15 per square foot. For the new project, an estimator may multiply this cost with the total building size of electrical work to get a quick figure.
Advantages:
Limitations:
The electrical estimators commonly approach this method for residential and commercial projects. The cost is estimated by measuring the square footage required to be electrically installed. The cost per square foot typically includes wiring and conduit, switches and outlets, lighting fixtures and controls, miscellaneous materials and labor costs.
Example:
An electrical estimator charges an electrical cost of $12 per square foot for an office building. For a 4,000 sq. ft. office, the estimate would be $48,000.
Best Used When:
Limitations:
This method fits best for medium-sized projects and projects with repetitive elements. It refers to assigning each electrical component or activity an individual cost. For example, cost per fixture, cost per breaker, etc. After assigning a figure to every component, multiply the quantity of each item by its unit price to get the cost.
Example:
If you are bidding on school buildings, you prefer this method for electrical estimation. Then, after determining the scope of the project, you set the cost for each item:
Advantages:
Limitations:
It is one of the best ways for cost estimation, in which costs are grouped into assemblies. Each of the assemblies refers to a different group that includes all the cost factors accordingly. Such as a lighting assembly containing fixtures, wiring, junction boxes, overhead costs and labor.
Similarly, a power distribution box assembly includes a 12-way MDB with busbar, MCCB, conduit and accessories, copper wire, cable lugs, labels and mounting tools, overhead expenses, contingency and profit margin.
Advantages:
Limitations:
It is the most accurate and transparent method that accounts every detail to design a detailed estimate. It accounts for all the deliverables in the right quantity needed for the project either digitally or manually. It uses blueprints and specifications to perform a thorough quantity takeoff. This method removes the overestimation and underestimation to design a seamless estimate.
Example:
An electrical estimate of a commercial project in addition to usual details, includes cable size, conduit sizes, fixture counts and labor hours per task.
Tools:
Advantages:
Challenges:
With the advancement in technology, there is no space for manual estimation in the construction field. Electrical estimation has been magnetized with technical support to give accurate and quick outcomes. Estimators no longer need to manually sift through blueprints or maintain handwritten logs. Software tools have performed outstandingly to meet the criteria of competitiveness in the market.
Employing this estimating software requires experience and complete knowledge to fully utilize every feature. It facilitates you to get accurate, error-free, quick results and ca ompetitive edge in a single snapshot.
Whether you're a newcomer or an experienced construction estimator, some challenges are on the way that may become red flags for your project. To consider the following practices is essential to streamline the workflow:
Let's walk through some common challenges that an electrical estimator may face during any phase of the project:
Choosing the right electrical estimating methods is a multi-factorial attribute that depends upon project size, complexity of the project, timeline, available data and resources, etc. Here's the breakdown of details that help you to make thoughtful decisions that suit your project status:
Electrical estimating is just like a solution that requires a solvent and solutes to give accurate results. A cost estimation method serves as a solvent, and a blend of experience, knowledge, and skills acts as a solute to completely perform the estimation process. Before accurate estimation, the right electrical budgeting method comes first to make a clear difference.
With the appropriate estimation method, harnessing the reliable tools is a noteworthy step towards a profitable and successful business.
Not just an electrical estimation method but the right one that fits your project mind guarantees the meticulous estimate. Allowing you to grow your business with a competitive edge in the compelling market.
