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
Quickly and Accurately Estimate a project
Estimation Software ◦ Microsoft Excel
Counting Devices and Fixtures
Measuring Circuits Lengths
Upper Level Power Plan
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
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