What challenges do electrical contractors face when estimating large projects?
Estimating is a crucial component of an electrical contractor’s operations. Brad Halcrow from Simpro Software lays out some of the key factors to consider when quoting on big jobs.
A good estimate enables a contractor to stay competitive within the industry, while at the same time it helps ensure that the company is able to maintain profitable margins.
Estimates for small service jobs can be simple to draw up, but, naturally, the endeavour becomes more complex as a contractor takes on bigger projects.
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Large- or multi-stage projects come with the following factors that can affect an electrical contractor’s labour efficiency when making estimates:
The location and accessibility of the project site
The location of the project site (rural, urban, or suburban) introduces specific issues that have an effect on productivity.
An urban project site, for example, will involve increased costs for transportation and material storage if only remote parking spaces are available. Workers will spend more time getting to and from their work, or may need additional transport options to transfer equipment.
Whether the project area includes occupied and operational spaces (with people going about their own jobs) also needs to be assessed. This can lead to inefficiencies if much of the work can only be done after business hours, or if workers have to spend time cleaning up the site for the people who will be occupying it after them
Also, a large project means more tradesmen working simultaneously on a job site – each with his own tools, lifts, and materials taking up space in the area.
The shape and size of the building
Electrical contractors spend significant amounts of time waiting for lifts or climbing up and down steps during the day, as well as during breaks (there are similar difficulties when hoisting tools and materials up tall buildings using cranes). Likewise, if a project site is expansive instead of towering, it can be challenging for contractors’ teams to move around the site, so transport and storage provisions are also needed.
Humidity and temperature on the site
Labour factors are affected when a project site is in a humid or cold area; contractors should account for wind velocity, humidity, temperature, and precipitation. Laboratory studies reveal that workers’ efficiencies drop outside of certain temperature ranges.
The work schedule
Successful estimators must be able to anticipate changes in work schedules and labour pools. Productivity is lost when workers go on overtime, for instance, due to worker fatigue. Electrical estimators should coordinate with project managers to understand target dates and study the schedule so that ideal efficiency can be achieved – especially since electrical contractors typically only begin work once all other tradesmen have completed theirs.
With all of these challenges present in every project, electrical estimators have to be constantly on their toes – and they can only do so when they have the proper resources available.
One valuable provision that they must have access to is the appropriate estimating software. This advance in technology allows contractors to accomplish the following:
- Compare components and charge rates. The software compiles supplier price lists and labour rates at the user’s fingertips.
- Handle large, multi-phase projects. Each stage can be costed either separately or in a group. During the finalisation stage, any alterations made can be easily duplicated.
- Prepare a professional-looking quote. Design templates make it easy to create impressive proposals which can then be emailed for convenience.
- Access updated supplier pricing. Users can import any supplier materials list or catalogue into the system for day-to-day pricing.
- Take shortcuts. Contractors don’t have to create estimates from scratch every time, as software can make templates or reuse existing ones for similar jobs or estimates, saving time and effort.
Gathering all the information needed for estimating electrical work is challenging in itself. Combining an estimator’s skills with the efficiency of specialised software helps contractors refine processes, improve productivity, remain competitive, and stay profitable.
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