What Factors Should Consider in Electrical Cost Estimates?

Are you considering crucial factors involved in evaluating Electrical Cost Estimates for your projects? If you are not then you have landed on the best guide. This blog covers all the critical factors that affect the total cost of an electrical project. Electrical materials and components are so important to be covered accurately. You must do that to avoid multiple issues at the end of the project. Because it happens that most contractors and estimators misinterpret the electrical estimates. Due to this when things progress, you see a surprising cost coming nowhere. That is why it is recommended to be smart and sharp-minded to evaluate the total electrical cost. 

We live in a society where competition is at its peak in the construction industry. Everybody tries to be unique so that they get a chance to secure more projects. More and more people rely on them. That is why in this contemporary industry, you as an estimator need to be smart enough. Otherwise, you will not be able to make your company or name recognizable in the construction field. The only reason behind this is “Accurate Estimates”. These two words are so important for the contractors that everything depends on the estimates provided by the estimators. That is why they always choose the Best Electrical Estimating Services providers to rely on.

Mechanical, electrical, and plumbing systems are the heart of any structure. Can you think of a residential building without water, gas, or electricity? No! Right? That is why when the owner is deciding to build any property, they need Best MEP Estimation support from professionals. Because now things have quite changed a bit. They are complex to handle but it gives a comfortable environment to the occupants. For handling such complex systems and budgets especially. You always require the assistance of an expert that considers every possible factor for electrical cost estimates. 

What Things to Keep in Mind?

Are you grasping all project needs?

One particular factor is to grasp all the information about your project needs and specs. Starting from understanding the size of the project is very necessary! Because if you miss any single detail, you are going to do everything wrong. You can also directly have meetings with the clients to understand better what the client wants. If you are considering an electrical cost estimate for a commercial building. You will need to have knowledge of square footage, the number of floors, and the lighting types. You need to see if is there any special electrical requirement. It can be like backup power systems. So make sure you have all this information at hand.

 How much Electrical Load?

It is necessary for producing electrical cost estimates to consider the electrical load needs for your construction projects. This involves evaluating the number of electrical gadgets, fixtures, and equipment needed. For instance, an estimator needs to calculate the electrical load requirements for lighting, HVAC systems, computers, and other equipment. This understanding is important to planning budget matching with client needs.  

 Are you covering Labor Cost?

For any contractor or estimator, it is important to cover labor costs accurately. You need to see and evaluate the number of employees required, their hourly rates, and the project’s duration. Other expenses need to be addressed on time. The factors like their potential overtime, and holiday pay. Let’s say you have hired 5 electricians for a month. They are paid $30 per hour. What would be the total cost?

5 electricians x $30 per hour x 8 hours per day x 5 days per week x 4 weeks = $24,000.

Are you covering Material Cost?

You would be considering the cost of materials cost but are you looking at its types? To accurately evaluate electrical cost estimates, the estimators need to calculate the cost of wires, cables, conduits, switches, outlets, and other components. All materials costs are based on brands and their quality. If the clients want high-end products, the electrical cost might be high. So, estimators have to balance the cost for the prevention of over-budgeting.

What about equipment Cost?

Some estimators neglect equipment costs or renting expenses to add to the takeoff or estimating sheet. This approach is not recommendable, rather it covers a significant amount of the client’s budget. Equipment like transformers, generators, and specialized tools are used for construction purposes. Including this cost ensures you are not leaving anything behind! If a crane is being used to lift heavy materials then the estimator will add the renting or purchasing cost. In addition to that transportation, setup, and operation costs may be added. 

Are there any permit fees?

What are the permit fees in the construction process? It is about all the legal things like taking necessary permissions and approvals from the authorities. The fee is dependent on the project location and requirements. Not including these estimates can result in expensive fines. You will have to pay double the actual price. 

Do you have plan B?

Having a plan B means being prepared for the contingency fund. In case of any emergency or changes in the project, this cost can cover the extra cost. It helps you to complete the project without breaking the bank. Several estimators recommend setting aside around 10-11% of the total estimate for this purpose. For instance, if your client project is estimated to cost $100,000, you should allocate $5,000 to $10,000 as a contingency fund. It is a good approach!

Final Words!

Electrical cost estimates are an integral part of the overall project cost estimation. They are required to create accurate bids and secure a position in the industry. To do this the estimators need to understand the type of project, how to implement the right methods, and complete the project in the decided time. Because if estimators do not look into the details they can not win the bid easily. 

A pro tip for all the new estimators! To improve your cost estimates, you can use historical data and the data of past projects. One best ways is to adopt a mobile time solution. It gives clarity to the labor data and helps to understand the time requirement to complete the project. So, the discussed strategies in this guide can be a very helpful source to enhance cost estimates. Make sure if you are stuck then you can use these tips to generate bang-on estimates.