How to Bid on Electrical Jobs
Winning an electrical bid is more than offering a good price. Reputation of service and quality of work will give you an edge in your bidding process. When you can master the bid process, you can keep a continuous work flow into your business. There are no tricks or secret formulas. The key is transparency. Detail everything you do so your customer will understand what they are getting. Treat your customers like they are family and always be on time for appointments.
Other People Are Reading
Instructions
-
-
1
Get to know your customer Meet with the customer. Secure a set of prints for the project. Set up a site visit with the customer to understand the correlation between the physical location and the prints. Make a list of supplies and the amount needed. Get the best prices you can for the customer (see Resource 1).
-
2
Mark-up your supplies Mark-up supplies between seven to 15 percent, depending on installation difficulty. Calculate the labor for the job and the actual time it would take you to bring the project to completion. The purpose for the mark-up is to offset any price increase on materials and warranty the job for one year.
-
-
3
Add in fixed costs and overhead Add fixed costs. Fixed costs include liability insurance, workman's compensation, e-verify, office space and salaries. Add in any overhead that would be compatible to your company's needs. Do not forget to add in bid bonds if needed to secure the job.
-
4
Add in supply costs and taxes Get three supply estimates and choose the best fit for your company. When you develop a relationship with your suppliers, they will be happy to offer you discounts on their products. It is their goal to keep you as a valued customer.
-
5
Offer low voltage and fire-alarm Interview your sub-contractors. If you do not do low voltage or fire-alarm, you may be asked to supply these numbers in your bid. Have a few companies on hand that you can call and obtain quotes. Don't always go for the lowest bid. Look at each company's track record for delivery and quality as well as the cost.
-
6
Add your numbers Add all of your numbers. Itemize each expense and make sure everything is listed with an amount next to it. Explain any labor costs by posting the length of the job, how many workers will be needed and the hourly rate. The customer will have less questions for you if they understand your bid.
-
1
Tips & Warnings
Always double check your figures.
Have alternate pricing in lights and receptacles to lower your bid
Offer free estimates to repeat customers
Purchase an electrical software system. Be sure to do your research before you purchase.
Beware of General Contractors. Make sure they are licensed and insured before you do business.
References
Resources
- Photo Credit electrician, electrical, image by Greg Pickens from Fotolia.com hand shake image by Peter Baxter from Fotolia.com sales plinth green up text image by Nicemonkey from Fotolia.com the button plus blue neon icon image by Andrey Zyk from Fotolia.com Three positive business men showing fingers one two three image by Ricardo Verde Costa from Fotolia.com fire alarm image by Tammy Mobley from Fotolia.com score card image by Lucy Clark from Fotolia.com
