How to Estimate Electrical Construction Costs

Electrical work should be carried out by qualified contractors.

Electrical contractors may need to include a range of items in their construction bids, as well a providing lighting and power to the houses or commercial buildings. They can also include fire alarms, as well as more sophisticated items such as telecommunications or audio systems. Electrical contractors must fully acquaint themselves with each site to ensure they include all required items.

Things You'll Need

• Drawings
• Specification

Instructions

1. Study the drawings that clients send you to make yourself familiar with the site. Ask questions at this early stage to save wasted time and effort later.

2. Review the specification sent by the client. This will tell you what type of wiring and fittings you need to buy and install. It could have a large impact on your price. You may also be required to include additional items such as alarm systems.

3. Request prices from subcontractors for work that will be carried out by specialists, such as intercom installation. Send these requests as soon as possible to give yourself time to review the price and meet the client's deadline.

4. Speak to your suppliers and obtain prices from them for wiring and fittings. This will provide you with valuable data required to calculate your price.

5. Prepare a schedule of the materials required to complete the works by measuring the length of wiring, as well as the number of each type of fixture, fitting and any other electrical works required. Calculate the total cost of materials using the rates provided in Step 4.

6. Calculate the costs of labor by carefully estimating the amount of time it will take to complete the project. Multiply this figure by the hourly wage you pay to your electricians.

7. Add into your tender the cost of any equipment for hire you need to reach high areas. Include within your bid the cost for any permits that you need to obtain -- this information is available from your state permit agency. Permits can cost thousands of dollars.

8. Add a percentage to your total sum for insurance, overhead costs and any additional expenditures, such as company car payments. In the future you may be required to carry out maintenance or repairs, so make an allowance for this service in your bid total.

9. Work out your total bid and add a percentage for profit. This figure can fluctuate widely because it depends upon the total bid and the size of the site.

Tips & Warnings

• Be fair when adding your profit; if your margin is greedy, and the client may turn down your bid.

References

• Learn Electrical Estimating