UNDERQUOTE ELECTRICAL PROJECTS
Cutting your quote to the bone means you are taking short cuts in workplace safety including Electrical Safety that exposes you and your colleagues to risks of death, electric shock or other injury caused directly or indirectly by electricity.
USE PER-POINT, PRE-BUILDS AND ASSEMBLY METHODS
Per-point, pre-builds and assembly methods of pricing are quick and easy but are thwart with danger as they don’t take into consideration the different requirements of each project. Per-point method, pre-build and assembly methods commonly leaves you out of pocket.
QUOTE EVERYTHING THAT COMES THROUGH THE DOOR
Be more productive with your time, saving most of the time you waste on preparing electrical quotes. You have probably realized it is a lot of time! It’s also very expensive. Give yourself time to produce professional winning tender submissions by only targeting your selected market niche.
USE PROVEN LABOUR UNIT METHOD
In Electrical Estimating as a starting point the human resource function requires basic labour units that have been proven on past projects over time on the productivity of human resource for different functions.
This is the most accurate form of estimating as it creates a consistent benchmark for each individual component of the project.
The advantage is that each labour unit rate can be easily modified (if required) to suit the different installation conditions. This type of pricing is quick, accurate, flexible and completely transparent.
ELECTRICAL ESTIMATING ENQUIRY APPRAISAL
Determine whether the electrical job will be worth the time and effort needed to complete an estimate. Does the organisation have the resources and capacity to meet tender requirements, including preparing the estimate in the tender period allowed? What are the contract conditions?
REGISTER TENDER DETAILS
Tender register to include; value of tender ($) excl GST, invitation to tender received (date), tender sent (date), value of tenders won and lost, estimated hours, success Rate on $ amount, success Rate on Win/Loss Ratio etc. Do post tender analysis with all your tenders.
To be sent out to companies not already on your Approved Supplier/Sub-Contractor Listing to include; company profile, company personnel, safety and industrials, quality system and access to premises if required for the purposes of inspection or auditing.
EVALUATE BUSINESS LABOUR COST
Determine your minimum labour sell rate covering statutory on-cost, mark-up, overheads to include staff and operating cost to be used as your labour cost base for your business. All estimates must start from a cost base with added margins plus GST.
TAKE OFF QUANTITY & SUBCONTRACT ITEMS
Count every item and use measuring wheel for linear manual take-off for small jobs and using a specialized PDF onscreen count and linear take-off software for large projects with specialized electrical estimating software application.
STRATEGIZE YOUR ESTIMATING AND TENDERING PROCESS
Estimate your Gross Margin For Each Tender To Be Competitive and Maximizing Your Profits. Using an appropriate specialized electrical estimating software application the estimated gross margin can be changed by adjusting the mark up on cost for material and the mark up on cost for labour as well as changing your efficiency rate.
SUBMIT YOUR TENDER WITH ALTERNATIVE AND CAPABILITY STATEMENT
If you can always try to have an alternative offer which should be lower in price than your main conforming offer price in your tender. This will bring your offer to their attention and may help get you to the post tender negotiating table. In your tender submission you must have a Company Profile and Capability Statement.
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