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Electrical Estimating System Management Plan


Every Electrical Construction Contractor should have sample estimates and guides for training new estimators and updating experienced estimators. Lack of time often prevents the preparation of such material, with the result that many unnecessary mistakes are made and much estimating time is lost.

Electrical Construction Estimating is a process with proven functions and calculations which take into account not only material prices but also the productive efficiency of the total business.

Successful Electrical Construction Estimating allows for constant changes in methods of construction, tools, equipment, and many other items that affect labour costs and must constantly conduct labour-cost studies in order to know the efficiency of the electrical installation methods.

The functions of an electrical estimate are difficult to outline the various parts of the electrical estimating system. In general we can list them under certain categories:

  1. Provision of notes and records: Taking notes and highlighting important items in the electrical specification and drawings become useful for material procurement, establishing labour costs and analysing the project as a whole.

A preliminary study of the electrical specification and drawings usually gives the electrical estimator a good idea of the job whether or not the job will fit into the organizations program.

  1. Establishing estimated quantities and costs such as:
    1. Material quantities and costs
    2. Direct labour costs for different installation conditions
    3. Indirect labour costs such as supervision and job factors.
    4. General overhead costs such as administration and management.
  2. Project requirements:
    1. Duration of the project
    2. Scheduling number of electricians required
    3. Potential hazards:
      1. Electrical Safety
      2. Delays to the project caused by other trades
      3. Weather conditions
      4. Cost of procuring material
      5. Cost of labour requirements
      6. Extension of time restrictions
  3. Technical electrical design verification requirements. Checking specification and drawing to statutory standards and design outcomes.
  4. Commercial financial capacity. For larger electrical projects ensure funding of cash flow is available to carry over between monthly progress claims.
  5. Take off quantity and subcontract items. Evaluation is required whether sections need to be subcontracted out or do the activities in-house.
  6. Obtain and evaluate prices. Comparing material prices between suppliers and subcontractors not only best price but delivery capabilities and past history.
  7. Co-ordination and phase review estimate. Estimate phase reviews will need to be carried out throughout the tender such as:
    1. Register tender and categorize tender.
    2. Do we tender?
    3. Review Tender – Technical and Commercial
    4. Technical Review and breakdown
    5. Is submission satisfactory?
    6. Co-ordination meeting; review of the total tender information prior to submission.
  8. Post tender follow up and negotiation.
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