Mike Holt Estimating Newsletter Series

This newsletter is #13 in the electrical estimating series where I explain how to determine the material cost, labor cost, and calculate direct job costs, overhead and profit. Estimating is a skill that can make or break a career or a company, and you need to understand the estimating and bidding processes so that your business remains profitable and that you have the knowledge to anticipate and avoid losses - which in some cases might mean not taking the job

The following content is extracted from Mike Holt's Guide to Electrical Estimating.

Labor Units - Using Work Experience

Work experience is important when you estimate an electrical project because it allows you to foresee the pitfalls of particular types of jobs that could impact the efficiency of your employees. Many electrical contractors estimate a job based on how long they think it will take them to do it, but there are other factors that must be considered. Factors such as the following all influence the efficiency of employees on a job and rarely will these numbers line up with the amount of time it would take if you could personally install every piece of material on a project:

the amount of supervision required
availability of qualified employees
job layout
the handling of tools and material
nonproductive time
job conditions

Use your personal experience as a guide, but remember that it's only one factor used to estimate a job.

How many labor hours do you think it will take to complete the wiring for the Meeting Room Drawing M“1?

I have asked over 1,000 master electricians in my classes to estimate the labor hours required to rough in and trim the meeting room. The answers range from a low of 40 hours to over 200 hours. If you like, show the plan to five electricians and ask them what they think and you will see what I mean.

Author's Comment: Differences in how labor hours are estimated are one of the primary reasons there is such a variation in pricing between electrical contractors.

Based on NECA labor units, the estimated labor hours for the Meeting Room will be 82.84 hours (see the following table). Some electrical contractors will be more efficient and organized and complete the project in less time, whereas other electrical contractors are so disorganized that they will be lucky to finish it in less than 125 hours.

Table 3-1 Meeting Room Labor Units
Description	Qty	Hours	Unit	Ext Hrs	Calculation
Boxes
Metal Boxes 4 x 4" Regular	30	18.00	C/100	5.40	18 hr/100 x 30
Rings
Rings, Square Round	6	4.50	C/100	0.27	4.50 hr/100 x 6
Rings, 1-Gang	13	4.50	C/100	0.59	4.50 hr/100 x 13
Rings, 2-Gang	2	5.00	C/100	0.10	5 hr/100 x 2
Switches
Switch - 20A, 125/277V, 1-Pole	4	20.00	C/100	0.80	20 hr/100 x 4
Switch - 20A, 125/277V, 3-Way	2	25.00	C/100	0.50	25 hr/100 x 2
Receptacles
Duplex Receptacle 20A, 125V	9	19.00	C/100	1.71	19 hr/100 x 9
Isolated Ground Receptacle 20A, 120V	2	0.25	E/Each	0.50	0.25 hr x 2
Plates
Plates, Plastic 1-Gang Switch	2	2.50	C/100	0.05	2.50 hr/100 x 2
Plates, Plastic 2-Gang Switch	2	4.00	C/100	0.08	4 hr/100 x 2
Plates, Plastic 1-Gang Duplex Receptacle	11	2.50	C/100	0.28	2.50 hr/100 x 11
Plates, Raised 4 x 4" Blank	9	6.00	C/100	0.54	6 hr/100 x 9
Raceway
EMT ½"	891	2.25	C/100	20.05	2.25 hr/100 x 891
EMT Set Screw Connectors ½"	100	2.00	C/100	2.00	2 hr/100 x 100
EMT Set Screw Couplings ½"	90	2.00	C/100	1.80	2 hr/100 x 90
Wire
Wire - 12 THHN, Copper, 600V	2,393	4.25	M/1,000	10.17	4.25 hr/1000 x 2,393
Fixtures
4' Fluorescent Lay-In, 2 Lamps, 120V	18	0.75	E/Each	13.50	0.75 hr x 18
Recessed Fixture	24	1.00	E/Each	24.00	1 hr x 24
Exit Fixture	2	0.25	E/Each	0.50	0.25 hr x 2
Total Labor-Unit Hours				82.84

We'd love to hear from you about this series, and the ways you're using it. Send us your comments and feedback by clicking on Post a Comment below. Look out for the next part in this series a month from now, and please share with your colleagues.

This content is extracted from Mike Holt's Guide to Electrical Estimating textbook. If you have enjoyed this newsletter, you can get the full content in Mike's Electrical Estimating DVD Library here.