How to Bid Electrical Work and Maximize Your Profits?

Accurately Bid Electrical Work to increase your chances of winning the bid. It is no secret that the construction industry can get insanely competitive. Several contractors are bidding for the same job, some of which are very qualified.

So how do you make yourself stand out and compel the client towards your proposal? One of the most straightforward and effective ways to increase your chances of winning bids is to develop a precise budget. 

Steps to Bid Electrical Work

1) Understand the Project 

Before you start to bid on electrical work, it’s important to understand the perspective of the client. What is the aim of the project? What does the client hope to create? Most contractors just skim through the details as there is limited submission time. But it’s vital to explore the demands of the project.

Go through any construction relevant documentation that is provided to you. It could include project plans, blueprints or architectural drawings.

2) Quantity Takeoff

Start estimating the cost by quantifying the materials needed for construction. An electrical quantity takeoff typically consists of things like wires, lightning fixtures, cables, generators, circuits, switches etc. The takeoff sheet may vary from project to project but typically consists of the same thing.

Electrical Estimating Services use advanced quantity takeoff software. It allows them to take measurements directly off the blueprints. SMA MEP Estimate uses software like:

1. Planswift 
2. Mc Cormick
3. Con Est
4. Trimble 
5. Bluebeam 
6. Stack
7. On Screen Takeoff
8. Quest Estimating

Many professional contractors choose to outsource quantity takeoff to SMA MEP Estimate for quick and accurate results.

3) Calculate Material

It’s important to know about the exact prices in the market to calculate material costs. Get multiple quotes from suppliers to get a fair quote. Pro tip: Be wary of regional price differences and fluctuations in market prices. 

Residential Electrical Estimating Services use real time pricing guides such as RS Means. This software can be pricey plus hard to use so most people just prefer to outsource the work

4) Assess Labor Cost 

Make sure that you don’t underestimate labor costs. Include overtime pay, benefits and insurance in your estimates. Labor cost mostly depends on the time taken to complete the project and the number of workers.

• Time taken to complete the project × Flat rate 

5) Contingency Plan

When you bid for electrical work, it’s vital to create a contingency plan. It will protect the construction projects from risk factors that may cause cost overruns. In case of any sudden situation or unexpected event, a contingency will work as a buffer and keep the client on budget. Most contractors add 5-15% of the total budget as a contingency, depending upon the level of risks involved.

6) Overheads and Profit Margin 

Don’t forget to include indirect expenses of construction and your profit margin. The typical profit margin for a contractor is usually about 5-10%.

Here are some examples of overhead expenses that may or may not be included in a project:

• Administrative Costs
• Utility Bills
• Permits and Inspection
• Marketing
• Insurance
• Legal Fees

7) Double Check Estimates

The best practice to efficiently bid electrical work is to double check the cost estimates. If you are running short on time, just go through your project quickly, before submitting it to the client. Many contractors find it helpful to read their proposal first as it helps to identify potential mistakes and flaws. It gives you a second chance to fix any mistakes and errors.

Role of Commercial Electrical Estimating Services 

Professional Commercial Electrical Estimating Services can increase your chance of winning a bid. Cost estimators are professional and certified individuals who are competent to handle a project’s finances. Many people employ them such as architects, fabricators, engineers and especially contractors. If you are short on time or frequently losing bids, why not try outsourcing to a reliable cost estimator? Following are some of the benefits of outsourcing to companies like SMA MEP Estimates:

• It gives you access to advanced cost estimating software
• You have a team of professional cost analysts at your disposal
• It helps you to deliver projects on time
• Your estimates are accurate and precise
• It gives you a competitive edge

Final Remarks

You may have an idea about how to bid electrical work efficiently. You must organize and manage each aspect of cost estimation. It is better to create a checklist so that you don’t overlook or miss anything. Moreover, there are also some techniques for drafting a bid proposal. For example, it’s better to use simple and concise language. Other than that, it’s also vital to include your qualifications. Furthermore, whatever format you are following for your bid proposal, make sure that it is simple to understand.