ECN Forum Forums General Topics of the Trade Business Related Discussion Estimating Residential

AWL,

I've been a one-man shop for 23 years and have had to survive on my estimating skills. If you're after new construction, I can't help you, but wish you luck...there's little loyalty and low-bid wins. If you're after remodeling work email me and I'll answer whatever questions you have.

Dave
dave@tigerelectrical.com

Hi Dave I shot you an email thanks for your offer of help its greatly appreciated

Adam

National Electrical Estimating, both book, and CD should put you on track, for residential estimating.

I'm in your shoes. Bidding basic residential is VERY hard for me also. So far I only dare to go T&M and risk losing the work. The work that I do get should give me insight to estimate future jobs better.

Remodel and service is harder to estimate than new construction, especially if they don't want to open up the walls and tear down the ceiling for you.
Sometimes people will be receptive to T&M and sometimes not.
Sometimes T&M will have you working for much less than anyone else in town would have even opened the plans for.
What I sometimes propose is that I will give an estimate and then do the job T&M. I now make sure that my estimate is what I would do the job for win or lose. I recently got lazy and casually gave a verbal number off the top of my head that ended up being a couple of hundred too low and was asked "what caused it to go so so high?" I hate that and won't ever let it happen again.
I will estimate on the high side of realistic as I prefer to present an invoice that is lower than expected. Or not take the job. When I say realistic I mean realistic. What's the costliest thing you could possibly encounter in trying to get wire from here to there? Don't forget how all those pesky little parts add up.
Depending on the size and scope of the job, I will sometimes ask to take a look at the attic, basement, service, and sometimes run a rod up the wall at a switch box (to check for blocks, pipes, headers, anything...) before giving a number.
However,when all goes well this seems to make everyone happy even if it doesn't put me in that 5000 sq ft home that I really need.
Just keep good records of what you actually did and how much it cost you to do it for future reference.
And it should go without saying to learn from each and every surprise you encounter.
Vince

I made the same mistake a few days ago [first and LAST time] I ended up making no money on the job, only walking away with 1200' of #8 THHN [worth over $600] and knowing the fact that the customer has much more work for me in the near future. I ate it this time... From now on: written quotes only.

~Matt

In an estimating and bidding course I took many years ago it was stated that if you get 20% of the jobs you bid on you're doing ok. I've been doing T&M work on new homes for a few years, but I do give them a "ballpark" price first. Sometimes the ballpark price scares them away, sometimes not. You win some, you lose some. Many customers just worry about price and nothing else. As soon as they start talking about taking out their own permit and hiring a moonlighter to do the work, there's no point in even bothering to bid. A legit electrical contractor cannot compete with that. I have a letter I issue with my estimates stating that price is only a small portion of what should be considered when awarding a bid. Warranty, quality of work, how long the contractor has been in business, reputation, licensing, insurance, worker's compensation, etc should also play a part in selecting a contractor. A lot depends on the economy of your area, how much construction is going on and how many contractors are available to do the work.