How to Estimate Electrical Work Accurately?

How to Estimate Electrical Work Accurately?

To prevent cost overruns, always Estimate Electrical Work first, for any type of project. You could start a renovation project, repair work, or new system installation, and a precise budget is always needed.


A cost estimate not only helps to prevent extra expenses but also improves the flow of work. There's better coordination, improved decision-making, adherence to the timeline, etc.


One of the biggest challenges of creating a budget is ensuring accuracy. It can be difficult to create a precise budget, so here is a beginner-friendly guide.


Steps to Estimate Electrical Work

Before figuring out the cost, it's important to understand the project. What scope of the project is it? Does the client have any particular requirements? What are the possible risks? After you have information on the project, including project documentation, it's time to start with the estimate.


1) Material Cost

Material Cost makes up almost 40% of the entire budget! So if you get that right, it's a significant breakthrough. Material Cost Estimation can be divided into two parts:



Perform Construction Takeoff

A construction takeoff refers to calculating the quantity of material needed for the project. It starts by taking accurate measurements of the construction site. Measurements will tell you how much material is needed. You can also consult the blueprints and architectural layout. A takeoff can be performed remotely, but it is better to visit the site before if you can.


Don't forget to add 10-15% as wastage!


Calculating Material Costs

After you know the number of materials needed, it becomes relatively easy to estimate the electrical work cost. All you need to do is multiply the total quantity by the unit price. For example, a cable costs 1$ per square foot and you need 50 square feet worth of cable. You multiply 1×50 to get the total estimate. Do this for all the materials individually until you have the total sum.


2) Calculating Labor Cost

The next step is to evaluate the cost of labor. The cost of labor is usually calculated by multiplying the time taken to complete the project by the hourly fees of labor fees. Fees can also vary depending on the skill set of the labor. For example, a master electrician will change more than a beginner.


It also depends on the type of work that needs to be done. Moreover, some professionals may also add travel fees if they are coming from a far place. So all these elements need to be considered.


3) Computing Equipment Expenses 

The next step to estimate electrical work is to calculate equipment expenses. The basic equipment is usually brought by the electrician, but if something special is needed, then you'll have to pay for it.


Similarly, if there's a need for heavyweight machinery, then their rental cost is also added to the estimate.


4) Adding Indirect Construction Costs

So now we are done with calculating the direct costs related to the project. But it's vital to include the indirect costs as well. You can get help from historical data, too. Here are some examples:



5) Creating a Contingency Plan 

A contingency plan is a safety plan in case of any unexpected event. If there is a situation where the project goes over budget, it acts as a buffer. It could be weather conditions, labor mishaps, or the client making changes during construction. Most contractors or estimators add 15-20% of the total budget as a contingency.


Best Practices for Cost Estimation

Here are some professional tips for accurate cost estimation for electrical projects.


1) Go Digital!

If you still haven't heard about cost-estimating software, then you are living under a rock. They help to create accurate and quick estimates. Some of them are available for free, so you can try them easily. But they can be tricky to use if you are new to them. Nevertheless, they have revolutionized the process of cost estimation and are often used by certified estimators.


2) Electrical Estimating Services

Has your bid-hit ratio been decreasing? Or have you ever wanted to bid on multiple projects at a time, but don't have enough time for it? Electrical Estimating Services can solve all these problems for you. By outsourcing your work to an estimator, you'll not only get a highly accurate estimate but also more time on your hands.


SMA Estimating LLC offers affordable yet precise electrical cost-estimating services for any type of construction project. They have a wide range of services from which you can choose.


3) Double Check and Review

It is always recommended to review the estimate before presenting it to the client. It can help to identify mistakes or overlooked areas. Even estimators get their work rechecked by senior estimators before giving it to the contractor. So, reviewing your work is very important.


Final Thoughts

In a construction project, estimating the electrical cost can be tricky if not properly planned. In MEP, electrical estimation is the most complex one, and there are plenty of reasons for that. Not only are these systems interlinked with one another, but safety is another factor that cannot be overlooked.


With the help of this article, you can efficiently carry out the estimation process. This is because it not only discusses the steps to estimate electrical work accurately, but it also points out what best practices you can apply.