Estimating Electrical Power: Which Method Is Most Suitable For You?

The job of an electrical estimate requires an exceptional level of expertise and precision.

The estimates you create are the foundation for the manner in which an electrical project will take place. Your estimate is used by clients to determine who gets the project or what can be done with the funds they have.

However, generating an accurate estimate isn’t an easy job! There are many factors that affect estimates, and, on certain projects, the task of estimating is by itself a huge task.

Your method of estimation determines the speed and accuracy with which you are able to create an estimate. We’ll be looking at some of the most common methods:

Methods for estimating electrical power

Here are some estimation methods most commonly used by electrical estimators. Each method has its own set of pros and cons.

Automated takeoff software like Counterfire can assist with any of the strategies described in this article. Benefits of using it include faster, more accurate, and precise taking offs count, as well as the ability to collaborate and edit easily. Takeoff software will free your time significantly:

Per-point method

The per-point approach implies that every fixture – be it an electrical point, switch, or sensor – is classified as one “point” that is assigned an equivalent dollar value. As an example, if you had 1,000 points and each was assigned the value PS100 the quote for the project is PS100,000.

Although the advantage of this method of estimation is that it’s quick and simple, however, on the other side, it’s rife with the possibility of making an incorrect estimate. Consider, for example, the cost of labor and how it will vary from job to job. If you’re assigning the exact points to every fixture, there could be a huge variance.

Let’s say that one project requires more cables that must be connected between power points or that some have only one socket while others have double sockets. Furthermore, the conditions for work could require more labor and time – for instance, what if you needed to drill through concrete? Labor is a common issue in the per-point approach because you could quickly surpass your budget when it comes to the cost of labor. In any electrical company, this could result in massive damage to your profits.

The method used to estimate electrical current is an averaging technique which means that highs, as well as lows, aren’t taken into account. The results are normal as it’s a “one size fits all” method. There’s a caveat to this: If you’re building something that isn’t too different from previous projects, this strategy might prove to be effective for you.

Labour unit method

The method of calculating labor units assigns a price (in units) to the amount of human labor needed to install each piece of hardware. A unit of labor is defined by the OECD as the mean cost of labor per unit of output. It is the ratio of the total cost of labor to the actual output.

As an example, maybe every labor unit has a PS75. The installation of a single socket may be one unit of labor, while a sensor could be three or more, and the list goes on. Then, you multiply the total amount in labor units by the labor unit price to arrive at the price.

We’ve discussed the process of calculating labor costs in a precise manner in an earlier post. Labor units are typically calculated in two ways: the “shop average labor rate,” in which your total labor cost over the past twelve months has been divided by the total number of labor hours worked, or “job average labor rate,” where the unit of labor is determined based on the kind of job performed and its difficulty.

The method of calculating labor units can be more precise than the per-point approach because there is the possibility to accurately calculate the working conditions. There are some typical mistakes, however. For instance, people often do not consider “labor burden” costs – the expenses related to your employees that aren’t directly linked to their job. For instance, expenses like holiday pay, sick leave, insurance, or even taxes.

If you employ the method of calculating labor units however, you must be aware of the distinction between the different conditions of work as this is the place where you could get an incorrect estimation. For instance, the differences in labor in “easy” and “difficult” situations can be substantial, So you don’t want to overcharge your company by using your labor units in a way that is too expensive.

Pre-build

Pre-build is also referred to as”pre-build” or the “assembly estimating method.” It is a straightforward method of counting takeoffs since it bundles your components by incorporating the materials you require and generating a unit cost.

There are many components in electrical construction that comprise many elements. For instance, power sockets contain their power points, mounting bracket, and cabling. It is possible to bundle all of this at one price.

If you offer pre-builts or assembly, it could include a mixture of labour and materials or billable items that are separate for materials and labour. Certain contracts are called units of rate or schedules cost contracts. If you’re making a quote on one of them, you’ll generally be required to state your unit rates for pre-builts or assemblies included in the schedule.

The pre-build approach can have the same issues as the per-point approach (it’s actually a more complicated variant of per-point). Common errors include incorrect labor calculations or failing to take into account travel expenses for the work.

Design and build

If you are using the design and build method, the electrician is responsible for the design and the actual execution and execution. The customer typically provides an outline of the requirements for the project. The electrical contractor will create an elaborate design prior to beginning wiring.

This is among the most complicated estimation methods. You must usually adhere to the budgetary requirements of the client and provide extremely precise forecasting from conception to construction. This is distinct from the types of projects that require an amount for the finished design.

The electrical estimator utilizing the design and construct method requires thorough knowledge of design methodology along with construction, labor, material and equipment knowledge. The biggest drawback to the method lies in its complexity, which leaves the possibility of error at any point.

Guesstimate

There’s a valid reason to leave this method of estimating for last. Although the method of guesstimating is still used as a method, it’s also the most vulnerable to errors. If you’ve encountered a contractor who is looking at an assignment and gives an estimate out of the air, it’s a great illustration of estimation.

The estimation process is usually an instinct and not a comprehensive analysis of the task at hand. This is why it could result in highly inaccurate estimates that don’t take into account the complexity of the job, or in the opposite case, they overestimate the task.

However, anyone who is knowledgeable may be able to take a look at the job and estimate the amount of work in particular if it’s in the same type and size they’ve been working on for years. It’s not an option for anyone, not an expert, because it’s too prone to error.

But, using Countfire’s electric estimation software, you can create estimates based on your previous work done in previous estimates. When you import the quantities you want to take off (in just one click!), the program will price the amount the estimate you have made as it is possible in accordance with how you’ve priced your items before.

This is a far more efficient method to rapidly price your project and obtain a ballpark number for your estimate, which is based on real-world projects.

Final thoughts

Methods of estimation tend to boil down to the expertise of the estimator, as well as their preferred choice (or the preference of their company) of the method. Factors such as speed, precision, and knowledge are important factors in that decision.

In general, the method you choose to use should be based on solid information. For instance, labor estimates should include the best data on similar jobs performed in the past and how work conditions affect the work.

Naturally, when you are looking to increase speed and accuracy in taking offs being counted, we suggest making use of top software for taking off. Counterfire can aid you in estimating your takeoffs with certainty.