2004 National Electrical Estimator

How to Use This Book

This manual is a guide to the cost of installing electrical work in buildings. It lists costs to the electrical subcontractor for a wide variety of electrical work.

Before using any estimate in this book, you should understand an important point about estimating electrical construction costs. Estimating is an art, not a science. There is no estimate that fits all work. The manhour estimates in this book will be accurate for many jobs. But no two crews will complete all tasks in exactly the same time. And no two jobs are identical. That’s why electrical cost estimating requires an exercise of judgment. Every estimate has to be custom-made for the job, the crew and the contractor. No estimating reference, no computerized cost estimating system, no estimating service can consider all the variables that make every job unique.

This book is not intended as a replacement for well-informed judgment. But when supplemented with an estimator’s professional evaluation, the figures in this manual will be a good aid in developing an informed opinion of the cost of electrical systems.

Inside the back cover of this book you’ll find an envelope with a compact disk. The disk has National Estimator, an easy-to-use estimating program with all the cost estimates in this book. Insert the CD in your computer and wait a few seconds. Installation should begin automatically. (If not, click Start, Settings, Control Panel, double-click Add/Remove programs and Install.) Select Show Me from the installation menu and Julie will show you how to use National Estimator. When Show Me is complete, select Install Program. When the National Estimator program has been installed, click Help on the menu bar, click Contents, click Print all Topics, click File and click Print Topic to print a 28-page instruction manual for National Estimator.

Labor Costs

The labor costs listed in this manual will apply on most jobs where the hourly wage in effect is the same or similar to the following rates:

The total hourly cost includes the basic wage, taxable fringe benefits (vacation pay), workers’ compensation insurance, liability insurance, taxes (state and federal unemployment, Social Security and Medicare), and typical non-taxable fringe benefits such as medical insurance.

If your hourly labor cost is much lower or higher, costs of installation can be expected to be proportionately lower or higher than the installation costs listed in this book. If your total hourly labor cost is 25 percent less, for example, reduce the labor figures in the cost tables by 25 percent to find your local cost.

The Craft@Hrs column shows the recommended crew and manhours per unit for installation. For example, L2 in the Craft@Hrs column means that we recommend a crew of two electricians. L1 means that a crew of one electrician is recommended. Costs in the Labor Cost column are the result of multiplying the manhours per unit by the rate of $30.45 per hour.

For example, if the Craft@Hrs column shows L2@.250, the Labor Cost column will show $7.46. That’s .250 manhours multiplied by $30.45 per manhour and rounded to the nearest penny.

Divide the manhours per unit into 8 to find the number of units one electrician can install in one 8-hour day: 8 divided by .250 equals 32 units per day. Multiply that answer by the number of crew members to find the number of units the crew will install in an 8-hour day. For example, if the crew is two electricians, multiply 32 by 2 to find that the crew can be expected to install 64 units in an 8-hour day.

Some tasks can be expected to require less labor under certain conditions. For example, when conduit is run in groups, less labor will be required for each 100 linear feet of conduit. It’s the estimator’s responsibility to identify conditions that are likely to require more or less labor than the standard for the type of work being estimated.

This book lists both the labor cost per installed unit and the manhours required for installation. Manhours are listed in hundredths of an hour rather than minutes because it’s easier to add, subtract, multiply and divide hundredths of a unit.

Material Costs

Material prices in this book are based on costs as of late 2002, and projected to mid 2003 by adding 3 to 8 percent. Prices are neither “retail” nor “wholesale” costs. Instead, they’re intended to reflect what most electrical contractors who buy in moderate volume will be paying in spring 2003. Volume purchases of some materials will cost less because many dealers offer quantity discounts.

Material costs in this book include normal waste. If waste of materials or breakage is expected to exceed 3 to 5 percent of the materials used on the job, include a separate allowance for excessive waste.

The cost of delivering materials to the job site is not included in this book. Where the cost of delivery is significant and can be identified, add that cost to these figures.

Please note that the cost of some electrical materials is highly volatile. For example, copper wire prices have been known to move up or down 10 percent in one month. There’s no reliable way to forecast price movements like this. Major price changes have not been assumed in this manual.

Add Sales Tax

No state or local sales tax is included in material prices listed here. Sales tax varies from area to area and may not be charged on purchases for some types of projects. Add the appropriate sales tax rate when sales tax will be charged on materials bought for the job.

Add Overhead and Profit

To complete the estimate, add your overhead and expected profit. Many contractors feel that adding 10 percent for profit yields an acceptable return on the money invested in the business. But there’s no profit percentage that fits all jobs and all contractors.

For some electrical contractors, overhead may add as little as 10 percent to the labor and material cost. But routinely adding 10 percent for overhead is poor estimating practice. It’s the estimator’s responsibility to identify all overhead costs and include them in the estimate, either as a lump sum or as a percentage of the total labor and material cost.

Other Costs to Add

Some other costs are excluded from the figures in this manual: building electrical permits, special hoisting costs, freight costs not absorbed by the supplier, utility company charges for installation and service, special insurance and bonds, power equipment other than small tools, mobilization to remote sites, demobilization, nonproductive labor, and nonworking supervisors. Add these costs if they can be identified and if they will be a significant part of the job cost.

All Tables Assume “Good” Conditions

This means that there are few or no unusual conditions that would delay production. Conditions are good when work is performed during usual working hours in relatively clean surroundings and in readily accessible areas not over 12 feet above the finish floor. The temperature is between 50 and 85 degrees F. Electricians are working no more than eight hours a day and no more than five days a week.

Good conditions require that all tools and materials be available on the job site when needed. Tools, including power tools, are assumed to be in good working order. Where power tools are appropriate, it’s assumed that temporary power is provided. Add the cost of temporary power when it will be furnished at your expense.

Proper supervision can make a big difference in labor productivity. The tables assume that there is adequate supervision but make no allowance for nonproductive labor — supervisors who direct but do no installation. If you plan to have nonproductive supervision on the job, add that cost to the figures in this manual.

Conditions are seldom “good” when the work area is confined or when a short construction schedule makes it necessary for many trades to work at the same time. The usual result will be stacks of material obstructing the work space and several tradesmen competing for access at the point of installation.

If the conditions on the job you’re estimating aren’t expected to be “good,” adjust the labor figures in this book as appropriate. Occasionally larger jobs can be done faster because specialized equipment or specialized crews can be used to good advantage. This will usually reduce the installation cost. More often, conditions are less than “good.” In that case, labor costs will be higher.

There’s no accepted way to decide how much “bad” conditions will increase the labor hours needed. But it’s accepted estimating practice to assign a cost multiplier of more than 1.0 to a job that can be expected to require more than the usual amount of labor per unit installed. For example, if conditions are less than “good” only in minor respects, you might multiply labor costs by 1.10. If conditions are very poor, a multiplier of 1.50 or more might be appropriate.

Other Factors That Affect Productivity

The tables in this book assume that the crew used for the job is the smallest crew appropriate for the work at hand. Usually this means that the crew is one journeyman electrician.

Most experts who have studied the productivity of construction trades will agree that the smallest crew that can do the job is usually the most efficient. For example, it would be foolish to have two men working together setting duplex receptacles — one handing tools and material to the other as needed. Only one of the two would be working at any given time. A more productive arrangement would be two one-man crews, each working independently.

Of course, there are exceptions. Sometimes a crew of one will take more than twice as long as a crew of two. When pulling feeder cable or setting floor-standing switchboards or motor control centers, more help will usually cut the labor cost per installed unit. Some jobs simply can’t be done by a crew of one.

When work is done on a scaffold, there should be someone on the ground to chase parts and equipment and prepare lighting fixtures for hanging. It’s a waste of manpower to have an electrician leave the scaffold and return every time parts or tools are needed. The scaffold installers should install one fixture while the “grunt” on the floor prepares the next. Conduit should be prefabricated on the ground from measurements taken by the electricians on the scaffold. The assistant on the ground should bend the conduit and hand it up to the installers.

Labor savings like this are obvious to anyone who has ever done this type of work, and are assumed in the labor tables in this book.

The Electrician

The labor hours in this book are intended to be typical of what a trained and motivated journeyman electrician with five years of experience will do on most jobs. Of course, it’s assumed that the installer can read and follow plans and specifications and has the ability to lay out the work so that it complies with the code.

It shouldn’t make any difference whether the work is in a hospital, a grocery store, a wood mill or a small convenience store. An experienced journeyman electrician should be able to handle the work at the rates shown here even though the materials and code requirements differ. But you’ll have to make allowances if your installers are familiar with residential work only, and the job at hand is something else. 

Improving Estimating Accuracy & Profit

It’s been said that electrical estimators learn by making mistakes. The best estimators are the ones that have made the most mistakes. Once you’ve made every mistake possible, you’re a real expert.

I can’t subscribe 100 percent to that theory, but I know that there are plenty of pitfalls ready to trap unwary electrical estimators. This section is intended to suggest ways to spot potential problems before they become a major loss. It will also recommend some steps you can take to increase the profit on most jobs.

Labor Productivity

Improving output only slightly can result in major cost savings. Cutting only a minute or two off the installation time for each duplex receptacle or handy box can reduce the labor cost by several hundred or even a thousand dollars a job. Getting better (and predictably better) productivity from your electricians should be a primary concern for every electrical contractor.

Assuming that your electricians are experienced, well-trained, and have all the tools and materials they need to complete the work, the most significant increase in productivity will probably be through improved motivation.

The best form of motivation for most electricians is to encourage a sense of pride in the work they do. Encouraging self-respect is a powerful inducement for most skilled tradesmen. Every alert supervisor knows the value of recognition given for a job well done. Acknowledging good work builds confidence and encourages additional effort in the future.

Handling Inspections

The supervisor or foreman on site should have primary responsibility for dealing with all inspectors. Don’t let others circumvent the supervisor’s or foreman’s position.

An inspector’s only job is to see that the installation complies with the code. They aren’t supervisors and don’t direct the work. They can and do interpret the code and sometimes make mistakes. Encourage the foreman or supervisor to take issue promptly with a questionable interpretation. Ask the inspector to cite a code reference as his authority. If the inspector insists that his interpretation is correct, and if you feel that it’s wrong, call the Building Official to initiate an appeal. Your trade association or the National Electrical Contractors’ Association may be able to present persuasive arguments in your favor.

Some inspectors have a reputation for being impossible to deal with. Aggressive enforcement of questionable code interpretations can severely hurt project productivity. Following the code carefully will keep you out of most compliance problems. Every electrician and electrical supervisor has to know the code. Code classes are taught at night schools in many communities. Take a code class both to understand how the code is applied and to get current on code changes that have been enacted recently.

Mobilization and Demobilization

Many electrical subcontractors have job shacks and lockup boxes that can be moved onto the job for storing tools and materials. Some larger firms have trailer vans that can be moved from job to job. No matter what type of onsite storage you use, getting set up takes time. The bigger the job, the more time will probably be needed.

The first step is usually getting permission to set up your storage area somewhere on site. On some job sites storage space is at a premium. Some city projects literally have no storage space until parts of the building are completed. Occasionally tools and equipment will have to be stored off site. This will usually require daily mobilization and demobilization and increase the labor cost substantially. Be sure your estimate considers this important item.

Demobilization usually takes less time and costs less than mobilization. Removing the surplus material, tools and equipment can be done by helpers or material handlers rather than electricians.

One important mobilization item is temporary electrical service. Be sure you know who pays for installation of temporary power and who pays for power used on site during construction. It’s common for the electrical contractor to cover the cost of electrical distribution and service. Installation will usually be done by your electricians and will have to pass inspection, of course.

Most communities require temporary electrical permits prior to starting work. Before applying for the permit, contact the electric utility and request a meeting with whoever coordinates extensions of service — usually the planner. Before having that meeting, know what size the service must be. The planner will let you know what voltage is available and where the point of connection will be. Don’t end the meeting with the planner until you’ve covered every requirement and all procedures imposed by the electric utility.

Job Cleanup

It’s hard to get good production when trash and debris obstruct access on the job site. That alone should be enough reason to dispose of accumulated waste regularly. Most specifications require that all subcontractors remove unused materials, cartons, wrappers and discarded equipment. On many jobs the general contractor will have the right to back-charge subs for removal of their discards if they don’t clean the site themselves.

Encourage your crews to do their cleanup as installation is being done. For example, each time a fixture is removed from a carton, the tradesman should collapse the carton and throw it on the pile of discards. It takes little more time that way and the cleanup is less likely to be put off or ignored entirely.

Some contractors and subcontractors have a reputation for running a dirty job. You’ve probably seen jobs that are so cluttered that it’s hard to understand how anyone can work efficiently. As the electrical contractor, you can’t dictate to the general contractor or the other subcontractors, of course. But work habits of others affect your productivity and thus your profit.

My feeling is that it’s entirely proper to discuss the matter with the general and the other subs when accumulated debris is slowing progress. Request a meeting right on the job in the middle of the clutter. This alone may do the trick.

If you don’t insist on a clean job, the fire department probably will. A dirty job site costs everyone more time and money. A clean job is usually both more efficient and safer.

Production

No matter how simple and quick, most jobs will have some production problems. It’s easy to explain why. Every job is unique. Every job brings together skilled tradesmen with varying preferences and habits. Most have never worked together before. Yet each must coordinate the work he does with those who precede him and those who follow. It’s normal to expect that some adjustments will be needed before cooperation becomes routine.

Of course, the general contractor is the key to good cooperation among the trades. A general who schedules trades properly will have fewer problems and will help all subcontractors earn the profit they’re hoping for. This is never automatic, of course. And some general contractors never seem to learn how to schedule properly. From the estimator’s perspective, it’s more expensive to work for a contractor who has scheduling problems than it is to work for a contractor who’s more adept at coordination. Your estimates should reflect production problems when problems can be anticipated.

Good supervision will help avoid most production problems. Schedule material deliveries carefully. Have the right tools on hand when needed. Keep crews as small as possible. Don’t work your crews more than 40 hours a week unless absolutely necessary. Too many bodies and too many hours will erode production.

If you’re using a larger crew, don’t have everyone work together. Instead, break the crew into two units and encourage friendly competition between the two, with a six-pack of beer going to the winning crew — to be consumed after hours and off the site, of course.

Corrections

The tables in this book assume that little or no time is spent making corrections after the work is done. Most electrical contractors have very few callbacks. 

If you’re often called back to replace faulty materials or correct defective workmanship, one of four things is happening. First, you could be working for some very particular contractors or owners or handling some very sensitive work. In that case, callbacks could be part of the job and should be included in each estimate. Second, you could be installing substandard materials. Third, your electricians could be doing haphazard work. Finally, your installation procedure could be omitting fixture and circuit tests that will locate problems before the owner finds them.

When qualified electricians install quality materials, the risk of a callback is small. Occasionally a ballast will fail after 10 or 20 hours in use. And sometimes an owner’s negligence will damage a circuit or switch. When this happens, accept the service work as routine. Complete it promptly at no extra charge. Consider it cheap advertising, a chance to establish your credentials with the owner. You’ll probably turn the service call into some extra work later.

Your Type of Work

Most electrical contractors prefer to handle certain types of work. Only a few have the capital, equipment and skills needed to handle the largest jobs. Most will do residential wiring because that’s the most plentiful work available. Some prefer private work with as little government interference as possible. Others bid only government jobs.

The most profitable electrical contractors specialize in one type of work or one type of customer. The electrical construction field is too broad to try to do everything well. Select a part of the business that feels comfortable and concentrate on doing it as well or better than anyone else. Of course, some of the older and larger electrical shops will do almost any type of work. But nearly every electrical contractor prefers some class of job over all others — and would take only that work if there were enough available to stay busy.

Observe the electrical contractors in your area. Notice the companies that seem to be busiest and most profitable. See what class of customers they service or what type of work they do most. It’s probably easier to follow the success of another contractor who’s found a winning formula than it is to invent a new formula yourself.

Specialization lets you hire electricians who are specialists too. That tends to improve productivity, keeps costs down, and improves profits — as long as you’re handling work that’s in your specialty.

Coordination will be easier and the profits will usually be higher if you work for a limited number of general contractors. Some contractors seem to be masters at putting a project together. These same contractors probably pay promptly and treat their subs fairly. That makes your job easier and tends to fatten your bottom line. If you’ve found several contractors who make life more pleasant for you, keep them supplied with competitive bids that will bring more work into both your shop and theirs.

Most electrical contractors don’t bid government work. It’s a specialty that requires special knowledge: complying with detailed general conditions, observing regulations, anticipating inspection criteria and following administrative procedures. And every branch of federal, state and local government has its own requirements. Those who have mastered the procedures usually do quite well when work is plentiful. But there’s a tide of government work that rises and falls just like the tide of construction activity in general.

Bid Shopping

Many contractors prefer projects that require subcontractor listings. The general contractor must list the subcontractors he plans to use, and must actually use the subs he lists. When listing of subs isn’t required, the general can shop for lower subcontract bids right up to the time work begins, in some cases. Even if the general contractor has to list his subs in the contract with the owner, the general will usually have a month or two to shop bids after the contract is awarded.

When a general contractor uses your bid to land a job, it’s just elementary fair play to expect that your company will get the contract. Giving all your competition a second look at the job is in no one’s interest but the general contractor’s. It’s a waste of time to bid for general contractors who shop their sub bids. Neither is it good practice to undercut another electrical contractor whose estimate was used by the winning general contractor. Support the effort of reputable subcontractors who promote subcontractor listing at bid time.

Need More Help?

This book is concerned primarily with labor and material costs for electrical construction. You’ll find only limited information here on how to compile an estimate. If you need a detailed explanation on how to make a material take-off and complete the bid, another book by this author may be helpful. An order form for Estimating Electrical Construction is bound into the last pages of this book.