Part 2. When estimating electrical projects it is vitally important that you recognize and account for hidden costs on projects.

It is part of the “Crossing your “T’s” and dotting your “I’s”.

This writing helps identify hidden costs in electrical projects and explains ideas how to cover those costs.

In Part 1 We covered: Examples of hidden costs to be aware of

• Mobilization expense
• Expendable tools expense
• Truck & tool expense

  In Part 2 We cover:  Examples of hidden costs to be aware of

• Delivery charges for rental equipment
• Fuel cost
• Labor and fuel cost for testing generators.
• Drinking water
• Storage expense
• Contingency expense (Expenses that cannot be predicted with certainty)

 

 

 Part 2: Examples of hidden costs to be aware of

Rental equipment delivery charges

Equipment rental companies charge delivery fees to deliver equipment like man lifts, forklifts, trenchers, etc. Make sure to include the cost of delivery in your estimate. Fees could be $75.00 each way, or more.

Fuel cost for equipment

Remember to add dollars for fuel expense for equipment like tractors or trenchers, or for job site vehicles. Calculate your total cost and input your dollar cost for fuel in your estimate.

Labor and fuel cost for testing generators.

When estimating generators read the specifications closely about generator testing to find out what is required.

Generator testing is usually required.

Some requirements to consider.

• 3^rd party testing
• Fuel cost
• Labor for electrician to be present during generator testing

When 3^rd party testing is required, contact an approved testing company, get a price from them and add that cost to your estimate. Note: They will require the testing specifications to know what to include

Generators may be required to run for several hours for testing purposes. Fuel can cost a lot of money.

When you are required to provide fuel for generator testing. Find out how many hours of testing are required, calculate your fuel cost and add dollars to your estimate.

You may be required to provide an electrician to be present while generators are being tested. If so, calculate the number of hours required and add those hours to your estimate.

Note: You may elect to exclude generator testing. If you are excluding generator testing show on your proposal Generator Testing Excluded.

Drinking water

When you are required to provide drinking water for your employees, calculate the expense and add dollars for that in your estimate expenses.

Storage expense

On some projects you may be required to rent storage bins or shipping containers for storage for items like panels, switch gear and light fixtures.

Storage expense may incurs labor cost for handling and moving of items.

To include those expenses in your estimate:

Add description “Storage expense” Input dollars needed.

Add description “Labor for storage” number of hours needed.

 

Contingency expense Contingency expense (Expenses that cannot be predicted with certainty)

 

Contingency is defined as, “A provision for an unforeseen event or circumstance.”

Construction projects have unforeseen or events and should be covered by adding dollars.

Contingency is often calculated using a percentage (%) of the estimate.

The amount varies. I have seen estimates that add 1½ % to

3% or more. Determine the amount on a case by case, job-by-job basis.

Note: Some contractors include expendable tools in their contingency expense.

Determine what amount or what percent (%) you want add to your estimate and add it accordingly.

END OF PART 2

______________________________________________________________________________

 

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When estimating electrical projects it is vitally important that you recognize and account for hidden costs on projects.It is part of the “Crossing your “T’s” and dotting your “I’s”.

This writing helps identify hidden costs in electrical projects and explains ideas how to cover those costs.

Examples of hidden costs to be aware of

• Mobilization expense
• Expendable tools expense
• Truck & tool expense
• Delivery charges for rental equipment
• Fuel cost
• Labor and fuel cost for testing generators
• Drinking water
• Storage expense
• Contingency expense (Expenses that cannot be predicted with certainty)

                                                                        
                              Mobilization expense

Mobilization (to mobilize) in construction means to move equipment on (mobilize) and off (de-mobilize) a job. Mobilization may require labor hours for someone moving job boxes, ladders, man lifts, and equipment to the job site.

Small jobs may not need mobilization expenses added, however it is a good idea to include truck & tool expense on small jobs to cover that expense.

When you add truck & tool expense (dollars) to all estimates of small jobs, it can add up to thousands of dollars a year and helps cover expenses.

See Truck & tool expense below

On larger projects mobilization may be ongoing as a a project progresses.

Example: when working in a multi-story building, job boxes must be moved from floor to floor as the job progresses. Labor is required for that task.

As an electrical estimator, mobilization expense would be included in your estimate by adding dollars, labor hours or both to cover the expense.

Expendable tools expense

Expendable tools are tools that wear out like hole-saws, drill bits, saw blades, etc. It is important to add dollars for this expense.

Note: Some estimators add expense for expendable tools to the contingency cost instead of adding a line item for them. See contingency expense below.

If you decide to input expendable tool dollars as a separate line item expense calculate the expense and add it to your estimate.

Truck & tool expense

When personnel drive company trucks to a project, it costs money. Often times tools are also used from the truck.

Adding dollars to your estimate for truck & tool expense helps recoup your costs.

Determine a dollar amount to charge per-day-per-truck.

It varies greatly how much people charge for truck & tool. I have seen daily charges from $35.00 to $75.00 a day or more.

Calculate how many days each truck is to be on the project. Add total dollars to add to your estimate.

TO BE CONTINUED

Click here for a Red Rhino free trial               Click here for PlanSwift 14-day free trial

           

Just click this link to sign up for Red Rhino.
You will immediately get access to our online software.
Training videos will guide you step by step to learn how to navigate.

Click this link to sign up for PlanSwift.
The first 14 days of using the Red Rhino / PlanSwift Connector is FREE so you can test drive it. After the first 14 days the cost is just $20 / month.

Call us if you have questions.

866-444-7411 X 1