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Summarizing your estimate to determine the break-even and bid price can be an

overwhelming task. One simple mistake could put you out of business. That's why thisphase of the estimating/bidding process requires that you use sound judgment on

intangibles such as job conditions, labor productivity, miscellaneous material

requirements, waste, theft, small tools, direct job expenses, overhead, and profit.

Over the course of the next several months, we'll outline each step of this process so

you'll be fully confident and completely prepared to tackle any estimate that comes your

way.

Step 1: Total labor hours. To determine the total labor hours on a project, you need to

adjust the estimated labor hours based on each particular job you undertake. Then, youadd additional labor not included in the takeoff.

The first step in determining the total labor hours of the job is to transfer the labor hours

from your price/labor worksheets to your estimate-summary worksheet. This is a simpleand straightforward task. Next, you must adjust the labor-hour value for the working

conditions based on a percentage of total man-hours or a fixed man-hour for a specificcondition. Proficiency at this task only comes with experience. Sometimes, it can besimply an educated guess. This is what makes estimating an art form.

When adjusting the labor hours from the price/labor worksheet, you must consider manyfactors, such as:

- Building conditions - Change orders - Concealed/exposed wiring - Constructionschedule - Job factors - Labor skill - Ladders and scaffolds - Management - Material -

Off-hours/occupied premises - Overtime - Remodeling old work - Repetition factor -

Restrictive conditions - Shift work - Teamwork - Temperature - Weather and humidity

If you've already factored in these labor-unit conditions during the takeoff, then there isno need to apply any additional labor-hour adjustment. However, it's often a better

practice to apply some of these factors during the takeoff and others at this stage in theestimate/bid. (For a detailed explanation of each of these factors, see "Adjusting Labor

Units the Smart Way," on page 32N of the September 2000 issue.)

Additional labor. After you have determined the total adjusted hours, you must determine

any additional labor requirements, which might include:

1. As-built plans: As-built plans are intended to show the actual location of all feeders,

branch circuits, and size of equipment in accurate detail. Be sure to include the labor to

create and maintain as-built drawings. Also, be sure to include the labor hours forrevising as-built drawings when you write invoices for change orders.

2. Demolition: Some jobs require you to remove the old electrical wiring before you add

anything new. You must consider the labor for demolition. At times it's just an educatedguess, but with experience you'll get a feel for what's reasonable to apply.

3. Energized parts: Working on energized wiring requires proper equipment andemployees who have been trained and certified by OSHA to work "hot." This type of

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work requires special precautions to ensure personal safety and takes considerably more

time to complete.

4. Environmentally hazardous material: Be sure your bid includes the labor required to

handle environmentally hazardous material. This includes preparation, packaging,

shipping, and proper disposal of ballasts, electrical discharge lamps, and radioactive exitsigns. It's a good idea to subcontract this type of work out to a company that specializes

in it.

5. Excavating, trenching, and backfilling: There are places in the country where you can't

plant a bush without a pick. Conversely, if you try to dig a trench in sugar sand, the more

you dig the wider the trench gets - without getting any deeper. Poor soil conditions can

turn a simple job into a career. Don't forget about the requirements of core drilling,asphalt cutting, digging, and backfilling. Often it's more cost-effective to subcontract this

type of work than take the entire responsibility of cutting fiber optic cable, telephone

wires, underground high-voltage utility lines, sprinkler pipes, water lines, or a gas main.

6. Fire seals: Sec. 300-21 of the NEC requires you to install a fire seal whenever youpenetrate a fire-rated wall, ceiling, or floor. Be sure to include the labor for this conditionin your estimate.

7. Job location: If the job is in a remote location, you'll find it more of a challenge to

manage the job properly. In addition, the job location can affect the quality of theavailable workforce. If the job is located in an area that requires extensive travel time, it

may be more difficult to get materials to the job when needed. Worse yet, the job could

be located in the middle of a city where the streets are under construction and traffic ishorrendous.

Example: What is the total travel time required for a 212-hr job that has three workers?

The travel time for each day is 1/2 hr per worker.

Answer: 212 hours 324 hours per day (three workers) 48.84 or 9 travel days. The traveltime is 1/2 hour per day for each worker, the total travel time is 9 days 2 1/2 hour per day

23 workers 413.5 hours.

Note: Some projects do not have water, electrical power, toilets, or telephone service.This can make life more complicated and expensive, and these jobs will take longer to

complete.

8. Matchup of existing equipment: Maybe you have a situation where you must match

existing equipment, colors, or fixtures. This can become a time-consuming adventure.

9. Miscellaneous material items: We've already accounted for the labor for common

miscellaneous items such as phase tape, wire nuts, straps, and spray paint. However,

some estimates have additional requirements of miscellaneous items such as engraved

labels. Be sure to include the labor to install these items.

10. Mobilization (startup): Don't forget to include the labor required to set up the job,

such as getting the job trailer prepared or installing temporary wiring.

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11. Nonproductive labor: Labor units only include 5% for nonproductive labor. Does the

job have the potential to have excessive nonproductive time?

When you're on a job for a while, your employees get to know the other tradesmen. As a

result, breaks tend to get longer and more frequent.

Is this job going to be on a beach or other location with a high-labor distraction factor?

Inspection tours are a fact of life. The larger the job, the more frequent and longer thetours. Sometimes projects have multiple inspectors for the different systems, often by

different inspection agencies.

Does this job require job meetings and close coordination with other trades?

12. OSHA compliance: Are you required to pay your electricians to attend a training and

certification program? At times, OSHA requires training and/or certification foremergency medical treatment, working in confined spaces, working on energized parts,

or tool and equipment handling.

13. Plans and specifications: If you lack adequate blueprints and specifications, you'll

need to add a factor to account for anticipated nonproductive time to figure out what is

required. Labor-units assume you have clear and conflict-free blueprints and

specifications. If this is not the case, you need to inform the owner that your estimateincludes additional labor as a contingency.

14. Public safety: Public safety is a factor, especially when doing work for city, county,state, or federal governmental agencies. Are you required to install safety cones,

barricades, or security gates? Be sure to read the specifications closely.

15. Security: When working in some governmental and private facilities, you are required

to jump through hoops to get clearance for your employees to enter the facilities. Some

facilities require security to be notified well in advance of people entering the premises.This requires proper supervision to ensure the workers are not waiting at the gate too

long.

16. Site conditions: Because of traffic conditions, projects in downtown areas of largecities can cause significant lost time. Traffic conditions and narrow streets make it

difficult to unload material and equipment. Parking and a lack of storage space are also

problems. Add labor to cover these conditions.

17. Subcontract supervision: Don't forget to include the labor required for your

electricians in the field to supervise the subcontractors.

18. Temporary, standby, and emergency power: You must include in your bid any labor

required to ensure that temporary, standby, or emergency power is available and safe.

19. Warranty: Don't forget to include some labor factor for service calls. If you don't,

then the estimate will not truly include all costs. Maybe you feel if you include all costs

(like service calls) you won't get the job because you'll price yourself out of the market.But, does it make sense to sell a job without including all costs?

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After you've taken all of these factors into consideration, you can confidently add the

times to acquire the total labor hours required for the job. The next step is to calculate the

labor cost that goes with this labor-hour total. We'll save that discussion for next month'scolumn.