I would like to have a conversation with all of you regarding this problem. Has it affected you, and how are you dealing with it?

For hardware, you do not need an extremely fast machine. My CPU is a dual core Intel running at 1.86 mhz with 4 GB of memory. Of course, this is based on the software I am using. You should always check the vendors recommendations and minimum requirements. I did spend $85.00 on a new video card that was faster and had more outputs. You will need to look at your video card to see if it has the outputs you need. Most newer computers I’ve seen have a variety of SVGA, DVI and HDMI outputs. Make sure that the video card outputs match your monitors inputs. For instance, My video card has two HDMI, one DVI and one SVGA output, and my monitors have HDMI and DVI inputs.

Since I am still using XP, I can’t give you specific instructions for the monitor setup in Windows Vista or 7. I would imagine it is similar to XP. After your 2nd monitor is set up and plugged in, turn on the computer. When it is finished booting, right-click a blank area of the screen and select Properties. When Display Properties comes up, select the Settings tab. There will be a graphic representation of your monitors. You can drag around the icons to represent the way yours are set up. For instance, my big monitor is on the left and my small one is on the right.

XP assumes a “clone” mode when you first plug-in a 2nd monitor, so both monitors show the same thing. In the settings screen, click on your 2nd monitor in the graphic representation, and then click on “Extend my Windows desktop onto this monitor”. Now you can drag programs from one screen to the other. Note that the programs must be in a window, or not full screen, to be dragged.

You can also use the settings screen to pick which monitor is your primary. The primary monitor is where the start button, taskbar and system tray will be. Click on the monitor you want to be primary and then click on “Use this device as the primary monitor”. If it is grayed out, then it already is your primary monitor.

 Like many technology advancements, this is one of those I wonder how I did without. Well…, I do know. It was harder.  I always have multiple programs running, and with two screens, I can usually see three to four of them at the same time. One of the digital takeoff progams I use takes advantage of multiple screens in a big way. You can move program elements and plan pages to the 2nd screen. I often setup with a plan page on the big screen, with the symbol list and takeoff summary on the smaller screen. I also put the estimating software on the second screen.

If any of you have experience with setting up two screens in Windows Vista or 7, let me know if there are any differences. I would also like to hear about your multi screen setups and how you use them.

• 4S Box
• 4S 1Gang Ring
• Duplex Receptacle
• Duplex Plate

Each item needs to be priced and labored, and then multiplied (extended) by the quantity. Here are some other items that may be in a duplex receptacle assembly:

• Grounding Pigtail
• Wire Nuts
• Box Supports
• Screws

If we add these items to the takeoff, we will have doubled the number of items, and doubled the time it takes to list, price, labor and extend a duplex receptacle. As you can see. the additional time required to process miscellaneous materials for an entire estimate is significant.

Then along came computers. In my first system (McCormick on an Apple II), the assemblies were similar to the manual method, so the miscellaneous material markup remained the same. As estimating databases matured, more items were added to the assemblies. In my current database, the assemblies are complete with all supports, wire connectors, pigtails and screws. Since these assemblies are so comprehensive, the miscellaneous material markups need to be smaller. For commercial work, the markup can be as little as one percent.

On the subject of databases, it is the estimator’s responsibility to know what is in the database assemblies, and how the items are priced and labored. Every software package is different. You should not just assume that everything in the database is correct.

 Another miscellaneous markup that is often missed is expendable tools. This markup covers items like drill bits, saw blades, soap and rags. It also covers the types of tools that seem to disappear when a project is completed. For most contractors, this markup is two percent of the labor dollars on a project.

As usual, click on the comment button if you have something to say.

• What are the current trends that are shaping the electrical estimating industry?
• From your perspective, where do you see the electrical estimating industry heading in the future?
• Are you seeing any increased interest in software as a service (SaaS) from electrical contractors? Why or why not?
• What innovations do you think have had a significant impact in electrical estimating over the last decade?

Here is the link  http://www.softwareadvice.com/articles/construction/state-of-electrical-estimating-industry-roundtable-1080811/

I would like to hear what you think of the answers Derek got to his questions. After you read the article, please come back here and click on “Leave a comment”.

It was the right decision. My customer made the choice not to waste time and money on a project he had a very slim chance of winning.

How you choose projects to bid can have a major impact on your win rate. This came into focus for me when I was a junior estimator. The management consultant  hired by the company I was working for asked me to analyze the projects we were bidding, and develop a matrix for choosing projects. Here is what I came up with.

• Type I – The project has been offered to you. Negotiate a price and the job is yours.
• Type II – One GC or owner is putting the job out to bid with a limited number of bidders.
• Type III – Multiple GC’s are bidding the project.
• Type IV – Projects that are advertised.

Obviously, the Type I project is the most desirable, but requires the you have established the relationships that bring this kind of work.

The Type IV project has the lowest chance of becoming a contract. The worst I have seen is bidding against a field of 30 other electrical contractors. The odds are that one of them will make a mistake and end up with a project.

Being organized is one of the easiest paths you can follow to error free estimates. Some of you may think I am preaching to the choir. I find however, that  many of the people who attend my estimating classes are lacking in organizational skills. I have also found that it’s not that they can’t be organized, but that they simply do not know how.

The definition of organized this post is concerned with has to do with being methodical and efficient. For estimators, this means establishing a method for completing a project and sticking with it. In other words, do it the same way every time.

Here are a couple of simple ways to keep yourself organized.

• Create bid notes and specification reviews for every project, and keep them in a standard format, such as a word processor template.
• Do your take off in the same order every time, and use a checklist to make sure you have finished every task.

Closely related to being organized is interruption management. There will be times when you need to shut off the phone and close your door. Develop a strategy that works for you, such as coming up for air every hour to return calls and handle problems.

As usual, leave a comment. Let us know what you do to stay organized.

An estimator, whether in-house or outsourced, has to know his employers capabilities. For example,  a bid I prepared included 14,400′ of 4″ rigid conduit mounted above the truss at fifty to eighty feet above the floor. As an estimator, I had to know if my customer had the trained manpower and the tools to do this work. He said he had the best, so I factored the labor down. We won the project, and the crew actually beat the labor I had in the estimate.

An example in the other direction was an industrial water project. My customer told me I would get a general foreman and several journeymen with extensive experience in this type of work. I factored the labor appropriately. We won the project, and he staffed it with electricians that had never done that type of work before. The labor did not turn out so well.

As these examples demonstrate, an employer must communicate his companies’ capabilities to his estimators. Failure to do this can result in the loss of profits from missed opportunities or missed labor projections.

Let’s break this into two groups, the estimating service and the electrical contractor. Here is how we divide up the responsibilities.

The Estimating Service:

• An accurate takeoff
• A thorough understanding of the project
• A thorough understanding of the customer’s capabilities
• Recommendations for labor factoring
• Recommendations for bid strategies
• Recognition of, and solutions to problems with the bid documents
• Generating RFI’s

The Estimating Service or Electrical Contractor

• Entry of takeoff into an estimating system
• Review for typos and missing information
• Vendor and manufacturer coordination
• RFI coordination
• Correspondence with the GC or project owner
• Coordination of addendums

Electrical Contractor:

• Marketing
• Awareness of capabilities
• Marketing
• Relationships with vendors and manufacturers
• Marketing
• Relationships with subcontractors
• Marketing
• Final decisions for the recap, including markups
• Did I say marketing?

Marketing is job one. I have a customer who wins 50% of the projects I bid for him. I have another who is closer to 5%. The difference is marketing. You can not survive, much less prosper, without friends, including customers, vendors and manufacturers. And it’s not just one person’s job. Everyone in your company is responsible for marketing, and marketing is about creating relationships. Consider the following:

• The person who answers the phone is the first point of contact, and can have a significant impact on your relationships. For instance, a moody receptionist can cause you to lose customers before you ever get a chance to speak to them.
• Estimators may be responsible handling quotes and material pricing. They are in constant contact with vendors and manufacturers. If they foster a positive relationship, you are more likely to get better pricing.
• Project managers are point people for your company. If they upset your customers, they will go somewhere else. 
• And of course, there is the work most people think of when marketing is mentioned, calling on customers. It has to be done. Contractors and owners will give preference to people they like dealing with.  

Let’s talk a little more about vendors. You have to work hard on those relationships. You want good pricing, and the vendors want to deal with people who pay their bills on time. They also want to work with people they can trust.

As usual, let me know what you think. Click on the comment button and drop me a note.

The following paragraph is dangerous. The author went to great lengths to make sure you are responsible for every electrical item, on every plan sheet, on every page of the specifications, for every trade.

“Bidders shall determine the contents of a complete set of drawings and be aware that they may be bidding from a partial set of drawings, applicable only to various separate contracts, sub-contracts, or trades as may be issued for bidding purposes only. The complete scope of work for the electrical trade in this project is illustrated on the complete Contract Documents which consist of the combined Architectural, Structural, Plumbing, Heating, Ventilating, and Air Conditioning plans and specifications. Each Bidder shall thoroughly acquaint himself with all the details of the complete set of drawings and specifications before submitting his bid. All drawings and specifications form a part of the contract documents for each separate contract and shall be considered as bound therewith in the event partial sets of plans and specifications are issued for bidding only. The submission of bids shall be deemed evidence of the review of all drawings, specifications, and addenda issued for this project as no allowances will be made because of unfamiliarity with any portion of the complete set of documents”

My first impression after reading this was that the author pulled together every CYA phrase regarding documents he could find. Each sentence from this paragraph is something I have read in another specification. 

This type of wording is an attempt to make you responsible for the electrical work the engineer missed. It is an effort to save the engineer time and money by moving design responsibility to the subcontractor.

The good news is that you do not have to accept this kind of wording. Use the proposal layout discussed in my previous post. List the documents you are bidding on (presumably the electrical drawings and specifications), and exclude the offending specification section(s).

I will repeat again what I have said in earlier posts. Even though the courts in most states have found that the electrical contractor is not responsible for the engineer’s design, you should still protect yourself. Paragraphs like the one above are the reason you should limit your scope in bid proposals.

Most of the residential proposals I have seen contain three sections: price, scope and contract. For a commercial proposal, the price section can remain the same, the scope section will be enhanced, and the contract section will be eliminated.

The contract section is the major difference between residential and commercial proposals. Instead of dictating the terms with your contract, you will be negotiating the terms of the general contractor’s or owner’s contract. Because of this, your new proposal must be designed to protect you from problems in the contract and the bid documents.

First, your scope section needs to limit your work. This is because many specifications require you to include any electrical work shown on any drawing. Some specifications try to require that you provide electrical work the engineer missed. If a small detail on an obscure drawing requires electrical work, you would have to provide it if you do not limit you scope.

Start with a statement like “This proposal is based on the following documents”. Follow this statement with a list of the bid documents, including the plans, specifications and addendums. The next statement further limits your risk. It can be added right after the document list, or further down in the qualifications section. It is – “The correctness and completeness of the contract documents is the sole responsibility of those who have prepared them. This proposal covers only that work that is adequately shown, described and/or detailed in the above referenced contract documents”.

The three parts of this scope section work together to protect you from poor specifications and bad plans. This wording will protect you from those “at no additional cost to the owner” phrases.

The scope is then further defined by two lists: Exclusions and Qualifications. Exclusions are short statements defining what you are not going to do, such as “Temporary Power”, or “Utility Company Charges”. Qualifications are complete sentences meant to clarify gray areas of the bid documents, such as “The incoming service locations are not shown. The service conduits included in proposal are limited to stub outs 5′ outside the building.”

Next is your pricing section. Keep it simple and clean. Here is an example.

Base Bid – $45,657.00
Alt #1 – Add $3,432.00
Alt #3 – Deduct $5,444.0

Most word processors have a feature that allows you to line up the decimal points in a column of numbers, which looks very good. In Microsoft Word, you can use a decimal tab.

Close your proposal with a brief sentence. Most I have seen look something like “Please call me if you have any questions”.

Follow this with your signature and title, and you done. Send the proposal to the GC’s at least one day before the bid. This gives them time to respond to your exclusions and qualifications. If you don’t give them time, your proposal may end up in the circular file.