Hey there! Just like a best mate we’re here to spill the beans on the 10 most common mistakes electricians make when estimating, and guess what? We’ve got your back with some nifty tips on how you can avoid them. So sit back & let’s dive in!

1.Not understanding the documents 

This is the part where critical project specific info gets missed, resulting in lower than usual tender price submissions. In other words, undercutting yourself and then when you are awarded the project you expose yourself to financial risk.  

 

2.Incorrect take-off or missing items on your count and measure 

This one speaks for itself. The more you miss the more you lose!

3.Not knowing the ceiling heights and types

This is commonly overlooked. The ceiling height figures and 4 different types can really affect the final tender figure as it affects your labour install rate. 

 

4.Not knowing the wall types

Again, commonly overlooked especially by those who are new to the estimating game, not taking the correct wall types into account could majorly affect your labour install rate.

 

5.Incorrect pricing for material/non updated price list

Pricing off old price lists is fairly obvious. Update your price list monthly to ensure you are not copping any price rises. 

 

6.Incorrect labour unit rates (LUR)

This can go one of two ways, quoting labour unit rates incorrectly can either blow out your final figure and knock you out of the tendering race OR if you’re too low it will increase your chances of winning the job but you will be at a loss.

 

7.Low hourly rate

Not understanding your company burn rate increases the likelihood that you will under- value your labour sell rate on a tender. This can be catastrophic to your business if you are awarded a medium or large project. 

 

8.Low % Mark up on materials

Underselling your material mark up leaves little to no margin for error when estimating, not to mention limiting the profitability when supplying material.
Just remember you’ve got to bank roll it and make a profit on top.

 

9.Tender document incorrectly presented

Professionalism and presentation counts. Submitting a tender document with incorrect inclusions, exclusions and clarifications may leave you exposed to a scope of works that you haven’t prices. It also leaves you looking a little amateur.

 

10.Outsourcing to an external estimating company

Here’s three reasons why outsourcing estimating is not a wise move.

1.External companies charge a bomb whether you win the job or not!
2.You won’t get extensive knowledge of the project in question if an external company completes the tender.
3.When you outsource your tendering, you’re essentially handing over control of a critical part of your business to someone else.

 

You can read more here why you shouldn’t outsource your estimating  https://esti-mateelectrical.com.au/3-reasons-you-shouldnt-outsource-your-tendering/

There are some real doozies to avoid! Clearly, estimating isn’t just about crunching numbers. We’re here to help you estimate with confidence!

You can book in to a one on one Tendering Tips tutorial with our director HERE or if you’re looking to take your estimating game to a new level, check out our monthly Estimating Night course HERE – Run by our director and the course coordinator at NECA, Steve