In Part 1 of this installment, featured in the April issue of EC&M, we covered departmental organization as it relates to an estimating department. Good organization allows for maximum productivity and accuracy. Once a detailed organizational structure is in place, effective leadership is necessary to accomplish your company’s bidding objectives and goals. Employees work more effectively with good organization and strong leadership.
In Part 2 of this three-part departmental series, we focus on the chief estimator or the company officer who oversees the estimating department. Let’s review some key items that an estimating department leader needs to pay attention to on a regular basis. How many of these questions can you answer “YES” to?
1. Do you provide solutions, or just try to lay blame at the feet of others? Problems are solved with solutions, not by blaming others. A good leader should not embarrass those who make mistakes. Instead, identify a problem, determine the cause, and provide a solution. Mentoring estimators is important and necessary for every electrical contractor. If necessary, establish a new departmental rule that will prevent the same mistake from being repeated.
2. Do you allow adequate time for an estimate to be properly done? An estimator must be given enough time to properly perform an estimate. Rushed estimating will lead to omissions and errors. Only having several days to a week to fully digest a project’s drawings and specifications puts the estimator at a disadvantage. The chief estimator will do well to know the capabilities of each employee. An estimator must be given enough time to produce an accurate and detailed estimate.
3. Do you procrastinate in assigning projects to estimators? Most estimators will have several projects that he or she is working on at any given time. Additional work assignments given at the last minute can wreak havoc in an estimator’s workflow. The sooner a new project can be assigned to an employee, the better. A good estimator should be able to manage and prioritize work assignments. Asking an employee to do the impossible will put the contractor at risk.
4. Are you a manager or a leader? A manager is responsible for controlling and/or administrating an organization, group, or staff. A leader is someone who can create a vision and be an agent of change. Managers tend to stick with what works, and a leader will bring change even if a situation creates waves. Leaders will take risks, and managers manage risks. Leaders build relationships and focus on people. Managers build systems. Leaders know how to bring out the best in employees, and managers want to direct and command people. Leading the estimating department will produce the best outcomes and processes for success.
5. Do you inspect your estimators’ work? It has been said, “You get what you inspect, not what you expect.” Every project estimated is unique and requires attention. Good estimators follow an estimating sequence for consistency. Many times, estimators can be challenged to balance their workflow. For example, when an estimator has several projects that he or she is working on simultaneously, it is easy to be sidetracked with project demands. Considering that quality, accurate, and detailed estimates are paramount to a company’s profitability, estimators need to be checked on to ensure that their work is being completed properly and timely.
6. Do you provide on-site training from an expert consultant? Quality training provides tremendous value to an estimating team. Estimating requires proper training in the principles and fundamentals of electrical estimating. Giving an apprentice electrician the best tools does not make him or her a journeyman electrician. The contractor must provide the best estimating tools and software for its estimators, but the best tools and software will not make an individual an estimator.
7. Do you provide online software training? Online training has great value. It saves travel and lodging expenses for an employee to travel to a remote location for training. Estimating software is an advanced estimating tool. Most estimating software has many components to simplify the estimating process. Most leading brands of estimating software provide project organization, takeoff of materials, an extension of the materials, and a bid summarization feature. When an estimator has a good command of the software, the greater command he or she will have of the estimate.
8. Do you reward quality work and extra effort produced by your estimators? Job satisfaction is important to quality employees. Quality employees want and need their hard work and extra effort recognized by management. For example, if an employee works late to complete estimates, that dedication should be complimented. If an employee is remodeling his or her home, a gift card to a building supply store could be given to reward the hard work. When an employee has been the successful low bidder on several large projects, recognition is in order.
9. Do you have a post-project meeting to compare the actual work verses the estimate? The main objective of the estimator is accuracy. The main objective of a project manager is efficiency. A post-project meeting will allow the contractor to determine if the estimator produced an accurate estimate. Input from the project manager will help the estimating department when bidding similar projects in the future. A company’s own track record is important in estimating efficiency. The post-project meeting provides the opportunity for improvement strategies.
10. Do you have an annual review with each estimator to discuss victories, defeats, and compensation? Estimators are essential employees. Quality estimating is the foundation to the success of an electrical contracting firm. A company must compensate quality employees. It takes many years of experience and training to become a skilled estimator. It is much better to train and grow estimators from within rather than recruit from the outside. Therefore, it is vital to keep quality employees on your team. This can best be accomplished with an annual employee review meeting, which can help with keeping good estimators satisfied in their position.
What were the results of your leadership checkup? To give yourself a percentage score, divide your number of “yes” answers into 10. For example, seven “yes” answers results in a score of 70%. Remember: Leadership is a matter of having your employees look at you and gain confidence. If you’re in control, they’re in control. Know where you are going, and others will follow.
Kiper is an independent electrical estimating trainer and consultant based in Niagara Falls, N.Y. He can be reached at [email protected].
