Think of how often you have been unprepared for a meeting or another important engagement. Opportunity is lost when we are unprepared. Benjamin Franklin said, “By failing to prepare, you are preparing to fail.” Preparation is obviously vital in the estimating process, but what many electrical contractors don’t always realize is the importance of understanding contract documents.
Contractors aren’t called “contractors” by accident. Contracting companies enter into contractual agreements with owners. The contractor agrees to provide the necessary labor and materials to build the project per the contract documents.
The consequences of failing to understand requirements of the contract are significant. Every aspect of the project will be controlled by these documents, and the contractor’s work will be judged by them. The contract documents are the method by which the architect and engineer communicate the design to the contractor. The drawings and the specifications should identify and specify every material item and the means of installation.
Various types of projects may require different steps in the preparation process. Let’s consider six primary steps in estimate preparation.
Step 1 – Information to bidders’ review
The Information to Bidders (ITB) is sometimes called Instructions to Bidders. Review the ITB for the following information: bid due date and time, location of bid delivery, method of delivery, number of copies of bid form to be submitted, to whom questions are directed, and bid security amount or percentage.
Step 2 – Bid form review
Before beginning any takeoff, the estimator must review the bid form or bid proposal. Some projects will have a base bid and add or deduct alternates. To accurately quantify a project, the estimator must know this at the beginning of the process. The bid form may require the list of subcontractors to be used and a list of manufacturers of supplied equipment. It is vital that the bid form be reviewed with a sharp eye.
Step 3 – Front end of the specifications review
The contract specifications describe the quality of the building’s construction. The specifications also provide the details of the sequence of work, project schedule, and contractual obligations for the project. Division 1 — General Requirements of the specifications, sometimes referred to as the “front end of the specifications,” must be reviewed first. There can be labor and material costs that are required for specified items for the project found in Division 1. This section of the specification must be carefully read, noting any requirements for direct or indirect labor and material costs, and contract administration.
The following questions must be answered to produce an accurate estimate.
1. What is the summary of work?
2. Are there any special insurances required?
3. Are there any owner-furnished materials to be supplied?
4. What are the workdays and hours?
5. What is the project duration?
6. Are there phases in which the work will be completed?
7. Is non-working supervision required?
Step 4 – Review specification Divisions 26, 27, 28
These three technical specification divisions cover most of the electrical work that is installed on a project. The estimator must review these specification sections to determine products that are acceptable and product catalog numbers. The execution (means and methods of installation) of each product must also be determined. Following are a few items the estimator must determine before beginning to estimate the project:
• The scope of the work.
• Conduit and fittings types and execution.
• Device ratings and plate material .
• Conductor material and insulation types.
• Cable types and execution.
• Grounding requirements.
• Short-circuit analysis/coordination study requirements.
• Who provides control wiring, disconnect switches and VFDs for HVAC equipment?
• Check cable manufacturers and types.
• Pathway requirements — conduit, cable tray, basket tray, “J” hooks, conduit extended back to a cable tray, etc.
• Check for BICSI RCDD certification requirements.
Step 5 – Installation drawings review
The installation drawings provide the estimator with quantities. The estimator must make a careful review of all the drawings, not just the electrical. He or she should especially review the site, structural, architectural, and mechanical drawings. A careful review of installation drawings allows the estimator to determine the means and methods of how the project will be constructed and the materials used.
The site drawings should provide staging locations and location of new connection points for power and communication services. Structural drawings detail slab thickness and the main building’s structure. The architectural drawings provide information for ceiling heights and types, and interior wall partition construction. When reviewing the electrical drawings, first check the drawing list to be sure that you have a complete set. Check the scales on all drawings; it is not unusual for scales to change from drawing to drawing. Check the symbol legend carefully. because not all engineers use the same symbols.
Step 6 – Submit RFIs for missing information
After a careful review of the installation drawings and specifications, omissions and errors are typically found. Many times, an estimator is placed in a situation in which he or she must decide quickly about what to include or not to include in the estimate. When the risk is too great, the estimator must ask the architect, engineer, or construction manager for clarification. This is done with a request for information (RFI). Sending an RFI will reduce the guesswork in your estimate.
The contract documents are binding documents between an owner and the contractor. The estimator must become very familiar with these documents and how to interpret them. Remember: The estimate can only be as accurate as the estimator’s interpretation of these documents.
Kiper is an independent electrical estimating trainer and consultant based in Niagara Falls, N.Y. He can be reached at [email protected].
