Understanding the Estimate Part 2Foreman’s Development Series

Objectives

In the 1st half of this Module we’re going to cover:• The computerized estimating process.• How a Contractor comes up with his Material

Costs and Labor Units.

The 2nd half of this module will look at how Labor Units give us a way to check our Install Rates.

• Are we installing our materials in the time given to us by the Job Estimate?

What’s the Point?

As we’ve seen in other Foreman Development modules, the Job Estimate affects all other aspects of the Project:

Job Estimate Job

Budget and Cost Codes

Project Buy-Out

Monthly Job Cost Reports

Schedule of Values

Man-Loaded Schedule 2 Week

Look-A- Head

Pay Application

Estimating Software??

Estimating Software Functions

Advantages of Estimating Software

Estimating Material Costs

• Big ticket items like Light Fixtures or Switchgear are quoted as separate packages in the Estimate.

• Getting quotes on Bulk buys will save $$$$

• Thousands of misc. electrical parts also have to priced as part of the Estimate.

TRA-SER SX

Computerized Take Offs

Main Floor Take Off

Accubid Job Summary

Electrical AssembliesAssm# Assm Name

Item# Item Name Price Bid lbr qty

60,034 DPLX 20/3 SS $10.33 0.95014,486 DPLX 5-20r hd spec IV $499.80 C 30.00 C 1.000014,349 1G SS DUPL RECP PLAT $100.00 C 6.25 C 1.000014,669 4/S BOX 1-1/2 DEEP $60.00 C 10.00 C 1.000014,674 4/S SG MUD RING 5/8"DP $39.00 C 6.25 C 1.0000

3,891 BOX SUPPORTS - CLIP O $42.46 C 7.50 C 1.00005,574 YELLOW 3M WIRE NUT $40.00 C 0.03 E 3.0000

16,590 J-BOX ID TAG $0.25 E 0.04 E 1.000016,591 DEVICE ID TAG $0.50 E 0.04 E 1.000016,592 WIRE ID TAG $0.25 E 0.04 E 3.000015,354 GROUND SCREW / #12 PI $22.00 C 7.50 C 1.000060,040 DEVICE TEST $0.00 X 0.07 E 1.0000

Material $'s Labor Hours Unit Price 1

$22.18

Estimating Labor

Labor UnitsLabor Units are expressed in man-hours for the

installation of:• E = One or per each item• C = Per one hundred items• C = Per one hundred linear feet of the item• M = Per one thousand linear feet of the item• LF = Per linear foot

Labor Units vary by Jobsite conditions:• Normal • Difficult• Very Difficult

What's in a Labor Unit?

3% 3% 3%

5%

5%

8%

64%

3%

6%

Non-productive Breaks

Site Movement(People)

Measuring & Layout

Mobilization

Actual Installation Time

Gathering Materials

Studying Plans

Clean Up

Receiving and Storing Materials

64% Efficiency – RS Means

Typical Labor Units

• Duplex Receptacle• Panelboard• ¾” GRC• 500 MCM Feeders• 30 amp Disconnect• Surface mounted Shop Light• 2’ x 4’ T-grid Light Fixture

What are your Labor Units?

• Your company had specific Labor Units that they used when they bid your job

• Did your crew make the Estimate when they installed that big rack of 4” EMT conduits?

• If you are not making your install rates you are in trouble!

Figure your Install RateA 2 person crew was told to install 2,000 feet of 4” EMT.

The NECA Labor Units for this material under normal conditions is 16 Labor Units per 100’ of conduit.

1. How many feet of conduit should one person install in an hour? 6.25 feet per man hour

2. How long should this entire task take? 320 hours

3. How much conduit should be installed by your 2 man crew at the end of 5 days?

500 feet per hour4. One day I had 4 people running conduit. How many feet of conduit should they have put in? 200 feet

What’s Included?

What is and isn’t included in the Labor Unit?

• Scope• Work Operations NOT included• Application Instructions

An Install Rate Example

• A 500’ long conduit rack with (4) 4” EMT conduits.

• Supports every 8’= 63 racks

Calculators

Tracking Labor Estimates by Area

• Some contractors will break their Estimate into small areas or phases – So their take- offs will show the total labor and

materials quantities used in each of these small areas.

• This method gives the Foreman in the field a simpler way to track their labor in small, quantifiable work areas.

Extended CostsExtended Material and Labor Costs

Description / Size Quantity Unit Material Units cost Material ResultLabor Units (in

Man hours)Labor Result (in

Man hours)

EMT 1/2" 4330 ft. 0.2362 $1,022.75 0.045 194.85

EMT 3/4" 4715 ft. 1.0614 $5,004.50 0.05 235.75

EMT 1 1/2" 155 ft. 3.6288 $562.46 0.07 10.85

EMT 4" 350 ft. 12.8759 $4,506.57 0.16 56

EMT-90 1 1/2" 5 ea. 7.8269 $39.13 0.4 2

EMT-90 4" 3 ea. 54.3683 $163.10 1 3

PVC 3/4" 80 ft. 0.1863 $14.90 0.045 3.6

PVC 1" 120 ft. 0.2718 $32.62 0.0525 6.3

PVC 1 1/2" 60 ft. 0.4551 $27.31 0.07 4.2

GRC-90 1/2" 32 ea. 3.26 $104.32 0.35 11.2

GRC-90 1" 44 ea. 5.25 $231.00 0.5 22

GRC-90 1 1/2" 8 ea. 8.84 $70.72 0.75 6

Total       $11,779.38   555.75

0.2362 unit cost  

.05 man hours

  Material Prices per TRA-SER, 3/25/12, NECA Normal - 2010

 

Job Take-Off Activity

• Use the Extended Material and Labor Costs Handout

• Answer the following questions;

01 / Mobilization – Job site set up & removal: trailers, office, gang boxes, materials, etc.

02 / Demolition – Removals and demolition

03 / Site work – Underground, pole lights, temporary power, etc.

04 / Branch – conduit, boxes and wire; up to 1”.

05 / Feeders – conduit, boxes and wire; 1 ¼” and above.

06 / Gear – Switchgear, transformers, starters, disconnects, contactors, etc.

07 / Fixtures – receiving and installing any and all fixtures

08 / Special Systems – Security, fire alarm, PA, etc., including all conduit and wire - does not include sub contractor’s work.

09 / Devices – plugs and switches, trim plates, etc.

10 / Warranty Work

Job Cost Accounting

Job Budget

• The money from the Estimate is juggled around into various job categories and line items.

• Each of the Budget line items will include all costs involved; labor and materials, equipment, overhead and profit, etc.

• All of the line items will add up to the contract amount

Job Budget

Code  Labor Hours

Labor$$ ($30/ hour) Material $$ Equip. Subs Misc. Total Cost

OH & Profit (15%)

Contract Amount

1 Jobsite set up 20 $600 $500       $1,100 $165 $1,265

2 Demolition 107 $3,210         $3,210 $482 $3,692

3 Site work 132 $3,960 $1,107       $5,067 $760 $5,827

4 Branch Circuits 500 $15,000 $2,805       $17,805 $2,671 $20,476

5 Feeders 182 $5,460 $7,668       $13,128 $1,969 $15,097

6 Gear 66 $1,980 $3,000       $4,980 $747 $5,727

7 Fixtures 495 $14,850 $98,941       $113,791 $17,069 $130,860

8 Special Systems 221 $6,630 $3,481   $7,500   $17,611 $2,642 $20,253

9 Devices 102 $3,060 $683       $3,743 $561 $4,304

10 Warranty Work   $0         $0 $0 $0

11 General           $4,000 $4,000 $600 $4,600

  Totals 1825 $54,750 $118,185 $0 $7,500 $4,000 $184,435 $27,665 $212,100

A Job Cost Report

Code  Labor Hours

Labor Costs

Labor Spent

% Labor Spent Material $$

Material $$ Spent

% Material Spent

Contract Amount

%Total Spent

1 Jobsite set up 20 $600.00 $500.00 83% $500.00 $700.00 140% $1,265.00 95%

2 Demolition 107 $3,210.00 $2,000.00 62% $0.00 $0.00 0% $3,691.50 54%

3 Site work 132 $3,960.00 $4,000.00 101% $1,107.00 $1,000.00 90% $5,827.05 86%

4 Branch Circuits 500 $15,000.00 $7,000.00 47% $2,805.00 $2,000.00 71% $20,475.75 44%

5 Feeders 182 $5,460.00 $3,000.00 55% $7,668.00 $4,000.00 52% $15,097.20 46%

6 Gear 66 $1,980.00 $100.00 5% $3,000.00 $3,000.00 100% $5,727.00 54%

7 Fixtures 495 $14,850.00 $12,000.00 81% $98,941.00 $80,000.00 81% $130,859.65 70%

8 Special Systems 221 $6,630.00 $2,000.00 30% $3,481.00 $3,000.00 86% $20,252.65 25%

9 Devices 102 $3,060.00 $2,000.00 65% $683.00 $600.00 88% $4,304.45 60%

10 Warranty Work   $0.00 $0.00 0%     0% $0.00 0%

11 General               $4,600.00 0%

Totals 1825 $54,750.00 $32,600.00 60% $118,185.00 $94,300.00 80% $212,100.25 60%

Production?

Are you making your Labor rates??

SummaryAnyone want to be an Estimator?

• Well, maybe not, but at least we have a better understanding of how they do their work

• We need to be more competitive!– In order to do that we need to be more

productive. – System Productivity and checking our Labor

Install Rates are tools we can use to help us do that.