pricing and bidding

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jro

Senior Member
I am new to the electrical contracting business, my question: Example for service work say I charge $45 for Electrician and $20 for helper + materials. Now on a bid job I estimated a job for 95 hrs, do I use this calculation 95hrs x $45 = labor price? I plan to send 3 men to do the job 1 electrician 2 helpers, I use i2 electrical price guide to get my labor units and material pricing. Stuck on subject
 

bphgravity

Senior Member
Location
Florida
Re: pricing and bidding

In my opinion, there is not a wrong way to bid as long as you make money on the job. There would nothing wrong with calculating total hours with your higher labor rate. You could also divde the total hours by total employees, and then calculate cost for each one. (95hrs / 3 = 32hrs, 32 x 45 + 32 x 20 + 32 x 20 = total labor rate) Kepp in mind, this method has cut your labor profit completely in half! An average method works well also. Good Luck! :)
 

roger

Moderator
Staff member
Location
Fl
Occupation
Electrician
Re: pricing and bidding

Bryan, makes a good point in breaking it down into electrican hrs + helper + helper.

This isn't what you want to do, but your competiton most likely will, which will take you out of the picture. You will probably need to reduce your mark up (overhead and profit) to. Service rates normally can't be carried over into a bid or longer term jobs.

You have to consider that if planned right, the job you are bidding should have less non productive time than a typical service call, somewhat evening the playing field.

Roger
 

jro

Senior Member
Re: pricing and bidding

Thanks, all and everyone for your input, its good people like you that make life alot easier.
 
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