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
pricing and bidding
- Thread starter jro
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bphgravity
Senior Member
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- 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!
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!
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
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
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