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Discuss Electrical Estimating/Tendering in the Electrical Forum area at ElectrciansForums.co.uk.

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  1. Neil Dodd
    Offline

    Neil Dodd New EF Member

    Location:
    Wolverhampton
    Business Name:
    M D Installations
    Hi All,

    New member here trying to pick you're brains if possible.

    Ive been in a position of pricing jobs for around a year or so now and would like to see how my fellow electricians compile there tenders when bid for the larger scale jobs for maim contractors.

    At present i have always done it the same way which is how my boss has showed me by costing materials and marking them up by around 20% and then apply the labour charge rate (what we charge the client).

    However, after talking with the md of a building firm we work with he has informed me of how he costs jobs, by pricing materials and labour at cost (what he pays) and then putting a percentage on top to cover overheads and profits.

    My question is, are these the only ways to price a job and if we base it on the second theory how do you work out a percentage to cover overheads and profits per job when you never know how many jobs you will win thus taking the percentage higher or lower.

    I hope my query is understandable! Thank you for you're time.

    Nod
     
  2. Murdoch
    Online

    Murdoch Electrician's Arms

    Location:
    Woking
    You can only use either method if you know your overheads ...... and work backwards from there ....
     
  3. Neil Dodd
    Offline

    Neil Dodd New EF Member

    Location:
    Wolverhampton
    Business Name:
    M D Installations
    Hi Murdoch

    Thanks for the reply. Can you give me som guidance on how i would go about finding all overheads?

    Nod
     
  4. Murdoch
    Online

    Murdoch Electrician's Arms

    Location:
    Woking
    Ask the company accounts department ......
     
  5. Jason Philip
    Offline

    Jason Philip Active EF Member

    Location:
    USA
    I use a general rule of work out materials and labour cost, then add 10% for overheads, then mark up that by 10%, so your final figure will be 121% of time and labour cost. Our labour rate is higher than what we pay, so extra profit there serves as a contingency for people dragging their feet.... And if you want to go more competitive you can pass on your materials discounts. How to you work out time taken? For example I use Trimble software to input everything from database.

    TL;DR: basically just add 21% to cost, and that will cover overheads and markup.
     
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