How to Bid on Electrical Jobs: The Best Practices
FEB 17, 2025 | LAST UPDATED ON FEB 17, 2025 BY ANGELICA NAIDU
For an experienced contractor like you, creating an estimate to bid on electrical projects is easy. But the real problem comes when you have to answer the question – How to Bid on Electrical Jobs by carefully calculating labor, materials, equipment, insurance, overhead, and profit. That is followed by another challenge of creating the best proposal that will easily overthrow your competitors.
So, how to tackle both challenges, win that bid, and show your electrical magic skills? Continue reading and let’s find it out together!
Choosing the Right Project
The first step is to select the area where you are skilled. That means electrical projects where you lack experience should not be put up for bid. If you don’t have historical data with you there is a risk of making errors. Remember, less experienced tasks can land you in hot water. Always look for safe options that will suit your company. And take risks when you have the bandwidth and time to learn.
Most remodels and renovations will involve some electrical work. Before taking on the work, ask yourself if you have workers capable of completing the specified work efficiently. You should also consider the project’s location, how far it is from your base, whether you need a temporary base for your operations, and what the travel cost will be.
Lastly, you want to make sure that your employees have the necessary experience working with the systems and functions needed for the project. While choosing a project, you need to think from an event planner’s perspective rather than an electrical contractor’s.
Reviewing Bid Documents
You should do a proper review of your bid document making sure that all the outlines of the work are included. Cross-check specifications drawings, bid addenda, and other instructions. Take particular note of Divisions 01 and 26 in the electrical estimating software’s specifications.
Division 01 discusses the requirements for insurance bonding payment terms and work qualifications. Information about the materials installation techniques and who is responsible for what costs is included in Division 26, which is dedicated to electrical work.
The work that needs to be done is visually represented through drawings. To determine what equipment you might need, check the architectural plans for the height of items like the electrical panel wiring outlets and light fixtures. If there are any differences between the plans and the specifications, note them down to clarify later. The general contractor GC or design team should be notified of these differences through an RFI. Changes made after the bid documents have been released are known as addenda.
Tip: You can also include electrical drawings used to provide additional detail to a blueprint.
Conducting a Quantity Takeoff
A quantity takeoff (also known as materials takeoff) is a count of the equipment or materials required to finish the job. This includes the length of the wire, the quantity of conduit, the number of fixtures, etc. To properly estimate the costs, you must make a list of all the supplies and equipment required to finish the job. You can make a drawing of it for easy understanding.
An electronic scale, estimating software or a ruler and highlighter can all be used for this. After you have tallied the quantity of each item of equipment or material – you will get the total takeoff for your project. To better arrange the lists and determine the costs of each task, particularly labor, you might want to divide them up into individual tasks.
What all you need for the Quality Takeoff
| Item Type | Description | Use |
|---|---|---|
|
Electrical Boxes |
Various types (junction, outlet, etc.) |
Enclose wire connections |
|
Circuit Breakers |
Standard circuit breakers |
Protect electrical circuits from overload |
|
Wiring |
Electrical wiring (various gauges) |
Connect electrical devices |
|
Lighting Fixtures |
Fixtures for ceiling, wall, or lamps |
Provide illumination |
|
Electrical Tape |
Insulating tape for electrical connections |
Insulate and protect wire connections |
|
Wood Boards |
Boards for support behind wall boxes |
Provide backing for electrical boxes |
|
Wire Nuts |
Connectors for joining wires |
Secure and insulate wire connections |
|
Caulk |
Sealant for electrical boxes and wire holes |
Prevent moisture entry and secure installations |
Pro Tip: To make the listing easy use labels or codes from blueprints and breakout drawings, such as “Light B2,” “Panel D34,” or “Conduit F4.”
Requesting Supplier Quotes
For a supplier’s quote you need to send your list of supplies and equipment together with the relevant drawings and specifications. The sooner the better the strategy you need to apply here because it might take the supplier some time to compile their quote. It’s safe to be in contact with two or more suppliers for a timely quote. You can use bid shopping to understand supplier pricing strategies.
Estimating Labor Costs
The next task on your table is to estimate the labor required to complete the task using the material takeoff. Some contractors choose the method of using data from previous projects. If you are in doubt you can use labor guides for this like NECA’s Manual of Labor Units. You can also use the following equation:
- Q = Quantity of equipment or material
- H = Labor hours required per unit
- R = Fully burdened labor rate per hour
Total Labor Cost for an Item = (Q×H)×R
The employee’s pay plus taxes and benefits paid by the employer make up the fully burdened labor rate.
Tip: To determine the overall labor costs for the project, add the labor costs for each item.
You should compute three different types of labor in your estimated labor unit. A labor unit consists of 60–70% installation labor and 30–40% material handling and cleanup labor per hour. Costs associated with each labor unit are known as burdened labor costs. With the exception of positions requiring supervision (more on this later), these are the non-wage hourly costs for all laboring employees. Costs associated with supervision are the expenses accrued for a specific job’s supervision are computed differently than wage costs. Instead of using labor units, you will use the salary and add it to the burdened labor costs for a given time frame.
Adding Overhead and Profit
The indirect expenses needed to operate the business, excluding labor, supplies, and equipment, are referred to as overhead. The overhead mainly includes costs of utilities, and costs of insurance, services provided by third parties (for the company, not a job), such as janitorial and bookkeeping, promoting a property lease or leases, property taxes, business software, permits, licenses, etc. Overhead is typically computed as a percentage of total costs, just like profit. Consult your accountant to determine your overhead percentage if you are unsure.
The amount you anticipate making from the job after all estimated costs is known as the profit. These figures are purely subjective. Although a markup of about 20% is advised, you are free to lower or raise it in response to competitive bids and location economy. You need to calculate your profit and decide if the bid is worthy for your time and effort.
Creating a Professional Electrical Proposal
Here comes the total game changer – Having a well-structured and professional proposal to convey the ideas is all you need to get the electrical job bid. A super proposal helps you win bids gifting you exactly that. The pre-defined fully customized templates will ensure your proposal has clarity completeness and other key elements for your win. The proposal should have:
- Work Scope: You need to describe the tasks in detail, from planning to the last check-up. Indicate the surfaces, installation locations, contractor responsibilities, schedule, equipment, and protocols. All this should be well explained in your proposal.
- Pricing Breakdown: Determine labor, material, and supply costs while accounting for markups. Add profit, marketing costs, and overhead. For clarity, you can use templates or tables.
- Timeline: Time is King! Establish a reasonable project timeline that includes start and finish dates as well as milestones. Describe the solicitation, submission, selection, negotiation, and project delivery stages of the bidding process.
- Materials List: List down all the necessary electrical parts, such as panels, wiring, and fixtures. Consider both direct and indirect costs, as well as the cost of any equipment, whether it is owned or rented.
- Terms and Conditions: Specify warranties, change order procedures, and terms of payment. Include depreciation, insurance, maintenance, and transportation expenses if you are using personal equipment.
Reviewing the Proposal Before Submission
Verify your proposal thoroughly before sending – quantities, takeoffs, and calculations. If there is a significant discrepancy between your pricing and previous projects of comparable size and scope, you might be in trouble. Before you begin signing anything, make sure your proposal is proofread and that the formatting is correct. You can compare it with past projects. The grammar, spelling, tone, key details, and everything else need a double-check here.
Submitting the Bid and Handling Follow-ups
It’s finally time to submit your bid. Verify the Division 01 specifications to make sure you are sending the necessary data to the appropriate person in the appropriate format. You might be asked to qualify your bid after you have placed it. You need to double-check the following:
- Arranged data and contract documents with clear information
- Your prior background and credentials
- Completed submissions in accordance with their specifications, guidelines, and required paperwork
- Bids prior to the due date. For you, the sooner, the better!
You should wait for a response after submitting your bid for an electrical project. You want to answer the client’s questions as soon as possible. Waiting could cost you the job of a company that responded fast. You should start the job process as soon as possible if the prospective client accepts your bid.
If it’s unclear in your bid, a general contractor or owner might ask you to clarify which scopes of work are covered or not. To align with the way the GC or owner is contracting the job, you might also be asked to update the scope of work and pricing.
Don’t be alarmed if you are asked to modify your bid because both of these are common occurrences.
How Super Proposal Proposal Software Helps Create Accurate, Profitable Proposals
Are you still trying to find ways to produce better documents? Super Proposal may end up being your preferred tool for creating proposals. Instead of managing multiple tools, our HVAC proposal software provides features that allow you to create an organized system. For you how to bid on electrical jobs question is finding it’s answer here. Let’s examine a few of its attributes:
- Flexible pricing: Super Proposal offers a single, reasonably priced pricing plan that still bundles everything into one package.
- Pre-made templates: It saves you time when creating proposals by providing pre-made proposal templates that are completely customizable to your specifications.
- Collaboration is simple: You can work together with your team in real time by providing comments and suggestions for any necessary changes. You won’t need to communicate with your team outside of the platform in this manner.
- In-built emailing: You can send contracts and proposals straight through
- Value for Money: Take advantage of cutting-edge features for a fixed monthly fee of $19 per user (billed annually), guaranteeing economical and superior proposal management.
How to Estimate Electrical Jobs Like a Pro
Careful planning – That’s the backbone of a successful bid on electric jobs. To get the accuracy, you need to carefully examination of every figure and computation.
Developing a winning bid for electrical jobs is a complex process that calls for a calculated approach. To stand out in a competitive market, it is essential to understand the challenges of electrical job bidding.
This includes:
- Put yourself out there – Build your brand and make sure people can find you online. A strong social media presence and local ads can bring in more clients and bidding opportunities.
- Keep an eye on bid boards – Sites like ConstructionConnect, Dodge Construction Network, and Construction Bid Source list tons of projects. Also, check local newspapers, government sites, and trade associations for leads.
- Network like a pro – Join your local Chamber of Commerce, attend industry events, and connect with people. The more relationships you build, the more opportunities will come your way.
To become an expert at bidding on electrical work, you must need value projects and competitive pricing. The secret to winning bids and landing electrical work is combining technical expertise with a customer-focused mindset.
FAQs
How can I find electrical jobs to bid on near me?
Think of finding electrical jobs as making friends – network with contractors, and watch online bidding sites for opportunities in your area; that’s where the projects are hiding! It is all about local connections.
Can you give me some electrical bid examples?
Imagine a bid as your project “recipe” – you need all the ingredients (labor, materials, profit) to make it right. You can visit competitors bid or websites providing examples to analyze what you are getting into.
Is there a way to bid on electrical jobs by square foot?
Bidding by square foot can provide a quick estimate, but it’s essential to also consider the complexity of the electrical work required. Always adjust your bid based on specific project requirements to avoid underestimating costs
What are some useful electrical bidding websites?
Online platforms like PlanHub can help you discover electrical projects and submit bids electronically, saving time and potentially leading to faster acceptance
Do you know of an effective electrical bid template?
You have come to the right place. Super Proposal with its SUPER selling electrical bidding proposal is here to make your dream bid come true. With an 85% success rate, the real-time tracking and e-signature facilitate help you attain the growth you want.
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