---
title: "Mike Holt's Illustrated Guide to Electrical Estimating"
tags:
  - authorship/other
  - exclude-from-word-count
authors:
  - Mike C. Holt
pages: 234
publisher: Mike Holt Enterprises
type: book
year: 2023
---
# Mike Holt's Illustrated Guide to Electrical Estimating

## Chapter 1---Introduction

### Introduction

### 1.1 Estimating versus Bidding

### 1.2 A Good Estimating System

### 1.3 Objectives and Purpose of an Electrical Contractor

### 1.4 Why So Many Electrical Contractors Are Unsuccessful

### 1.5 Project Management

### 1.6 Can I Be Competitive?

### 1.7 The Electrical Market

### 1.8 Negotiated Work

### 1.9 Best Value

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 2---About Estimating

### Introduction

### 2.1 Qualities of a Good Estimator

### 2.2 Duties and Responsibilities of the Estimator

### 2.3 The Estimating Workspace and Tools

### 2.4 Types Of Bids

### 2.5 What an Accurate Estimate Must Include

### 2.6 Improper Estimating Methods

### 2.7 The Detailed Estimating Method

### 2.8 How Accurate Can an Estimate Be?

### 2.9 Manual Estimate, Estimating Software, or an Estimating Service?

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 3---Understanding Labor Units

### Introduction

### 3.1 What is a Labor Unit?

### 3.2 How Labor Units Are Expressed

### 3.3 Using Work Experience

### 3.4 What Is Included in the Labor Unit?

### 3.5 Labor Units Do Nolinciuae

### 3.6 Labor-Unit Manuals

### 3.7 How to Develop Your Own Labor Units

### 3.8 Your Labor Units as Compared to Your Competitors

### 3.9 Knowing Your Competitors' Labor Units

### 3.10 Variables That Affect Labor Units

### 3.11 Are You for Real?

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 4---The Estimating Process

### Introduction

### 4.1 Job Selection

### 4.2 Understanding the Scope Of Work

### 4.3 Preparing for the Estimate

### 4.4 Plans and Specifications Review

### 4.5 Estimate and Bid Notes

### 4.6 Estimating Forms and Worksheets

### 4.7 The Take-Off

### 4.8 Determining the Bill-of-Material (Manual Estimate)

### 4.9 Pricing and Laboring

### 4.10 Extensions An Totals

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 5---Determining Break-Even Cost

### Introduction

### 5.1 Labor Houis (Step A)

### 5.2 Labor Cost (Step B)

### 5.3 Labor Rate Per Man-Hour

### 5.4 Labor Burden

### 5.5 Total Material Cost (Step C)

### 5.6 Direct Job Expenses (Step D)

### 5.7 Estimated Prime Cost (Step E)

### 5.8 Overhead (Step F)

### 5.9 Overhead Calculation Methods

### 5.10 Break-Even Cost (Estimated Cost) (Step G)

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 6---The Bid Process

### Introduction

### 6.1 Profit (It s Not a Dirty Word)

### 5.2 Profit to Prime Cost

### 6.3 Other Bid Cost Considerations

### 5.4 Bid Accuracy

### 5.5 Bid Analysis

### 6.6 Bid Proposal

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 7---Unit Pricing

### Introduction

Now that you have learned the detailed estimating method and bid process,
we are going to show you an alternative estimating method.
It is called "unit pricing," and using it will save you time.
You can safely use unit pricing on renovations, office build-outs,
change orders, and other simple or small-scope jobs.

### 7.1 What Is Unit Pricing?

Unit pricing consists of developing an average price
to install a given electrical component,
such as a duplex receptacle, a 2 x 4 fluorescent fixture, or a switch.
This price includes the outlet box, an average number of wire connectors,
mounting hardware, and the typical number of raceway or cable box connectors.
The "unit price" is then multiplied by the number of units on the drawings
to arrive at a total bid price for the installation.

### 7.2 Advantages and Disadvantages of Unit Pricing

You still do a take-off to determine the number of luminaries,
switches, receptacles, and so forth.
However, you just do not separately count the boxes, fittings,
and other parts included in the unit pricing components.
Often you do not measure the wiring runs for every opening,
but use an average length per installed outlet as part of the "unit."

Homeruns to panelboards, communications cabinets, and so on,
must still be measured in the usual manner.

#### Advantages

Unit pricing is faster and easier than the detailed estimating method
described earlier in Chapters 4, 5, and 6.
It takes less time and therefore costs your company less money
to determine the selling price for a job.
Unit pricing is relatively accurate on repetitive jobs
where many identical items of electrical equipment
will be installed under the same (or fairly similar) conditions.

#### Disadvantages

Unit pricing is not suitable for jobs
where outlets are not located at standard intervals.
For example, if you have 200 identical fluorescent luminaries to install
in a building where the ceiling heights vary from 8 ft to 15 ft in different areas,
unit prices will need to be adjusted to an average luminaire height,
or different unit prices will need to be applied for the different ceiling heights.

### 7.3 Unit Price Example

It is easier to demonstrate this concept with an example
rather than trying to explain it in words.

Determine the unit price for a duplex receptacle based on the following factors:

* Labor Hour Adjustment---10%
* Labor Burden---included in overhead
* Labor Rate---$18 per man-hour
* Material Cost Adjustment---15% (waste, theft, miscellaneous)
* Sales Tax---7%
* Overhead---$18 per man-hour
* Profit---15% of Selling Price

%% TABLE OMITTED %%

### Summary

#### Introduction

An alternative estimating method is called "unit pricing,"
and using it will save you time.
You can safely use unit pricing on renovations, office build-outs,
change orders, and other simple or small-scope jobs.

#### 7.1 What is Unit Pricing?

Unit pricing consists of developing an average price
to install a given electrical component.
This price includes the outlet box, an average number of wire connectors,
mounting hardware, and the typical number of raceway or cable box connectors.
The "unit price" is then multiplied by the number of units on the drawings
to arrive at a total bid price for the installation.

#### 7.2 Advantages and Disadvantages of Unit Pricing

You still do a take-off to determine the number of luminaries,
switches, receptacles, and so forth.
However, you just do not separately count the boxes, fittings,
and other parts included in the unit pricing components.
Often you do not measure the wiring runs for every opening,
but use an average length per installed outlet as part of the "unit."

Homeruns to panelboards, communications cabinets, and so on,
must still be measured in the usual manner.

**Advantages.** Unit pricing is faster and easier than the detailed estimating method.
It takes less time and therefore costs your company less money
to determine the selling price for a job.

Unit pricing is relatively accurate on repetitive jobs
where many identical items of electrical equipment
will be installed under the same (or fairly similar) conditions.

**Disadvantages.** Unit pricing is not suitable for jobs
where outlets are not located at standard intervals.

### Conclusion

From the example,
you can see that the unit pricing method can be a real time saver.
Do not let this lull you into trading time
for the accuracy required for estimating projects that are not small or simple.
Even minor variations in the work environment
can call for adjustments to the unit pricing method.

Your company can use other costing and pricing methods as well.
All of these have limited applications.
Going outside the limits of these methods, or of unit pricing,
can result in large financial losses.

As you practice the unit pricing method
and the more rigorous detailed estimating method you learned earlier,
you will become more adept at each.
The first few times you use the unit pricing method,
you may also want to use the more rigorous detailed method
and compare the results.

### Essay Questions

1. What is an alternative estimating method called that will save you time,
    and on what types of jobs can it be safely used?

2. What does the average unit price include?

3. When using unit pricing, what must still be measured in the usual manner?

4. What are the advantages of using unit pricing?

5. What are the disadvantages of using unit pricing?

### Multiple-Choice Questions

#### Introduction

1. An alternative to the detailed estimating method and bid process
    is called the "\_\_\_" method.

* (a) square foot
* (b) unit pricing
* (c) shot-in-the-dark
* (d) none of these

#### 7.1 What Is Unit Pricing?

2. Unit pricing consists of developing a(n) \_\_\_ price
    to install a given electrical component.

* (a) set
* (b) estimated
* (c) average
* (d) flexible

3. The "unit price" is by the number of units on the drawings
    to arrive at a total bid price for the installation.

* (a) added
* (b) subtracted
* (c) multiplied
* (d) divided

#### 7.2 Advantages and Disadvantages of Unit Pricing

4. The biggest advantage when using unit pricing
    is that you do not need to complete a take-off
    to determine the number of luminaries, switches, receptacles, and so forth.

* (a) True
* (b) False

## Chapter 8---Software-Based Estimating

### Introduction

### 8.1 Computer Estimating System Functions

### 8.2 Advantages and Benefits

### 8.3 Pre-Purchase Considerations

### 8.4 Hardware Considerations

### 8.5 Cost Of Software

### 8.6 Technical Support

### 8.7 Can I Afford it?

### 8.8 Software Vendors

### 8.9 Training and Support

### 8.10 Pricing Services

### 8.11 Frequently Asked Questions

### Summary

### Conclusion

### Essay Questions

### Multiple-Choice Questions

## Chapter 9---The Bid Process Review

### Introduction

### 9.1 Pre-Estimate

### 9.2 Estimate Process

### 9.3 Determining Break-Even Cost

### 9.4 The Bid Process

## Final Exam
