CHAPTER 4

ELECTRICAL COST ESTIMATES

A. INTRODUCTION
 Cost estimate is an art of planning and approximating the materials needed, investment involved, and the
time for the completion of an electrification project.
 Cost estimate helps the contractor or electrical practitioner makes right and firm decisions while making
a contract with a client (person, organization, firm or establishment). It also helps the contractor and the
clients decide whether the project is feasible or not.
o From an owner's perspective the cost estimate is used to decide whether the project should
proceed or not as to the budget.
o From the contractor's perspective, cost estimate determines the construction bid or whether the
company will bid or not on the construction contract. This means that a cost estimate is included
in the contract between the contractor and the client, which also includes other documents such
as statement of the terms and conditions for completing the electrical project.
 Accurate cost forecasting of future projects is vital to the survival of any construction business.

B. STEPS CONSIDERED IN ESTIMATING ELECTRICAL JOBS

1. Meet with the client to view the area in which the work needs to be completed. Take pictures
and notes if needed.
2. Ask questions so that you get a clear picture of what the client wants. Then tell the client how
long it will take you to put an estimate together. Make a note of this date so that you follow-
up accordingly.
3. Put the electrical quote together in a clear and organized fashion. List the stages of the
project so that there is no confusion. Take the details of the estimate, including materials and
labor.
4. State the payment amount and the terms of the quote. If you need a down payment for a large
job, be clear about the amount and purpose of the down payment. Include the date for when
the final payment will be due.
5. Confirm the date when the project will be completed. Add a disclaimer stating that this date
will be met unless an unforeseen circumstance delays the project.
6. Assure that the client is kept updated at every stage of the project, and especially if concerns
come up regarding additional expenses. Quote any additional expenses in the event that
further work is needed.
7. Ask if the client has any concerns about the electrical work estimate. Then ask if the client
would like some time to think about whether he or she would like to go ahead with the
project. Be clear about how long the estimate is valid for and how much time you will need
to complete the project.

C. ESSENTIAL ELEMENTS OF A COST ESTIMATE

List and Quantities of Materials
o Electrical Schedule is part of the electrical plan in which lists and quantities of materials
needed in the installation are based from. With Electrical Schedule, the estimator determines
the number of points provided in each room, the type and number of ceiling outlets, switches,
socket outlets, breakers, panel boards, length of wires, etc.
Specification of Materials
 o The specification and cost of all necessary material should be known at the time of preparing
a cost estimate and pricing. Prior to the purchase of material, knowledge of detailed
specifications is very important.
o Example: Choosing a specific lamp holder out of different holders. There are different types
of holders available in the market such as batten holders, screw holders, and pendant holders.
The estimator should know the type of holder needed in the project prior to purchasing.
Cost of Materials
o Material prices, especially in today's current market, fluctuate. The estimator must anticipate
the frequency and extent of the price variations and the timing of the buying cycle. Material
prices may be affected by the following factors:
o purchase at a peak or slack time of the year
o material availability
o the size of the order
o the delivery timeframe requirement
o physical requirements for delivery, such as distance, road size, or site access
o payment terms and history on previous purchases
o A market survey for prices of materials has to be conducted and the factors that affect prices
should be considered. Prices should be negotiated with the shop owner or keeper. The
estimator should keep the price lists of all the materials and use them in the electrical
estimates. The mistake of purchasing materials without market survey adds to the total cost
of installation along with prolonged time of completion.

Table 1 Cost Estimate of Materials

Required Quantity Rate

Item Description
Total Cost in
No. with full Remarks
Amount per Birr
Specifications Quantity Unit
Unit in Birr

Double pole, iron

clad, main switch,
1 1 Number
30A rating, 230V
grading

Labor Cost
o Labor Hours: Labor hour can be determined by worker analysis or on a unit man-hour basis
(the number of hours each worker should work to finish a unit of work). The estimator must
make time allowances based upon the complexity of a project.
o Labor Rates: The labor rate is the wage per hour of the electrician or worker. To determine
the labor rate, the estimator starts with the basic wages and may include insurance benefits.
Overtime is another consideration in determining the calculation of the hourly rates. And
labor rates vary at different places.
o Determination of Labor Rates: The cost of labor can be determined:
 As per duration and amount of work done
 As per unit work basis
  As per percentage of material cost
Equipment Costs
o Equipment rates depend on size or capacity of equipment required to perform the work.
Cycle times also control the costs of using the equipment. Costs also differ if the equipment
is owned by the contractor as opposed to rented.
Subcontractor Quotes
o A subcontractor quote should contain labor, material, equipment, indirect costs, and profit
prepared in a reliable manner just like any other part of the estimate. The amount of the
subcontractor quote is also dependent upon the payment terms of the contract, and previous
payment history between the subcontractor and general contractor.
Indirect Costs
o Indirect costs consist of labor, material, and equipment items required to support the overall
project.
o For the owner: Indirect costs include design fees, permits, land acquisition costs, legal
fees, administration costs, etc.
o For the contractor and subcontractor: Indirect costs include mobilization, staffing, on-
site job office, temporary construction, temporary heat/cooling, and temporary
utilities, equipment, small tools and consumables, etc.

D. GUIDELINES FOR CONDUCTING ESTIMATES

 The electrical engineer who is assigned for estimating the electrical installation cost of a building
should follow the general rules in “internal wiring”. The following are the general rules that should
be kept in mind while conducting cost estimation:
o The location to the nearest distribution utility pole where the service entrance is located
should be selected carefully.
o The location of the service entrance should be covered to provide protection to energy-meter
against rain, sunlight and mechanical damage.
o No additional load shall be connected to an existing installation unless it has been ascertained
that the installation can safely carry the additional load.
o The height of distribution boards and meter board are to be installed so that its center is 1.6m
above the floor.
o The socket outlets are installed 0.3m above floor, but modifications can be done in residential
buildings where electrical safety for children is a priority.
o Sufficient number of socket outlets should be provided at suitable places.
o 3 pins, 5A socket outlets shall be used for light and fan sub-circuits. 3 pins, 15A or 20A
sockets shall be used in power circuits.
o The height of switch should not be less than 1.5m above the floor.
o For small and medium sized rooms, all light points should be placed about 2.75 to 3.0m
above the floor on horizontal run below the ceiling.
o All ceiling fans are to be hung 2.75m above the floor, unless otherwise specified.
o It is preferable that each branch circuit shall not have more than 10 lighting, fan and fire (5A)
socket outlets. If a separate branch circuit is installed for fans only, the number of fans in that
circuit shall not exceed 10.
o Fuse and switch are not to be provided on earthed conductor or earth wire.
o The metal sheaths or metal used as protective covering for all current consuming apparatus or
appliances shall be properly earthed in order to avoid danger from electric shock due to
leakage or failure of insulation.
 o In large buildings with 3-phase, 4-wire system as supply, the load shall be distributed equally
on all the phases.
o All apparatus requiring attention are to be provided with easy means of access.
o The height of ceiling for a normal residential building may be taken as 3.5m for estimation
purpose. The height of ceiling for large halls may be assumed to be 4m.
o While calculating the cost of wiring a house or commercial building, the rates from the local
market of standard quality goods preferably of the some company should be taken into
account as there is a variety of rates from company to company.
o The estimator must take into account each and every item from minor items to major items
required in the wiring calculations.

E. SEQUENCES TO CARRY-OUT ESTIMATES

 While calculating the materials and costs of building wiring, the following sequence should be
considered (in the case of conduit system wiring):
1. Electrical Installation Plan Layout shall be drawn in accordance with proper scaling. And
electrical points, switch board, location of distribution boards, energy meter, etc. shall be marked
on the electrical plan through specified symbols.
2. Make assumptions especially if exact measurements are not known yet. For instance, location of
main distribution board in the verandah can be assumed to be half or one meter inside. The
height of the building may also be assumed if it is not known yet during the initial planning
stage.
3. Length of conduit pipes may be calculated in three stages:
 Length of conduit installed from switchboards, including main switch, up to the horizontal
run.
 Length of conduit on walls running parallel to the floor (horizontal run) running below the
ceiling.
 Length of conduit installed between horizontal run and the ceiling to last point on horizontal
run.
 Finally, add the total length of conduit pipes for three stages and add 10% wastage.
4. Calculate the length of phase & neutral wires used as feeder (if busbars are not used) and branch
circuits. Example:
o Circuit No. 1: length of Phase & Neutral wire should be considered
o Circuit No. 2: length of Phase & Neutral wire should be considered
o Then finally, calculate the total length of phase and neutral wires and add 15% wastage.
5. Calculate the length of earthing or grounding wire. The earth wire for casing, capping and batten
wiring is laid on the batten along with other wires. If the a metal pipe conduit is used, no
additional earth wire will used as the conduit can act as earth wire.
6. Prepare a table for lists of materials. It should be prepared with complete description and
specification of the items.