Pre-Builds and Per-Point Methods use the averaging calculation method are open to discrepancies in the final value of your tender or quote.
For example say we sell rate quote for each power point with ten metres of cable we have:
| • 1 double socket outlet |
$18.00 |
| • 1 mounting bracket |
$1.00 |
| • 10 meters Power cable |
12.00 |
| • Half hour labour to install |
$35.00 |
| TOTAL Per Point |
$66.00 |
Using the Pre-Builds or Per-Point Methods say we have twenty power points in our quote we have a total of $1,320.00.
The distance run of cable between power points can vary with power points on three different circuits using more cable back to the switchboard etc. in an average house of twenty power points this can add up to a total of 300 meters, installation conditions can vary and difference in cost between double socket outlets and single socket outlets etc.
Using the Accurate Labour Unit Software Calculation Planning Method we have:
| • 20 double socket outlet |
0.18 of an hour for each Labour Unit |
| • 20 mounting bracket |
0.18 of an hour for each Labour Unit |
| • 300 metres of power cable |
0.02 of an hour per metre Labour Unit |
Using the Accurate Labour Unit Software Calculation Planning Method for twenty power points in our sell rate quote is as follows:
| • Total materials |
$740.00 |
| • Total Labour 13.20 hours at $70.00 per hour |
$924.00 |
| TOTAL Quote |
$1,664.00 |
We have a difference of $344.00 and this figure can vary with the Pre-Builds and Per-Point methods; in my book this not sustainable.
Using the Pre-Builds or Per-Point Methods we make too many assumptions.
With the Labour Unit Software Calculation Planning Method you know exactly how much material and labour is required for your job or project.
The basic principle is establishing labour units, is to provide a separate unit of labour for the installation of each item of material for the conditions under which it is being installed. The more completely the overall operation can be broken down into individual units, the more accurately the total estimate labour can be determined for any given job.
In Electrical Estimating as a starting point the human resource function requires basic labour units that have been proven on past projects over time on the productivity of human resource for different functions (e.g. installing a power point above 3.5 metres).
Each organisation has different efficiency levels depending on the make-up and experience of the human resource on the particular functional outcome at the time of execution; the basic labour units will need to be updated regularly through a feed-back loop from current projects as the make up the human resource changes over time in organisations. The efficiency level depends on the number of workers having the required skill level for each particular task.
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Pre-Builds and Per-Point Methods use the averaging calculation method are open to discrepancies in the final value of your tender or quote. With the Labour Unit Software Calculation Planning Method you know exactly how much material and labour is required for your job or project.