Pricing the Estimate

In unit price estimating, the unit costs most commonly applied are bare or unburdened costs. A majority of electrical estimators calculate the cost of labor by labor‐hours. One of the most difficult aspects of the estimator's job is determining accurate and reliable cost data to be used in the preparation of an estimate. Sources for such data are varied, but can be categorized in terms of their reliability. All project costs can be separated into two main categories: direct and indirect costs. Within each cost category in an estimate, there are types of costs. Types of direct costs include materials, labor, equipment, subcontractors, and project overhead. A clear understanding of direct and indirect costs is a fundamental part of pricing the estimate. Profit is most often assigned as a percentage of all costs of the work.