Posted  by ukestimatingsupport & filed under estimating Tips & Hints, Mechanical Estimating.

Electrical Estimating CalculationMost Tenders are based on a Lump sum, which is based on your internal commercially sensitive information and externally sourced quotes and prices.

I say commercially sensitive information because to determine a price for an item to be installed is usually determined by taking the trade price, deducting Your Discount*, and Your time to Fit* which is multiplied by Your Labour rate*. Onto this you apply Your preliminary %* and Your Overhead and Your Profit*, which will provide a unit selling price by item. All items marked * are commercially sensitive and should not normally be disclosed.

Why? well once you reveal the information you leave yourself open to being undercut in any one of the areas*, and open to having your prices hacked down. These like Heinz, Ketchup, KFC and Reggae Reggae Sauce, are your Secret Ingredients, so treat them as such.

So unless you’re in a truly “Open Book” situation, and that doesn’t mean disclosing all your commercially sensitive information*, don’t do it. Provide the unit selling rate for items, from the schedule of rates maybe with quantities, but normally your tender is a lump sum, not a shopping list.

Tags: your electrical estimate secret ingredients