/ BLOG

How to calculate the cost of domestic electrical work?

Mar 18, 2022 · 7 minutes to read

Electrical work is one of the few home maintenance tasks that homeowners should never attempt on their own. Residential electrical work is not only illegal without a permit in many areas of the United States, but it is also extremely hazardous if you are not suitably qualified.

An electrician installs sockets

Most homeowners are aware of this danger, which is why they hire a professional electrician to complete the task correctly.

Estimating expenses is a vital aspect of your business’s success as an electrical contractor. Precise estimates aid task management, enabling you to complete any electrical task with ease.

This article, like any other trades pricing guidance, will show you how to estimate domestic electrical work in a way that earns your clients’ trust and helps you develop your business.

Why are estimations so crucial?

Estimates are essential in any sector, from vehicle repair to building. And, because an estimate is generally a customer’s first impression of your company, you don’t want to make a bad one.

Although the pricing you detail in your estimate may differ from the final invoice, it reflects poorly on your company if the project’s final cost is significantly more than your initial estimate. It’s critical to give your customer a fair and accurate estimate so there’s no “sticker shock” when the final invoice is presented.

What is the distinction between a quotation and an estimate?

Quotes and estimates are two concepts that are frequently confused. While the phrases are similar, they cover to two distinct ideas.

A quotation is a precise price for your services that your customer will pay. When you provide a quote to a customer, you are contractually required to provide the services at that price.

Estimates, on the other hand, are not contractually binding and allow for some flexibility once the project is started. You don’t want the final price to stray too far from the estimate, so keep that in mind.

Before you begin any work, make sure your customer understands whether you’re providing them with a quote or an estimate.

The basics of estimating electrical wiring for a residence

Residential electrical work is likely to make up the majority of your sales, whether you’re giving a homeowner an estimate or competing in a bidding process to wire a group of new homes. As a result, understanding how to estimate household electrical repair is an important skill to have.

Although preparing an estimate might be time-consuming, it is important to take your time to ensure accuracy before beginning any electrical repair. Making a mistake in the middle of a project could cost you additional time and money.

Here are some guidelines to help you produce accurate, detailed estimates for your customers:

1. Pick the best jobs for your skillset

You should not accept every electrical project that comes your way, even if your objective is to bring in as much cash as possible.

Instead, be honest with yourself and your clients and refuse to do any assignments where you lack experience or are unable to appropriately estimate prices. Until you have more experience, stick to projects that are within your scope and those you are confident with.

Take the time to assess each job’s requirements and inform your customer if you are unable to accomplish it in a timely manner.

2. Double-check the details

If you’re bidding on anything, make sure you read the parameters in the request for proposal (RFP).

Make sure you understand the present electrical wiring of the house you’ll be working on to guarantee the success of your RFP. It’s critical to point up anything out of the norm or a potential omission in your proposal.

3. Go through the sketches carefully

Drawings, plans, and graphics are frequently included with the RFP during the bidding phase. These visual representations are crucial because they show you the whole breadth of the project.

When you’re working with a homeowner, find out if they still have their home’s original blueprint and documentation of electrical work completed since the initial build. Otherwise, you’ll have to complete a walkthrough to figure out what must be done.

4. Estimate materials requirements

This list, also known as a material takeoff list, allows you to produce a material cost breakdown.

5. Work out your labor expenses

The most straightforward approach to price for domestic electrical work is by the hour, which makes labor expenses simple to calculate. The median compensation for an electrician, according to the Bureau of Labor Statistics, is $27.36 per hour, so you’ll probably pay your staff (or yourself) something comparable.

Calculate how many employees are required to finish a task, then add up each of their hourly pay rates to arrive at your total hourly labor rate. Multiply your hourly labor rate by the number of hours you expect the work to take.

Total labor rate = hourly labor rate x number of hours

The formula above will help provide you with an accurate estimate of labor expenses.

6. Produce a rough estimate

Now that you know the extent of the task and how much material and labor it will take to finish it you can start putting together your estimate.

Make sure each of your materials is listed as a separate line item in your estimate. Using a template for this ensures a consistent approach, allowing you to complete estimates faster for each new customer.

7. Calculate profit and overhead

If you only compute how much the work will cost you (labor plus materials expenses), then you will not profit from the work. In reality, you’ll be losing money since you’re not covering all of your business costs, including transportation and insurance.

Every estimate should include overhead expenditures in your budget to account for all of your business’s expenses. Depending on your business expenditures, overhead is approximately 13–20 percent of your overall sales cost.

The final aspect to include in your estimate is a profit markup. This markup is determined by the typical price of electrical work in your region and the amount of profit you intend to generate on each project.

8. Double-check all your figures

Make sure that all the information on the estimate is valid and that nothing has changed since you started the process before giving it over to your customer.

Ensure you include the following details:

  • Name and address of the customer
  • Materials and price list
  • Hours and expenses of labor
  • Total daily cost

You can redo some of the calculations if required to verify that the final amount you provide your customer is accurate.

How detailed should an electrical estimate be?

As a general guideline, you should provide as much detail as possible in your residential electrical work estimates.

Customers expect to see the following on an electricity estimate:

  • Their full name and mailing address.
  • The work’s description.
  • Your company’s name and contact information.
  • An in-depth analysis of the work.
  • Breakdown of the task should include labor, materials, and any additional expenditures.
  • Sales tax (where applicable)

Electrical cover

We hope that this guide will help you accurately calculate electrical job costs for your small business. Once the estimate has been accepted and the project begins, you may need ways to protect yourself while on the job. Business insurance is one way to do this.

BizInsure makes it easy for electricians to find coverage that fits their needs. Learn more about electrical insurance cover and start comparing policies now.

Get Free Online Quotes and get coverage instantly

The coverage you need for your business.

Business insurance is divided into different policies. We offer 4 types so it's easy to design the coverage that fits your business.

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

BizInsure has really come through for me on some really hard to place risks. Andrew takes the time to understand the risk and work through how we can make it work, rather than looking for ways to say no. Thank you for your help!
Carlos T.
18:06 16 Mar 23
Very helpful and explanatory on the policy line of the policy
Josua V.
17:30 14 Mar 23
Worked with Tevin. Amazing customer service. Was very patient with me in figuring out the best insurance coverage for business. Thanks Tevin for making it easy.
Faisal O.
16:23 14 Mar 23
No complaints, Always a fast response when a need arises.
Dan F.
13:56 10 Mar 23
Very good information patience was shown. Much help from Kaled, satisfied with the amount of insurance and good coverage. Affordable is what you need with starting a small business until you grow. Old saying is go as you grow.
Jacquelynn W.
21:53 20 Jan 23
Professionals at what they do! easy to navigate and very good people to lead to to the best coverage!
Magnifier 2.
20:37 17 Jan 23
I have been shopping for business liability insurance for several months. I am happy to share that BizInsure ranked #1! The representatives were polite, patient, and empathetic. They accomplished what most companies struggle with achieving: they did what they said they were going to do, they were on time, and they had empathy. They delivered a policy for 25% less than the closest competetor, and even included $50k of cyber security at no additional cost! I only write reviews when I receive exceptional experiences- highly revommended; keep up the great service BizInsure!P.S. I own a professional referral service in Hawai'i and I am going to see if BizInsure offers an affiliate program.Aloha!
John S.
05:51 23 Nov 22
They respond quickly and give you quotes immediately ...
Regean K.
23:55 09 Nov 22
The agent that I spoke to was very experienced and could tell that I was new at this and was very understanding and took the time to explain everything to me.
lotanga J.
00:04 15 Oct 22
Easy to work with and very responsive. Glad to have them as my broker.
Edward G.
18:54 13 Sep 22
We’re very happy with BiInsured LLC. VERY AFFORDABLE
Paul A. F.
19:20 11 Sep 22
Jasmine Q was on the spot professional, she knew where to direct me and explain to me my concerns and request; she delivered my personal information within minutes of me asking policy questions.That young lady is a true ROCK STAT!!!
Shaka 3 Z.
23:09 15 Aug 22
For a small non-profit, the package I was given was affordable. The representative was polite, patient, understanding, and knowledgeable.
Gertrude R.
18:06 15 Aug 22
Asked for a specific venue to be place on our certificate of insurance and it was done within one business day. Yay! Bizinsure!
Melinda S.
17:02 01 Aug 22
The process was fast and easy and the professional staff was very knowledgeable with any questions that I had and ready to help
VALERIE M.
06:40 31 Mar 22
Friendly agents. Timely replies. Fair pricing. This is a good fit for my business! Thank you, Noah, for all your help.
Beth Anne V.
19:27 28 Mar 22
They are awesome
Tony H.
00:41 07 Jan 22
Noa made sure I had all the information I needed for a first time business owner . He helped me understand what I needed to secure a quality policy and he was super helpful when explaining how the policy would serve its purpose to my company. I was very satisfied and had an Awesome experience, I think people like that make the company look good!
Wayleen O.
04:36 15 Oct 21
I was in need of WC, GL and PL coverages for my business and was able to shop, discuss, confirm and purchase all the coverages in two days! This was a great experience, especially when "Time is Money". Noah Bowman was very professional and knowledgeable. Thanks!
AmeriCreed 1.
15:42 23 Sep 21
MOVING FORWARD, I WILL BE SENDING ALL OF MY BUSINESS TO THIS COMPANY !!!! Incredible customer service!!! Thanks
THEODORE W.
19:49 09 Sep 21
Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
Dissent D.
22:21 02 Sep 21
Eugene was Awesome!!!!
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
Lane
18:22 22 Jun 21
Done in less than an hour!
William O.
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda J.
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik S.
16:34 10 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba P.
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper M.
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic F.
21:00 07 Apr 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin B.
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V L.
23:13 09 Mar 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie W.
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined P.
23:32 17 Feb 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe W.
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa W.
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda H.
23:26 12 Nov 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran S.
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen D.
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele H.
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina R.
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy S.
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope J.
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela C.
16:45 24 Aug 20
Great and fast service!!!! The representative was very professional!!!!
Tanya S.
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy S.
19:01 14 Jul 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda G.
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul R.
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene S.
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre H.
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn T.
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. A.
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh M.
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Y.
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark W.
23:42 13 Nov 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham B.
22:12 23 Jun 17
js_loader

Popular Searches

Google Rating
4.4
Based on 89 reviews
×
js_loader