Estimating and Bidding an Electrical Job
Takeoff, Labor Units, Burden, Overhead and Profit, Contingency and the Bid Package
FHWA Guidelines on Preparing Engineer's Estimate (fhwa.dot.gov/programadmin/contracts/ta508046.cfm); FAR 16.601, 31.202, 31.203, 52.236-3, 52.236-21, 28.101-1, 28.101-2 (acquisition.gov); F.S. 255.05, 489.1425, 713.015 (Online Sunshine) — all read 2026-09-19 · Reviewed 2026-09-21
"Estimating and Bidding a Job" is 5–7 questions on the Business exam — the largest business subject after payroll/sales tax. The questions are about method (what kind of estimate, in what order), arithmetic (labor units, burden, markup and margin, unit prices, waste) and the bid package (what a responsive bid contains, bid guarantees, site investigation, documents that must be in the contract).
1. Three kinds of estimates (FHWA / AASHTO)
| Type | Built from | When | Accuracy |
|---|---|---|---|
| Conceptual / parametric (square-foot, per-unit) | A parameter × a historical rate | Planning and early scoping, before plans exist | Budget only — never a firm bid |
| Historical bid-based | Plan quantities × historical unit prices, adjusted for location, size, quantity and market | Budgeting, bid review, unit-price work | Adequate if the history is competitive and recent |
| Cost-based (detailed) | Actual performance of the work: current labor, equipment and material prices, the sequence of operations, production rates, plus a reasonable overhead and profit | The firm bid | Most accurate, most work |
- A firm bid is a committed price offer the contractor is prepared to sign; a budget estimate is not. Most jobs combine methods — cost-based for the few items that make up most of the money.
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