In the fast-paced world of today, electrical bidding is the thing which can lead to success or failure in the construction market. Whether you are a solo electrical contractor or a part of large electrical estimating company, one thing that guarantees your success or failure is the estimate. This is a strong stepping stone for any project.
Traditionally, electrical estimators and contractors used to estimate all the work manually, using paper sheets, calculators, pencils and color-coded designs. But as the world has evolved, so has the field of construction. Now, electrical estimating software is revolutionizing the construction market.
But with this shift, the question arises: Is electrical estimating software profitable than manual bidding? Let’s break down each section and explore each of them.
Manual bidding is what it sounds like, doing everything by hand or using basic calculation and organization tools like Excel. It involves calculating material and labor costs, reviewing project designs, calculating the outlets and fixtures, checking prices in manuals, and following the market trends.
This was the way by which electrical bidding was done for years. Even for now, this is the standard way for many small contractors.
Electrical estimating software automates much of the bidding process. With built-in pricing databases, drag-and-drop takeoffs, and preloaded labor units, the software speeds up the process and improves accuracy. Many systems even integrate with accounting software, project management tools, or material suppliers. Popular platforms include Trimble Accubid, PlanSwift, ProEst, Esticom, and ConEst.
Some electrical contractors and construction takeoff estimators use a hybrid approach for the best results, using manual bidding for small projects and calculations and software for huge and complex projects. This method helps integrate the technology into manual work, without the initial learning curve. As they continue using software, they become more adept and confident in using the software, knowing how much time it saves.
Now, let’s talk about the most significant part, which is profit.
Manual bidding takes a lot of time, even several hours, which can be invested in other high-end tasks like project management, preparing more bids, etc. If you spend 7-8 hours preparing a single bid, you are losing much of your valuable time.
Electrical estimating software saves your time by reducing 50% or even more of, which you take in preparing a single estimate. For busy contractors, this is a huge advantage as they can prepare more electrical bids in this time. Even if half of those bids get accepted, it increases their reputation and annual revenue.
Mistakes in manual bidding, like forgetting a circuit breaker, underestimating wire lengths, or miscalculating labor, can destroy your profit margins. Even a small $500 error on materials can wipe out most of the margin on a residential job.
Estimating software minimizes these risks by standardizing formulas, applying updated prices, and alerting you to inconsistencies.
Manual bidding works unless you start growing. As your business expands, manual bidding becomes difficult, along with other tasks to manage. Either you need more estimators or you on the verge of missing the important deadlines.
Electrical bidding software helps minimizing the work by estimating swiftly, and that too on time, without compromising on work quality.
Let’s address the elephant in the room that software can be expensive.
Some systems cost several hundred dollars per month. For a small business, that’s not pocket change. But if that investment helps you win more jobs, avoid mistakes, and save time, the return on investment can be substantial.
In contrast, manual bidding has little to no cost upfront, but you may pay for it in lost time and missed opportunities.
Manual bidding isn't dead. It still works well in a few scenarios:
But even in these cases, as soon as your workload increases or you start bidding more competitively, it’s worth exploring software options.
When comparing manual bidding vs electrical estimating software, software wins the race with more profitability, scalability and better organization. It saves you more money by offering cost-effective solutions, less turnaround time, and better tracking in today’s competitive construction market.
There’s an initial learning curve, but the advantages it offers outweigh the training time. So, if you are looking for ways to lead the construction market, invest in a solid electrical estimating software to stay on a competitive edge.
