MEP Engineer is a single-level professional classification responsible for planning and design in the areas of mechanical, electrical, and plumbing (MEP) systems including developing polices, standards, inspection procedures, and evaluation tools for MEP matters involving judicial branch facilities.
The MEP Estimator supports the bidding process by development and preparation of MEP System cost estimates for construction projects and services as assigned. … Estimates project costs as it relates to the MEP Systems.
Key Components of a Cost Estimate
A cost estimate is a summation of all the costs involved in successfully finishing a project, from inception to completion (project duration). These project costs can be categorized in a number of ways and levels of detail, but the simplest classification divides costs into two main categories: direct costs and indirect costs.
- Direct costs are broadly classified as those directly associated with a single area (such as a department or a project). In project management, direct costs are expenses billed exclusively to a specific project. They can include project team wages, the costs of resources to produce physical products, fuel for equipment, and money spent to address any project-specific risks.
- Indirect costs, on the other hand, cannot be associated with a specific cost center and are instead incurred by a number of projects simultaneously, sometimes in varying amounts. In project management, quality control, security costs, and utilities are usually classified as indirect costs since they are shared across a number of projects and are not directly billable to any one project.
6 Types of Cost Estimates
- Factor estimating.
- Parametric estimating.
- Equipment factored estimating.
- Lang method.
- Hand method.
- Detailed estimating.
Why Accurate Estimates Are Important
Business agreements are often contractually binding, which is why the initial stages of making them are so vital. From the first interaction, construction estimates can have a huge impact on both the business and the customer.
Accurate estimates in construction are important for the following reasons:
- Good estimates can save everyone money: With an accurate picture of the construction project in mind, a construction business knows exactly what to spend to complete a job. This helps prevent unnecessary surplus and overbuying, which can also save the client thousands of dollars (or more) in the long run.
- Accurate estimating practices win more work: Whether it’s helpful or not, future clients and customers will exchange feedback about their experiences. This means that if you provide a realistic estimate that a client is happy with, they might be more willing to refer you for additional work in the future.
- Honest estimates reflect company values: When you strive for accurate estimating, you’re also aiming for integrity. You might not be able to anticipate every hiccup or unexpected expense during a project, but a commitment to transparency is one of the most valuable things you can offer.
How do you calculate a bid?
Once you have determined that you want to submit a bid, you must prepare your estimate. An estimate is the sum of the costs to complete the project, plus your added overhead and profit margin. Before you start putting numbers down on paper, you should understand all the factors that impact the cost of the job.
What is a bid vs estimate?
Estimates are an approximation and give clients an idea of what to expect. Quotes are more concrete and specify a fixed dollar value for a specific time frame. Bids offer more detail than estimates and quotes, and they’re common in the construction industry.
What comes after an estimate?
Quotes are expected to be sent after an estimate is approved. They are similar to an estimate except quotes are expected to be more detailed and precise and can be accepted or signed by the client to begin the project, often as an addendum to a contract.
Our deliverables are tailored to the specific needs of our clients but generally contain the following:
- Digital takeoff sheets
- Material quantities & pricing
- Labor costs & labor hours
- Marked up drawing plans
- Takeoff summary containing, labor hours, total material and labor costs, rentals, equipment, taxes, overheads, profit percentage, etc.
- Complete bid review with inclusion & exclusion sheet