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Supplier Preassembly as a Labor-Reduction Choice
Supplier preassembly is the choice to buy materials or equipment in a more job-ready form when the added purchase cost is less than the field labor it saves. Electrical examples include pre-whipped fixtures, pre-lamped fixtures, and palletized deliveries that reduce handling and cleanup. The estimator should include both the higher material cost and the expected labor reduction.
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Electrician Business Operations
Running an Electrical Contracting Business Course
Related
Labor Unit Exclusions That Need Separate Estimate Review
Supplier Preassembly as a Labor-Reduction Choice
Electrical Labor Hours From Unit Productivity
Separate Supervision Labor in Electrical Estimates
When using the NECA Manual of Labor Units to estimate a job, supervision costs are already included in the standard electrical labor units.
Match each practical field activity to its corresponding component within a standard electrical labor unit.
You are preparing a labor estimate for a commercial lighting installation using a standard labor unit manual. Due to the project's size, you determine that a dedicated foreman must be on-site full-time to manage the crew. How should you account for the foreman's time in your project estimate?
You are investigating why a recent conduit installation project exceeded its estimated labor budget. The field team worked efficiently during the actual installation and layout phases, and supervision was accounted for separately. However, you discover that site restrictions forced the electricians to walk 15 minutes each way to retrieve conduit from a remote staging area multiple times a day. By breaking down the components of a standard labor unit, you determine the cost overrun occurred because this logistical issue exceeded the standard allowance for normal ________.
You are a new electrical contractor preparing your first labor estimate for a commercial lighting retrofit using a standard labor unit reference manual. To build a complete and accurate labor cost estimate, evaluate the logical dependencies among the following steps and arrange them in the most effective order from first to last.
Learn After
Which of the following is an example of supplier preassembly that can reduce field labor costs on an electrical job?
When an electrical contractor utilizes supplier preassembly, such as ordering fixtures that are already pre-whipped and pre-lamped, the estimator should expect a reduction in both material costs and field labor costs.
As an estimator or project manager reviewing site inefficiencies, match each labor-wasting field scenario with the specific supplier preassembly or packaging choice that would best resolve it based on the concept of labor-reduction.
An estimator is evaluating supplier preassembly for a commercial lighting project. Standard boxed fixtures cost $8,000 in materials and require 100 hours of field labor to assemble and install. Pre-whipped and palletized fixtures cost $9,500 in materials but reduce the field labor to 60 hours. If the company's burdened labor rate is $50 per hour, choosing the pre-assembled option will result in a net overall cost savings of ____ dollars.
You are an estimator preparing a bid for a large commercial lighting project with 500 fixtures. You want to determine whether ordering pre-assembled options (such as fixtures that arrive with wiring connections and lamps already installed, or fixtures shipped on pallets instead of in individual boxes) will produce a net cost savings compared to buying standard unassembled materials. Arrange the following decision steps in the most logical and effective order for making this evaluation.