The Hidden Costs of Contracting Projects
When it comes to electrical contracting and energy consulting projects, the final quote you receive from a contractor may seem higher than you expected if you are only accounting for material and labour costs. There are many hidden costs that go into a project that may not be immediately obvious. In this post, we'll break down some of the key overhead costs that are included in a quote for an electrical contracting and/or energy consulting project.
Before any work can begin on a project, a significant amount of time and resources are spent on project planning. This includes site visits, creating detailed project plans, and coordinating with other trades. The effectiveness of the contractor will be evident by communicating their expertise, setting objectives, and demonstrating responsive customer feedback to ensure a successful project that is done right the first time.
Scoping and Accounting
Creating detailed cost estimates, managing change orders, and tracking project expenses are all part of the scoping and accounting process. This process can be time-consuming and requires specialized skills, which is reflected in the overall quote for a project.
Experience and Competency
When it comes to electrical work and energy assessments, experience and competency are essential. Hiring experienced professionals ensures that the work is done safely and to the highest standards of quality and reliability. This expertise may command higher rates, but ensures relevant products and methods are reviewed with the client upfront and the best solution is implemented for the given application in a timely manner.
Licenses, Permits, and Insurance
In order to legally perform electrical work and energy assessments, contractors must have the appropriate licenses, permits, and insurance. The insurance maintained by our team includes commercial general liability insurance & professional insurance for errors and omissions. We have a certificate of authorization by Professional Engineers Ontario for Engineering Services, and use a licensed Master Electrician for each job. Safety is our top priority and we invest in upholding the appropriate training and certifications.
Note: In Ontario, we require an Electrical Safety Authority (ESA) Work Permit- for work that involves the installation, alteration, or maintenance of electrical equipment or systems. This work must be carried out by a Licensed Electrical Contractor and must be overseen by a Designated Master Electrician. Depending on the scope of the work, an ESA inspection may be required for different stages of the project. This is in addition to any Building Permit requirements per the Ontario Building Code. Ref: https://esasafe.com/compliance/what-you-need-to-know/
Also in Ontario, offering services of professional engineering require an engineering company with a certificate of authorization. This includes work of planning, designing, composing, evaluating, advising, reporting, directing or supervising that requires the application of engineering principles and concerns the safeguarding of life, health, property, economic interests, the public welfare or the environment, or the managing of any such acts.
Procurement Time & Warranty
Procuring materials and equipment can take a significant amount of time. The costs associated with this process include time and effort for researching, ordering and delivery of materials. When working with experienced professionals, this draws upon an extensive network of manufacturers, distributors, and supply chain connections to ensure the right quality products at competitive pricing. We stand by our products and installation and offer a 1-2 year warranty on all our work.
Tools and Equipment
In the electrical contracting and energy consulting industry, we use specialized tools and equipment that are specific to the work we are performing. This includes hand tools, power tools, measurement tools, testing instruments, and specialized software. Various software programs allow us to accurately plan out electrical and mechanical systems, and ensure that all components are properly placed and sized to meet the performance requirements.
Travel includes transportation and accommodation if required. Our team maintains operational vehicles to move around quickly and effectively. If the project requires larger distances to be travelled, fuel costs may be slightly higher.
When you work with Energable, you can appreciate the value of hiring professional electrical & energy contractors, with your project reflecting the highest standards of quality to achieve the comfort and reliability you deserve. Energable remains lean and invests strategically to focus on the specific needs of each project and avoid unnecessary duplication. Therefore, Energable can keep costs below 1.5x the direct labor costs, whereas larger firms can range in the 2-3x.
Contact us today to discuss your project and receive a quote.