Top 5 Challenges that MEP Estimators Face Today

Construction estimating has always been both an art and a science. Experience and intuition also play a significant role in combining the input of the customers, architects, and engineers into a valid, accurate project estimate and bid. Moving forward into material takeoff, however, adds another layer. The technology available to help with estimating projects continues to evolve, adding a new learning curve to master. With an average of 4-5 bids being created for each one that your company wins, the sheer volume of work keeps increasing as well.

Despite these challenges, customers expect speed, accuracy, transparency, and a professionally-presented bid - and so do you. It's safe to say that mechanical, electrical, and plumbing (MEP estimators face a host of challenges today, regardless of experience level. Let's discuss just five of these specific challenges.

1. Starting with too little information

Whether you've been building estimates for decades or days, it's always daunting to try and pull together and estimate or bid based on too little information. For example, a conceptual estimate may be requested based on very loose project scope and perhaps an architect's initial drawings. Steve Watt, an expert on construction workflow efficiency at Trimble, had this to say about conceptual estimates:

"The prospect of winning a bid is appealing, but the reality of developing a budgetary estimate is far less attractive. While conceptual estimates are extremely valuable from an owner's perspective, they can fail to deliver a return on investment for contractors. Understandably, you may be inclined to decline the offer to participate."

But doing so doesn't come without a cost. Should you opt out at this early stage, you likely won't be invited back later. And you may hurt your reputation long term, too. It can feel like a no-win situation.

The same principles apply anytime you're asked to submit a valid estimate based on too little information.

2. Juggling different requirements

The desired end result is the same in each case - an accurate, estimate of time, materials, and labor. However, different customers and contractors will often have different expectations for takeoff and what they expect out of a bid or estimate. If stakeholders within the same project have conflicting expectations, you may even find yourself essentially creating two different estimates for the same project. This isn't just time - and labor-intensive, it's stressful and inefficient.

3. Volume of bids

As noted earlier, the average MEP contracting company wins around 25% of the bids they submit. To maintain profitability under those conditions, most MEP estimators are producing approximately 100 estimates per year. In some places or disciplines where competition is particularly fierce, that number is much higher.

Considering the work involved in creating an accurate and professionally presented bid or estimate, completing one every two or three days is a tall order. If you're not approaching the estimating process efficiently, keeping up is going to be that much harder.

4. constant change orders

Of course, if you could easily move from estimate to estimate, the volume described above might become easier as you gain experience. But that's not the case. The back-and-forth of repeated change orders and Requests for Information (RFIs) from multiple projects means you're likely spending at least a third of your working hours fielding these requests. They may take seconds or hours, depending on the specifics. Regardless, they're always going to derail your train of thought and slow down the completion of whatever you were working on when they suddenly become the priority.

5. Reinventing the wheel

As you're undoubtedly aware, many of these challenges we've been discussing tend to stack up. The volume of work alone is challenging enough, but when you add in the change orders coming left and right, the added difficulty of multiple requirements, and the lack of vital information to work with, it can feel like the perfect storm.

Thankfully, every project estimate can and should follow the same basic structure, contain the same general categories of information, and be approached similarly. While every project is different, it's not necessary to start each estimate with a blank slate. But if you're still handling estimates and bids on paper, it can feel like that's exactly what you're doing.

Estimators need to be able to produce a high volume of estimates consistently without sacrificing accuracy. They must efficiently move from one bid to the next without reinventing the wheel each time or being derailed by change orders and RFIs. Fortunately, these challenges can be met and overcome by integrating technology into the estimating process.

 We've only covered five challenges that MEP estimators face today - there are plenty more. Here at Charter Estimating, we have the technology, manpower, and expertise to handle your estimating headaches. Don't have the budget to staff an estimating team? We have your back. Call us today and send us your plans. We can be your estimating team at half the cost of your in-house estimators.