How to Use This Book
This 2008 National Plumbing & HVAC
Estimator is a guide to estimating labor and material costs for
plumbing, heating, ventilating and air conditioning systems in
residential, commercial and industrial buildings.
Inside
the back cover of this book you'll find an envelope with a compact
disk. The disk has National Estimator, an easy-to-use
estimating program with all the cost estimates in this book. Insert
the CD in your computer and wait a few seconds. Installation should
begin automatically. (If not, click Start, Settings, Control Panel,
double-click Add/Remove Programs and Install.) Select Show Me from
the installation menu and Julie will show you how to use National
Estimator 32. When Show Me is complete, select Install Program. When
the National Estimator program has been installed, click Help on the
menu bar, click Contents, click Print all Topics, click File and
click Print Topic to print a 40-page instruction manual for National
Estimator.
Costs in This Manual will apply within a few percent on a
wide variety of projects. Using the information given on the pages
that follow will explain how to use these costs and suggest
procedures to follow when compiling estimates. Reading the remainder
of this section will help you produce more reliable estimates for
plumbing and HVAC work.
Manhour
Estimates in This Book will be accurate for some jobs and
inaccurate for others. No manhour estimate fits all jobs because
every construction project is unique. Expect installation times to
vary widely from job to job, from crew to crew, and even for the
same crew from day to day.
There’s no way to eliminate all errors when making manhour
estimates. But you can minimize the risk of a major error by:
- Understanding what’s included in the manhour estimates in this
book, and
- Adjusting the manhour estimates in this book for unusual job
conditions.
The Craft@Hrs Column. Manhour estimates in this book are
listed in the column headed Craft@Hrs. For example, on page
15 you’ll see an estimate for installing a 6 gallon hot water
heater. In the Craft@Hrs column opposite 6 gallon you’ll see:
P1@.500
To the left of the @ symbol you see an abbreviation for the
recommended work crew.
Page 7 (Table 2) shows the wage rates and craft codes used in
this book.
To the right of the @ symbol you see a number. The number is the
estimated manhours (not crew hours) required to install each unit of
material listed. In the case of a 6 gallon hot water heater, P1@.500
means that .500 manhours are required to install 1 hot water heater.
Costs
in the Labor $ Column are based on manhour estimates in the
Craft@Hrs column. Multiply the manhour estimate by the assumed
hourly labor cost to find the installation cost in the Labor $
column. For example, .500 manhours times $28.96 (the average wage
for crew P1) is $14.48.
Monthly price updates on the Web are free and automatic
all during 2008. You'll be prompted when
it's time to collect the next update. A connection to the Web is
required
Manhour Estimates include all productive labor normally
associated with installing the materials described. These estimates
assume normal conditions: experienced craftsmen working on
reasonably well planned and managed new construction with fair to
good productivity. Labor estimates also assume that materials are
standard grade, appropriate tools are on hand, work done by other
crafts is adequate, layout and installation are relatively
uncomplicated, and working conditions don’t slow progress.
All manhour estimates include tasks such as:
- Unloading and storing construction materials, tools and
equipment on site.
- Working no more than two floors above or below ground level.
- Working no more than 10 feet above an uncluttered floor.
- Normal time lost due to work breaks.
- Moving tools and equipment from a storage area or truck not
more than 200 feet from
the work area.
- Returning tools and equipment to the storage area or truck at
the end of the day.
- Planning and discussing the work to be performed.
- Normal handling, measuring, cutting and fitting.
- Regular cleanup of construction debris.
- Infrequent correction or repairs required because of faulty
installation.
If the work you’re estimating won’t be done under these
conditions, you need to apply a correction factor to adjust the
manhour estimates in this book to fit your job.
Applying Correction Factors. Analyze your job carefully to
determine whether a labor correction factor is needed. Failure to
consider job conditions is probably the most common reason for
inaccurate estimates.
Use one or more of the recommended correction factors in Table 1
to adjust for unusual job conditions. To make the adjustment,
multiply the manhour estimate by the appropriate conversion factor.
On some jobs, several correction factors may be needed. A correction
factor less than 1.00 means that favorable working conditions will
reduce the manhours required.
|
Condition |
Correction Factor |
|
Work in large open areas, no partitions |
.85 |
|
Prefabrication under ideal conditions, bench
work |
.90 |
|
Large quantities of repetitive work |
.90 |
|
Very capable tradesmen |
.95 |
|
Work 300' from storage area |
1.03 |
|
Work 400' from storage area |
1.05 |
|
Work 500' from storage area |
1.07 |
|
Work on 3rd through 5th floors |
1.05 |
|
Work on 6th through 9th floors |
1.10 |
|
Work on 10th through 13th floors |
1.15 |
|
Work on 14th through 17th floors |
1.20 |
|
Work on 18th through 21st floors |
1.25 |
|
Work over 21 floors |
1.35 |
|
Work in cramped shafts |
1.30 |
|
Work in commercial kitchens |
1.10 |
|
Work above a sloped floor |
1.25 |
|
Work in attic space |
1.50 |
|
Work in crawl space |
1.20 |
|
Work in a congested equipment room |
1.20 |
|
Work 15' above floor level |
1.10 |
|
Work 20' above floor level |
1.20 |
| Work 25' above floor
level |
1.30 |
| Work 30' above floor
level |
1.40 |
| Work 35' to 40' above
floor level |
1.50 |
Table 1 Recommended Correction Factors
Supervision
Expense to the installing contractor is not included in the
labor cost. The cost of supervision and nonproductive labor varies
widely from job to job. Calculate the cost of supervision and
non-productive labor and add this to the estimate.
Hourly Labor Costs also vary from job to job. This book
assumes an average manhour labor cost of $32.66 for plumbers and
$33.96 for sheet metal workers. If these hourly labor costs are not
accurate for your jobs, adjust the labor costs up or down by an
appropriate percentage. Instructions on the next page explains how
to make these adjustments. If you’re using the National Estimator
disk, it’s easy to set your own wage rates.
Hourly labor costs in this book include the basic wage, fringe
benefits, the employer’s contribution to welfare, pension, vacation
and apprentice funds, and all tax and insurance charges based on
wages. Table 2 at the top of the next page shows how hourly labor
costs in this book were calculated. It’s important that you
understand what’s included in the figures in each of the six columns
in Table 2. Here’s an explanation:
Column 1, the base wage per hour, is the craftsman’s
hourly wage. These figures are representative of what many
contractors are paying plumbers, sheet metal workers and helpers in
2007.
Column 2, taxable fringe benefits, includes vacation pay,
sick leave and other taxable benefits. These fringe benefits average
about 5.15% of the base wage for many plumbing and HVAC contractors.
This benefit is in addition to the base wage.
Column
3, insurance and employer-paid taxes in percent, shows the
insurance and tax rate for the craft workers. The cost of insurance
in this column includes workers’ compensation and contractor’s
casualty and liability coverage. Insurance rates vary widely from
state to state and depend on a contractor’s loss experience. Note
that taxes and insurance increase the hourly labor cost by
approximately 30%. There is no legal way to avoid these costs.
Column 4, insurance and employer taxes in dollars, shows
the hourly cost of taxes and insurance. Insurance and taxes are paid
on the costs in both columns 1 and 2.
Column 5, non-taxable fringe benefits, includes employer
paid non-taxable benefits such as medical coverage and tax-deferred
pension and profit sharing plans. These fringe benefits average
4.55% of the base wage for many plumbing and HVAC contractors. The
employer pays no taxes or insurance on these benefits.
Column 6, the total hourly cost in dollars, is the sum of
columns 1, 2, 4, and 5. The labor costs in Column 6 were used to
compute costs in the Labor $ column of this book.
Table 2 Labor Costs Used in This Book
|
Column
Number |
1 |
2 |
3 |
4 |
5 |
6 |
| Craft |
Base
wage
per hour |
Taxable
fringe
benifits (at
5.15% of
base wage) |
Insurance
and
employer
taxes (%) |
Insurance
and
employer
taxes ($) |
Non-taxable
fringe
benifits (at
4.55% of
base wage) |
Total
hourly cost used in this book |
| Laborer |
17.05 |
0.88 |
29.20% |
5.24 |
0.78 |
23.95 |
| Plumber |
24.84 |
1.28 |
25.70% |
6.71 |
1.13 |
33.96 |
Sheet Metal
Worker |
24.05 |
1.24 |
25.12% |
6.35 |
1.09 |
32.73 |
Operating
Engineer |
24.40 |
1.26 |
35.56% |
9.13 |
1.11 |
35.90 |
Sprinkler
Fitter |
24.40 |
1.26 |
24.48% |
6.28 |
1.11 |
33.05 |
| Electrician |
24.34 |
1.25 |
23.15% |
5.92 |
1.11 |
32.62 |
|
Craft Code |
Crew Composition |
Average Hourly Cost per Manhour |
| ER |
4 building plumbers, 2
building laborers, 1 operating engineer |
31.38 |
| SN |
4 building sheet metal
workers, 2 building laborers, 1 operating engineer |
30.67 |
| P1 |
1 building plumber and 1
building laborer |
28.96 |
| SK |
4 sprinkler fitters, 2
building laborers, 1 operating engineer |
30.85 |
| SL |
1 sprinkler fitter and 1
laborer |
28.50 |
| S2 |
1building sheet metal
worker, 1 building laborer |
28.34 |
| BE |
1electrician |
32.62 |
Adjusting Costs in the Labor $ Column.
The hourly labor costs used in this book may apply within a few
percent on many of your jobs. But wage rates may be much higher or
lower in some areas. If the hourly costs shown in Column 6 of Table
2 are not accurate for your work, adjust labor costs to fit your
jobs.
For example, suppose your hourly labor costs are as follows:
Plumber $16.00
Laborer $13.00
Total hourly crew cost $29.00
Your average cost per manhour would be $14.50 ($29.00 per crew
hour divided by 2 because this is a crew of two).
A labor cost of $14.50 is about 50% of the $28.95 labor cost used
for crew P1. Multiply costs in the Labor $ column by .50 to find
your estimated cost.
For example, notice on page 15 that the labor cost for installing
a 6 gallon hot water heater is $14.50 each. If installed by your
plumbing crew working at an average cost of $14.50 per manhour, your
estimated cost would be 50% of $14.50 or $7.25 per heater.
Adjusting the labor costs in this book will make your estimates
much more accurate. Making adjustments to labor costs is both quick
and easy if you use the National Estimator disk.
Equipment Cost will vary according to need and
application. It typically is $60 per hour for a 10-ton hydraulic
truck-mounted crane.
Material Costs in this manual are intended to reflect what
medium- to low-volume contractors will be paying in 2006 after
applying normal discounts. These costs include charges for delivery
to within 25 to 30 miles of the supplier.
Overhead and Profit for the installing contractor are not
included in the costs in this manual unless specifically identified
in the text. Markup can vary widely with local economic conditions,
competition and the installing contractor’s operating expenses. Add
the markup that’s appropriate for your company, the job and the
competitive environment.
How Accurate Are These Figures? As accurate as possible
considering that the editors don’t know your material suppliers,
haven’t seen the plans or specifications, don’t know what building
code applies or where the job is, had to project material costs at
least six months into the future, and had no record of how much work
the crew that will be assigned to the job can handle.
You wouldn’t bid a job under those conditions. And I don’t claim
that all plumbing and HVAC work is done at these prices.
Estimating Is an Art, not a science. There is no one price
that applies on all jobs. On many jobs the range between high and
low bid will be 10% or more. There’s room for legitimate
disagreement on what the correct costs are, even when complete plans
and specifications are available, the date and site are established,
and labor and material costs are identical for all bidders.
No estimate fits all jobs. Good estimates are custom made for a
particular project and a single contractor through judgment,
analysis and experience. This book is not intended as a substitute
for judgment, analysis and sound estimating practice. It’s an aid in
developing an informed opinion of cost, not an answer book.
Additional Costs to Consider
Here’s a checklist of additional costs to consider before
submitting any bid.
1. Sales taxes
2. Mobilization costs
3. Payment and performance bond costs
4. Permits and fees
5. Storage container rental costs
6. Utility costs
7. Tool costs
8. Callback costs during warranty period
9. Demobilization costs
Exclusions and
Clarifications
Neither the job specifications nor the contract may identify
exactly what work should be included in the plumbing and HVAC bid.
Obviously, you have to identify what work is included in the job.
The most efficient way to define the scope of the work is to
prepare a list of tasks not normally performed by your company and
attach that list to each bid submitted. Here’s a good list of work
that should be excluded from your bid:
Your Bid Should Exclude
- Final cleaning of plumbing fixtures
- Backings for plumbing fixtures
- Toilet room accessories
- Electrical work, including motor starters
- Electrical wiring and conduit over 100 volts
- Temporary utilities
- Painting, priming and surface preparation
- Structural cutting, patching or repairing
- Fire protection and landscape sprinklers
- Equipment supports
- Surveying and layout of control lines
- Removal or stockpiling of excess soil
- Concrete work, including forming and rebar
- Setting of equipment furnished by others
- Equipment, unless shown, and personnel hoisting
- Wall and floor blockouts
- Pitch pockets
- The costs of performance or payment bonds
- Site utilities
- Asbestos removal or disposal
- Contaminated soil removal or disposal
- Major increases in copper material prices
- Fire dampers not shown on the plans
Your Bid Should Include
- Trash sweep-up only. Others haul it away.
- Site utilities from building to property line only.
- Piping to 5 feet outside the building only.
- Plumbing & HVAC permits for your work only.
Beware of Price Changes
There’s no way to be sure what prices will be in three to six
months. All labor, equipment, material and subcontract prices in a
bid should be based on costs anticipated when the project is
expected to be built, not when the estimate is compiled. That
presents a problem. Except for the installation of underground
utilities, most plumbing and HVAC work is done six months to a year
after the bid is submitted. When possible, get price protection in
writing from your suppliers and subcontractors. If your suppliers
and subs won’t guarantee prices, include an escalation allowance in
your bid to cover anticipated price increases.
Material Pricing Conditions
All equipment and material prices quoted by your vendors will be
conditional. They usually don’t include sales tax and are subject to
specific payment and shipping terms. Every estimator should
understand the meaning of common shipping terms. They define who
pays the freight and who has responsibility for processing
freight-damage claims. Here’s a summary of important conditions you
should understand.
F.O.B. Factory (Free On Board at the Factory): Title
passes to the buyer when the goods are delivered by the seller to
the freight carrier. The buyer pays the freight and is responsible
for freight-damage claims.
F.O.B. Factory F.F.A. (Free On Board at the Factory, Full
Freight Allowed): The title passes to the buyer when the goods are
delivered by the seller to the freight carrier. The seller pays the
freight charges, but the buyer is responsible for freight-damage
claims.
F.O.B. (city of destination) (Free On Board to your city):
The title passes to the buyer when the goods are delivered by the
seller to the freight terminal in the city, or nearest city, of
destination. The seller pays the freight and is responsible for
freight-damage claims to the terminal. The buyer pays the freight
charge and is responsible for freight-damage claims from the
terminal to the final destination.
F.O.B. Job Site (Free On Board at job site, or
contractor’s shop): The title passes to the buyer when the goods are
delivered to the job site (or shop). The seller pays the freight and
is responsible for freight-damage claims.
F.A.S. Port [of a specific city] (Free Alongside Ship at
the nearest port): The title passes to the buyer when goods are
delivered to the ship dock or port terminal. The seller pays the
freight and is responsible for freight-damage claims to the ship
dock or port terminal only. The buyer pays the freight and is
responsible for freight-damage claims from the ship dock or port
terminal to the designated delivery point.
Obviously, it’s to your advantage to instruct all vendors to
quote costs F.O.B. the job site or your shop.
Reducing Costs
Most construction specifications allow the use of alternative
equipment and materials. It’s the estimator’s responsibility to
select the most cost-effective products. Research and compare your
costs before making any decisions. Avoid selecting any material or
equipment simply because that’s what you’ve always done.
Don’t recommend plastic products such as ABS, PVC, or
polypropylene pipe or corrugated flexible ducts until you’ve checked
local code requirements. Most building codes prohibit use of these
materials inside public buildings such as schools, care centers and
hospitals.
It’s wise to select 100% factory-packaged equipment. Beware of
equipment labeled “Some assembly required.” Field labor costs for
mounting loose coils, motors and similar equipment are very high.
Value Engineering
Let’s suppose you’ve submitted a combined plumbing and HVAC bid
for $233,000. Your cutthroat competitor put in a bid at $4,000 less,
$229,000. Obviously there’s no way you’re going to get the job.
Right?
Not so fast! Maybe value engineering can help you win that
contract — while fattening your profit margin.
Suppose the proposal you submitted had two parts. Part I is the
bid for $233,000, based entirely on job plans and specs, just the
way they were written. But appended to your proposal is Part II, a
list of suggestions for saving money without sacrificing any of the
capacity or quality designed into the system. Here’s an example of
what might be in Part II:
- Deduct for providing pipe hanger spacings per UPC in lieu of
specified spacings:
$1,750.00
- Deduct for reducing heating hot water pipe sizes by using 40
degrees F Delta T in lieu of specified 20 degrees F Delta T:
$4,600.00
- Deduct for providing pressure/temperature taps at air handling
units, pumps and chillers in lieu of specified thermometers and
pressure gauges:
$875.00
- Deduct for eliminating water treatment in closed piping
systems:
$1,800.00
- Deduct for piping chilled and heating hot water pumps in
parallel in lieu of providing 100% stand-by pumps:
$2,900.00
Total deductions:
$11,925.00
Adopting these suggestions would make you low bidder by nearly
$8,000. A saving like that will be tempting to most owners,
especially if the owner understands that your suggestions result in
a system that is every bit as good and maybe better than the system
as originally designed.
You’re not offering to undercut the competition. Far from it.
You’re using knowledge and experience to create better value for the
owner. That’s called value engineering and it’s likely to win the
respect of nearly all cost-conscious owners.
Notice that reducing costs is only part of what value engineering
is all about. You don’t cut costs at the expense of system quality,
integrity, capacity or performance.
Don’t waste your time, and your client’s, by offering to
substitute cheaper or lower-quality fixtures or equipment. Any
cutthroat contractor with a price list can do that. Recommend the
use of inferior materials and you’ll be associated with the inferior
goods you promote. Some owners consider even the suggestion to be
insulting.
The recommendations you make (like most of those in the example)
will require design changes. You can expect to be examined (or even
challenged) on these points. Be ready to explain and defend each of
your suggestions. Convince the client (or the design engineer) that
your ideas are based on sound engineering principles and you’re well
on the way to winning the owner’s confidence and the contract.
Now, let’s go back to the list and see how we might justify the
five value engineering recommendations.
- Pipe Hanger Spacing. The pipe hanger spacings
recommended in the Uniform Plumbing Code (UPC) are calculated by
experienced, professional structural engineers. The safety factors
used in these calculations are very conservative. They’ve been
widely used for many years and have proved to be more than
adequate. There’s no need for more hangers than the UPC requires.
- Changing HHW Delta T. In hydronic heating systems, heat
measured in Btus is pumped to terminal units. The proposed change
of the Delta T, from 20 degrees F to 40 degrees F, has no effect
whatsoever on how many Btus the system delivers. You’re not
changing anything but the volume of water being pumped. At lower
volume levels, the size of the pump, the pipe and the pipe
insulation can all be reduced. Not one of these changes will
affect the system’s ability to transmit heat. Furthermore,
operating costs will also drop, since less pump horsepower will be
needed to run the smaller pump.
- Thermometers/Pressure Gauges. Thermometers and pressure
gauges installed on or near vibrating machinery have a very short
life expectancy. Gauges quickly lose accuracy under harsh
conditions. Readings will become less and less reliable. That’s
potentially dangerous. You can avoid this problem by using
insertion-type pressure/temperature taps instead. Store these
sensitive gauges in a desk drawer or a tool crib when not in use.
Safely stored, they’re protected from damage. They’ll give
accurate readings longer and won’t need to be replaced as often.
And they’re simple to use. Just insert a gauge in one of the
conveniently located taps. Make the reading, then remove the gauge
and put it away.
- Water Treatment. ITT Bell & Gossett has done studies on
corrosion in closed hydronic systems that have a make-up water
rate of no more than 5% per year. These studies show that
corrosion virtually stops when entrained air is either removed or
depleted. No water treatment is needed in this closed system.
- 100% Standby Pumps. Two pumps piped and operated in
parallel are more economical. Even if one pump fails, the other
pump can maintain delivery at 75 to 80% of the designed flow rate.
That’s usually adequate for emergency operation. These
cost-saving ideas are small, but could tip the balance in your
favor. I hope they demonstrate the potential that value engineering
has when bidding jobs. Any time you’re compiling an estimate, keep
an eye out for ways to save money or reduce the owner’s cost. Jot a
note to yourself about each potential saving you identify. Before
submitting the bid, make a list of your alternate suggestions. Maybe
best of all, markup on your value engineering suggestions can be
higher than your normal markup. If value engineering can cut costs
by $10,000, maybe as much as $4,000 of that should end up in your
pocket!
The Estimating Procedure
Every plumbing and HVAC estimator works under deadline pressure.
You’ll seldom have the luxury of spending as much time as you would
like on an estimate. Estimators who aren’t organized waste valuable
time and tend to make careless errors. Try to be well-organized and
consistent in your approach to estimating. For most projects, I
recommend that you follow the procedures listed below and in the
order listed:
- Get a second set of project drawings and specifications for
use by your suppliers and subcontractors. Remember that your subs
and suppliers need access to the plans and specs and time to
prepare their quotes.
- Study the plans and specs carefully. Highlight important
items. Make a list of specific tasks that require labor unit
correction factors. The estimate is never complete until you’re
totally familiar with the project and the applicable construction
codes.
- Get the general contractor or owner to identify the proposed
construction schedule and subcontractor lay-down (storage) area.
Work schedule and site conditions always affect your costs.
- Contact all potential suppliers and subcontractors as early as
possible. Set a time when each can come to your office to make
their take-offs from the spare set of contract documents.
When this important preliminary work is done, or in progress,
it’s time to begin your detailed take-off.
Guidelines for Good Estimating
You can compile estimates on a legal pad, a printed estimating
form or on a computer. Regardless of the method, these guidelines
will apply:
List Each Cost Separately on your take-off sheet. Don’t
combine system estimates, even if the materials are the same type. A
combined system estimate may have to be completely redone if
materials for one system are changed at a later date. Use the
Estimate Detail Sheet on the facing page if you don’t already have a
good material take-off form.
Use Engineer’s Identification Numbers when listing
equipment. The word pump without any other description is ambiguous
when there are several pumps included in the project.
Don’t Forget Labor Adjustment factors if your labor costs
are significantly higher or lower than the costs used in this book.
See instructions on page 7 for adjusting labor costs.
Use Colored Pencils or highlighters to mark the items
you’ve taken off and listed. Use a different color for each piping
or ducting system.
Log Telephone Quotes and other important phone
conversations on a telephone quote form. See the sample on page 14.
Project Estimated Costs for labor, material and equipment
to the time when the work is expected to be done, not when the job
is being estimated.
The only good estimate is a complete estimate. You’ve probably
heard this saying, “He who makes the most mistakes is likely to be
low bidder, and live to regret it.”
Preparing the Proposal
It’s both common courtesy and good business practice to deliver
an unpriced copy of your bid or proposal letter to the general
contractor three or four days before the bid deadline date. This
gives the contractor time to study your proposal and obtain
alternate pricing for items you may have excluded. To avoid
misunderstandings, make sure your proposals include, as a minimum,
the following elements:
- The complete name and address of the proposed project
- Specification title and issue date.
- A complete listing of drawings and their issue or revision
date
- A complete list of addenda and their dates of issue
- A list of specification section numbers covered by your
proposal
- A list of exclusions, clarifications and assumptions.
Your final bid can be phoned in or sent by fax, but it should
reach the general contractor or owner no more than five or ten
minutes before the bid dead-line. Prices submitted too early may
have to be revised because of last-minute price changes by
subcontractors or suppliers.
Softcover - 417 Pages
8-1/2 x 11 in.
>>
Introduction / Contents