Chapter #8 – Estimating Summary Sheet

We will use the MEP Academy Estimating Spreadsheet for all our examples. Hopefully the estimating spreadsheet your company uses is as versatile, if not, maybe you could suggest they purchase the MEP Academy Estimating Spreadsheet. This section of the course will cover the front page of the estimating spreadsheet which summarizes the totals from all the individual pages, plus provides some important metrics.

After completing all other task, it’s time to put any values you already have into your spreadsheet to get an idea of the magnitude of the project. Be sure to identify clearly what contains a plug number. Most of your plug numbers will be for HVAC equipment pricing and subcontractor cost. This should be done at a minimum of two days before the bid is due, never on bid day, which can be very hectic.

The plugged numbers will also help you in determining the bid bond amount if required. Remember plug numbers are based on historical cost data that you have saved for just this purpose.

Be sure to have your bid bond ready to go if required.

If the price has to be sealed in an envelope and delivered within a certain time, be sure to have the envelope addressed as required and ready with all bid documents filled out ahead of time, except for the price. It may even require stationing someone with a cell phone at the bid drop off location on the day, and right before the closure time for responsible bidders. 

Project Set-Up

The MEP Academy Estimating Spreadsheet has several sections, but at the top of the spreadsheet is where you will put the project information.

Begin by typing in the name and address (#1) of the project, delivery method (Design-Build, Design-Assist, Plan & Spec)(#2) and the bid date (#3). Add the proposal number (#4) to keep track of all your proposals and the Tax Rate (#5) for the city or location of the project.

Sheet Metal Summary

The Sheet Metal Summary (#6) brings forward all the totals from the Sheet Metal Material and Labor Summary sheet along with the Sheet Metal Specialties sheet and equipment labor related to the sheet metal trade.

Also shown is the percentage (#7) of the total cost attributed to the Sheet Metal trade. Everything that is shown in a bright blue font is editable, the rest of the cells are protected. You will need to enter the labor rates for the detailer and for supervision (#8). The total material and labor cost for the sheet metal trade is shown in item (#9).

Piping & Plumbing Summary Sheet

For those companies that provide HVAC Piping and Plumbing in their business, there are separate sheets within the MEP Academy Estimating Spreadsheet that can be used. These summaries are similar to the sheet metal summary section as they bring forward the total material and labor from the trade tabs of the spreadsheet.

Air & Water Balance/Start & Test

If the specifications allow and your company has the capacity to perform their own Air & Water Balance (#10) there would be a value shown here on the front of the spreadsheet. Most plan and specification project usually require a 3^rd party company to do the air & water balance to avoid any appearance of a conflict of interest.

Engineering

The engineering summary is for those projects where you are responsible for the engineering and design.  In a plan and spec delivery format this wouldn’t be required, as the drawings and specification have already been completed by a 3^rd party mechanical engineer.

HVAC & Plumbing Equipment & Fixtures

This section provide the total cost for the HVAC & Plumbing equipment  in addition to the plumbing fixtures. Remember that all these values are summaries from other pages in the estimating spreadsheet. Everything is just summarized on the Final Estimate Summary Page.

Subcontractors

Once again this is just a summary of your subcontractors page for all the HVAC and Plumbing Subcontractors for this project.

General Conditions

Most of these cost come from the General Conditions tab of the MEP Academy Estimating Spreadsheet. Item #12 shows what percentage general conditions are to the total cost, while item #13 shows what percentage the particular line item general condition is to the total General Conditions cost (#14). Also there are additional line items for anything the user would like to add. This gives a quick overview of the general conditions cost on the front sheet.

Contingency, Margin and Sales Price

After reviewing all of the above, now it’s time to make the decision on how much contingency to carry and how much profit and overhead to add to your bid.

Contingency

You can think of contingency as cost that could occur, but is not certain to occur. Contingency is to cover unforeseen cost that could reveal itself during construction. Contingency covers the risk associated with the unknown and is greater in underdeveloped drawings. When bidding on plans and specification type projects the contingency factor should be at the lower end of the spectrum, because the 3^rd party engineer is taking the liability of showing and describing what is needed, and if anything is missing or incorrect then a justified change-order should be allowed to set things right.

Theoretically you shouldn’t need a contingency factor on a plan and spec project, but if you’re not fully comfortable with your own accuracy of a complete bid, then adding a small percentage could give you a better night’s sleep and provide for a small margin of error on your part.

With the MEP Academy Estimating Spreadsheet it’s easy to add a contingency factor (#17), just choose what the percentage you would like to add and the spreadsheet will automatically calculate the amount based on the subtotal cost (#16).

In the example above you can see that a 2% contingency (#17) added to the subtotal cost (#16) equals $10,617. From this new total you will choose the margin percentage (#18) that you want. The margin is where you recover your overhead and hopefully make a profit.

Alongside the margin is the markup which shows a much higher percentage (#20) as they are based on different formulas. What’s the difference between margin (#18) and markup (#20)? The margin informs you of what percentage the margin is to the total sales price, while the markup percentage is what you multiply the cost by.

Margin = $135,363 / $676,813 = 20% ($541,450 / (1 – Margin Percentage) = $541,450/0.80

Markup = $541,450 x 25% = $135,363

Project Metrics

The first metric is the cost per square foot (#21) shown above. This is a useful number for price checking or budgeting of future similar projects.

Your estimating spreadsheet should be capable of providing you with the various metrics that allow you to price check engineering and cost parameters.

If you’re using the MEP Academy Estimating Spreadsheet then indicate the building type and the square footage (#22) of the area being conditioned or developed. Square footage will be used to calculate the different parameters for analysis, such as Cost per Square Foot (#21), while the quantity of stories will help you compare this project to similar projects in your historical database or future projects.

Total Supply Air CFM (#23)

By entering the total supply air CFM this will give you two important engineering metrics that can help you when budgeting. For example if you had another similar building that was in its conceptual phase, where there is no design yet, this would allow you to come up with the total CFM and tonnage based on only the square footage of the proposed building.

Cooling Metrics (#24)

This is similar to CFM, except that this will also give you the cost per ton for the project, which again is very useful when doing quick budgets without the design being completed or as a quick check figure.

Heating (#25)

Another engineering metric that maybe useful in the budgeting of the heating system for a similar building that hasn’t been design yet, but for which the owner or General Contractor would like a budget based on the conceptual drawings and the total square feet of a proposed building.

Plumbing Metrics

The MEP Academy Estimating Spreadsheet also has plumbing metrics that measures material, or the material & labor cost per fixture.

Understanding the MEP Estimating Spreadsheet (Free Course)

• Chapter #1 – HVAC Equipment
• Chapter #2 – HVAC Quotations
• Chapter #3 – Subcontractors
• Chapter #4 – Sheet Metal Material and Labor Summary
• Chapter #5 – Labor Rates
• Chapter #6 – Rentals
• Chapter #7 – General Conditions
• Chapter #8 – Finalizing the Estimating Spreadsheet

Purchase the MEP Academy Estimating Spreadsheet here >>> MEP Academy Spreadsheet

Chapter #6 – Rentals (MEP Estimating Spreadsheet)

You will need to determine what you will need in the way of rental equipment based on the needs of the project. You learned about the different types of rental equipment in the “Field Installation” course, but now you need to enter the requirements into the estimating spreadsheet.

Crane Cost

Early on in the bidding process you would have requested a quote from crane rental companies for the equipment that needs to be set outside on the roof or ground.

The cost for a crane is based on many factors including the weight of the equipment, height and reach required to set the equipment. In the MEP Academy Estimating Spreadsheet there is a Crane Cost calculator that shows you what goes into the cost considerations. As item #1 in the above shows there is a labor component that involves the following;

Crane Labor

Travel to Site: Time it takes the crane company to get to jobsite from their rental yard.

Mobilization/Demobilization: The time required to get the crane in position and setup for rigging, and then when finished, the time required to disassemble and get ready from traveling back to their rental yard.

Rigging Time: This is the time you would require to set the equipment.

Travel Out: This is the time for the crane to travel back to the rental yard from the jobsite

Miscellaneous Fees

Permits & Traffic Control: The city in which the crane will be operating requires a permit fee, and if it’s within the area of an airport an additional fee will be required.

Street Closure: This could be a large fee if the crane needs to setup on a major street or highway and the traffic needs to be diverted while the crane is operating.

Long Boom Fee: If a boom is required there could be an additional fee, as this requires additional equipment to extend the reach of the crane.

Counter Weight Fee: This is the cost for the additional weights that will need to be added to the crane so it can counter the weight of the equipment with the required height and reach requirements.

This Crane Cost Table can be used to budget the cost based on similar projects, but the best option is to always get a quote, as you might not foresee what a trained crane rental professional will notice.

Other Rental Equipment

The MEP Academy Estimating Spreadsheet provides a list of the most commonly used rental equipment including a crane. Just fill out the different fields as required for the project conditions as follows;

#1 Enter the quantity required

#2 Enter the description of the rental equipment

#3 Enter the quantity for the rental period unit value

#4 Rental Period in either Days, Weeks, Months or Lump Sum

#5 Rental rate for the rental period

The things to consider when deciding what rentals you need and for how long depends on various factors. One of the first things to look at is the project schedule and where your trade is involved within the schedule. So, the duration of the project will set how long you will need certain general condition items like project office trailers and storage bins.

Next, you need to review the hours required for the various task that need to be performed and if they require special equipment to assist in completing that work task. Like the need for a scissor or boom lift to reach high bay areas to install hangers and ductwork, and long long you will need that equipment to finish your work.

Example:

There is a 25 foot roof deck where you need to install duct hangers and ductwork where you figured to use a three person crew to install 45 feet in a day (15 feet/Man Day). Assuming you have 450 feet to install in this high bay area, your analysis for the duration of the scissor lift for this area would look like this:

450 feet / (45 feet/Man Day) = 10 Days (2 weeks of scissor lift rental)

Get a copy of the MEP Academy Estimating Spreadsheet here >> MEP Academy Spreadsheet

Understanding the MEP Estimating Spreadsheet (Free Course)

• Chapter #1 – HVAC Equipment
• Chapter #2 – HVAC Quotations
• Chapter #3 – Subcontractors
• Chapter #4 – Sheet Metal Material and Labor Summary
• Chapter #5 – Labor Rates
• Chapter #6 – Rentals
• Chapter #7 – General Conditions
• Chapter #8 – Finalizing the Estimating Spreadsheet

Get a copy of the MEP Academy Estimating Spreadsheet here >> MEP Academy Spreadsheet

Chapter #3 – Subcontractors (MEP Estimating Spreadsheet)

There will be certain task you will have to subcontract to companies that specialize in areas that your company doesn’t. For example, most companies don’t have their own insulators or controls division. Let’s look at the different requirements and needs for a subcontractor. On your subcontractor tab of your estimating spreadsheet we find the following.

Company (#1)

List all the companies that you normally do business with for each of the categories of subcontractors, as this will save you time on bid day when you need to contact them.

Contact (#2)

List the salesperson that you normally deal with, or the inside sales desk person, or the bid or quote desk person that is responsible for issuing quotes at bid time. Preferably you will have received the quotation without having to call on bid day to request it, as you have given them notification earlier in the process.

Recording the phone number of the vendor can save valuable time on bid day, by not having to look for phone numbers of key vendors that you require a quotation from.

Quote (#3)

Record each subcontractor’s quoted value under the Quote column.

After analyzing the bids for each category of subcontractors you will record the lowest responsible bidder in the Quote column. This is the price that will get carried forward to your front summary sheet called “Final Bid”

Price Used (#4)

This is the price that actually gets used. If you are using the MEP Academy Estimating Spreadsheet then the lowest quote is automatically chosen from all the quotes listed.

Plug or Quote (#5)

If you don’t want to use the lowest quoted value then you can overwrite this value by entering the price you want into the dark yellow cell entitled “Plug or Quote”

Remarks (#6)

This is a small area for you to document those items that may help you in making a decision as to which subcontractor to pick. Such items may include exclusions or additional scope of work that is identified on their quotation.

HVAC Subcontractors

Make sure to review their scope letters for complete coverage of the project requirements. Did they include all of the systems required to be insulated? Sometimes subcontractors will exclude a system because of an outdated material spec or they will be missing scope because they didn’t do a thorough job of reviewing the plans and specifications. It is your job to make certain that they have included all that is required for this project.

Insulation Subcontractor

The first category of subcontractors is the insulators. Record their bids for the cost to insulate the ductwork and piping if you’re bidding both trades. Note any exclusions or additional scope. For those living in an intensive energy code environment be sure to note any code changes in the thickness required for insulation, as jurisdiction keep increasing the thickness to meet state mandated energy savings.

Air and Water Balance

It is often the requirement of the specifications that the Air and Water Balancing be done by an independent contractor, one that is unaffiliated with your company. This would mean that your company couldn’t do the air or water balance on their own.  If the specification don’t require an independent contractor and your company has the capabilities to do their own, then you would need to add labor for each of the HVAC systems that would require balancing. For company provided balancing, enter the labor values on the HVAC Equipment tab of your estimating spreadsheet.

Building Automation Systems

Building automation is often specified to be done using a particular controls manufacturers product line, and that the installers be trained technicians of that manufacture. This eliminates a lot of contractors from doing their own controls. If the project is located within a larger facility of buildings or campus, then there is most likely one controls manufacture that has been used on this multi-building campus. This would require you to contact the approved BMS (Building Management System) contractor to get their quote for the project.

Open Protocol for the Building Automation Systems allows for any controls contractor to bid on the project using hardware and software that is compatible with the existing open protocol system.

Sometimes the best choice isn’t always the lowest bidder, as shown in the image above you can choose to go with a higher if it makes sense. In this case the bid of $23,500 is the 2^nd lowest bidder, but they are the existing controls contractor in the building which will probably mean less of a management problem because of their existing knowledge of the building and its building automation system. 

The small premium of $955 over the low bidder, is worth having a knowledgeable subcontractor. These are some of the decision you will have to make. Also, it will look better on your proposal to the owner that you are using the existing buildings controls contractor. This is all based on the project not being awarded solely on low price, as not all projects are. Some projects are awarded based on a combination of price and best value.

There will be times when the controls portion of the scope of work will be under the general contractors contract with the requirement for the HVAC contractor to coordinate and cooperate with the controls contractor.

Fire Caulking

Anytime you penetrate a rated wall or floor you might be required to seal that penetration with fire caulking. Fire caulking maintains the fire rating of the rated assembly. Some of the insulators also have a division that does this type of work.

Excavation and Backfill

If the project requires you to dig a trench to bury pipes or sometimes ductwork, there will be a requirement for excavation and backfill. Identify in the specifications who is responsible for this scope of work. Usually the responsible party is the one requiring the trench. You have two choices if the requirement is yours to perform; hire someone or do it yourself. Most HVAC contractors are not setup to do their own excavation and backfill.

If you hire an excavation and backfill subcontractor make sure to review their proposal for completeness and any exclusion, like rock or virgin soil.

Self-Performed Excavation

If you do your own excavating, there is a simple method on the form to calculate the cubic yards required for a straight trench with no sloped sides. If your trench goes deeper than 5 feet you may be required to provide shoring. Check the requirements in the local jurisdiction of the property.

Put the length, width and depth of the trench in unit values of feet. The total cubic yards will be calculated automatically along with the total cost based upon what you enter for the cost per cubic yard to excavate and backfill. It’s always best to allow a professional excavator to figure the required amount of excavation and backfill, as they do this for a living and will protect you from making a mistake.

Get a copy of the MEP Academy Spreadsheet here >> MEP Academy Spreadsheet

Understanding the MEP Estimating Spreadsheet (Free Course)

• Chapter #1 – HVAC Equipment
• Chapter #2 – HVAC Quotations
• Chapter #3 – Subcontractors
• Chapter #4 – Sheet Metal Material and Labor Summary
• Chapter #5 – Labor Rates
• Chapter #6 – Rentals
• Chapter #7 – General Conditions
• Chapter #8 – Finalizing the Estimating Spreadsheet