Any electrical contractor’s opportunity for success begins with the estimating department. Estimating is expensive, poor estimating is costly, but quality estimating is profitable. That’s why electrical contractors must establish standards and procedures for profitable estimating. Every organization must have a strong leader so employees may perform at an optimum level. After all, a contractor should be in business to make money, not to just win bids. The chief estimator must not only be a skilled estimator, but also a leader who can inspire others to perform at the highest level. Consider the following objectives every chief estimator should possess in leading his or her team.
1: Provide leadership
Your success as a chief estimator will be proven by how well your estimating department runs in your absence. Chief estimators must see themselves as the leaders of their company’s estimating team. A leader is not a manager. Have you ever wondered why a team fires the coach when it fails to perform? Because the coach has been unable to bring out the best talent in the players. You must know your estimators’ abilities, and use your leadership skills and influence to bring out the best in them. You must lead them to become the employees you desire. You must also become what you want them to become. If you want organized employees, you must be organized. If you want detailed-oriented employees, you must be detailed-oriented. You must be focused, organized, and visionary. Setting an example is one of the most powerful qualities of leadership.
2: Provide structure
Providing the proper structure will be one of the best things you can do to help your estimating department succeed. You must establish company non-negotiable procedures that everyone must follow. Do not micromanage, but provide the proper structure for estimators to perform per your standards and guidelines. When I say structure, I mean estimating procedures you have established that will ensure estimates are completed to your satisfaction. This can be done while allowing estimators the freedom to use some of their own techniques.
3: Know your market and competition
As your competitors begin to create a backlog of work, you should notice a rise in the bid results. However, when competitors need more projects, you will notice the prices become more aggressive. It is wise to keep your bid results and know how many projects your competition has been awarded. Sometimes you will see the number of bidders decrease as contractors reach their work load limit — so bid accordingly. Adjust markups, etc., based on the current trend.
4: Provide solutions
You will never fix any problems on your team by screaming and placing blame. The only way to fix problems is to provide solutions. You must be the leader who provides solutions. It will serve you well to seek solutions from those you are leading. You will be surprised at what can be accomplished if you don’t get concerned about who receives the credit. If someone on your team has a great idea, don’t take credit for it. Nothing will cause loss of respect quicker than this.
5: Track production
It’s helpful to track the production of your company and each estimator. Not all estimators are created equal. Each will perform at different levels. One cannot estimate ten $100,000 projects in the same time it would take to estimate one $1,000,000 project. By tracking each estimator’s production volume, you will know where the horsepower is within your department. Their record will provide you with the data you need to motivate, correct, and reward their efforts. A simple spreadsheet with the project name, estimators’ names, type of project, and the bid results will prove to be most useful in leading your department.
6: Inspect
There is a basic principle of leadership and that is “you get what you inspect, not what you expect.” Develop the skill of checking on estimators without them thinking you do not have confidence in each individual. Asking simple questions about quote requests, subcontractors contacted, and takeoff completed will help you assist estimators to finish the project in a timely manner.
7: Do not overload
You must know how much each estimator can handle. Giving someone more than what they can estimate within a certain period will prove to be detrimental to your success. If you do so, estimators will begin taking shortcuts and using averages that could give you an inaccurate estimate. When you assign a project to an estimator, you should have an idea of how many hours or days it will take to complete. An estimator needs appropriate time to evaluate his workload when accepting a new project to estimate. It’s unfair to assign an additional project to an employee if he or she doesn’t have adequate time to do a proper estimate.
8: Do not procrastinate
As soon as you have a project that you want to price, you should immediately delegate the project. If you are missing deadlines on a regular basis, you might need to take a look at when you are assigning work. You must assign a project to your estimator as soon as possible.
9: Grow your employees
One of the best skills a chief estimator can possess is helping your staff reach its full potential. Many electrical contractors forget that employees are their greatest asset. Look for employees who have the potential to become quality estimators. Provide training opportunities for those who possess a desire to become a skilled estimator. Investing in the right estimator will pay huge dividends.
10: Reward
It is a proven fact that inadequate financial compensation is not the only reason good employees quit. Research has proven that employees need to feel appreciated and have their skill and abilities recognized. When an employee goes the extra mile, giving additional attention to a project, you should let him or her know that you noticed, especially if you were successful on the project bid. When you notice hard work and dedication, it will serve you well to reward your estimator. It could be a gift certificate to a local restaurant or grocery store. You could give them an additional personal day when the bidding schedule has lightened up. Annual bonuses based on an employee’s production and success rate are a wonderful incentive to keep quality estimators. Treat your employees well, and they will treat you and your company well.
Chief estimators must lead themselves to lead subordinates. However, it’s important to remember that estimators are skilled tradesmen who have reached a professional level in their field. They will perform beyond your expectations when provided with an environment that follows these commandments of leadership.
Kiper is an independent electrical estimating consultant based in Niagara Falls, NY. He can be reached at [email protected].