Electrical installation cost estimation
In this article, you will find all the essential information used by companies when estimating the cost of electrical installations.
Electrical installation cost estimation for industrial automation projects
The cost estimation of electrical works in industrial automation projects is tailored to each individual assignment, as every project comes with its own unique requirements. The final cost is influenced by many factors, such as the installation location, installation method, and the specific nature of the facility where the work is carried out. In this article, we present what we, as contractors, pay attention to when preparing an estimate.
Key element of the estimate – the cable
The cost estimation process begins with an analysis of labor intensity, which includes determining the number and type of installation components. A key element of the estimate is the cable, which plays a fundamental role in the installation process. Its quantity and specifications are most accurately defined by the electrical documentation. Based on the documentation, it is possible to precisely determine the type and number of cables required for the installation.
In the absence of documentation at the offer request stage, detailed information about the type and model of devices is necessary. However, such an estimate will not be fully accurate, as new cables—such as communication or control lines—are often added during the installation phase and may not be included in the initial schematics. Another important factor affecting installation costs is the type of cable trays in which the cables will be laid. Laying cables in perforated or solid trays is faster, as it eliminates the need for additional fastening.
Calculation of other installation components
The selection of appropriate cable trays and their connection methods is a key element of any electrical or industrial installation. In addition to the obvious differences in material costs, organizational and time-related aspects also play a significant role, directly impacting the total project budget.
Perforated and solid trays are most commonly connected by screwing, which is a simple and widely used method. A critical aspect of installing such trays is handling bends – is it better to make them on-site or use prefabricated elements?
Experience shows that purchasing ready-made bends is far more cost-effective. Making a bend on-site takes between 20 and 30 minutes and results in considerable material waste. This can lead to additional orders at a later stage of the project, causing delays and increasing costs.
To estimate the number of required bends, the following rules of thumb can be applied:
1 horizontal bend for every 2 meters of tray
1 vertical bend for every 3 meters of tray
Although these calculations are approximate, in practice they often prove effective.
When it comes to wire mesh trays, the situation is slightly different. Ready-made bends are rarely used, and the connection method depends on the tray material:
Galvanized trays: connections are typically made by screwing.
Acid-resistant stainless steel trays: connections can be made either by screwing or welding. In installations where hygiene is critical – such as in food processing plants – welding is a much more effective solution. Welded joints eliminate gaps where dirt could accumulate, making them easier to clean and maintain.
Additional project execution costs
In every project where field team involvement is essential, special attention must be paid to costs related to transportation and accommodation. These are factors that can significantly impact the final project budget, which is why a detailed analysis is crucial during the planning stage.
Transporting the team to the project site involves more than just fuel or toll fees. A comprehensive approach requires considering the following aspects:
Compensation for travel time – Employees spending time in transit must be fairly compensated, and this should be included in the cost estimate.
Mileage reimbursement – When using private or company vehicles, operational costs such as fuel, tire wear, servicing, and insurance must be accounted for.
Road tolls and additional fees – These may include highway tolls, tunnel passes, ferry crossings, or parking charges. It’s also important to anticipate potential costs from detours or unforeseen obstacles.
Alternative transport options – Always consider other options like air or train travel. Though they may appear more expensive upfront, they can be more time-efficient and reduce long-term vehicle operation costs.
Accommodation is another key budget component that requires careful planning. Estimating these costs can be especially challenging when planning far in advance.
Price increases during tourist seasons – Accommodation costs, especially in popular areas, can rise sharply during peak periods such as summer or holidays. It’s important to identify these periods early on.
Flexible booking options – Choosing accommodation with free modification or cancellation options allows the plan to adapt to unexpected changes.
Analytical tools – Using platforms like Booking.com or AirBnB to track pricing trends and compare offers can help identify the best deals.
Legal regulations in the country where the project is executed are also a vital part of planning for transport and accommodation. In the Benelux countries, for example Belgium, a Limosa declaration is required for posted workers or self-employed individuals. Failing to comply may result in legal penalties. Before starting a project, it’s essential to check which additional documents are required in the target country.
To optimize transportation and accommodation costs, it’s advisable to:
Create a detailed route plan – Including mileage, tolls, and possible alternatives.
Analyze seasonal trends – Choosing off-peak dates can significantly reduce accommodation costs.
Check local legal requirements – Such as Limosa declarations, entry permits, or other formalities.
Compare transport options – Choose the most efficient solution in terms of both cost and time.