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Electrical Contractors Bid Big and Profit with Industry Partnering

Posted on April 1, 2020 by Ron Mawhorter

With good planning and preparation, electrical contracting businesses can submit their estimates for big projects they've always desired - or must have to grow. All that's required is adequate lead-time and a knowledge of business partnering on the distribution side of labour and materials. Spend the next five minutes reading the guide and you'll see there are choices, both achievable! You'll also read about a developing industry many electrical contractors are finding to help propel them to the top with minimal fiscal, overhead and legal risk.

Risk and benefit: You must"take it to get it"

The situation is you've developed your business with the correct mixture of office employees and electricians, have adequate cash flow, and revel in an amicable working relationship with your materials provide house. You've got your estimating fundamentals down and your company is cruising along at a fantastic pace prepared to progress to the next step. Your willingness to take risk will place your company on the top or keep you in check.

Opportunity

In a 40-hour workweek, a few office support staff and ten electricians in the area can easily deal with a manpower availability factor of ten electricians. With overtime - in ideal conditions - it is possible to squeeze at fifteen man-days (ten in 60 hrs/week) from your team and still keep jobs on schedule on a short-term period. Now the big knock in the door seems and an chance to grab a significant project presents itself. You discover you have a requirement for an extra ten electricians to deal with the job. Your current crew is stretched to the point of diminishing return. You have a few choices; turn down the work and maintain the status quo or go with one or a mixture of the remaining two under:

In-house: Focus on the people and the Work

OK, start your clock and watch it great! Bid and permit lead time to market, drug screen, check references, evaluation for information, interview, notify your worker's compensation insurance provider, gather social security, federal, state tax withholding information, perform payroll functions and hire to double the size of your employees before the project start date. This will, of course, take some time away from getting your stuff take-off list in sequence, ironing out job details with the GC, attend planning meetings, pull license (s) and other miscellaneous tasks. You opt to bring in an extra part time office worker to aid the other two focused on their fulltime functions. Additionally, consideration for the post-project problems have to be factored in, like tackling unemployment forms, adjusting your employee's compensation insurance, letting employees go, etc.. OK, stop your clockcount the times juggling schedules, whew! Next choice is for those willing to throw away the hassles and pain or efficiently managing human resources.

Outsource: Concentrate on the job - not the people

Have enough time to put a five-minute phone call and wish to concentrate on job preparation, not human resource headaches? Call an electric staffing company and have the proper skill sets constructed for you with all administrative burdens assigned. The cost, you ask? Slightly marked up however, it has the price you would pay for all the insurance, overhead, payroll, time tracking, advertising, and recruiting responsibilities incurred. By taking on the huge job, your return on investment will be surprisingly big by rolling in the famous manpower price. You'll have the freedom to concentrate at work and maintain your existing employee base to oversee job site duties. Would you like more work without additional administrative headaches? Want others to take care of hiring, replacing, and termination of employees and avoid legal pitfalls with insurance and tax difficulties? If yes, then choose a staffing agency which has licensed electricians at the office who know what it is like out there in the actual world. Speaking of danger, multi-trade staffing companies let a"staffing technician" employ your own electricians. Require an Electrical Contractor and Master Electrician - endorsed by human resource specialists - employ the particular electrician or electrical team you need!