Introduction
Profits in the plumbing contracting business are narrow. You may have the best crew in the world and the best tools available but one wrong estimate, one bid that is too low or one calculation on a large job, can eat up an entire month of profit. It is the sleepless worry that plagues a lot of contractors. It is always like walking on a tightrope between how much to bid so that you get the job and how much to bid so that you can actually make a living on it.
The problem is getting worse. The current projects come with a constantly increasing complexity of systems, such as PEX-A, copper and PVC, which have different material and labor profile. The cost of materials is as unpredictable as ever, and the demands of clients to be fast and accurate have never been higher. In such a challenging atmosphere, the art and science of plumbing estimation can no longer be a skill possessed by those who wish to excel in that profession; it is now the absolute key driver of a viable, profitable, and successful plumbing company.
This is not another piece of literature on how to count fixtures. This is a masterclass aimed at making you change your practice in bidding. We are going to go into the nitty-gritty of material takeoffs, subtleties of labor estimation, the tactical aspects of residential and highly competitive commercial jobs. At the end, you will have a new platform of preparing the bids which are not only successful in securing jobs but also in growing your business.
The Core Principles of Profitable Plumbing Estimation
The profitable estimate is not a final number but a story of the whole project. It is constructed on three pillars, namely, Materials, Labor and O&P (Overhead & Profit). A lot of contractors are solid on materials, have an educated shot at labor and an estimate of profit. A business does not run on hope. A master estimator does not take anything to chance.
Beyond Counting Fixtures: Understanding the Full Scope
The initial one is to get out of a mere per-fixture price. That may be okay when you only need to make a quick service call, but it is a formula to failure on any major project. A plumbing project of any type, new construction, remodel or a significant system change, involves a different way of thinking.
- New Construction: This is usually the easiest. You are operating off a clear set of blueprints. The key problem is a thorough and careful takeoff not to leave any system or component behind.
- Remodels & Renovations: That is where the real skill comes in. A remodel estimate is not only the newly done work but also what needs to be taken out. It needs an intimate knowledge of how to connect into what is already in place, which is usually full of unknown unknowns, which are invariably costly. For a deeper dive into this, understanding the core differences between these jobs is crucial, as detailed in our guide on New Build vs. Renovation Projects
- Service Calls & Replacements: These are normally smaller ones, which need good knowledge of flat-rate pricing or a clearly stated time-and-materials framework to be profitable at scale.
Material Takeoffs: A Granular Approach
Plumbing takeoff (or a material takeoff) is the comprehensive procedure of finding and measuring all the individual pieces needed to complete the project. An item that you are giving away at no cost is a missed line item. The checklist of a master estimator is all inclusive:
- Piping: Linear footage of every type and size (e.g., ¾” PEX-A, 3″ Schedule 40 PVC, 1″ Type L Copper).
- Fittings & Valves: All elbows, Tees, coupling, reducer, ball valves, gate valves and check valves. This is where costs are plain in sight.
- Hangers & Supports: The hanger and the supports that are so easily overlooked to maintain the piping to code.
- Fixtures: Sinks, sink faucets, showers, shower valves, toilets, water heaters and sump pumps.
- Consumables & Specialty Items: Primer, glue, solder, flux, sealant, thread tape and any specialty tools which must be rented or bought to do the job.
To overcome price fluctuation, establish a rapport with your suppliers and quotes of major parts which are valid up to your bid. On larger projects, it is always wise to include an item on material waste (usually between 5-10 percent or so, depending on complexity).
The Science of Labor Calculation
This is the hardest aspect of any plumbing estimate. The quickest method to lose money is to miscalculate labor. Calculation of labor has two main methods:
- Unit Pricing: In this type of pricing a unit price is charged to do a certain work (e.g., Toilet installation is charged at X dollars and copper pipe charged at Y dollars / linear foot). This will have to have a lot of historical data of your company to be precise.
- Time-Based Estimation: This type of estimation is estimating the total hours the project will require and multiplying it with your burdened labor rate (including wages, taxes, insurance and benefits).
Whichever the way, you need to consider variables that influence the labor hours:
- Site Accessibility: Is it an open new build or a small crawl space?
- Complexity of the Project: A residential rough-in is quicker than a multi-story building with a complicated venting.
- Crew Experience: The work of a master plumber is quicker and more efficient compared to that of apprentice. Be practical on the number of crew members attached to the project.
- Local Code Requirements: Certain jurisdictions carry more strict testing and inspection requirements that can be very time consuming.
Advanced Plumbing Estimation: Commercial vs. Residential Projects
The fundamental principles are similar, but the scope, danger and the method of commercial and residential plumbing estimating are in different worlds. A contractor good at one will be challenged with the other unless he or she alters his or her ways.
Estimating for Residential Plumbing
Housing is more likely to be more personal. You are working straight with an emotionally and financially vested homeowner. Your estimate must create the trust by being clear and professional. The projects here are the common projects such as the whole-home repiping, addition of bathrooms, kitchen remodeling, and water heater replacements. The estimate is supposed to be comprehensive and comprehensible by a layman. Break it out by room or phase (e.g. Master Bathroom Rough-in, Kitchen Fixture Set-out). Explain what will be included (and just as importantly what will not be included) (e.g. Patching and painting of the drywall not included). Transparency is welcome by homeowners and it helps to guard against scope creep.
The High Stakes of Commercial Plumbing Estimation
Commercial plumbing is another ball game. There is more at risk, the schedules are more complicated and you are usually one of many trades that are coordinated by a General Contractor (GC). Here the complications are multiplied:
- Blueprints Reading: You have to be able to read complicated mechanical drawings and specifications which may be dozens or even hundreds of pages.
- Special Systems: Commercial systems also commonly include systems not often used in residential work, e.g. commercial grade gas lines, complicated roof drainage systems, grease interceptors, and fire sprinkler systems.
- Strict Codes and Inspections: The commercial codes are much more stringent, and the inspection is more demanding and more frequent. All this contributes to the labor hours.
- Bid Leveling: Once you have submitted your bid to the GC, they will then go through what is called a bid leveling process which is basically the GC line-by-line comparing your scope with that of your competition. An estimate that is weak will be disqualified instantly. You have to be accurate even to be taken into consideration.
Commercial bidding can be won only when a person has a comprehensive expertise on the technical aspects and a strict adherence to details. Any unclear part in plans should be clarified by doing a Request of Information (RFI) and then proceeding with your bid.
Fusion Assist Spotlight: Your In-House Estimating Department, On-Demand
As you can observe, being a Profitable Estimator is a 24-hour job. However, the price of employing an experienced, full-time estimator at the senior level is more than six figures annually in wages and benefits. This is an expense that is impossible to most growing plumbing contractors. That is precisely the issue that Fusion Assist was designed to address. We are your strategic partner, with the strength of a full time estimating department, at your behest.
How Our Process Works
We have simplified it so that it is quick, easy and efficient and you can concentrate on doing business and managing your crews.
- Upload Your Plans: This may include a full set of commercial blueprints or it may include a sketch by a home owner of a bathroom remodel. Add any appropriate specifications or notes.
- Our Certified Estimators Perform the Takeoff: Our crew immediately goes to work. They do a detailed plumbing takeoff with a state of the art estimating program such as Planswift, and count each pipe, fitting and fixture. Zip-code-based pricing of materials and labor We price materials and labor based on the zip code to make your bid as fine-tuned as possible to the local market.
- Receive a Detailed, Branded Bid Package: In as little as 24-48 hours, you receive a comprehensive estimate in an easy-to-use Excel format. It’s broken down by line item, and we can brand it with your company logo, ready to be presented to your client.
The Tangible Benefits
Working with Fusion Assist is not an outlay, it is an investment in profitability and growth. Most of our clients have experienced a 35 percent increase in the number of bids that they can place and a 25 percent improvement in the number of projects they win. The time you gain doing paperwork is the time you can utilize to get new projects, better customer relationships or train your staff. Bidding on more projects with better accuracy is the clearest path to scaling your business.
Case Study: Commercial Plumbing Bid for a Retail Center
Client
A mid-sized mechanical contractor in Texas.
Challenge
The contractor was asked to tender the entire plumbing system of a new retail shopping center. The project was the perfect match to their capacity but the timeframe was one week, and their in-house estimator was on the other projects and already oversaturated. The only option before them was either to do an unconvincing “guesstimate” at high risk or to forego a huge opportunity.
Fusion Assist Solution
The client made a third option. They sent us the 50 pages of complicated mechanical drawings to our portal. Plumbing takeoff was started at once by our team. We determined all underground plumbing needs, the rough-in of 12 individual retail shops and specifications of central restroom core. Another issue we found was that there was an ambiguity in the gas line specification and we recommended that the client should place an RFI, which led to an excellent clarification by the engineer. In only 72 hours we submitted a full, detailed bid package.
Result
Our estimate was used to make a competitive and highly professional bid by the client. The proactive RFI and the amount of detail impressed the GC. The contract was awarded to the contractor, in which the plumbing contract was worth a fortune of 450,000 $, which has been their most profitable project all year around. They specifically attributed speed, accuracy and strategic awareness provided by Fusion Assist as the deciding element in their victory.
Conclusion: Build Your Plumbing Empire on a Foundation of Accuracy
Profits in the plumbing contracting business are narrow. You may have the best crew in the world and the best tools available but one wrong estimate, one bid that is too low or one calculation on a large job, can eat up an entire month of profit. It is the sleepless worry that plagues a lot of contractors. It is always like walking on a tightrope between how much to bid so that you get the job and how much to bid so that you can actually make a living on it.
Ready to take your plumbing business to the next level? Elevate your bidding process with expert plumbing estimating services. Contact Fusion Assist for a free, no-obligation quote today.
Frequently Asked Questions (FAQs)
What do I need to tell to obtain a plumbing estimate?
To give the most precise estimate we require any plans or drawings you may have (architectural blueprints to hand sketches), the address of the project (local pricing), and any notes of special considerations of the scope of work, desired materials or client considerations. The more information you give the more accurate your estimate will be.
How can you make sure that your prices of material will be correct at my location?
Our estimating team works with the current pricing data by using the latest zip-code specific pricing databases continuously updated to reflect the current market. In the case of major or specialty items, we are also able to make direct inquiries on the local suppliers in your locality to have the highest level of accuracy.
Are you able to give commercial and residential plumbing estimates?
Absolutely. Our staffs consist of skilled estimators who have great knowledge in residential and commercial fields. Whether it is big or small, we can renovate a small bathroom or a hospital or a multi-family apartment complex.
Which software are you using on your plumbing takeoffs?
We have the best construction estimating software in the business such as Planswift, Bluebeam, and MEP specific takeoffs. Digital take offs: This is one of the technologies that enable us to do very accurate take offs right off your plans and no detail is left out. For more on how technology is changing the industry, you can look to resources from the Plumbing-Heating-Cooling Contractors Association (PHCC).
Why is outsourcing my estimating process confidential and secure?
Client confidentiality is a major priority to us. All the project documentation is provided via a safe portal, and we work within the grounded principles of non-disclosure. We are safe with your plans and business information. We are your silent partner and we are in the background to make you successful.
