Glossary of Terms
Click on the section title to reveal the definition:
An Estimate is an educated guess or hypothesis as to how much the work will cost. It is based on data that we gather onsite or from your description on the phone.
- Materials, unless specifically stated in our written description, are generally not included in the estimate.
- Price increases and any additional labor or materials (which may be required should unforeseen problems arise) are not included.
- The final price may also be lower than we may have anticipated.
- The estimate can work in either direction from the estimated price.
- The estimate will contain a generalized description of what work you want done.
- The purpose of the estimate is mostly for price consideration, not necessarily description. If a detailed description is given, that information could be used by our competitors, who might not take the time to look at the job as we had, therefore using our description to quote a lower price.
A Proposal is a highly detailed description of the work you want done.It contains a fixed price that will not be exceeded.
- Proposals take more time than estimates because more data must be gathered and the work must be fully described. This data may also be used for other competitor bids once you have it in your possession.
- Since the Proposal is very descriptive, there might be a minimum fee payable at the time we gather the data at your job site.
- If you decide to accept our proposal, this fee will be deducted from the total price of the proposal when the work is completed.
- We might also provide a written proposal at no up-front cost to the prospective client, depending on the individual situation.
A Design Build is used when a customer wants some work done but does not know exactly what he or she wants. In this case, we can provide the customer with details, descriptions, and ideas.
- We can also represent the customer to the county utility company or electrical inspections agency on what to do for a particular application. If this service is needed before giving an Estimate or Proposal, there will be a fee entailed. This fee is necessary because we will be acting as an electrical architect, designer, or engineer.
- If we have not been awarded the job, you can take our information to another competitor.
- If we provide this service, and it is not part of an awarded job, there will be a minimum fee of $250 and up depending on the application. This fee will be paid prior to any design work being performed or completed. We will determine the prices and scope of the designing services necessary on a case-by-case basis.
During the time of gathering data for a proposal or estimate we sometimes run into a situation where most, if not all of the amperage capacity (total electrical load of the home or building) are very close to being used up.
If a customer wants to add another appliance or electrical device that is high-powered and we are not sure we can add this device on the existing electric service, we must make a calculation. This calculation is a code requirement as to the addition of more electrical load (amps) on an existing electric service. To be sure we are not violating electrical code we must make this calculation and not just guess. If in our professional opinion — with the given total service amps rating and a calculation of the additional electrical load — we need to make this calculation, there will be a fee for this service. The cost will be a minimum of $100, (depending on the individual application) payable before the calculation is made. The actual fee will be based on a case-by-case basis. You have the right to request the calculation not be made, but this will affect the estimate or proposal price. There will also be a statement included in the estimate or proposal that you requested the calculation not be made. If you choose to not accept our calculation we may not be able to complete a proposal for you with a firm price. We may only be able to give you an estimated price as described above.
Safety Inspections are highly detailed descriptions of what exists in your home or business electrically.
- We check all electric on an itemized checklist and determine if these items are up to today’s electrical code standards or if they are in a safe operating condition. This form can be submitted to real estate companies, buyers, banks or others, so they can be assured that a licensed electrical contracting company has inspected the house or building.
- The cost of this task is $175, payable at the completion of the inspection.
Time and Materials is a fee structure based on an hourly billing for work and/or diagnostics and cost of any/all materials. Simply stated, it means that any time expended and any materials we use will be billed to you. This type of billing is most often used when we have not given an estimate or proposal for the job.
- Time and Materials billing can also be used for additional work on a project that was not specified in the original estimate or proposal. This situation does not fall under the category of “free estimate” or “proposal”. This type of job is billed from the time we arrive till the job has been completed.
- There is a ½ hour minimum charge for labor with ½ hour increments billed thereafter. The fees vary depending on times of day and number of workers at the job. This may also be subject to an initial service charge.
- These fees will be determined on a case-by-case basis and due in full upon the completion of all work, before the workers leave the job.
The $60 charge (and up) customers see on their invoice is a service charge, not labor. It is applied to ALL jobs before any work (labor) occurs.
Our service charge covers:
- Travel labor between jobs that we do not directly charge to the customer.
- Vehicle overhead, which includes insurance, fuel, maintenance, and upkeep of the stock on the units by employees that are not able to be specifically charged to you the customer.
- Office and shop overhead, shop stock and the labor to keep it organized, for us to provide a quality service oriented business.
- Advertising overhead, telecommunications charges and any other direct non- receivable cost it takes to perform our business. Instead of trying to come up with exact costs to charge to customers on a case-by-case basis, we have implemented the universal service charge, based on distance from our office (even if we “diagnosed” problems and were not able fix these problems as they were not in the scope of our license IE: well pumps, sump pumps, electric water heaters, A/C units and the like).
We have found that this policy is a fair way to divide up the non-receivable costs that are associated with running a business like ours and with stocking the necessary materials to perform our job at our shop and on our service vehicles.
We hope this explains the situation.
We understand that you may not agree with the above, but trust you can see our point as a quality and established business in the community.
With the service charge as described, we can continue to provide the same quality service for our customers as we have in the past yet keep our labor rates competitive and fair for all customers.
Regular vs. Emergency Hour Rates
Our regular business hours are from 8:00 A.M. through 5:30 P.M. Monday through Friday.
All other hours shall be billed at EMERGENCY SERVICE RATE of double the applicable hourly rate. There is no EMERGENCY SERVICE RATE charged if work is started before 5:30 P.M. If labor passes the 5:30 P.M. hour the remaining time will be billed as Emergency Service. When charging an hourly rate, including extra work if necessary or on “time and materials” jobs, the Contractor will bill the Owner for only actual hours worked on behalf of the Owner.