Ontario Electrical Contractor 23 duct and motor control centres and is usually quoted by vendors. •  Component 2: Items that are counted such as outlet boxes, devices, and fixtures. •  Component 3: Items that are measured such as conduit, wire, trays, cables, etc. This component accounts for 60-70 per cent of the budgeted labour hours allocated for a particular project. •  Component 4: Items that are not defined in the bid document. In many cases, owners and engineers expect contractors to include items that are not shown on or included in the drawings, but are essential to offer a complete and operable system, or to meet the standards of the owner. Estimators must pay careful attention to component 3 because of the high labour hours that may result from it and expose contractors to financial distress. As a result, in the case of higher-than-usual-percentage of labour, estimators must increase their Factor to reflect the high risk of labour component. On the other hand, projects that consist mainly of procurement of equipment (component 1) impose less risk, and thus the Factor may be lower. The word Factor represents a dollar value that is added to the bid by the electrical contractor. It is a decision made by the contractor and used to fund perceived risks. In academic literature, the word Contingency is often used interchangeably with the word Factor, but in this article Contingency is defined as: the dollar value a contractor is instructed to add to a bid price and which are used to fund owner/GC/CM issues. In an effort to allow contractors to better evaluate the risks present in a project, this author has developed the following assessment. The assessment is divided into nine parts, with each part focusing on a different area that may increase risk. Each question within that area is given a range. Respondents will be asked to rate the impact of each question on a numerical scale that was weighted. The maximum possible value (most positive or negative impact) was +5/-5. Throughout this worksheet, any assumed risk on the part of the contractor equates to a minus rating on the applicable scale. Similarly, opportunity that is created equates to a positive rating on the applicable scale. It should be noted that the numerical scale provided herein is a demonstrative example, and that different companies may have different needs, priorities, or constraints that would necessitate the creation of a new scale, or the modification of this one. A complete list of these factors is typically provided during Dr. Hanna’s estimating seminars. Section 1: Relationship with the Design Engineer(s) Section 2: Relationship with the Owner/ Construction Manager/General Contractor (from prior experience or by reputation) Section 3: Bid Preparation Time Frame Section 4: Competition Section 5: Assessed Risk Factors Section 6: Geographical Location Section 7: Project Management Section 8: Contractual Obligations Section 9: Anticipated Productivity Factors Note: this is not an exhaustive list – for a more complete list of potential productivity factors, consult Factors Affecting Labor Productivity for Electrical Contractors: A Quantified Statistical Approach, also by Dr. Awad Hanna. Awad Hanna is a professor and chair of Construction Engineering and Management Program at the University ofWisconsin-Madison. Dr. Hanna is also a provider of management education consulting services and a longtime associate to ECAO. He can be reached at ashanna@wisc.edu. For electrical contractors to grow at a healthy rate, with minimum number of projects to bid for, they must achieve a hit-rate of 30 per cent.