Okay, let's break this down and see if we can get to a more competitive price while still ensuring you're making a profit and covering your costs.

Understanding Your Current Estimate (Breakdown)



Material: $10,000 - This seems reasonable for a complete electrical install for a new 2-story home, depending on the quality of materials you're using. Are you using basic code-compliant materials or something slightly above that? (For example, are you using standard wire, or wire with a higher temperature rating? Are you using standard devices, or devices with screwless terminations?). We'll assume this is fine for now but keep it in mind. Labor: $29,000 - This is the area we'll focus on the most. With your current $150/hour rate, this represents 193 labor hours. Overhead & Profit: $15,000 - At 15% of $100,000 (after you decrease the hourly rate) this is not enough to keep your business afloat. Total: $49,000Key Considerations & Questions to Ask Yourself


Is your $150/hour rate sustainable for new construction? This is the core of your question. It's likely too high for competitive new construction bidding. Your experience is in remodels, which often have a higher value due to the unforeseen costs that may arise. New construction is more predictable.2. How efficient is your crew/self? Be honest with yourself. Can you streamline the process? Are there any bottlenecks? Are your tools up to date?3. What's the local market rate for electrical work on new construction? This is crucial. You need to know what your competitors are charging. Call around to ask what the pricing should be for this project. If there is one in your area, ask a local inspector for a ballpark on the project.4. Can you optimize your material costs without sacrificing quality? Look for bulk discounts or alternative suppliers. Are you buying at a distributor?5. Is there room for ANY scope reduction? (Probably not, given the minimal code requirements).6. What are your overhead costs? The 15% number needs to cover all those costs. If overhead is low, then increasing the profit is possible.

Refining Your Estimate - A Step-by-Step Approach


Reduce Your Hourly Rate (Realistically)

Let's start with the $115/hour you suggested. This is more likely in line with new construction. At $115/hour, $29,000 represents 252 hours of labor. That's about 6-7 weeks of labor. However, depending on the complexity and how it's wired, and how many people are on the crew. Can this be done in 6 weeks? If so then we are on the right track.2.

Re-Evaluate Overhead & Profit (Critical)



Overhead

Calculate actual overhead costs (insurance, vehicle expenses, office expenses, licenses, etc.) on a monthly basis. Then, divide that by the average number of billable hours your company works per month. This will give you a true hourly overhead cost.

Profit

Profit is what's left after you cover labor, materials, and overhead. It's your reward for the risk and effort of running the business. Don't shortchange yourself here.The current 15% is on the low side and might hurt you in the long run

Example Scenario Using $115/hour & Revised Overhead/Profit

Let's assume, after careful analysis, you determine:

Realistic Labor Hours

Let's assume 252 hours is accurate based on previous projects.

Hourly Rate

$115/hour

Material

$10,000 (unchanged for now)Here's how the new estimate would look:

Material

$10,000

Labor

252 hours x $115/hour = $28,980

Overhead

You need to calculate this based on your actual costs. Let's say your overhead is $30/hour (this is just an example!). This would add 252 hours $30/hour = $7,560 to the estimate.

Profit

This is where you need to decide on your target profit margin. In general a 30% profit margin is a good target to ensure that you can continue taking on similar jobs. Material: $10,000 Labor: $28,980 Overhead: $7,560 Subtotal (Cost): $46,540 Target Price = Subtotal / (1 - Profit %) Target Price = $46,540 / (1 - 0.3) Target Price = $66,485.71

Total: Approximately $66,486This is much higher that your estimate, and now you need to decide if this number is too high and where you can cut costs or lower you profit margin in order to get the job.Key Questions to Ask Yourself Before Adjusting Downward Am I paying myself a decent salary? How much am I paying my employees? Do I need to pay them more to improve employee retention. How much is my rent, insurance, bills for overhead?You can't skimp out on the business to make sure that you can take home a profit. It is more important that the business stays afloat than taking on a less profitable project.Actionable Steps


Market Research

Call around and get competing bids (or at least rough estimates) from other electricians in your area for a similar project. This will give you a good benchmark.2.

Material Optimization

Get quotes from multiple suppliers. Look for bulk discounts or alternative but equally reliable materials.3.

Labor Efficiency

Evaluate your processes. Can you pre-fab anything? Can you use more efficient tools? Can you optimize crew size and task assignments?4.

Accurate Overhead Calculation

Meticulously calculate your overhead costs.5.

Profit Margin Decision

Decide on your minimum acceptable profit margin. Don't go below that, or you're working for nothing.6.

Adjust & Refine

Once you have all this data, adjust your estimate accordingly. Be prepared to walk away from the project if you can't make a reasonable profit.7.

Contingency

Consider adding a small contingency (3-5%) to your estimate to cover unforeseen issues or small scope changes.

Important Considerations for Minimal Code Jobs



Inspection Issues

While it's a "bare minimum" code job, make absolutely sure everything is compliant. Failing inspections are costly (time and money).*

Future Expansion: Consider mentioning to the homeowner the limitations of a minimal code install. Suggest options for future upgrades or expansions (e.g., running slightly larger conduit for future wiring). This can be a value-added service.Good luck, and remember: know your costs, know your market, and value your expertise. Don't be afraid to walk away if the numbers don't work. Flag for review