AI & Electrical Estimating

AI's Impact on Electrical Project Bidding

The electrical contracting industry has witnessed a surge in artificial intelligence applications, particularly in project estimation workflows. Several mainstream AI platforms now offer automated calculation capabilities for commercial electrical installations, promising faster turnaround times and streamlined bidding processes.

Putting AI Estimating to the Test:

Case Study #1: Mid-Size Commercial Project

After receiving feedback from industry professionals about AI estimating capabilities, we decided to conduct our own evaluation. We selected a commercial electrical project previously estimated using traditional estimating software and ran the same plans and specifications through an AI-powered platform.

The AI system was configured with our standard labor rates, overhead percentages, and profit margins. We also enabled current material pricing integration to ensure fair comparison with market conditions.

The $50,000 Discrepancy That Could Sink a Business

While the AI platform delivered results impressively quickly—generating a complete estimate in seconds—the accuracy told a different story. Comparing our detailed takeoff against the AI-generated estimate revealed a staggering $50,000 variance on what should have been a $158,000 electrical project. For electrical contractors operating on typical industry margins, this level of inaccuracy could mean the difference between profit and devastating loss.

Case Study #2: Large-Scale HVAC Project Analysis

Our concerns about AI estimating accuracy were further validated during a recent project review. An HVAC contractor had received a bid from an overseas estimating service that relied heavily on AI algorithms for their calculations.

Upon conducting our independent takeoff, several critical issues emerged:

  • The AI system failed to identify 37 package units required for the project—a $600,000 oversight
  • Inappropriate spiral duct specifications were selected for an apartment setting where not needed
  • Critical ductwork connections and gaps not shown on drawings were completely omitted from the estimate
  • Multiple installation complexities were not factored into the bid

The final comparison was stark: our comprehensive estimate totaled $2.3 million, while the AI-generated bid came in at just $1.5 million. Had the contractor proceeded with the AI estimate, they would have faced an $800,000 shortfall that could have bankrupted their business.

The Critical Role of Electrical Expertise in Estimating

While AI technology continues advancing and may eventually become a valuable supplement to estimating software, relying entirely on artificial intelligence for electrical project bids represents an unacceptable risk level.

Electrical work demands deep understanding of:

  • National Electrical Code requirements
  • Local jurisdiction variations
  • Installation complexity factors
  • Material compatibility issues
  • Labor efficiency considerations

These nuanced factors require the trained eye of experienced electrical estimators working with proven software platforms.

The offshore estimating company in our second case study demonstrates how combining inexperience with AI dependency can create a perfect storm for project failure. Such massive estimation errors don’t just threaten individual projects—they can destroy entire contracting businesses, whether electrical, HVAC, or other trades.

Brent Morris
Enlightenment Companies

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