Tracking material costs in the electrical contracting industry is critical because supply prices (wire, conduit, breakers, panels, etc.) fluctuate frequently due to market demand, copper prices, and supply chain changes. A strong system protects profit margins, improves estimating accuracy, and helps maintain consistent pricing for customers. How does your company keep track?
We are an electrical contracting company in Washington State. I have put in all of our materials and put them in as I go when new things come up. For wire our supplier sends us new prices as they change so that I can adjust them in our system and keep track of them. We do a lot of time and material jobs that helps us keep our bids from being to high or low based on material cost as I can see what jobs are actually costing.
Material tracking is huge for protecting margins. The best thing we have done is to keep a running price list with our main suppliers and update it regularly, so our estimates stay current. We also try to review supplier invoices often and adjust pricing if we see materials starting to creep up. Even small increases can increase quickly across multiple jobs. The key is not letting your estimating numbers sit too long without being reviewed. Staying on top of material costs keeps pricing accurate and avoids surprises later in the job.
