Tips for Managing Electrical Construction Costs

Managing electrical construction costs can be a daunting task for any project leader. With all of the components that factor into each project—materials, labor, technology, and so on—it’s easy to lose sight of where the majority of your budget is going. However, controlling these costs is essential to the successful completion of any project.

How to Manage Electrical Construction Costs

Thorough planning, communication, cost estimation, regular monitoring, advanced technology, and investing in energy-efficient equipment all play a pivotal role in controlling your electrical construction costs.

Thoroughly Plan Your Electrical Design

The first step to controlling electrical construction costs is to thoroughly plan your electrical design. Creating detailed wiring diagrams, outlining the exact placements of outlets/lights, selecting components ahead of time, and planning for future expansion will help provide an accurate estimate of total costs.

Be sure to get professional estimates before starting a project. Discuss goals, budget constraints, design plans, and material options with electricians to get the best idea of expected costs.

Cost-Effective Design Strategies

There are many ways to design your construction with budget in mind. Consulting a professional will help keep your budget in check while delivering your vision. Some strategies include:

Using energy-efficient LED lighting and appliances to save money long-term
Installing occupancy sensors, timers, and dimmers to reduce energy waste
Grouping wiring and outlets along common walls to reduce labor time
Prioritizing essential upgrades over luxury additions to control costs
Consulting a professional electrician or construction provider and express your goals for energy use

Communication of Goals

Clearly communicating project goals, priorities, and budget limitations to your electrical contractor is key. Provide your wiring diagrams, product selections, and a detailed list of required upgrades versus desired additions.

An open line of communication allows contractors to offer cost-saving suggestions, provide accurate estimates, and work efficiently. Discuss any changes to keep costs aligned. Make sure you are vocal about your expectations with your contractor or electrician when starting from scratch and always speak up if you notice any inconsistencies with communication or work.

Construction Budgeting

Create a detailed construction budget that outlines all expected project costs, including materials, labor, permits, and contingency funds to cover potential overages. Electrical costs often make up 10–15% of total construction budgets.

It’s important to partner with an experienced electrical contractor who can provide accurate estimates based on the square footage of your property. Budget at least $5–10 per square foot for basic electrical work. An experienced provider will accurately estimate your costs and help you decide where to focus your resources in the project.

Cost Estimation

In addition to a per-square-foot estimate, additional factors that influence electrical costs include:

Type of wiring: Conduit, armored cable, non-metallic sheathed cable
Degree of renovation needed: Complete rewire vs. minor upgrades
Special systems: Security, voice/data, backup power, etc.
Extent of lighting: Number of fixtures, chandeliers, under-cabinet, etc.
Required materials: Quantity of wiring, circuit breakers, outlets, switches, etc.
Rates and complexity: These may vary from region to region

Accurately estimate costs by obtaining onsite quotes from licensed electricians in your area.

Regular Monitoring and Control of Construction Costs

Consistently monitor electrical construction costs at multiple checkpoints: upon the initial estimate, when purchasing materials, throughout the installation, and upon project completion.

Having clear processes for submitting change orders, tracking invoices/payments, and controlling excess purchases and labor hours also minimizes overages down the road.

Regular monitoring also includes preventative maintenance. This will prolong the lifespan of your electrical systems and prevent costly repairs in the near future. Electrical contractors are skilled at customizing preventative maintenance plans.

Investing in Energy-Efficient Equipment

Energy-efficient products and systems may initially have a higher price. However, purchasing ENERGY STAR-certified lighting, automated control systems, efficient appliances, and air conditioning units can lead to long-term savings.

Upgrading outdated electrical equipment improves safety and can lower insurance premiums as well.

Planning your next construction project can be daunting. Read this article to learn more about design-build construction and the key phases from start to finish.

Learn More

Using Technology to Maximize Construction Efficiency and Savings

Sometimes a little help from technology can keep your electrical construction costs right on track. There have been many advances in cost tracking and digital tools, which contractors use to track their work and efficiency.

Digital Tools for Budgeting and Cost Tracking

From initial estimates to completed projects, modern web/mobile apps provide digital tools for superior electrical construction budgeting and cost tracking compared to traditional paper methods.

Benefits include real-time visibility, automated reporting, simplified change orders, linked invoices directly to budget line items, and more. Improperly logged change orders and invoices can lead to differing prices and estimations.

The Role of Contractors in Electrical Construction Costs

Partnering with highly skilled electrical contractors who invest in technology and training is key to minimizing unexpected costs. They understand cost-effective technology and are able to recommend new tactics and methods for your construction.

Look for electricians who use digital tools for precise estimates, materials management, project timelines, and budget oversight. This provides greater reliability in meeting project deadlines and costs.

Keep Your Electrical Construction Costs on Budget with CTI Electric

If you’re worried about your wallet when it comes to electrical construction costs, turn to CTI Electric. With Utah’s top electrical services and extensive industry certifications, we can tackle your newest upgrades no problem. If you’re trying to budget for a new project or electrical construction, don’t hesitate. Call the experts at CTI Electric for a consultation today.