Mechanical, electrical, and plumbing systems are integral parts of the construction project and account for a significant amount of the budget. The cost of their installation must be determined before the start of any work. MEP estimating means calculating the cost of ductwork, electrical wiring, piping, and other elements of these systems.

SMA Estimating LLC’s MEP estimating services transform complex drawings into a simple breakdown of costs for owners and general contractors. Thereby, they enable them to plan and budget their expenditures accurately.

What Does MEP Estimating Actually Cover?

It is the process of calculating the cost of materials, labor, and equipment that will be used for a building’s MEP systems. This consists of ductwork, electrical components, piping, and fire protection equipment. These components are interlinked, which means that the change in one will result in a change in the other. For example, the duct size determines the size of the ceiling plenum that further determines the construction details and electrical distribution. 

This is why building systems cost estimation is so important. If the trades are estimated separately, ignoring their intricate detail relationships, it may result in an inaccurate project budget.

How Big A Slice Of The Budget Is MEP, Really?

MEP costs can be greater than expected, and they differ considerably by building type.

Source: Rimkus

That is why a flat percentage is not suitable for specialty buildings. MEP cost analysis should determine individual system markup, not overall markup for all systems combined.

Why Does Coordination Matter More Than The Estimate Itself?

MEP systems often require the same space, including ceiling, risers, and shafts, among other resources. Improper coordination can result in expensive modifications during construction. For instance, in a mid-rise office project, if a ductwork run and a fire sprinkler main have to be installed in the same ceiling space. During the estimating process, the team should review the conflict and realize both systems couldn't be installed without lowering the ceiling below the minimum code height. The mistake is caught before framing, and a costly change order can be avoided.

According to the US Energy Information Administration, space heating accounted for almost a third of the total energy consumption by the US commercial sector in 2018. Therefore, it is apparent that apart from construction costs, MEP considerations have a significant impact on the cost of the project throughout its lifespan.

Is The MEP Trade Workforce Keeping Up With Demand?

Not entirely, and that gap is a part of why labor costs continue to increase. According to BLS, electrician employment is expected to grow by 9%, which will account for about 81000 job openings per year. In addition, the occupation of HVAC-R is projected to rise by 8%, providing around 40100 job opportunities annually. Thus,

• Electricians: 9% growth, 81000/yr openings

• HVAC-R mechanics: 8% growth, 40100/yr openings

As skilled labor becomes difficult to find, labor costs are likely to keep rising. Therefore, regular updating of the MEP estimates instead of relying on the initial estimates during the design phase is more accurate for the construction project.

Are Material And Labor Costs Still Rising For MEP Trades?

Yes, construction costs are constantly changing. The latest data from the Bureau of Labor Statistics (BLS) on the Producer Price Index suggests that construction input costs are rising at an abnormal rate. Metals such as structural steel, copper, and aluminum are recording some of the highest increases on a year-over-year basis.

Therefore, these changes, as well as other factors, can easily affect the accuracy of an estimate. That is why an escalation allowance should be added to cost analysis. The latest BLS data on changes in construction costs and inputs that have been released shows the trends of price changes in the construction industry costs of construction during the bidding period. Building the allowance into the estimate at the start is a basic part of construction cost control. It helps keep costs within limits despite fluctuations in materials and labor from the design to the bidding process.

How Do Experts Approach MEP Estimation?

SMA Estimating LLC specializes in providing MEP estimates for mechanical, electrical, and plumbing. The costs of all three are cross-analyzed to ensure there are no discrepancies before starting construction. The estimates also consider the prevailing material and labor costs in the market. In addition, unlike applying a percentage to the overall estimated cost, they provide a more reliable figure for an MEP estimate. The numbers can also be adjusted as the project moves to more detailed stages.

Conclusion

MEP estimating constitutes a significant part of the construction budget. Thus, it should be elaborated accurately since any mistakes or inaccuracies entail serious consequences for the final cost. In addition, improper coordination of mechanical, electrical, and plumbing engineering can result in expensive changes and delays. Therefore, proper initial estimating is crucial for a reliable construction budget. In addition, it helps determine other expenditures, such as structural elements and finish work, and schedule considerations.