The Scope Letter only applies if the electrical contractor is submitting the final price to a general contractor. If the electrical contractor will have a contract with the owner, then exclusions are usually not allowed, especially on public contracts.
The Scope Letter should be sent to the General Contractors at least one day in advance. Two days would be better. Providing a clear scope letter is the best way to avoid “Scope Seep.” A clear scope letter will also reduce the contractor’s risk. A detailed letter is best. The letter should include, but not limited to the following:
- Pricing with any alternates, unit prices, and hourly rates requested
- List of drawings, list date and any revision numbers
- Specification sections covered by your quote
- List of addendums and dates received
- Wiring methods used unless indicated in the specifications
- Your company’s “Terms & Conditions” at the end of the quote:
- – Length of time the quote is valid
- – Change order policy
- – Back charge policy
- – Delay clause
- – Payment terms
- Exclusions or inclusions:
- – Overtime or off-hour work
- – Hazardous materials disposal
- – Power company and utility charges
- – Demolition – make safe for others to remove
- – Cutting, patching, and painting
- – Taxes and / or bond
- – Temporary power
- – Trash removal
- – Sales tax
- – Rock removal, if you are responsible for excavation
- – Roof penetrations and sealing –be aware of roofing warranties. Check who is the current warranty or maintenance holder.
If it is electrical, either include it in your estimate or exclude it in your scope letter.
Remember, estimating is expensive, poor estimating is costly, but quality estimating is profitable.