How to Budget and Subcontract Electrical Studies on Your Project

Sep 29

3 min read

When you’re awarded a new project, the last thing you want is unexpected scope items cutting into your profit. Electrical studies — such as arc flash, short circuit, and coordination studies — are often buried in the specifications and can catch contractors off guard if not accounted for in the bid.

The good news? With the right understanding and a reliable partner, budgeting and subcontracting these studies can be straightforward and profitable.

Why Electrical Studies Are Required

Most project specifications (commercial, industrial, healthcare, schools, etc.) require some combination of:

Arc Flash Analysis – required by NFPA 70E and OSHA for worker safety.
Short Circuit Study – ensures equipment can withstand fault currents.
Protective Device Coordination Study – verifies breakers and fuses operate selectively.
Load Flow / Voltage Drop Analysis – checks that circuits are properly sized and voltages stay within limits.

Owners, engineers, and AHJs require these studies to demonstrate compliance and reduce liability. Contractors who don’t include them risk delays, change orders, and even OSHA exposure.

What Drives the Cost of an Electrical Study?

Not all studies are created equal — here are the biggest cost drivers:

Size of the system – More equipment (switchgear, panels, transformers) means more buses in the model.
Level of detail required – Federal/healthcare projects often require highly detailed studies. Smaller commercial jobs may be simpler.
Arc flash labeling – How many pieces of equipment need hazard labels?
Utility data – Coordinating with the utility for available fault current sometimes adds time.
As-built vs. new design – Renovations often require site visits and data collection, while new construction studies may be modeled off design drawings.

Typical Budget Ranges

Every project is different, but here are general ranges you can use for budgeting:

Small commercial (one building, <20 panels): $2,000 – $10,000
Medium facilities (schools, retail centers, ~50 panels): $10,000 – $25,000
Large/complex projects (hospitals, plants, data centers, campuses): $25,000+

⚠️ Pro tip: Always check the spec. Some contracts call for all four studies, while others only require short circuit + coordination.

Subcontracting the Right Way

When subcontracting electrical studies:

Choose a qualified partner – Look for a firm that specializes in power system studies (not just general engineering).
Verify deliverables – Ensure they’ll provide reports, updated one-lines, and compliant arc flash labels.
Coordinate early – Bring your subcontractor in during design to avoid late surprises.
Protect your liability – The right partner documents NFPA 70E compliance so liability doesn’t land back on you.

Why Contractors Partner With PowerSafe Engineering

At PowerSafe Engineering, we work directly with electrical contractors to:

Handle all required studies (arc flash, short circuit, coordination, voltage drop).
Deliver turnkey packages with reports, labels, and drawings.
Keep you on schedule by coordinating with utilities and design teams.
Provide clear pricing upfront so you can budget with confidence.

Whether you’re bidding a small renovation or a major facility upgrade, partnering with a dedicated electrical study provider ensures your project runs smoothly — without cutting into your profit.

✅ Takeaway: Electrical studies don’t have to be a headache or a hidden cost. By understanding what drives pricing and choosing the right subcontractor, you can meet spec requirements, protect your team, and stay profitable.

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