Contractor’s Toolbox – Calculating the true cost of labor
Abstract: When bidding on projects, it’s critical that contractors understand their true labor costs. For most construction companies, employee compensation is the single largest expense — so even small errors in calculating labor rates can lead to substantially inaccurate estimates. This article discusses how to factor in all direct and indirect costs associated with an employee or class of employees. It also covers how to account for the cost of nonproductive time.