Construction Labor Costs take up a significant part of the total budget defined for any construction project. Calculating labor costs is one of the most crucial parts of a construction project. However, estimating the construction labor cost is not that easy. Accurate estimation and calculation of labor costs require a proficient approach. Estimators have to consider multiple factors to estimate construction labor costs.
Considering multiple factors and doing thorough research can be overwhelming. But, it sure does pay you off! If you manage to project accurate estimation for labor costs, you add up to the success of your project. Needless to say, if you want to stay in the business, you want to win projects constantly. To win more projects, you have to make accurate and professional bids. To make accurate bids, you can get help from construction cost estimation services in the US.
As important as it may sound, labor cost estimation can also be very time-consuming. However, if you choose the right methods and strategies to estimate, you can save time and money with MEP estimating services. Anxious about estimating the labor costs of your projects? Worry not! You are at the right place. We have prepared a guide for you. You can follow these methods to bring precision and accuracy to your labor cost estimation.
Task Segmentation
You cannot just start working on a project without knowing all of its segments. It is important to break down the project into small parts to create ease. Breaking down helps in dividing the time and attention required for each task.
Segmentation will help you make accurate construction labor cost estimations. But how? We will tell you! When you divide the complete project into individual tasks, you will know the complexity of each task. It will give you an idea of what type of expertise you need for each task. You will get to know how many people will be required for each segment. Then you will also get an idea of the time required for that task according to its complexity. Thus, by simplifying a bigger task into small ones, you will have a clear picture of everything. It will eventually help you allocate your resources wisely.
Exploring the Past Data
Taking leads from past trends and patterns is always an intelligent approach. By looking at the history of your past projects you can get important information about your current project. Past projects with similar scope and requirements will help you with providing accurate construction cost estimation services. You can get an idea of the time, workforce, and strategies you used to complete similar tasks in the past.
Rule of Two Method
If you have worked on historical data, the rule of two methods will be easy for you. This rule says that if you know the price of material or labor involved in a project, you can double that to estimate the total budget required for that project. In labor cost estimation, if you can figure out the labor cost from historical data. You can just multiply that cost by 2 and then an extra cushion of 10%. Adjustments can be made according to the requirement though.
The Unit Pricing Method
As the name suggests, unit pricing means calculating price by taking 1 unit involved in a project. It is a very good approach to calculate construction labor costs. In this method, the hourly rate of labor is multiplied by the time required to complete a task. Let’s take an example if a worker takes $25 for an hour, and the task requires 15 hours to complete. The total labor cost will be calculated by 25 x 15, which will be $375.
The Square Foot Method
The square foot method is used in the early stages of project planning. This method is quicker than the rest. In this method, you will calculate the total labor hours first. For that, you will have to multiply the labor hours required per square foot by the total square feet of the project. Once you get total hours, multiply them by labor wages per hour. In this way, you will be able to estimate the labor cost for the project. Construction Estimates USA provides you with the best services that use all these tried and tested methods for labor cost estimation.
Conclusion
Without any doubt, construction labor costs cover a large portion of the overall construction project budget. Contractors and estimators face some difficulties in labor cost estimation. They face delays and other issues because of imprecise calculations. In worst-case scenarios, inaccurate estimates can also end up in losing bids. Most of the errors occur because of using conventional methods. To gain success in the project, adapting new technologies is important. The methods mentioned in this blog will not only help you with accuracy but also save you time. Follow our guide and get ready to rock in the world of business!