Marketplace

Construction Labor Cost

Construction labor cost is one of the largest and most variable costs involved with any construction project. The more complex the project, the more capable the labor needed and the higher the construction labor cost.

The construction labor cost is defined by manhours. Manhours are broken down by the number of employees working on a team divided by the number of hours they work in a day. That work can include unloading and storing materials; moving tools and equipment; planning and discussion of the work to be performed that day and normal construction-related duties.

The construction labor cost can normally be estimated by the actual hourly labor cost paid and the amount of time it is believed a project will take, but there are many variables that can change that significantly. The estimated construction labor cost is based on experienced craftsmen working on a well-prepared project with good productivity in acceptable working conditions. The estimated construction labor cost also assumes that the materials are acceptable, the right tools are available, the work done by other craftsmen beforehand is adequate and the layout is uncomplicated. If any of these are not the case, the construction labor cost can jump quickly.

Working conditions on a job site can cause the construction labor cost of a project to increase in a hurry. Most construction estimators take into account a number of different variables, including weather conditions and the complexity of the project. When the temperature is less than 40 degrees or above 95 degrees Fahrenheit, it is estimated that the construction labor cost will increase between 10 to 15 percent as the laborers will be working at a slower rate. When the laborers are unskilled, the increase in the construction labor cost can be estimated to be anywhere between five and 50 percent; if they are well-trained (and, normally, better paid), it can result in a decrease of anywhere from five to 25 percent in cost. With jobs that include demanding requirements or a difficult owner, the construction labor cost can go up anywhere from 10 to 35 percent.

Leave a Comment

Roughneck Definition

Roughneck Definition Amoco Corporation

There are several oil companies operating world wide, but the largest in North America is the Amoco Corporation. Established in 1889 as the Standard Oil company, it changed its name to Amoco in 1985, an is the largest natural gas provider in North America. Amoco also provides gasoline...

read entire definition