labor units
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What the hells a labor unit?
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Labor units are units of time inman-hours for the installation of every piece of electrical hardware that we use which is known as a "part"in estimating. Once you create a parts list in estimating software, you will have a comprehensive list of the material cost and the man hour labor unit each and every item on that list. You then in turn create assemblies-such as a residential wall outlet - consisting of all the constituent parts for every unit that you encounter in your line of work. You then use the program to build an estimate by attaching all of these assemblies and parts as needed to a take off sheet which would be based on your takeoff counts from the architects plan. The estimating software will calculate all the labor cost based on the labor units for each part in every assembly according to the quantity you input from your counts. It will add up the material cost for each part as well. After the software adds all this up, you input the cost of doing business and your markup, then the software creates a systematically created estimate. There are many books that list parts and their associated labor units and material costs, but often times experience is the best source for that information-based on your company's expertise and local supply house prices.Chrisibew440 said:
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Well if every one agrees they are too high you think they would suggest by how much no?
I'm thinking six contractors are pricing the installation of 20 switches. Using the labor units they of course come up with the same price. Now competition rears it's ugly head as of course only one contractor can win.
So you adjust the labour unit to get the job. You tell yourself it's too high.
Ever get something fixed on your truck? Shop looks up the labour unit and waits for you to drag out your Visa. Electricians are... I don't know.
I'm thinking six contractors are pricing the installation of 20 switches. Using the labor units they of course come up with the same price. Now competition rears it's ugly head as of course only one contractor can win.
So you adjust the labour unit to get the job. You tell yourself it's too high.
Ever get something fixed on your truck? Shop looks up the labour unit and waits for you to drag out your Visa. Electricians are... I don't know.
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Those labor unit handbooks are a good place to start if you are building new takeoff assemblies. But you have to take into account the relative skill level and efficacy of your crew. These guides are NOT like automotive flat-rate manuals where you look up make, model, year and task - they are to give you a starting point. your units will wind up being customized for your business.daveEM said:
Additionally, no book can tell you what your overhead and profit should be, or what any particular jobsite conditions you have..
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That's how jobs are won and lost. I suspect the labour unit book mentioned is constantly revised. For example I have labour units from 1968. Installing a 100 receptacles then with a screwdriver doesn't work today does it?
But anyway you are correct. I have labour units for hand digging a trench. You have to adjust for the lady holding the shovel don't you, be it a 5'2" 98 pounder or a brutal 6'6" 280 pound fellow with a beard and tattoos.
As for removing the starter on a car... your worker skills are also important. Its just the shop won't move. They don't have to as you probably aren't going to get prices.
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Are you aware that most dealerships and many independents have moved toward a flat-rate manual-based method of payment of their technicians? That means their labor costs are fixed-anti-directly to send manual. I have a good friend who works in such a facility; they get paid by the flat rate manual whether they exceed. The allotted time or not. We don't have that luxury. We pay our guys by the hour whether they exceed the time limit or not.daveEM said:
I make all the electrons line up for their Flu shots
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ES2 Electrical Flat Rate. Just click the link in Harry's signature line.
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The company I worked for did something like that. Told the service guys ( 8 of us) the # hours the bid was on the jobs.
They only did that for a few months. I'm thinking that the guys would always use the time up.
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I think it's just a real horrible way to squeeze your employees nuts.daveEM said:The company I worked for did something like that. Told the service guys ( 8 of us) the # hours the bid was on the jobs. They only did that for a few months. I'm thinking that the guys would always use the time up.
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NECA labour units incorporate much more than installation time. They include your handling time, supervision, planning, layout.
You have to be careful when bidding by NECA units.
NECA has labor units for almost everything. Not only main material such as pipe and wire, but also screws, inserts, bushings, you name it. You could labour everything you will be installing, but then your labour would be very high.
NECA also has different levels of difficulty of installation, column 1 to 6 ( at least in my old copy). Column 1 is the one most estimators use.
One of the best Change Order techniques, is get the engineers to agree to use NECA 1 labour units for pricing. Guaranteed profit$$$
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Exactly, we use custom assemblies based on our experiences. We also do production tracking on our jobs and modify our labor factor accordingly.
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