Accurate Time Tracking Is So Much Easier With Workyard
If you aren’t monitoring your actual costs vs your budget for a job, it’s easy for it to get out of control. But that doesn’t mean that you need to spend all your time in your office managing your spreadsheets.
With the right software and the right processes, you can learn how to accurately track your construction labor costs and improve future bids.
You’re in the middle of a project. How much has labor cost you so far? Are you still coming in under budget?
Estimating in-progress labor is a matter of pulling real-time, accurate labor progress reports.
Now you know how much your in-progress work has cost you thus far. Take a look at your project’s tasks and milestones to determine whether you’re still on track. It’s better to adjust your expectations (and your client’s expectations) earlier rather than later.
To create a solid estimate, refer back to previous projects. As long as you can establish a baseline for how long a project should take, you can calculate your full labor burden.
By having accurate data and pulling the correct construction cost reports, you can quickly see how much previous jobs cost you and project that information to future bids.
You aren’t always analyzing your labor costs for future bids. Sometimes, you just want to know whether your labor is operating as efficiently as possible.
Here are a few ways to analyze your labor costs.
Are your labor costs going up or down? Take a look at previous projects to identify any potential shortfalls or overages.
As you analyze your labor costs, you may find that some jobs just aren’t worth it to take—they may just take too many work hours. You may also find that some jobs are much more profitable than others.
How far off are your estimates? If you’re consistently coming in 20% over or 10% under, you can use these comparisons to adjust.
Ask yourself why your estimates are off. Are you running out of time on projects? Or are scheduling mistakes leading to confusion and overtime?
Are there some teams that seem to deliver work much faster than others? Do some teams do better on specific types of projects? Use this information to increase your construction productivity. Assign the right employees to the right tasks.
The more analysis you do, the better your business can perform. But you can’t produce any meaningful analysis if you don’t have accurate information.
Every construction project is different. As a rule of thumb, you can expect your direct labor costs to be 20% to 40% of the project. If your labor costs exceed 50% of a project, there may be issues with how you are allocating your workforce.
Your labor cost per hour is the total cost of your labor divided by the number of hours worked. To calculate your total labor costs, you need to add up all your employee wages and benefits and any payroll taxes or insurance — your labor and your labor burden.
Estimate your construction labor costs quickly (and easily) with Workyard. In Workyard, employee hours are accurately tracked per project. You can pull real-time reports at any time — so you know exactly how much you have spent and can estimate how much you will spend.
In Workyard, you can:
Create a free trial account with Workyard today, or call 650-332-8623, to learn more about how to estimate your construction labor costs.
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Workyard provides leading workforce management solutions to construction, service, and property maintenance companies of all sizes.