Labor Cost Estimation & Crew Productivity
What you will learn
- Build AI prompts that calculate fully burdened labor costs including benefits, taxes, and insurance
- Use AI to estimate crew hours based on production rates and scope quantities
- Generate labor cost comparison scenarios for different crew compositions
- Document labor assumptions clearly for bid defense
Labor Estimation: The Biggest Variable in Your Bid
Labor cost estimation is where bids are won or lost. The difference between a crew installing 200 SF/day of tile versus 150 SF/day can swing a $500K project by $30-40K. AI helps you calculate, compare, and document — but production rates must come from reliable sources.
Understanding Fully Burdened Labor Rates
Your "shop rate" for a journeyman is not just their hourly wage. The fully burdened rate includes:
| Component | Typical Range | |-----------|--------------| | Base wage | $25-$65/hr (varies by trade and region) | | FICA (Social Security + Medicare) | 7.65% | | FUTA / SUTA (unemployment) | 2-6% | | Workers' Comp insurance | 5-35% (trade-dependent) | | Health insurance | $4-$12/hr equivalent | | Pension / 401k | 3-8% | | Paid time off | 5-10% | | Small tools & consumables | $1-$3/hr |
Burden multiplier typically ranges from 1.35 to 1.65 depending on trade and benefits package.
Framework: Labor Burden Calculator Prompt
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What you'll learn:
- Build AI prompts that calculate fully burdened labor costs including benefits, taxes, and insurance
- Use AI to estimate crew hours based on production rates and scope quantities
- Generate labor cost comparison scenarios for different crew compositions