Don't worry, we'll come to you. Your Business. Last month's column covered some of the basics of the labor unit, including the need to factor it. Factoring is customizing the labor unit to fit the assumptions made while preparing the estimate.
A variety of factors can affect adjustments to labor hours. Geographic factors account for weather variations and the seasons.
Other publications produced by NECA and sub-contractor groups provide additional information. Another source is the Electrical Contracting Foundation, which sponsors research on various electrical contracting topics. Poor project management can lead to blame of the estimator for not having originated a reasonable expectation of a schedule.
Computer estimating system users should be able to transmit their labor hours to a scheduling program. The prime basis for adjusting labor units would be any circumstance that varies considerably from the scope of the conditions assumed when a labor unit is listed. The scope of the introduction to the NECA Manual of Labor Units is a good starting place, as well as those ahead of each major section.
If the novice estimator will note such variances, an experienced estimator can assist or make the necessary adjustments. Some of the items mentioned may be mentioned in the specifications. For example, the "beneficial occupancy" clause, meaning that the future occupants of the building may be able to move in to use the facilities before their completion can be a major consideration, depending on the amount of work that will have to be done under such circumstances.
One of the prime reasons for factoring labor units is the type of project. Further separation within the listed categories is optional and appropriate when a contractor tends to specialize in a particular type of work. Thirteen additional conditions are in the Manual of Labor Units. These conditions are not universally applicable, but they may lead to factoring labor units. Several NECA pamphlets provide in-depth information on factors that affect labor. A common question is how much of an adjustment factor is advisable to apply to a high-rise building.
For estimating jobs where temperatures or conditions can be production reducers, the pamphlet, "The Effect of Temperature on Productivity" can help to assess the lost labor due to high humidity or other factors. Good project management includes having "just the right" number of workers on the job. If a large workforce is required for part of a project, people may be pulled from other projects, lowering production there.
How much labor to allow for such a circumstance? A couple of booklets that deal with peak workforces and the rate of labor consumption help estimators answer that. The Electrical Contracting Foundation study quotes a Mobil Oil figure that suggests that a project density of people working in the same area should not exceed square feet per person. The labor units in this manual are very competitive. This means your price will also be competitive. You may not be low every time, but you will be in.
Written by an A. National Estimator of the Year, it teaches you how to use labor units, the plan take-off, and the bid summary to make an accurate.
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