Do you add a labor factor to your bids?

What is a labor factor?

I am sure you would get several different answers if you asked several different contractors. For me, the labor factor is a percentage you add to the total labor hours to cover a variety of wasted time.

  1. Coffee breaks
  2. Miscellaneous conversations
  3. Safety training
  4. Plan review
  5. Long lunch breaks
  6. Friday

Some argue that all of this time should be covered in the normal labor units. I do not agree. The unit should only cover the actual time it takes to install an item i.e. cut, measure, put in place etc.

Share with everyone what you add if anything to your total labor hours that you call labor factor, incidental labor etc. for me it’s 20%.

What percentage if any do you add to your total labor hours for incidental labor or labor factor?

Related Articles

Responses

Your email address will not be published. Required fields are marked *