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    Environment engineering - 1

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    Lec 10 QSCE Labour

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    RajaAsdyl
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    Environment engineering - 1

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    Download as pptx, pdf, or txt
    5 views38 pages

    Lec 10 QSCE Labour

    Uploaded by

    RajaAsdyl
    Environment engineering - 1

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 38

    Estimating in Building

    Construction
    Chapter 7 Labor

    Lec 10
    ESTIMATING LABOR

    Estimating labor requires determining the number of

    labor hours to do a specific task and then applying a


    wage rate.
    Labor Hour

    One worker for one hour


    ESTIMATING LABOR

    Determining the labor hours requires knowing the


    quantity of work to be placed and the productivity rate
    for the specific crew that will perform the work.
    The crew is an aggregation of construction trades
    working on a specific task.
    The productivity rate is often expressed as a number of
    labor hours per unit of work, although it may also be
    expressed as the quantity of work performed by a crew
    during a standard eight-hour day.
    LABOR PRODUCTIVITY
    The productivity rates can come from a number of

    sources, but the most reliable source is historical data.


    The advantage of historical data is that it reflects how a

    particular company’s personnel perform the tasks.


    For average or standard conditions

    Productivity rate = Labor hours / Quantity

    The historic data should not only track the cost of a task

    but also how much labor hours it took to complete the


    task
    LABOR PRODUCTIVITY

    Without labor hours or quantity of work performed

    it is not possible to determine the productivity rate


    LABOR PRODUCTIVITY

    Example
    It took 170 labor hours to complete 10,000 sf of
    slab.
    Productivity rate = 170/10,000 = 0.017 labor
    hour per sf
    LABOR PRODUCTIVITY

    Example 7-1
    Type of work – 8” x8” x 16” Concrete Masonry
    Units
    Quantity = 1,700 sf
    Labor hours = 170
    Productivity rate = 170/1,700 = 0.10 labor hour
    per sf
    LABOR HOURS

    Labor hours = Quantity takeoff x Productivity rate

    The productivity rate used is for average or standard

    conditions for the projects used in calculating the


    historical production rate
    For projects deviating from standard conditions, the

    labor hours needs to be modified according to deviating


    conditions.
    This is done by using productivity factor
    LABOR HOURS

    Adjusted labor hour = Labor hours


    x Productivity factor
    Productivity factor:

    > 1 for below average conditions (conditions slowing

    the progress)
    < 1 for above average conditions (conditions

    increasing the speed of work)


    CONDITIONS AFFECTING PRODUCTIVITY FACTOR

    Availability of trained craft persons


    More work and less workers- more labor hours- >1
    Less work and more workers- less labor hours- <1
    Climatic conditions
    Too hot or cold, Rain or snow, Wind
    Extreme conditions- >1
    For better weather than historic data- <1
    CONDITIONS AFFECTING PRODUCTIVITY FACTOR

    Working conditions
    Adverse conditions- >1
     Limited working space
     Limited storage
     Waiting for materials deliveries
     Restricted movement around the site

    Better than average conditions-<1


    CONDITIONS AFFECTING PRODUCTIVITY FACTOR

    Other
    Workers seldom work a full 60 mins during an
    hour.
     Breaks: bathroom, coffee, water
     Discussing the big game or date last night
     Lunches starting early and finishing late
     Clean-up time
     Availability of equipment

    Studies of actual amount of time worked per


    hour averaged 30 to 50 mins
    Also referred to as system efficiency
    CONDITIONS AFFECTING PRODUCTIVITY FACTOR

    When keeping historic records for the labor


    productivity, it is important that a record not only
    of productivity rate be kept but also under what
    conditions that productivity rate was achieved so
    that appropriate factor can be used.
    EXAMPLE 7-2. CALCULATING LABOR HOURS
     Example 7-2
     Type of work = 8”x8”x16” Concrete masonry units - decorative
     Quantity of work = 1,000 sf
     Productivity rate = 0.1 labor hours per sf
     Productivity factor = 1.1
     Crew = 3 masons and 2 helpers
     60% labor hours will be performed by masons and 40% by their
    helpers
     Labor hours = 1,000 sf x 0.1 labor hours per sf = 100 labor
    hours
     Adjusted labor hours = 100x1.1 = 110 labor hours
     Masons labor hours = 0.60x110 = 66 labor hours
     Mason helper labor hours = 0.40x110 labor hours = 44 labor
    hours
    CYCLE TIME ANALYSIS

    Used for repetitive cycles


    Excavation estimating
    Hauling from borrow pit to job site and returning
    to borrow pit
    Productivity rate=
    Avg cycle time x Productivity factor x Crew size
    System Efficiency x Quantity per cycle
    EXAMPLE 7-3 CYCLE TIME ANALYSIS
     Type of work – Hauling materials from the borrow pit
     Average cycle time = 35 minutes
     Truck capacity = 17 tons
     Crew = One driver
     Productivity factor = 0.95
     System efficiency = 45 minutes per hour

    Productivity rate = (35 x 0.95 x1) / (45x17)


    = 0.0435 labor hour per ton
    RATE OF PROGRESS
    Used for linear tasks
    Paving or striping a road
    Placing concrete curbs

    Productivity rate =
     Quantity 
     + Travel time  × Crew size
     Rate of progress 
    System efficiency × Quantity
    EXAMPLE 7-4 RATE OF PROGRESS

     Type of work = placing concrete curb


     Quantity = 2,200’
     Rate of progress = 3’ per minute
     Crew = One operator and two helpers
     Productivity factor = 0.95
     System efficiency = 45 minutes per hour
     Travel time = 115 minutes

    Productivity rate = {(2,200/3 + 115) x 3} / (45 x 2,200)


    = 0.0257 labor hours per foot
    Figure 7.1
    From Means Building Construction Cost Data 2007. Copyright
    Published Productivity RSMeans, Kingston, MA 781-585-7880; All rights reserved.
    Example See Book Page 56
    Rates Productivity for an 8”x8”x16” decorative concrete block is 0.118
    labor hour per sf
    UNIONS- WAGES AND RULES
    Set wage rules
    Prevailing hourly wages
    Fringe benefits
    Holidays

    How is the union to work with?


    Prefer to talk or strike
    OPEN SHOP
    Employees of the open shop contractor or subcontractor

    are having greater flexibility with multiple skills.


    Advantage

    Less restrictive than unions

    Disadvantage

    No apprentice program for training

    The union carpenter has gone through a structured

    apprentice program to become a union carpenter


    LABOR BURDEN
    Wages paid are known as the bare hourly wage rate / bare

    wage rate
    Contractor incurs additional costs which are known as

    labor burden.
     The burdened labor rate is calculated by totaling all costs

    of employees over the course of year or the project and


    dividing these costs by the number of hours that are
    billable to the project during the year or the duration of the
    project
    LABOR BURDEN
    Following costs should be included when calculating the burdened
    labor rate:
    Cash equivalents and allowances
     Cash allowances are funds paid to the employee for own tools or

    for the use of his personal vehicle


     Treated as wages

     Different from reimbursements which are based on actual costs of

    the tools or the actual mileage the employee uses his vehicle for
    business.
     Cash allowances are taxable income to the employee whereas

    reimbursed expenses are not.


    LABOR BURDEN

    Cash equivalents and allowances


     Cash equivalents are funds paid to the employee in lieu of

    providing other benefits, such as insurance and vacations.


    Cash equivalents are also treated as taxable income
    LABOR BURDEN
    Payroll taxes: Both the employer and the employee are

    required to pay 6.2% social security tax. Both have to pay


    1.45% Medicare tax.
    Social Security

     6.2% on first $106,800 of wages (2010)


    Medicare

     1.45% of all wages


    LABOR BURDEN
     Unemployment insurance: The Federal Unemployment Tax Act

    (FUTA) and State Unemployment Tax Act (SUTA) require


    employer to pay to provide unemployment insurance for their
    employees @ 6.2% on the first $7,000 of each employee’s wage.
     Workers’ compensation insurance: It is compulsory insurance

    for all employees. Medical insurance, lost wages due to injury on


    the job, occupational illness, killed on the job
     Varies by:

     Worker class
     Company’s accident history
    LABOR BURDEN

    General Liability Insurance: Provides the company with

    protection from lawsuits arising from negligence of


    company employees; damage to one’s reputation.
    Insurance benefits: Companies often provide employees

    with health, dental, life or disability insurance


    LABOR BURDEN
    Retirement Contributions: 3 to 6 percent

    Union payments: When employees belong to a union, the

    employer is responsible for making payment to the union


    according to the union contract. Provide for retirement and
    insurance and apprentice program.
    Benefits for union employees

    Training programs
    LABOR BURDEN

    Vacation, Holiday, Sick Leave


    Accounted for by excluding these hour from billable
    hours
    BURDENED HOURLY WAGE RATE

    Burdened wage rate = Wages + Benefits


    Billable hours
    Billable hours exclude:
    Vacation
    Holidays
    Sick leave
    Other unbillable time
    EXAMPLE 7-5 BURDENED HOURLY WAGE RATE

    Craft = Mason
    Wage rate = 29 per hour
    Hours worked = 50 hours per week for 20 weeks and 40 hours per
    week for 29 weeks
    Paid vacation, holidays, and sick leave = 3 weeks at 40 hours per
    week
    Overtime= Time-and-a-half for any hours over 40 per week
    Gas allowance = $100 per month
    Annual bonus = 500
    Social security = 6.2% on the first $106,800 of wage
    Medicare = 1.45% of all wage
    EXAMPLE 7-5 BURDENED HOURLY WAGE RATE

    Federal Unemployment Tax Act = 0.8% on the first $7,000 of wage


    State Unemployment Tax Act = 4.5% on the first $18,000 of wages
    Workers compensation insurance = $7.25 per $100 of wages
    General liability insurance = 0.75% of wages
    Health insurance (company’s portion) = $300 per month per
    employee
    Retirement = 0.75 per $1 contributed by the employee on 6% of the
    employee’s wages.
    EXAMPLE 7-5 BURDENED HOURLY WAGE RATE
    Wages = (40 hours per week x 52 weeks x $29 per hour) + (10 hour per week
    x 20 weeks x $29 per hour x 1.5) + 100 per month x 12 months +500
    Wages = $70,720
    Social security = o.062 x 70720 = $4384.64
    Medicare = 0.0145 x 70720 = $1025
    FUTA = 0.008 x 7000 = $56
    SUTA = 0.045 x 18000 = 810
    Worker compensation insurance = 7.25/100 x 70720
    = $5127
    General liability insurance = 0.0075 x 70720 = $530
    Health insurance = 300/month x 12 = $3600
    EXAMPLE 7-5 BURDENED HOURLY WAGE RATE

    Assume that employee take full retirement benefits


    Retirement = 0.06 x 70720 x 0.75 = 3182

    Benefits = 4385+1025+56+810+5127+530+3600+3182
    = $ 18715
    Billable hours = 50 hours per week x 20 weeks + 40 hours per
    week x 29 weeks = 2160 hour
    Burdened hourly wage rate = (70720 + 18,715)/2160
    = $41.41 per hour
    PRICING LABOR

    Labor cost = Adjusted labor hours


    x Weighted average burdened wage rate
    EXAMPLE 7-6 DETERMINING LABOR COST

    From example 7-2

    There were 110 labor hours

    From Figure 7-2

    Weighted average burdened wage rate = 35.58

    Labor cost = 110 x 35.58 = $3913.8


    Figure 7.3
    Standard Crews From Means Building Construction Cost Data 2007. Copyright
    RSMeans, Kingston, MA 781-585-7880; All rights reserved.
    Thank You

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