Labour Costs & SMART Estimator
Accurate labour cost calculations are essential for setting up SMART Estimator to generate reliable and competitive quotes. This article explains how to calculate labour costs using two key pricing options available in the software: Price in Currency and Price in Hours.
We'll demonstrate both methods using a 3-person scaffolding gang comprising a Chargehand, a Scaffolder, and a Labourer, each with different hourly wages. Overheads are excluded as they are covered in a separate section.
You’ll also find built-in calculators below to help you estimate these costs easily.
Price in Currency
The Price in Currency option allows you to calculate labour costs directly in monetary terms, either per linear metre or per lift. This method is commonly used when quoting for scaffolding in terms of physical measurements.
Example Gang Hourly Wages:
- Chargehand: £25/hour
- Scaffolder: £22/hour
- Labourer: £18/hour
- Total hourly wage for the gang: 25 + 22 + 18 = £65/hour
Calculating Labour Costs Per Linear Metre
Estimate Work Time:
For this example, the gang can complete 30 linear metres of scaffolding in 5 hours.
Calculate Labour Costs:
Labour cost for 5 hours = £65 ×5 Hours
= £325Labour cost per linear metre = £325 (5 Hour Labour Cost)30 (linear metres) = £10.83 per metre
Calculating Labour Costs Per Lift
Estimate Work Time:
For a scaffold with 2 lifts, the gang can complete 15 metres per lift (30 metres total) in 5 hours.
Calculate Labour Costs:
Labour cost per lift (for 15 metres) = £3252 = £162.50 per liftLabour cost per metre per lift = £162.5015 = £10.83 per lift per metre
Labour Cost Calculator
The Labour cost for a given scaffold type is calculated by taking the total cost of the Gang per hour and dividing it by the Gang's productivity rate for that scaffold type.
Price in Hours
The Price in Hours option calculates labour costs based on the time required to complete a job, measured in man-hours. This is particularly useful when you want to estimate costs based on the gang's productivity over time rather than per unit of scaffolding.
Understanding Man-Hours
Man-hours represent the total time spent by the gang collectively. For a 3-person gang:
- 1 hour of work = 3 man-hours.
Example Gang Hourly Wages:
- Chargehand: £25/hour
- Scaffolder: £22/hour
- Labourer: £18/hour
Calculating Man-Hours Per Metre
Estimate Gang Productivity:
The gang can complete 30 linear metres of scaffolding in 5 hours.
Man-Hours Per Metre:
Total man-hours for 5 hours = 5 (Hours) × 3 (Members in Gang) = 15 total man-hoursDivide total man-hours by linear metres:
15 (total man-hours)30 (linear metres) = 0.5 man-hours per metre
Calculating Man-Hours Per Lift
Estimate Productivity Per Lift:
For a 2-lift scaffold, the gang completes 15 metres per lift (30 metres total) in 5 hours.
Man-Hours Per Metre Per Lift:
Total man-hours per lift = 2.5 × 3 (Members in Gang) = 7.5 man-hours per liftDivide total man-hours per lift by metres per lift:
7.5 (man-hours per lift)15 (linear metres) = 0.5 man-hours per metre per lift
Labour Hours (Costs) Calculator
Calculate labour costs per unit or per hour based on gang productivity and man-hours for your chosen measurement type.
Comparing the Two Pricing Methods
Pricing Method Calculation basis Best For Price in Currency Per metre or per lift Projects needing quotes based on physical units. Price in Hours Man-hours for gang Projects requiring productivity-based estimates. Configuring SMART Estimator
Once you’ve calculated your base costs:
- Select the Pricing Method:
- Choose "Price in Currency" or "Price in Hours" in the software.
- Input the Calculated Rates:
- For "Price in Currency": Enter the cost per metre or per lift.
- For "Price in Hours": Enter the man-hours per metre or per lift.
- Fine-Tune Overhead Rates:
- Set wage on-costs and overheads in the Business Rates section of SMART Estimator to reflect your true costs.
Conclusion
Understanding and calculating labour costs is essential for accurate project estimation. Whether you use Price in Currency or Price in Hours, the key is to base your calculations on real-world productivity and wage data. With SMART Estimator configured correctly, you can produce fast, reliable quotes tailored to your business needs.
Try the calculators above to get started with your own projects!
