NOTE-- We retired the BidMagic construction
estimating software program in 2001. It has been replaced by
Goldenseal construction
estimating software.
We still include this BidMagic estimating software
program manual as a convenience for users of our older program. Many features are similar, in Goldenseal estimating.
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The BidMagic construction estimating software program uses two different hourly wage rates to figure the cost of
labor--one for an average skilled worker, and one for an average unskilled worker.
NOTE: The wage rates are multiplied by the skilled and unskilled
labor figures in the Price Book to calculate the labor cost for each construction item.
Because of taxes
and benefits, labor costs more than what you (or your subcontractors) pay directly to employees.
To handle the extra costs, the two wage rates must include burden as well as the gross wage rate.
Burden includes social security, unemployment insurance, worker's compensation, fringe benefits, and
any other costs that are paid on top of labor.
Figuring Net Labor Costs Directly
If you have already figured the burden percentage in your
business, enter the net cost of labor directly. To do so, turn off the Use Burden Calculator button.
You
can then enter the net hourly cost of labor with the nudge buttons or by typing numbers directly
into the fields. To calculate the cost of labor, follow these steps:
- Start with the actual hourly
wage rate of an 'average' carpenter or other skilled worker.
Use the wage rate for a reasonably experienced skilled worker. HINTS: If you have a
large crew of employees, take the average wage rate of the best-paid two-thirds of your company. If you
have only a few employees,
use the wage rate for the employee who typifies the 'average' skilled
worker. If you subcontract all of your work, use the average carpenter's wage rate that your subcontractors
pay. You may need to adjust the wage rate slightly if your workers are more or less experienced than
average.
- Add
the cost per hour for social security taxes, unemployment insurance, worker's compensation,
paid holidays, paid vacations, and any other payroll taxes or benefits.
- Enter the final skilled wage rate
into the Net Hourly Cost of Skilled Labor field.
- For unskilled labor, perform the same calculation, only use
the cost of an 'average' laborer
or other unskilled worker. HINT: If you have a large crew of employees, take the average
wage rate of the lowest-paid one-third of your company. If you have only a few employees, use the wage
rate for the
employee who typifies the 'average' unskilled
worker. If your unskilled work is normally done by skilled workers, enter the same wage rate that you used
for skilled labor. If you subcontract all your work, use the average laborer's wage rate that your
subcontractors pay. You may need to adjust the wage rate slightly if your workers are more or less
experienced than average.
- Enter the final unskilled wage rate into the Net Hourly Cost of Unskilled Labor field.
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