4: Cost of Construction Labor and Equipment

Construction labor

influences all parts of a project

labor, materials, equipment

Cost estimation includes?

Detailed estimates

require design availability

Published Price Books

Previous Project BOQ

In-house Cost Models

Sources of Cost Information

Published Price Books

standard costs for labor and materials

Previous Project BOQ

reference past projects

In-House Cost Models

company-specific data and analysis

30-60%

Labor cost can be ____ of project cost

qty of work / time

Productivity formula

experience

job complexity

supervision

Factors affecting productivity

work hours x wage rate

Labor costs formula

wages, taxes, insurance, benefits

Labor Costs include?

specific-use

general-use

Equipment is classified as?

specific-use

only for certain tasks

general-use

can be used in multiple tasks

cost and efficiency

Equipment selection impacts ____ and _____.

Site conditions

Nature of work

Equipment characteristics

Factors Influencing Equipment Selection

Site conditions

soil type, layout, access

Nature of work

payload, work volume, schedule

Equipment characteristics

capacity, versatility, cost

Renting

flexibility, lower maintenance, access to the latest tech

Purchasing

long-term cost savings, full control over use

usage frequency and project needs

The decision depends on?

ownership

operating

Costs include?

ownership

purchase, depreciation

operating

fuel, maintenance

Straight-line

Sum-of-years digits

Sinking fund

Depreciation methods