Smart Contractor

How Do I... Use Multiple Labor Rates


When you estimate labor costs for a job item, you may want to assign multiple employees to the job item. In that case, the total estimated labor cost will be the sum of each employee's labor rate.  

You can add up the hourly cost rate for each employee and enter that in the prompt for Labor Rate in the Edit Job Estimate form.

Or, you can let the program calculate it automatically.

To do that, you must:

  1. Enter employees in the Employee entry form,
  2. Assign a labor cost rate to each employee. (Click Add next to the prompt for Labor Cost Rate  in the Employee entry form to add labor cost rates. This will display the Labor Cost Rate form.)
  3. In the Edit Job Estimate form, check the Schedule Item prompt, then... 
  4. Select employees to be assigned to the item in the prompt for Resource.

When you do, the prompt for Labor Rate in the Edit Job Estimate form will display the total estimated labor cost (per hour) for all of the employees that you select in the prompt for Resource.

The Total Labor amount is computed as Labor Rate * Total Hours / (number of employees selected in prompt for Resource). For example, if you assign 2 employees to do a job that is estimated to take 10 hours, the program assumes that the work will be completed in 5 hours (10 hours / 2 employees). So, Total Labor = Labor Rate * 5 hours.

Note that this labor rate will be replaced by the rate selected in the prompt for Prev. Wage Rate if the job is a Prevailing Wage Job. See How Do I... Use Prevailing Wage Rates? for more information.