# Labor Rates when Bidding work



## jwjrw (Jan 14, 2010)

I have one normal rate for residential work and both residential and commercial work. I use a different rate for larger commercial projects. Smaller projects it stays the same.


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## erics37 (May 7, 2009)

Our shop uses our typical service call rate for small 1-day-or-less project estimates. For bid jobs usually there's a lower rate. If it's for a GC that we work with often they usually get a bit of a better deal because any kinks in the payment stream have usually been worked out in the past.


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## MarkyMark (Jan 31, 2009)

Our labor rate for commercial bid jobs is basically the average burden for an employee - wages plus any associated benefits, taxes, insurance, unemployment, etc. Overhead and profit are figured in at the end as a percentage. This is how most commercial bidding programs are set up to work.

Your accountant can probably help you figure out the numbers you need.


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## tgreen (Sep 14, 2010)

unless you just bidding small stuff dont use a T&M labor rate. if you are seriously bidding commerical work you will need to determine a couple of things. 
the first is your composit labor rate. this is found by determining the actual cost of your labor for each position on the job. this is the wage+benefits+insurance+taxes this will give you your total burden for your labor. these additional costs can be suprisingly large if you have never looked at it, and if you pay bennies to your workers. you need to dertermine this cost for your foreman, journeyman and apprentice labor. 
the next thing is to decide your crew make up, how many foreman, JW, and app. combine your labor costs then devide to find your average labor cost, or your "composit" labor. 
you will also want to determine what your true overhead cost is. this is the cost to run your office. including vehicals, insurance, utilities, accounting, ETC. 
then all you got left is profit. the part we all like, and hope is left when we get finished with the work. 

tracy


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