Submitting a winning project bid is dependent on man-hours.Estimating and reporting hours is important to having a successful business because labor constitutes such a large portion of any contract work.
Step 1: You should divide your project into components.
The first thing you need to do is split the project into smaller components.Estimate the hours needed to complete each component.According to the type of labor involved, the components should be designated.You will need excavation, construction, electrical, plumbing, and so on if you are building an apartment complex.Every part of the project should be included in the estimate.
Step 2: Determine how many workers you need.
This is dependent on the complexity of the tasks that need to be accomplished.There is no need for a foreman to do every job.There are simpler tasks that can be done by assistants or apprentices.It is difficult for larger jobs that require a mix of labor to do tasks that range from simple to complex.
Step 3: Estimate how long it will take to complete each component.
It would take your workers a long time to complete a step from start to finish if you didn't estimate the total number of man-hours.Don't include breaks.It will take hours of dedicated labor to finish a step.If you know the type of work required in a step, you can draw from past projects to get time estimates.If you know that it took one worker ten hours to install four new windows, your current project will likely be the same.If a step in your project includes a type of labor you're not familiar with, you should do some research in preparing your estimate.Depending on the project, you may be able to get valuable information from another contractor.The type of labor you need can be hired by a consultant.The person can help you estimate the hours.Things like job difficulty should be taken into account when making an estimate.If your old project's windows were on the first story of a building, you should increase your hours-per-window rate to reflect that.Estimates for time spent on administrative tasks are required by the contract.
Step 4: There should be hours for supervisors.
You can include project hours for a foreman or manager, who will lead the team of workers and manage reporting details.Some projects require more than one supervisor or foreman.Other projects may need different levels of supervision.An overall supervisor who manages all of the foremen may be needed.
Step 5: Prepare a project timeline by using your estimates.
The time for completion of the project will likely be specified by your client.He might ask you how soon you can finish your work.The steps and hours you have calculated can be used to develop a project timeline.The input of one process depends upon the output of the previous process, so it's important to know which components can be completed simultaneously.If you know when the project needs to be completed, you can divide the number of hours needed into eight-hour workdays.Adding or removing laborers may be able to shorten the project timeline.The faster you can complete a step, the more labor you have.Some projects can take more than 40 hours a week to complete.They will require overtime which should be charged to the job, for example, if you have one month to lay the foundation of a new home, and you know it requires 1000 hours of labor, divide the number of eight-hour workdays in the month by 1000 to figure out how many50 hours per day is the average for 1000 project hours worked in a month.If you want to adjust the number of workdays required, round the laborers up or down.You need to be realistic about the number of workers you can hire.Depending on the availability of electricians in your area, you may not be able to complete wiring in a week.The availability of labor for your project may necessitate an extension of your timelines.If you plan to complete multiple steps at the same time, you'll need separate laborers to work on each step.
Step 6: Prepare and submit your bid.
You have a total for each type of labor if you add the hours for it.If you only need one type of labor, you can combine the hours into a single number.The total hours for each type of labor should be specified in your bid.All labor costs should be included.Minimum wage for each category of workers may be required by some Federal contracts.You should include any charges you plan to make.Imagine you were hired to install a new kitchen in a medium-sized home.Each step requires plumbing, electrical, and general construction work.The pay rates for each type of labor should be reflected in your bid.
Step 7: As the work progresses, adjust your man-hour estimates.
Updating your estimates is necessary because time estimates are just guesses.You should give your client updated hourly estimates as time passes since you will probably bill based on hours worked.When billing time rolls around, this helps prevent surprises for your client.Fudge factor is an increase in estimated time due to unknown causes.The fudge factor is determined by the complexity of the job, availability of labor, dependence upon outside agents, and the relationship of one process to another.Most contractors make it clear that their bid is only an estimate, that actual hours will vary, and that clients will pay as the job progresses.It is possible that a client will pay you a lump sum based on your estimate and not pay for actual hours worked.This kind of arrangement requires very careful estimation on the part of the contractor, so pay close attention to any contract language that would signal this.If your client will pay you based on actual hours worked, remember that your bid served as an estimate, and that you should not charge more than you planned unless you can justify it.In order to prevent miscommunication, keep the client informed if you run into problems and know you are going to go over your time estimates.A written agreement defines contingencies and out-of-scope work.The process for approving these changes should be included.
Step 8: You should collect information on your workers.
Everyone working on your project should have accurate employee files.All legally required documents will be included.You will need to keep on file proof of their active certifications if you are using engineers, electricians, or other licensed workers.It is required for most engineering and construction jobs.It is your responsibility to make sure everyone working for you is certified.People who aren't your employees may be paid to work on your project.Subcontractors work for you, the contractor, and you bill your client for their work.Even though you don't actually have employees, you should keep their certification information on file.Unless otherwise stated in the contract, you are responsible for ensuring that anyone you hire to work on a project is qualified.Compliance with federal law is indicated by additional employee and subcontractor information required by government contracts.This may include reporting on pay rates to make sure there is no discrimination on the job.If you have a government contract, read it carefully and follow all of the instructions for hiring and reporting in order to prevent difficulty in getting paid.
Step 9: Track their time.
If you want to submit accurate reports to your client, you need a reliable method of tracking how many hours your workers are on the job.A written time sheet or a time clock can be used, but they should be verified to make sure they are accurate.Depending on your contract, you may be required to prove the hours you submit are justified.Establishing supervisors over employee groups is one way to make sure time reporting is accurate.At the end of the week when an employee submits his or her timecard, the supervisor can review and sign it, certifying the information is correct.Employees will not be able to submit time cards for hours they did not work.An electronic timecard system could be used to track the work of your employees.The system needs to be controlled to prevent abuse.If your hourly reporting comes under question, you will want to be able to prove that.Government clients are required by law to gather all of this information before paying their contractors, because they are using taxpayer money to pay for the work.When reporting time on government jobs, you can expect more scrutiny.Follow all reporting instructions in your agreement.
Step 10: At regular intervals, send your client payroll reports.
In order to receive payment, your contract should specify how often you are to report man-hours to your client.You will likely transfer information from your payroll and timekeeping documents to a dedicated report for your client when you submit these reports.If there are large discrepancies between your estimates and actual hours, you will need to explain them to your client.
Step 11: Future estimates can be prepared by using your records.
At the end of a project, you will be able to see how long it took to complete certain jobs.You can use this data to create hourly estimates, such as the number of hours per square foot of laid tile or the down time after laying fresh cement.Keep your business profitable by using this information.