Cost of labour
Labour costs may have been calculated by the estimator by breaking the components down into separate labour and materials costs. In some cases quotes are given for labour only or materials only, while other quotes include both labour and materials together.
The labour cost component is worked out with reference to industry manuals such as Cordell's or Rawlinsons which provide cost estimates for reference.
A sub-contractor can quote for labour on an hourly basis (eg $60 per hour) for a particular job without specifying the time to complete the job. This charge covers the overheads and profit in running their business.
Alternatively, labour can be quoted as part of the cost of construction. In this type of quote, labour can be quoted in three different ways:
Note that these are quotes for labour only. Materials are not included.
Per unit (each), eg installation of doors is usually quoted per unit
Per lineal metre, eg the cost of building walls to a specified height such as 2400 mm may be quoted per lineal metre of wall length
Per square metre, eg the cost of building walls may be quoted on the floor area in square metres
The way in which labour is quoted depends on the nature of the job and the type of sub-contractor who is quoting.