Labor Rate

Labor Rate

The labor rate is the direct labor cost associated with a piece of equipment, plant material or fill material. The labor rate of a custom line style, pipe or wire should be entered per linear foot or meter. The total length of these items will be calculated in the Material/Estimate and multiplied by the labor rate per foot or meter to determine the total direct labor installation cost.

If you enter a labor rate for each database item, it is not necessary to enter a direct labor value on the Project Information tab in the Material/Estimate Configuration dialog box. If you enter a value for direct labor in this dialog box, it will override the direct labor calculated for each piece of equipment or material based on the database settings.

Direct labor is defined as labor costs paid to employees of the business. Contract labor is defined as labor costs paid to subcontractors hired to perform a portion of the installation.

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