The Golden State: Where & How to Live, Secure, Visit, Enjoy and Thrive in California
Plumbing Heating And Piping
The foreman will receive 25 cents in addition to the base rate. Travel pay will be assumed to be $2 per day. Circumstances are such that it will be necessary to work 1 hr overtime each day in order to secure men. Overtime will be paid at double-time rate. The calculation of the average hourly rate on a daily basis is as follows:
5 mechanics @ 8 hr = 40 hr @ $3.00 per hr = $120.00
5 mechanics @ 1 hr = 5 hr @ 6.00 per hr = 30.00
1 foreman @ 8 hr = 8 hr @ 3.25 per hr = 26.00
1 foreman @ 1 hr = 1 hr @ 6.50 per hr = 6.50
Travel time 6 men @ 2.00 per day = 12.00
Total cost per day $194.50
It will be noted that there are only 45 productive hours included in this example; therefore, by dividing the total cost for the day by the productive hours, the average cost per hour is obtained:
Total cost per day _ $194.50 =$4.32
Productive hours 45
This is the estimated average cost per man-hour, $4.32, and should be used in column 7 instead of $3 given as the scale or base rate.
In this regard, it is interesting to compare the average rate as obtained above, S4.32 per hour, with the like figure obtained in the example given in the explanation of the Plumbing Bid Summary, which was S4.15. Reflection on the reasons for this difference will indicate the advantages of proper utilization of supervision. It will be noted in the example used to explain average rate in the plumbing section of the text that where 20 mechanics were used the supervision required was 2 foremen and 1 general foreman. This larger supervisory force can on a large job increase the total cost of supervision to a figure which may appear to be prohibitive. However, consideration must be given to the additional number of mechanics which can be employed if work areas and circumstances permit. A proper balance of working crew to supervision and other costs, such as travel pay, overtime, etc., is of great importance in producing a moderate or sensible average hourly rate. The job superintendent should, by all means, be advised of the crew balance used to determine the average hourly rate so that he can man the job in a manner which will be consistent with the estimate.
5.9. Labor Amount—Column 8
The labor amount is determined by direct multiplication of the number of man-hours for any one item by the average hourly rate determined as shown in Art. 5.8 for that particular item. In some instances, only one average rate may be used throughout the job. However, this should be carefully considered in the light of possible variation in crew strength.
