The Golden State: Where & How to Live, Secure, Visit, Enjoy and Thrive in California

Plumbing Heating And Piping

By assigning a number to each phase of the work and requiring the foreman to use this number to classify the labor expended, it is possible to accumulate the actual man-hours each phase of the work consumed.

Over a period of time, a very good cost history can be accumulated.

In the same manner, by dividing the estimate into its component material costs and assigning a number to each component it is possible to determine the actual cost of material used for each component. It will be noted that the bid summary for both plumbing and for heating and piping is made up by using such a division into components. Material and labor charges will have to be accumulated as they come in from the field and kept current; otherwise, part of their usefulness is lost.

Errors and omissions will glaringly stand out when these costs are compared with the estimate. By reviewing labor costs weekly or monthly it is possible to spot items that are exceeding the estimated labor and material, and steps can be taken to lessen the overrun.

By using these cost records it is also possible to obtain a more accurate picture of the amount of work performed and percentage of completion. This aids in making up the usual monthly requests for payment.

These records will be as accurate as the field men make them, i.e., if they guess the amount of time spent on each phase of the work, errors will creep in unknowingly. This is one reason why it is important to insist that daily time cards be made out promptly and forwarded to the office.