Labour Rates.txt
Mods: 21:24 2018-08-30
Mods: 22:28 2017-07-06
Mods: 15:23 2017-04-25

1. Put neither Overhead, nor burden, nor Profit Burden on labor.
	It will not work!
	Don't play games with the numbers.

Charge Out is hourly Rate times 2.60	(income)
	      'Labor Burden' is 1.48	(an EXPENSE)

( just remember: Charge out is INCOME.  Burden is EXPENDITURE)

So for a $20, $22 or $25 per hr employee:
	You charge work out at:
		20 x 2.6 or $52.00 per hour
		22 x 2.6 or $57.20 per hour
		25 x 2.6 or $65.00 per hour
		30 x 2.6 or $78.00 per hour
 or,

Better yet:
Labor Burden is:
	20 x 1.48 or 29.6 per hour
	25 x 1.50 or 37.0 per hour

	20 x 1.50 or 30.0 per hour (1.50 is FSS multiplier)
	22 x 1.50 or 33.0 per hour
	25 x 1.50 or 37.0 per hour
	30 x 1.50 or 45.0 per hour

	 (this would be the number that you put on your estimate sheet)
So,
Total Labor Cost for an 8 hr job for one $20 per hour employee is
	29.6 x 8 or $236.80 per day
	37.0 x 8 or $296.00 per day.
And so,
 to the above you add the correct markup, 1.50

i.e. 
	236.80 * 1.50 = $355.20
	296.00 * 1.50 = $444.00

This is the TOTAL price to quote to the Customer/Client.
       (NOT an hourly rate!)

Per Hour
        Employee Pay:	$20.00	$25.00
  Plus Labor Burden:	$29.60	$37.00
          Plus MarkUp:	$44.40	$55.50

IN FSS Multiplier on the Labour Rate Sheets, I use:
	 1.50 * 1.75 = 2.625
       i.e.  FSS Multiplier=Burden x MarkUp

so:	     $20 pay = $52.5  and
	     $25 pay = 65.625
DAVIS BACON I use 3.2 however that may be wrong.

Note:
2. if you disclose your rate per hour, which you should never do, 
   you are setting yourself up for a fight near the end of the job when they decide
   you are charging too much for your work.

3. When you put your overhead burden on labor, 
   your overhead is dependent on every employee working every day. 
   If someone misses work, the overhead expense is still incurred, 
   but the opportunity to recover overhead for that day is gone.
   Overhead is a 24 hours a day, seven days a week, 52 weeks a year monster.
   It doesn’t stop because somebody doesn’t show up for work.

so ...

4. Instead use a flat markup; it provides the overhead dollars,
	regardless of who shows up for work.
	Jobs will get done, you get paid, and
	 no fights at the end of the job about your labour rate.

Arun
Ref: US bureau of Statistics

Definition:
Burden rate is defined as the total indirect contract costs,
 calculated as a percentage of the construction company's direct labor. 
In other words, for every dollar of direct labor allocated to a contract,
 burden is applied as a percentage of the direct labor. 
But before a contactor can accurately calculate burden rate,
 all contract costs assumed by the company must be fully accounted for
 and factored into the final burden rate equation.

Indirect contract costs that should be part of the final burden rate calculation include: 
	•Workers' compensation 
	•General liability and automobile insurances 
	•Motor vehicle and equipment repairs and maintenance 
	•Depreciation
	•Field communications expenses 
	•Employee benefits such as health, life, disability, profit sharing, bonuses and 401(k) match 
	•Payroll taxes 
	•FICA

The National Labor Relations Act says that employers cannot prevent employees 
from discussing wages and working conditions among themselves. 
The idea is that employees need to be free to organize, 
and preventing them from discussing these topics would prevent them from organizing.
Arun 2014-10-08