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How is Labor Calculated

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Contractor Foreman makes it easy to add your estimated labor amounts as well as track labor and calculate your costs.


When creating an estimate, add a Labor item to your Estimate (or Schedule of Values) and associate the appropriate cost code to it. In order for labor to be calculated correctly, make sure to enter it as an hourly rate and not as a lumpsum rate.

Item Type: Labor
Item Name: Framing
Cost Code: 0100 – Rough Framing
QTY: 14
Unit: Hours
Price: $75

Using the example above, our estimated labor for cost code “0100 – Rough Framing” will be 14*75=$1050.

NOTE: Currently the rate is taken from the hour rate associated with the cost code. In an upcoming update, the option will be provided to calculate the rate based on the Employees wage, billing rate, or burden rate.

Tracking Labor

Contractor Foreman provides several different time card solutions that your team can use to easily track the time spent on a project and performing each task. The key to correct labor tracking is making sure that your crew selects the correct Project and the correct Cost Code each time they they clock in.

Time Card: 17 Hours
Cost Code: 0100 – Rough Framing

Using the example above, our committed labor for cost code “0100 – Rough Framing” will be 17*75=$1275.

Calculating Labor Cost

When you correctly setup your labor items in your Estimate (or SOV) and when your crew correctly selects the project and cost code while performing work, the labor costs will be quickly available in the Financial tab of the project as well as in the Labor reports.

In the report, it will show an over/under of $1050 – $1275= ($225). So here, we underestimated and over spent.

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