manhour rates

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mannyb

Senior Member
Location
Florida
Occupation
Electrician
as EC do you change your labor rates depending on what type work you ar bidding. I would guess it depends on company and the type of projects they can handle. You wouldnt hire an industrial company to do residential or vise versa. So is it safe to say some shops dhange their labor rate to be more competative in their bids?
 

Coppersmith

Senior Member
Location
Tampa, FL, USA
Occupation
Electrical Contractor
I calculated what my hourly rate needs to be to cover all my expenses and my desired hourly profit. That is the rate I charge for all jobs. If I really, really want a job that I don't think I'm competitive on, I will take less profit per hour, but only a little less. If I don't make profit on the job, it doesn't make sense to do it.

I charge flat rates, so the hourly rate is used internally and never given to the client.

If your company has more than one division and each division has different expenses, then each division can charge a different rate. For example, my service truck division is more expensive to operate than my gangbox job division. Therefore each charges a different rate. Note that divisions don't have to be physical. They can be on paper i.e. just how you classify and pay for jobs.
 
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cdslotz

Senior Member
In commercial it's the average rate...You have a shop rate, which is the average of the highest to the lowest paid electrician. That applies to most smaller, less difficult, risky jobs. Then you can look at difficult jobs and actually build a crew for that job which may require mostly Jmen and fewer helpers, and use the average of those
Commercial service is different....resi is different
 

brantmacga

Señor Member
Location
Georgia
Occupation
Former Child
I don't use a straight average rate, so yes, it will change based on the job.

For example, I have 5 separate pay rate classes for bidding purposes; top tier j-man down to helper. This is excluding any PM/Superintendent rates.

A job that is going to be mostly running pipe & pulling wire is going to take more of the higher wage labor pool than a job that is mostly digging ditches and dropping PVC in the ground. I divide up the labor hours for each phase of the job amongst the different labor wage pools that I will need to staff the job for each particular phase.

For small jobs, this isn't going to matter much, but for jobs that are a couple thousand hours and up, it can really affect your price. Not all jobs are going to use someone from each labor class either. The small stuff where its a 3-4 week project with 2-3 guys, only their labor wage class will be used in bidding. Well, that and the hours that are moved to the pre-fab shop for making their assemblies here in-house.
 

jaylectricity

Senior Member
Location
Massachusetts
Occupation
licensed journeyman electrician
I work about 99% time and material. My rate is the same for everything except service work. And that's mostly because if I did that time and material I would be nowhere near market value. The other reason is it's an easy thing to estimate and most people understand that on some level.

I charge my usual rate to clean up. Some people need you to leave their house as clean as you found it. And I get it. Others are willing to let you just make a mess that they'll clean up if it saves them money. And other times it's a time thing. The decision is made to keep me doing things they cannot do, i.e. electrical wiring. That includes general contractors. I tell them I can clean up or I can get more electrical work done today and almost always they would rather I get more electrical work done today.
 
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