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ABB222 (completed)
Labour
| Question | Answer |
|---|---|
| Labour 1 | Workers who perform the construction |
| Labour 2 | Generally paid wages according to an award |
| Labour 3 | Excludes indirect and overhead personnel paid by an annual salary: • Engineers • Supervisors • Admin/clerical • Safety personnel • Environmental personnel • Quality officers |
| Labour – Who? (1) | - Tradespeople • Carpenters • Mechanical Fitters • Welders/boilermakers • Electricians • Plumbers |
| Labour – Who? (2) | - Semi-skilled • Experienced labourers - Un-skilled • Entry level labourers |
| Labour – Who? (3) | - Skilled workers • Plant operators • Steel fixers • Concrete finishers • Formworkers • Pipe layers • Riggers |
| Labour Constants 1 | • Labour constants - “how much work someone can do in how much time” • The labour component of construction tasks is often expressed as a labour constant. |
| Labour Constants 2 | • The components that make up a labour constant include the preparation, access, work, clean up, lost time, mistakes and no further allowances for these matters is made |
| Labour Constants 3 | - Sources of information for Labour Constants are: • Text books • Company records • Personal observations • Discussions with colleagues • Industry publications |
| Labour Constants 4 | • These are “averages” for different types of work, initially taken from published figures, but corrected over time by each company as experience is gained. • They are based on productivity rates |
| Actual Cost of Labour 1 | • Generally the construction industry operates under awards established by industrial courts. • These are published and amendments are regularly gazetted |
| Actual Cost of Labour 2 | • Increasingly the award is used as a base off which enterprise agreements are negotiated. • The process of determining the rates of pay for employees in Australia is formalised |
| Actual Cost of Labour 3 | • Of recent years direct bargaining procedures have been introduced, but the resulting agreement is still subject to vetting by a formal Government authority. • The bulk of awards are still established by the process shown in next slide |
| Labour Oncosts and Loadings | In addition to the wages paid directly to the employees, there are numerous costs that an Employer has to pay which result from statutory regulations and from commercial reality |
| Labour Oncosts and Loadings - Worker’s Compensation | a compulsory insurance to provide for injury to employees |
| Labour Oncosts and Loadings - Payroll Tax | a Government tax applied to the total paid to employees |
| Labour Oncosts and Loadings - Annual Leave | Four weeks paid leave per year |
| Labour Oncosts and Loadings - Annual Leave Loading | 17.5% added to the wages paid during annual leave to ensure that the recipient is better paid when not working than when working |
| Labour Oncosts and Loadings - Statutory Holidays | 10 days of paid holiday per year |
| Labour Oncosts and Loadings - Sick Leave | entitlement to 10 days paid leave per year |
| Labour Oncosts and Loadings - Rostered Day Off | one paid day off in each 28 calendar days |
| Labour Oncosts and Loadings - Superannuation (BUSSQ) | an amount paid by the employer to provide insurance benefits in the long term. It is transferable as the employee moves about the industry |
| Labour Oncosts and Loadings - Wet Weather | an allowance made by the employer to cover periods of inclement weather when the employee is paid but unable to work. The allowance made in an estimate varies from employer to employer on the basis of his experiences and the sensitivity of the work |
| Labour Oncosts and Loadings - Lost Time | an allowance for various periods during the pay hours when work is not performed due to award provisions (smoko, cleaning up, sharpening tools) and to other vagaries common to the industry |
| Actual Costs of Labour - Redundancy (BERT) | an amount paid by the employer to provide for redundancy payments at the end of a project |
| Actual Costs of Labour - General Overheads | expenses of running an organisation that are independent of the amount of work done |
| Actual Costs of Labour - The following sources of Award Information provided information on State and Federal Awards: | • Queensland Chamber of Commerce & Industry • QMBA – Queensland Master Builders Association • Other Trader Associations ie. Metal Trade Industry Association • Consultants • Government (fairwork) |
| Actual Costs of Labour | • Each company has its own allowances for the variables (say wet weather), but the allowances nominated in the example are typical. • Refer EBA / Award Labour calc sheets |
| How to Estimate Labour | • Calculate the cost of one hour of productive work for a typical worker = hourly rate • Include in the hourly rate for the on-costs • Calculate the number of hours at the workface for each estimate item • Labour cost for the item = rate x hours |
| How to Estimate Labour - Benefits | • Superannuation • Redundancy • Portable long service leave • Income protection insurance • Workers compensation insurance |
| How to Estimate Labour - | Tax |
| Estimator’s Role: Unproductive Time - Determine all requirements which can affect unproductive time: | • safety, refuelling locations, camp site (generally determined with local council), client mandates |
| Estimator’s Role: Unproductive Time - Conceive site set up to minimise unproductive time. eg: | • Where work starts • Conditions of road and hence travel speed • Type of vehicles workers moved in – e.g. a bus with 6 drop off points may be too slow • Number of and location of facilities |
| Estimator’s Role: Unproductive Time - Calculate unproductive time and factor into... | rate |
| Labour Related Costs Generally Not Included in Labour Rate 1 | • Accommodation • Medical examinations • Mobilisation and demobilisation • Travel fares (unless covered by allowance) • Inductions • Training |
| Labour Related Costs Generally Not Included in Labour Rate 2 | • PPE • Drug and alcohol testing • Inclement weather (it depends) • They may not be in the labour rate, but they are real costs and have to be included somewhere • We’ll deal with these in indirect costs estimate |
| Licencing is important - The law says building work is (1): | (a) the erection or construction of a building; or (b) the renovation, alteration, extension, improvement or repair of a building; or |
| Licencing is important - The law says building work is (2): | (c) the provision of lighting, heating, ventilation, air conditioning, water supply, sewerage or drainage in connection with a building; or |
| Licencing is important - The law says building work is (3): | (e) any site work (including the construction of retaining structures) related to work of a kind referred to above |
| Licencing is important - When estimating, make sure: | ▪ Your company has the right licence ▪ Those who you propose to use have the right licences |
| Licencing is important - When estimating, make sure: | IT IS THE JOB OF AN ESTIMATOR TO INCLUDE FOR THE RIGHT PEOPLE AND SUBBIES |
| Labour: the hours - Construction equipment => Operators and attendants for | ▪ Dozers, excavators, trucks, compactors, graders, cranes, piling rigs ▪ Productivity governed by plant they operate |
| Labour: the hours - Construction equipment => Cost still subject to unproductive time | ▪ Labour unproductive time ▪ Equip unproductive – breakdowns, re-fueling |
| Labour: the hours - Construction equipment => Operator skill also has an impact: | ▪ Excavator bucket fill factor ▪ Truck fill factor, travel speed |
| Labour: the hours - Trade skilled work 1 | ▪ Concrete work –form, reo, pour ▪ Pipe laying ▪ Mechanical installation ▪ Electrical |
| Labour: the hours - Trade skilled work 2 | ▪ Quantities – take-off done ▪ Workers to complete those quantities ▪ How many in crew ▪ What skills mix ▪ How long to complete the task ▪ Cross check with historical proven metrics |
| Labour: the hours - Support workers | ▪ Bus drivers ▪ Surveyor’s assistant – chain man ▪ Cleaners ▪ Site delivery truck ▪ Site runabout – Nipper ▪ Stores - Estimated in indirects - Construction duration based |
| Labour Gang Rate - Calculation of Labour Costs - Labour Gang Costs 1 | • A gang of labour with different skills • To optimize the cost and productivity • In the initial calculation of the rates, each category of labour is developed separately. |
| Labour Gang Rate - Calculation of Labour Costs - Labour Gang Costs 2 | • Gang rate: Sum of the wage rates of the labour in the gang. • A weighted average rate is used for all tasks |
Created by:
Asher - S