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We would like to be able to hit projects at a set rate, either by individual employee or by pay class. Currently, we calculate all of our indirect costs and average those out by the number of hours worked by each employee. Then we add a payroll burden (as a % per hour) to each employee, that then nets with the indirect area on our income statement. For instance, we want our carpenter, who we pay $35/hr direct wages to hit our jobs at $65/hr since we have $30/hr in additional costs for each hour the carpenter works. This covers vehicle insurance, fuel & repairs, retirement match, w/c and g/l insurance, etc. The problem we are having is that every time we have a change in w/c or g/l rate, or when FUTA and SUTA reach their limits, then the cost per hour hitting the job changes. Since we use $65/hr when we are estimating, that is really what we need to hit our jobs at. The fluctuations caused throughout the year, make our jobs either perform better or worse...instead of just accurately and it's become very frustrating for our Project Managers. Especially when they thought they did well on carpentry work, when in fact our labor rate got off a couple dollars per hour....so they really didn't pick up $5,000 in carpentry labor.
Jordan Davidson
| Company | Keymark Development Inc. |
| Job Title / Role | Controller |
| I need it... | Yesterday...Come on already |
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