Define the labor basis

Start with the exact takeoff unit. State which direct and support activities the rate includes.

Name the reviewed source of the base rate. For labor productivity assumptions, use this related guide as context while keeping the current project documents in control.

Match rates to units

Keep hours per unit distinct from units per hour. Test every measurement conversion with a simple example. Use the same drawing revision as material pricing.

Describe crew and method

List crew roles when composition affects output. Describe equipment, handling, and sequence assumptions.

Separate productivity from wage pricing. When reviewing labor productivity assumptions, consult AACE International for cost-engineering context, then apply it through the contractor’s own standards.

Review fields for labor productivity assumptions
FieldRecordDecision check
Work item and unitRecord the work item and unit used for labor productivity assumptions.Confirm the entry against its cited source and assigned reviewer.
Base rate sourceRecord the base rate source used for labor productivity assumptions.Confirm the entry against its cited source and assigned reviewer.
Crew compositionRecord the crew composition used for labor productivity assumptions.Confirm the entry against its cited source and assigned reviewer.
Condition adjustmentRecord the condition adjustment used for labor productivity assumptions.Confirm the entry against its cited source and assigned reviewer.
Approved hoursRecord the approved hours used for labor productivity assumptions.Confirm the entry against its cited source and assigned reviewer.

Adjust named conditions

Identify access, height, congestion, and shift restrictions. Apply factors only to affected work. Avoid stacking factors for the same condition.

Review calculated hours

Compare hours with crew duration and schedule. Review the largest drivers with a knowledgeable lead.

Carry the approved labor basis into handoff. For recurring labor productivity assumptions records, an estimating support role can maintain inputs while final approval stays with the contractor.

Frequently asked questions

What belongs in a productivity assumption?

Identify the unit, rate direction, crew, included work, source, and conditions.

How does it differ from a wage rate?

Productivity creates hours, while wage rates convert those hours into cost.

When is a condition factor appropriate?

Use one for a named project condition that differs from the base method.

How are hours checked?

Compare them with crew size, duration, schedule windows, and reviewed history.

Cost Estimating & PricingConstruction EstimatingCost Support