*Como Hacer Un Presupuesto. Video - youtube 2*

*Como Hacer Un Presupuesto*

Calculate Indirect Labor

How to Calculate Indirect Labor in Construction. 

Calculating indirect labor costs in construction involves identifying and quantifying labor expenses that are not directly related to specific construction tasks, but are necessary for the overall project. 

Here is a breakdown of the process:

  

Identify indirect labor costs:

1. Administrative staff: Calculate the salaries of project managers, supervisors, administrative assistants, and other office staff involved in overseeing the project.

   

2. Support staff: Includes salaries of support staff such as cleaning crews, security, and maintenance workers who indirectly contribute to the operation of that project.

   

3. Security personnel: Consider the costs associated with security officers, training, and equipment necessary to maintain a safe work environment.

   

4. Quality control/assurance: Account for expenses related to quality inspectors and material testing to ensure compliance with standards.

   

5. Equipment operators. If your work is not directly tied to a specific task, but supports the overall operations of the project, include your costs.

Calculate indirect labor costs:

Once you have identified these indirect labor components, calculate your costs:

1. Hourly rates or wages: Determine the hourly rates or wages for each category of indirect labor. Consult your Company's accountant.

   

2. Hours Worked: Calculate or track the number of hours each category of indirect labor contributes to the project.

   

3. Multiply Hours by Rates: Multiply the hours worked by the hourly rate or salary of each category to obtain their respective labor costs.

   

4. Sum of indirect labor costs: Add all the costs calculated for administrative, support, security, quality control and equipment operators to find the total indirect labor cost for the project. 

Example of calculation, with values to adjust according to the region or country:

• - Project Manager: $50/hour, working 40 hours/week
• - Security officer: $30/hour, working 20 hours/week
• - Administrative Assistant: $20/hour, working 40 hours/week
• - Quality Control Inspector: $40/hour, working 30 hours/week
• - Support staff: $15/hour each, working 80 hours/week together
• - Equipment operator: $25/hour, working 50 hours/week

Multiply the hourly rates by the hours worked for each category and add the costs to obtain the total indirect labor cost for the construction project.

Formula for total indirect labor cost:

Total indirect labor cost = (Cost of project manager) + (Cost of security officer) + (Cost of administrative assistant) + (Cost of quality control) + (Cost of support staff) + (Cost of equipment operator)

This calculation provides a comprehensive view of the indirect labor expenses we will have during a construction project. Adjustments can be made based on specific project needs and additional indirect labor categories.