Labor burden rate – Ensure bids account for this critical metric

Description

Abstract: The construction industry may be transforming itself technologically, but projects still depend on boots on the ground to get the job done. That’s why contractors need to maintain a constant awareness of how much they’re paying for labor and what effect that has on profitability. This article discusses how to calculate labor burden rate, a key indirect cost. A sidebar looks at another type of burden rate that tracks inventory costs.