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Ria Elaine S. Gamboa

CE 5-F
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3.14 Labor Costs

The real challenge in pricing


construction work is determining
labor and equipment expenditures.
These are the categories of
construction expense that are
inherently variable and the most
difficult to estimate accurately.
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3.15 Indirect Labor Costs

Indirect labor costs are


those expenses that are
additions to the basic hourly
rates and that are paid by
the employer.
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3.16 Labor Unit Costs

A labor unit cost is the direct


labor expense per unit of
production of a work type. A
widely used alternative to this
procedure involves the use of
“labor unit costs”.
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3.17 The Cost of Heavy Equipment

Equipment costs, like those of


labor, are difficult to evaluate and
price with precision. Equipment
accounts for a substantial proportion
of the total construction expense of
most engineering projects but is less
signifi- cant for buildings.
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