All-In Labour Rate Build-Up - Estimating
All-In Labour Rate Build-Up - Estimating
All-In Labour Rate Build-Up - Estimating
The all-in labour rate is purely an estimating parameter and is not something that is
measured during actual execution. Total construction cost could be collected from historical
projects and very rarely the corresponding total direct labour hours could also be found
from historical project close-out reports. Because of this, most companies have very li le
data on all-in labour rates and generally only 1 or 2 data points for any specific country /
region. The estimators end up making judgements as to the best possible all-in rate to use.
For presenting to the client, the backup to the scarce historical data is generally left out
mentioning the confidentiality of the information. Some benchmarks are provided, but it
always remains a bit vague as to what the historical all-in labour rate included or excluded.
In any typical major onshore oil & gas project, there is generally a mix of local and
international labour. The mix can considerably vary depending on the type of project and
available skills in the local labour force. I have presented probable working for both local
and international contractor in the a ached example file, showing the possible differences.
Also the all-in labour rate will vary between different disciplines – civils, piping, electrical,
mechanical etc. The a ached working is for a typical average all-in labour rate for a
country with an average labour cost. The percentages presented are anecdotal and to be
used as guidance only.
This working is suitable to present as a backup to the all-in labour rate used in any estimate
and clearly tabulates all the elements included in the rate. This also helps the team to
understand what might not be part of the all-in rate and might need additional handling in
the overall estimate.
This tabulation, along with any historical data that can be obtained, will help to make the
estimates more transparent and generate confidence in the estimates produced.
Labour Estimate all-in labour rate, Free estimating resource, Labour Estimate,
Labour rate, labour rate build-up
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VIKAS KHAITAN
April 21, 2019 / 09:34
Hello Robert, glad to know that you could use the blog. Hope you have adjusted the
example working for your specific project
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