Core Components
The Operations section controls the human resource side of your estimate – who’s doing the work, how much they cost, and how efficiently they work.
1. Labor Rate ($USD/hr)
This is the hourly wage you pay each worker (before markup).
Auto-Calculate vs Manual
- Auto mode: System calculates based on location
- Base rate: $40/hr (US) or $38/hr (Canada)
- Multiplied by location factor
- Example: California (1.21×) = $40 × 1.21 = $48/hr
- Example: Mississippi (0.84×) = $40 × 0.84 = $34/hr
- Range: $28-95/hr depending on location
- Manual mode: Override with your actual labor costs
- Use when you have union rates
- Use for prevailing wage jobs
- Use if your costs differ from regional average
2. Crew Size
Number of workers on site simultaneously.
Impact on Timeline
- More workers = Faster completion, shorter project duration
- Fewer workers = Longer duration, extended timeline
- Does NOT change total labor hours needed
- DOES change project days
Examples:
- 20 total hours with 4-person crew = 5 hours on-site (1.25 days)
- 20 total hours with 2-person crew = 10 hours on-site (2.5 days)
- Same cost, different timeline
Typical Crew Sizes:
- Small projects (<5,000 ft²): 2-3 workers
- Medium projects (5,000-20,000 ft²): 4-6 workers
- Large projects (>20,000 ft²): 6-12 workers
- Time-sensitive: Increase crew size
- Budget-conscious: Smaller crew OK if timeline flexible
3. Effective Rate ($/ft²)
This shows your calculated price per square foot after all factors.
How It’s Calculated:
Base Rate ($0.26/ft²) × Location × Type × Phase × Level
Example Calculation:
- Base: $0.26/ft²
- Location (California): × 1.21
- Type (Corporate): × 1.08
- Phase (1 phase): × 1.00
- Level (1 story): × 1.00
- Result: $0.26 × 1.21 × 1.08 = $0.340/ft²
This helps you quickly quote projects: “15,000 ft² × $0.340 = $5,100 base”
4. National Base (seed)
The foundation productivity rate before adjustments.
Base Productivity Rates (m²/hr per worker):
- Rough Clean: 160 m²/hr (1,722 ft²/hr)
- Final Clean: 90 m²/hr (969 ft²/hr)
- Fluff Clean: 120 m²/hr (1,292 ft²/hr)
What Affects Productivity:
Size Multipliers (economies of scale):
- <5,400 ft²: × 0.85 (slower – more detail per area)
- 5,400-21,500 ft²: × 0.95
- 21,500-54,000 ft²: × 1.00 (baseline)
- 54,000-161,000 ft²: × 1.08
- 161,000-430,000 ft²: × 1.18
- 430,000 ft²: × 1.28 (fastest – repetitive work)
Building Type Multipliers:
- Healthcare: × 0.70-0.80 (much slower – strict standards)
- Corporate: Standard (× 1.00)
- Warehouse: × 1.60-1.70 (much faster – open spaces)
- Retail: × 0.95 (slightly slower – display areas)
5. Special Labor Requirements
Davis-Bacon Prevailing Wage
- Federal projects requirement
- Must pay area’s “prevailing wage”
- Often 20-50% higher than market
- Auto-updates labor rate when enabled
- Check box triggers rate lookup
Union Requirements
- Union labor rates
- May include benefits calculation
- Often has minimum crew sizes
- Work hour restrictions
- Specific worker classifications
6. Time & Material (T&M) Section
Alternative pricing method that bills hourly instead of by square foot.
Bill Rate
What you charge the client per hour (includes markup):
- Auto-calculate: Labor rate × ~1.85 markup
- Example: $48 labor → $79 bill rate
- Covers overhead (20-25%) + profit (25-30%)
- Manual override: Set your own billing rate
Manual Hours Override
- Bypass all calculations
- Enter exact hours to bill
- Useful for:
- Matching competitor quotes
- Meeting budget constraints
- Known scope from experience
“Use T&M as Selected Bid”
- Makes hourly billing the primary quote
- Overrides construction/janitorial pricing
- Shows as: Hours × Bill Rate + Add-ons
- Example: 20 hrs × $79/hr = $1,580
Calculation Details Display
Shows all multipliers affecting your estimate:
Location Multiplier
- Example: “Location: 1.21×” (California premium)
- Affects both labor costs and productivity
Type Multiplier
- Example: “Type: 1.08×” (Corporate building)
- Adjusts for building complexity
Phase Multiplier
- Single phase: 1.00×
- Two phases: 1.15× (+15% coordination)
- Three phases: 1.30× (+30% coordination)
Level Multiplier
- Ground floor: 1.00×
- Each additional level: +3%
- Example: 5-story = 1.12× (4 × 3% = 12% premium)
Productivity Display (m²/hr)
Shows actual productivity after all adjustments:
- Rough: Base 160 × multipliers = final m²/hr
- Final: Base 90 × multipliers = final m²/hr
- Fluff: Base 120 × multipliers = final m²/hr
Real-World Examples
Small Office – Low Cost State
- Location: Alabama (0.89×)
- Labor Rate: $36/hr (auto)
- Crew Size: 3
- 5,000 ft², 1 phase Final
- Hours: 5.8 × 3 workers = 17.4 total
- Days on site: ~2 days
Large Hospital – High Cost State
- Location: California (1.21×)
- Labor Rate: $48/hr (auto)
- Crew Size: 8
- 100,000 ft², 3 phases
- Slower healthcare productivity
- Hours: 140 × 8 workers = 1,120 total
- Days on site: ~18 days
Warehouse – T&M Billing
- Location: Texas (1.00×)
- Manual T&M: $75/hr bill rate
- Crew Size: 6
- Skip calculations, bill 40 hours
- Total: 40 × $75 = $3,000
Operations Strategy Tips
- Crew Size Planning:
- Larger crew = Higher daily cost but fewer days
- Smaller crew = Lower daily cost but more days
- Consider client disruption tolerance
- Rate Setting:
- Auto-rates good for standard jobs
- Manual for special circumstances
- Always verify against local market
- T&M vs Construction:
- T&M better for uncertain scope
- Construction better for defined projects
- T&M removes area/type risk
- Productivity Adjustments:
- Healthcare/Lab: Plan for 30-40% slower
- Warehouse: Can be 60% faster
- Multi-story: Each floor adds complexity
The Operations section transforms your project specifications into actual labor requirements, converting square footage and phases into hours, workers, and costs.