Labor Costs
Labor costs are compiled and updated at regular intervals utilizing surveys, internal and external market participant feedback, government data, and third-party vendor data. Labor rates are an average (predominant) hourly rate for each respective trade or where applicable, a blend of trades that comprises a trade crew.
Separation of labor in renovation and insurance repair work is more complex than the separation of labor on large commercial construction or residential replacement projects. On a typical repair or renovation job, a carpenter or other tradeperson may participate in other activities such as material removal, framing of walls or setting doors. It is also important to note that material removal may be selective, potentially requiring a more skilled worker to ensure that additional damage is not incurred to adjacent materials.
For this reason, the Cotality Estimate™ Action selections commonly allow for "Removal" or "Tear Out" options, respectively. These options allow estimators to select the appropriate action when creating an estimate.
Contractors may elect to have skilled workers participate in all phases of construction. These realities are reflected in the labor costs used in the Cotality Claims Construction Cost Database. Detailed cost breakdowns are located within the details of each line item.
When necessary, specific labor trades can be customized by the estimator.
Estimators can also review these details and adjust as needed based on the requirements of each specific loss. Labor productivity is based on an observation of work performed during renovation and repair situations. Conditions in these scenarios differ from new construction in many ways, but a few of the most common differences during renovation and repair projects are:
- Difficulty matching existing work
- Site access constraints
- Multiple trips, investigation activity, or increased effort to source materials
Labor productivity is based on a clean job site, where tools are placed in storage and secured at the end of each day. Depending on the respective trade, 20 to 30 minutes for every eight hours is allowed for the securing and general clean-up of the jobsite. Labor productivity includes typical non-working functions such as planning, lay-out, unpacking and staging materials, taking allotted breaks throughout the day, mobilization, and infrequent travel to pick up forgotten materials or tools.
Jobsite supervision is not included in labor costs because each crew includes a skilled tradeperson who normally would not require supervision beyond the normal dispatch and mobilization discussed above. Estimators should analyze repair scenarios to determine when there are unique circumstances that warrant additional labor for supervision.