Introduction
A labor estimate should never leave your desk without a final verification pass. This pre-bid checklist walks every critical input — scope, quantities, rates, burden, contingency — so errors get caught while they’re still cheap to fix. Run it on every estimate, every time.
The Labor Cost Calculator does the arithmetic; this checklist verifies the judgment behind the inputs. Print it, laminate it, make it part of your bidding ritual.
Scope and Quantities
- Scope is written and agreed. The work is described task by task — no verbal-only scope, no “we’ll figure it out on site.”
- Every task has a measurable quantity. ft², linear ft/m, counts, fixtures — each in consistent units (no ft² mixed with m²).
- Quantities measured from plans or site — not from memory, not from the client’s description alone.
- Openings and deductions handled. Wall area minus doors/windows for paint and drywall; actual trench length for underground work.
- Excluded work is listed explicitly. What’s not included (permits by owner? existing material disposal?) is stated in writing.
Man-Hours
- Bottom-up build. Hours come from quantity × production rate per task — not from a top-down gut feel. (Method: estimating guide.)
- Production rates are sourced. Your own tracked rates preferred; published references second; pure guesses flagged as such.
- Productivity factor applied in the right direction. Worse conditions = more hours (divide by the factor). Sanity-check every adjustment.
- Man-hours, not clock time. Crew size × hours per worker, recorded for every task. (See common mistakes.)
- Non-productive time included. Setup, cleanup, handling, inspections — 10–15% explicit allowance, more for small jobs.
- Overtime modeled separately if the schedule requires it — at 1.5× base with reduced productivity, not smeared into the base rate.
Rates and Burden
- Loaded rates, not base wages. Every rate includes burden and overhead — the 30–60% layer is never omitted.
- Blended crew rates. Weighted average of the actual crew mix per trade — not the lead’s rate for everyone.
- Trade-specific rates. Licensed trades priced at licensed-trade rates; laborers at laborer rates. No single shop rate across trades.
- Rates current. Wage and burden figures reviewed within the last 12 months — comp rates, insurance, and local wages move.
- Regional adjustment applied if using national references — location multiplier for your market. (Ranges: cost guide.)
Compliance and Risk
- Permit requirements identified for every regulated task — verified with the local authority, not assumed. (See code compliance.)
- Licensed-trade tasks flagged — assigned only to qualified, licensed personnel at licensed rates.
- Compliance costs budgeted: permit fees, submittal labor, inspection float, re-inspection contingency.
- Contingency explicit and scaled: 5% repeat work / 10% typical remodel / 15–20% concealed conditions — as a visible line item.
- Code-upgrade allowance on older buildings (5–15% labor) for systems uncovered during the work.
Commercial Sanity Checks
- Per-unit check. Total labor ÷ primary quantity (per ft²/m², per fixture) compared against known market benchmarks. Wild deviations mean input errors.
- Labor share check. Labor as % of total project cost compared to the typical split for the project type (split guide).
- Margin check. Profit is stated separately from overhead recovery — you’re choosing to sharpen the bid, not accidentally donating overhead.
- Schedule feasibility. Man-hours ÷ crew size ÷ hours per day = calendar duration. Does it fit the promised completion date without planned overtime?
- Bid comparison. If competing, your implied man-hours and rates are defensible task by task — you know exactly where you’d cut and what it costs.
Documentation and Handoff
- Assumptions recorded. Every productivity factor, rate source, and exclusion written down — future-you (or your successor) can audit the estimate.
- Estimate versioned and dated. Scope changes get new versions, not edits to the old number.
- Actuals tracking set up before work starts — task-level hour logging ready so the estimate can be reconciled at closeout.
- Client-facing version prepared — clear task lines, explicit contingency, exclusions stated. No internal shorthand, no hidden padding.
Quick-Reference: The Five Numbers That Matter Most
| # | Check | Rule of thumb |
|---|---|---|
| 1 | Loaded vs. base rate | Loaded = 1.3–1.6× base wage |
| 2 | Man-hours vs. clock time | Always crew × hours |
| 3 | Productivity direction | Worse conditions → more hours |
| 4 | Contingency | 5 / 10 / 15–20% by uncertainty |
| 5 | Per-unit result | Within known market range |
Related Guides
- Complete Labor Cost Guide — the full reference behind this checklist.
- Estimating Guide — the method the checklist verifies.
- Common Mistakes — what the checklist is designed to catch.
- Code Compliance — the compliance items on this list.
- Pro Tips — habits that make the checklist second nature.
- Labor Cost FAQ — quick answers to the most asked questions.
Frequently Asked Questions
How long should the checklist take?
10–20 minutes for a typical residential estimate once it’s habit. It catches errors worth thousands — the highest-ROI minutes in the bidding process.
Should I use this checklist for small jobs too?
Yes — small jobs have thinner margins and proportionally larger mobilization costs, so errors hurt more. Run an abbreviated pass at minimum: loaded rates, man-hours, minimums, exclusions.
What if I find an error after the bid is submitted?
Minor errors: absorb and calibrate. Material errors (wrong scope, missing trade): withdraw or amend the bid before acceptance if possible — an honest correction beats a loss-making contract.
Can I delegate the checklist to someone else?
The verification is most valuable done by someone other than the estimator — fresh eyes catch assumption errors the author can’t see. Even a 10-minute peer review helps.
How do I handle a checklist item I can’t verify?
Flag it as an explicit assumption in the estimate and add contingency proportional to the uncertainty. Unknowns priced openly beat unknowns ignored.
Does the checklist replace reconciliation?
No — it’s the pre-bid control; reconciling actuals at closeout is the post-job control. You need both: the checklist prevents errors, reconciliation improves the rates.
Get Your Number
Run the checklist, fix what it finds, then compute the final figure with the Labor Cost Calculator — and set up task-level hour tracking before the first crew arrives, so this estimate teaches the next one. Verified estimates win profitable work; unverified ones win lessons.
Disclaimer: Calculator results are planning estimates based on the rates, hours, and allowances you enter. This checklist supports sound estimating practice but does not replace professional judgment. Verify rates and requirements with local licensed professionals — this is not professional advice.
