Estimate Labor Costs and Final Bid Price
At 7:59 in
How to Measure Estimate and Install Sod and Turf
What happens here
The final component of your bid is labor cost. First, estimate how many square yards of sod one person can install per hour (e.g., 50 square yards/hour). Divide the total square yards of the project by this installation rate to find the total labor hours needed (e.g., 177 sq yds / 50 sq yds/hr = 3.54 hours). Multiply the total labor hours by your hourly labor rate (e.g., 3.54 hours * $20/hour = $70.80). Then, divide this total labor cost by the total square yards to find the labor cost per square yard (e.g., $70.80 / 177 sq yds = $0.40 per square yard). Add this to your material and delivery cost to get the total expense per square yard (e.g., $2.62 + $0.40 = $3.02 per square yard). Remember to add a profit margin (e.g., 10%) on top of your total expense to ensure profitability.
Goal: Calculate labor cost per square yard and determine the final profitable bid price
Tools and materials
- Calculator — Performing labor and final bid calculations
- Whiteboard — Illustrating labor roles and calculations
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