True Employee Cost · Labor Burden · Overhead Allocation · Construction HR Finance
True Cost Per Employee · Labor Cost · Burden Rate · Construction Hiring · Employee Cost
True Cost Per
Employee.
The most common labor cost mistake in construction is confusing base wage with true employee cost. A field laborer at $28/hour costs your business $38–$45/hour when you add burden. An office manager at $55,000 salary costs $75,000–$85,000 fully loaded. Knowing the true cost per employee is essential for accurate bidding, hiring decisions, and profitability analysis.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You're Using Base Wage in Your Bids
If you're bidding field labor at base wage — even if you add a rough burden percentage — you're likely understating true labor cost. The fully loaded cost of a field employee includes FICA, FUTA, SUTA, workers comp, general liability allocation, health insurance, retirement, and paid time off. Most blended burden estimates miss at least one significant component.
02
Hiring Decisions Are Made Without True Cost Analysis
When you hire a new office person at $50,000, you're not adding $50,000 in cost. You're adding $68,000–$75,000 depending on benefits, workers comp classification, and state taxes. Most hiring decisions are made on salary without calculating the full loaded cost — which changes the profitability math on the hire significantly.
03
You Can't Compare Employee vs. Subcontractor Cost Without True Numbers
The decision to self-perform work vs. subcontract it requires knowing your true employee cost per hour and comparing it to the subcontract rate for the same work. Without true cost per employee, this comparison is guesswork.
How SPM Fixes It
The Full Employee Cost Calculation
Base wage or salary plus: FICA employer share (7.65%) + FUTA (0.6% on first $7K annually) + SUTA (1–5% depending on state and experience rating) + workers comp (3–25% of wages depending on classification) + health insurance (employer contribution — monthly cost per employee) + retirement match (if any) + paid time off value (annual PTO days times daily rate) + any other benefits. Total loaded cost typically runs 30–45% above base wage for field staff and 25–35% above base salary for office staff.
Employee Cost by Classification in Job Costing
SPM builds true employee cost by classification into your ControlQore job costing — different rates for field laborers, operators, foremen, and office staff. Every job reflects accurate labor cost at the classification level. Bids use the same rates. Estimate vs. actual comparisons are meaningful because both sides use the same cost basis.
Employee vs. Subcontractor Financial Analysis
For Executive clients, SPM provides analysis when you're evaluating whether to hire vs. subcontract for a specific scope. True employee cost at expected utilization compared to subcontract rate for the same work gives you the financial answer — not a gut call about which feels better.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Does overhead get added on top of burden for job costing purposes?
It depends on your job costing methodology. Some contractors include a portion of overhead in their labor rate — effectively loading the labor rate with both burden and an overhead allocation. Others keep overhead separate and add it as a percentage markup on direct cost. SPM builds the method that matches how you estimate into your ControlQore job costing so bids and actuals use the same framework.
How does workers comp classification affect true labor cost?
Dramatically. Workers comp rates vary by classification code — a concrete laborer may carry a 15% workers comp rate while an office manager carries 0.5%. Using a blended rate across all employees produces the wrong burden rate for every classification — overcharging some jobs and undercharging others. SPM builds classification-level burden rates into job costing so each employee type carries the correct workers comp rate.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.