CONSTRUCTION UNIT COST TRACKING: CY, LF, SF, AND TONS VS ESTIMATE.
A job cost report that shows total labor cost by phase tells you how much was spent. It doesn't tell you whether the production rate was acceptable. Unit cost, meaning cost per cubic yard for grading and concrete, cost per linear foot for pipe and conduit, and cost per square foot for flatwork and drywall, tells you both. When unit cost trends above estimate during an active phase, the cause can be found and a response is still possible. When it's discovered at closeout, the loss is locked in.
Unit cost is the link between what the crew produced and what the job earned, which is why it belongs in front of a PM and not just in a monthly report. It answers the one question every PM should be able to answer on any open phase: are we efficient on this work, or are we heading for a labor overrun? Total cost can't answer that, because a big number on a big phase looks the same whether the crew beat the estimate or missed it by a third. Divide the cost by the units and the answer stops being an opinion.
WHAT IT MEANS.
Unit cost is the fully burdened cost of producing one unit of work, such as one cubic yard placed, one linear foot of pipe installed, or one square foot finished.
TOTAL COST VS UNIT COST, AND WHY IT CHANGES WHAT YOU SEE.
Total cost tells you how much, not whether you were efficient
Total labor cost on a project tells you how much was spent. Unit cost tells you whether what was spent produced what was planned. A grading project that spent $85,000 on labor to move 4,200 CY of material had a unit cost of $20.24/CY, and if the estimate was $18.50/CY, the unit cost is 9.4 percent over. That one number tells you the production rate problem exists, how big it is, and what it will cost to finish the remaining scope at current efficiency. The $85,000 by itself tells you nothing about whether the performance was acceptable.
The unit is different for every trade
Grading and excavation track cost per CY moved. Concrete tracks fully burdened labor cost per CY placed, by pour type. Underground utility tracks cost per LF by pipe type and diameter, flatwork tracks cost per SF by finish type, drywall tracks cost per SF by board type and height, paving tracks cost per ton by mix type, and framing tracks cost per SF or LF by structural type. Each of those is a production efficiency ratio that ties field performance to financial outcome. When any of them trends above the estimate, the financial outcome is already changing and the operational cause can be found while there's still time to act.
Without it, next year's estimates run on memory
Unit cost from completed projects is the data source that makes future estimates accurate. If historical CY concrete labor cost across 12 projects averages $22.40/CY within a $19.80 to $25.20 range, the next concrete estimate should be built on that range and not on the $18.50 that was used two years ago when labor rates were different. A contractor who tracks unit cost for 12 months has a database of real production rates by work type, season, crew composition, and project type, which is worth more for estimating than any software or industry benchmark. Without it, estimates get built on memory and optimism.
WHAT IT LOOKS LIKE IN DOLLARS.
A grading project spent $85,000 on labor to move 4,200 CY of material, which is a unit cost of $20.24/CY against an estimate of $18.50/CY. That's 9.4 percent over on production efficiency, and it's knowable while the phase is still open. The same $85,000 with no unit count attached to it's just a large number on a cost report.
Historical CY concrete labor cost across 12 projects averaging $22.40/CY with a $19.80 to $25.20 range gives you a bidding range built on documented performance. Estimates built that way win bids at the right margin and close at the margin projected. Winning at the right price and closing at the right margin is the combination that produces a stable, profitable business.
THREE STEPS FROM NO TRACKING TO RELIABLE UNIT COST DATA IN 90 DAYS.
Use CY for earthwork and concrete, LF for pipe and conduit, SF for flatwork and drywall, and tons for paving. Document the unit definition at project start so all tracking is consistent from day one. A CY can be bank measure, loose measure, or compacted measure, and the definition you track has to match the definition the estimate used or the comparison is worthless.
The foreman records units placed each day by work type, and it takes 2 minutes. Combined with weekly timecard data, that produces a unit cost every week instead of once at closeout. No software is required to start: a simple spreadsheet with units placed, hours worked, and calculated unit cost per day is enough.
Put actual unit cost against estimated unit cost by work type and by phase at month end. The variance tells you whether production is on track, running over, or running under, and the trend tells you whether it's getting better or worse. Three months of that data also tells you whether your estimate unit costs are accurate for the type of work you perform, which is a separate and equally useful answer.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing, no payroll, and no add-ons.
Pricing
| Last 12 months revenue | Monthly fee |
|---|---|
| Up to $1M | $1,900 to $2,900 |
| $1M to $3.5M | $2,600 to $3,900 |
| $3.5M to $6.5M | $3,800 to $5,700 |
| $6.5M to $9.5M | $5,100 to $7,100 |
| $9.5M to $12.5M | $6,100 to $8,500 |
| $12.5M to $15.5M | $7,400 to $11,000 |
| $15.5M to $18.5M | $9,400 to $13,500 |
| $18.5M+ | Quoted individually |
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.
Your bookkeeper keeps doing the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the job costing.
FREQUENTLY ASKED.
