How to Estimate HVAC Labor Costs Accurately
Labor is where HVAC bids are won or lost. Guess too high and you lose the job. Guess too low and you lose money on a job you won. In the lesson above, Stacey Johnson walks through how to break HVAC labor down so your number is based on something real.
1. Know the parts of your labor
- Skilled labor: technicians and installers who set, connect and balance equipment right the first time
- Unskilled labor: helpers who handle routine work such as grilles, flex duct and material handling
- Subcontractors: the electrician, plumber and others your HVAC scope depends on
Then assign each group to the work it actually does: ductwork, equipment setup, piping, controls, startup.
2. Account for what changes productivity
- Project complexity and size: an open warehouse is not a remodel in an occupied building, an attic or a crawlspace
- Crew experience: match the crew to the scope. A multi-floor job needs your best people; a filter change-out does not
- Schedule constraints: delays and stop-and-go work add hours
- Equipment availability: if equipment is not on site, the crew is not productive
3. Build the number on man-hours
- Identify the scope and its labor requirements. Design-build and complex jobs need more supervision and admin time.
- Take off every item and apply a labor unit (hours per unit, per linear foot or per square foot) from an industry-standard source.
- Total the man-hours, then apply your local base wage rate.
- Add supervision, then overhead and profit.
Stacey prefers man-hour estimates over a single crew rate because man-hours also tell you how long the job will take.
4. Stop guessing
Every number in your bid should come from a real labor unit, not a gut feeling. If you are bidding competitively, you need to be on the mark. Check your labor with the free man-hour calculator by trade.
Need an HVAC bid priced, or want to learn to do it yourself? Send your plans or join the HVAC estimating class. Call 916-710-4146 or email info@sfjohnsonconsulting.com.