Types of Direct Labor Costs for Building a House

Figuring labor with design gives true costs.

Estimating the cost of land, legal fees and materials for home building is a detailed process. Tallying up direct labor costs is complex as well. A worksheet listing every area of labor with exact amounts to be spent stabilizes the overall building budget. An itemized list helps both the general contractor and homeowner decide where to cut costs, which jobs need fixed bids for labor and which jobs need hourly rate quotes.

Experts Require Top Rates

In hiring well-qualified electricians, building designers, architects or expert tile installers, for example, it's practical to pay top labor rates. Experts in their respective fields charge $60 to $250 per hour, but they manage all costs and quality of work. Labor costs for jobs such as sowing a lawn or painting can vary from $9 to $28 per hour. Matching good candidates to reasonable hourly rates is critical. Experts who oversee excavation, plumbing, electrical work, framing the home and roofing typically have non-negotiable rates.

Excavation and Foundation Experts

Experts must design how your house will stand on your property. Paying well-qualified workers to dig the foootings, design and build the foundation and resolve difficult issues with blasting mid-size rocks for a foundational concrete pour will involve two to three weeks of actual work. Weather issues or a problematic dig to hit solid ground for footings can require two months or more. Spend the going rate to hire a reputable company to build your home's foundation. One mistake here could compromise the project.

Framers and Blueprint Readers

While few people hire professional architects, most want on-site builders who can expertly supervise a crew of carpenters to frame the home properly. Framing involves putting up the wooden skeleton of the house, framing and studding all interior walls, building the roof to the right pitch and installing plywood or particle board outside to box in the house. Windows might be installed by a separate company, but they are part of getting the house under roof and ready to finish. Gaining an estimate for all framing for one price, broken into sections and jobs, offers more predictability than paying for labor by the hour.

Exterior Finishing and Roofing

Direct labor costs for bricking a home or covering it with stone, wood or vinyl is affected by types of materials used and expertise required. For example, bricking a home is often more labor intensive than installing vinyl siding. Stone work that involves craftsmanship or heavy lifting can really push up labor costs. Estimates for roofing can have a wide range among installers. However, use caution in taking a bid that is more than $1,000 less than other companies on any labor job.

Interior Labor Has Many Facets

Once a home is framed with windows installed, you will need to pay for installation of drywall, kitchen cabinets, plumbing and fixtures for the kitchen and baths, electrical wiring, lighting fixtures and outlets, flooring, and painting. Labor costs for the interior will include dozens of areas, including plaster work, installing kitchen appliances and finishing a staircase handrail. Interior labor costs can skyrocket, if not managed properly. In many instances, homeowners themselves can help paint, run errands and assist professionals on site to save money.

Landscaping and Beautification

Direct labor costs for seeding a lawn, planting trees and bushes, installing sidewalks or driveways and cleaning up a building site add to the final price tag. Homeowners can usually cut costs in this area or even delay expenditures somewhat to save money. However, the lending institution must be satisfied the overall building job is complete before releasing the final funding under the mortgage agreement.

References

• Resource Website for Conceptualizing a Home
• Information to Research Areas of Building
• Questions and Answers on Labor Costs

Resources

• Calculate Home Building Direct Labor Costs