Calculating Labour Costs On A Landscape Lighting Project

Every hour each laborer is involved with the job—from drive time to post-job cleanup—should be accounted for in your job costs. Labor costs for a landscape lighting project are calculated in hours per task. The overall job is broken into specific component tasks, such as installing fixtures, wiring the transformer, and running cable. Each task is assigned a labor rate based on actual time spent in the field.

When a task changes in complexity, apply a different labor rate. For example, there will be several different labor rates assigned to installing fixtures based on their placement:

• Ground-mounted fixtures: Including unboxing, wiring, and placement: 20–30 minutes each
• Tree- or structure-mounted fixtures: Reachable only by ladder, including unboxing, wiring, mounting, and adjusting: 1 hour each
• Gutter-mounted fixtures or downlights: Mounted at heights greater than 12' (3.7 m), including unboxing, wiring, and mounting: 2 hours each

Similarly, wire installation will command different rates for different conditions:

• Wire installation under mulch beds: Stapled in place, 200' (60 m) per hour
• Wire installation with slit-trenching: Using a lighting spade and cable placer, 30' (9 m) per hour
• Sidewalk sleeving: 4–5' (1.2–1.5 m) walkway: 2 hours

Don't forget other important tasks that can significantly impact total labor hours from one job to another:

• Hanging and wiring transformers
• Cutting concrete, wood, or other hardscape materials to install wiring
• Fine-tuning the system, including after-dark surveying and fixture adjustments
• Programming the controller, including theme designs and color schemes
• Pruning tree branches, shrubs, and plants to allow proper light dispersal
• Daily travel time to and from the project
• Total daily cost of crew supervision before, during, and after visiting the project site

Contractors observe and analyze their team's performance on multiple jobs to build a database of standards. The most successful contractors know exactly how much time each task requires. We’ve suggested some standards in this chapter, but you should modify them based on your experience.

In addition to job costing, labor estimates provide your crews with measurable productivity goals for the project. Tracking actual performance against estimated hours is a valuable measure of efficiency and serves as a feedback loop to your estimating accuracy. When tasks take longer than planned, a project can quickly lose profitability. Tracking provides an early warning system.

Your labor rate should account for the fully burdened rate for the worker, including their rate of pay plus labor-added costs (e.g., E.I., C.P.P., medical plans, vacations, holidays, insurance, and other relevant costs). These costs can add 20% or more to the wage you pay the worker. Some companies also allocate overhead costs to labor rather than applying a factor to the overall job. Work with your accountant to see if this method would be wise for you.