Landscape Cost Data How Important It Is to Get It Right
Landscaping cost data is a very interesting subject.
It covers ever aspect of all landscaping projects from the initial design, through the labour work, all the way through to the completion of the project.
If this data has been put together correctly from the beginning then the project is more likely to get finished on time, and with the least loss of profit.
Most landscaping companies will base their teams on either 2 or 3 staff members working on any single project.
The main reason for this is for ease of transport in vehicles and the efficiency on site.
Given how widely this set up is used we will use that as our example for this article.
Lets start with the planning of the labour costs for your staff.
The main sections to take in to consideration are below:
Generally you will have a Foreman, Craftsman, and a labourer in each team.
Each has their own role and will be paid a different amount.
A foreman will be on a higher wage given the extra responsibilities on the project they have, the craftsman will be on less than the foreman but more than the labourer, and finally the labourer will be on the lowest wage in general.
Each of those wages will have to have National Insurance to be taken into consideration, uniforms, and tools.
For just that simple team of 3, you could be looking at a cost of £86,036 per year.
Over a year that would give you a net average cost per man hour of £16.
39 which is a fair amount for each hour of work carried out not including other costs like administration costs etc.
Once you have worked out all your staffing cost data, you have the Administration Data to work out.
These Administration costs are for the cost of the company which is required to place your work force on the ground each day.
It includes all the lost time for lost tenders, rentals insurance and non site based staff.
This data also works on the assumption that the MD is paid a basic salary and takes the rest of his pay through profits.
Here is a list of all the things one could expect to see in the Administration Cost Data:
For a small company you could be looking at around £45,580 per year, for a medium-sized company it could be in the region of £129,480 per year, and for a Large sized company you could be looking in the region of £246,500 per year.
This gives you an idea of the costs behind the scenes of any company, it would be silly for a company with overheads of £245,000 to only have a 3 people team, and it would be as ridiculous to have a 70 man team with an over head of £45k.
There are just some examples to show how serious you need to take this sort of data.
Getting this cost specific data could make some dramatic changes to your business and the growth or lack of growth you see.
The figures that where used in this article where based on a London-based work force.
I hope you have enjoyed this article and it has helped your understanding of what is needed with Cost Specific Data.
My next article will go on to explain Excavation costs.
It covers ever aspect of all landscaping projects from the initial design, through the labour work, all the way through to the completion of the project.
If this data has been put together correctly from the beginning then the project is more likely to get finished on time, and with the least loss of profit.
Most landscaping companies will base their teams on either 2 or 3 staff members working on any single project.
The main reason for this is for ease of transport in vehicles and the efficiency on site.
Given how widely this set up is used we will use that as our example for this article.
Lets start with the planning of the labour costs for your staff.
The main sections to take in to consideration are below:
- National insurance
- Clothing allowence added on an annual basis
- Replacement tools allowance for each staff member
- Hourly rates
- Vehicle cost inclusive of fuel, insurance etc
- Working hours including possible downtime
Generally you will have a Foreman, Craftsman, and a labourer in each team.
Each has their own role and will be paid a different amount.
A foreman will be on a higher wage given the extra responsibilities on the project they have, the craftsman will be on less than the foreman but more than the labourer, and finally the labourer will be on the lowest wage in general.
Each of those wages will have to have National Insurance to be taken into consideration, uniforms, and tools.
For just that simple team of 3, you could be looking at a cost of £86,036 per year.
Over a year that would give you a net average cost per man hour of £16.
39 which is a fair amount for each hour of work carried out not including other costs like administration costs etc.
Once you have worked out all your staffing cost data, you have the Administration Data to work out.
These Administration costs are for the cost of the company which is required to place your work force on the ground each day.
It includes all the lost time for lost tenders, rentals insurance and non site based staff.
This data also works on the assumption that the MD is paid a basic salary and takes the rest of his pay through profits.
Here is a list of all the things one could expect to see in the Administration Cost Data:
- MD's Salary excludes profits
- Contracts managers Salaries
- Secretary
- Book Keeper
- Other Office staff
- Rental
- Insurances
- Telephone and Mobiles
- Office equipment
- Stationary
- Advertising
- Other Vehicles not allocation to contract teams
- Other consultants x2
- Accountancy
- Lights water
- Other Expenses
- Other
For a small company you could be looking at around £45,580 per year, for a medium-sized company it could be in the region of £129,480 per year, and for a Large sized company you could be looking in the region of £246,500 per year.
This gives you an idea of the costs behind the scenes of any company, it would be silly for a company with overheads of £245,000 to only have a 3 people team, and it would be as ridiculous to have a 70 man team with an over head of £45k.
There are just some examples to show how serious you need to take this sort of data.
Getting this cost specific data could make some dramatic changes to your business and the growth or lack of growth you see.
The figures that where used in this article where based on a London-based work force.
I hope you have enjoyed this article and it has helped your understanding of what is needed with Cost Specific Data.
My next article will go on to explain Excavation costs.
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