The results from 106 contractor members were broken down by seven different U.S. regions:
1. New England
2. Mid-Atlantic
3. Southeast
4. North Central
5. Midwest
6. Northwest
7. Southwest
Cost Comparisons
Each billable hour included a labor base cost (base wage including vacation, holiday, and sick pay calculations); benefits (pension, medical, training, etc.); and payroll taxes and insurance (Social Security, unemployment, workers’ compensation, etc.).Each billable hour also included nonlabor costs, including truck expense (lease, gas/oil, maintenance, etc.); nonbillable expenses (lost time, callbacks, etc.); and miscellaneous (uniforms, tools, communication devices, etc.).
The highest total direct cost of labor was reported in the New England region, at an average of $65.72; the lowest was reported in the Southeast region, at $47.22. The highest hourly billing rate was reported in the Southwest region at $84.18, and the lowest was the Northwest region at $69.48.
The base wages (direct payroll expenses) were highest in the Southwest region, at an average of $32.26 per hour; the lowest figure came from the Southeast region at $25 per hour. Benefit costs were highest in the New England region, at an average of $12.83 per hour, while the lowest figure came from the Southeast region at $7.02 per hour.
Payroll taxes and insurance were highest in the New England region, at an average of $7.38 per hour. The lowest figure came from the Southeast region at $4.72 per hour.
Nonlabor expenses were highest in the Mid-Atlantic region, at an average of $3.58 an hour, while the lowest figure was for the Southeast region, at $1.25 an hour.
Publication date: 01/27/2003
