unbillable estimate estimating drivetime drive time load time faq How Do I Account For Drive Time, Load Time, Clean Time In My Estimates? (Construction/Installation Jobs Version)

LMN can help make sure you capture this time, but it really depends on how you estimate.  Below, we're going to outline a few scenarios that will help you recover this time but make sure you use the method that matches the way you estimate.

Some companies include driving/prep/cleanup hours when they estimate.  Other companies don't.  It's critical that you use the method below that best matches the way you estimate.  

 

RECOVERING DRIVETIME + SHOP TIME FOR INSTALL OR CONSTRUCTION JOBS

If you include loading, unloading and drive time in your estimated hours...

Some companies include all payroll hours in their estimates.  For example, if the job was a 3 day job and the crews work a 10 hour payroll day, the job would be estimated at the full 10 hrs per day * the number of persons in the crew.  This way, every payroll hour gets estimated in the job whether or not the crew was physically on-site.  Loading, unloading and driving time is still time dedicated to that job and therefore its included in the estimate.

Note:  In this example, it would appear that you'd have a 0% unbilled factor in your labor catalog.  Don't forget though, that you will have other unbilled time on top of this.  You'll have warranty work, rework, unforseen problems (murphy's law), meetings, shop work, equip repair, etc.

How to setup and clock in to LMN Time

  • In the AM, the crew should clock directly into the job they are going to that day 
  • The crew should stay clocked into that job until the end of their shift, then clock out

Why this works...

  • Each day's full payroll hours have been included in the estimate.  You want to cost all the day's hours to the job as well so that you have an apples-to-apples comparison of estimated vs. actual hours

 

If you don't include drivetime in your estimated hours...

If you don't include drivetime or shop time, prep time or unload time in your estimated times (i.e. you only estimate time spent at the customer's property), then you must use the unbillable factor in the labor catalog to recover the costs of those hours.

For example, imagine a typical crew day was spent like this:

  • Loading in the AM (.5 hours)
  • Unloading in the PM (.5 hours)
  • Driving time or windshield time - daily total (1 hour)
  • Time spent physically the jobsite  (6.5 hours)
  • Total daily payroll hours (8.5 hours)
  • Unbillable % (non job hours) = 2 hours divided by 8.5 payroll hours = 23%
  • Note:  Remember that you will have other unbilled time on top of this.  You'll have warranty work, rework, unforseen problems (murphy's law), meetings, shop work, equip repair, etc.

 

How to setup and clock in to LMN Time

  • In the AM, they should clock in to a SHOP job, and a task called Load/Unload/Drivetime.  
  • Stay clocked into that task until they arrive at the job
  • Stay clocked into the job until they are ready to leave for the day
  • As the crew leaves their last job for the day, they should clock back into SHOP - Load/Unload/Drivetime until the end of their shift

Why this works...

  • Your estimates don't include drivetime, so you don't want to track driving time to those tasks.  Otherwise, your actual hours would always look greater than estimated (even though it's only because you're treating them differently)
  • The cost of am prep, driving, and pm unloading are absorbed by your Unbillable Factor setup in the labor catalog.  The cost of these hours are factored into the cost (and price) we charge for the labor hours that we do estimate

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