Need Advice From Other Integrators On Labor Efficiency

This is tough and I have had the same struggle for a while. What I did was went back and ran the numbers on a few jobs to make sure I wasn't under or over estimating. From there, I've adjusted what I estimate. It still makes it hard, but at least you can get a good idea. Also everyone works at different speeds, I have guys that can blaze through a job and some that take their time. Also ask your guys how long it takes them to do certain tasks, they probably have more insight than you think. Let them work a few jobs and re-visit with them. If it isn't matching up with what they told you, ask them why? Having an installer tell you how long something takes will more or less hold their feet to the fire and create some accountability.

Your labor efficiency may not be the issue, it may be your estimating.

The last company I worked for was horrible at estimating. As the project/operations manager I had to deal with it every week. Lifts not accounted for, 1400' of EMT run not included, no attic access,... I could go on and on.

We do not bid hours, we bid by task. 10 cable runs @ xx, install 10 outdoor cameras @ xx, etc. Granted sometimes on the cable runs we make less, sometimes we make more, but it all averages out. For anything not standard such as long runs of conduit, trenching etc, I add hourly charges for that. 

I also leave a little cushion. Having done installs, I know what happens. One job is a store front, the next is a high rise building. First job tools are 2 minutes away, the other its a 20 minute trip to retrieve tools... I remember telling a high rise hotel it was like an hour just to set up, drop off materials at loading dock, find a parking space 4 blocks away in downtown traffic that could hold a van with ladder rack, walk back, get all the materials into the busy service elevator, etc. Then leaving. That's a good hour right there, 12% of the day....

When we start a project, I do a walk thru with my guys, tell them what the project consists of, give them a map, paperwork etc, and tell them the finish date. They will tell me if I am high or not, but usually I am pretty accurate.

When you start the next project, tell them the estimated hours, go over the estimate, and see what they say. Then after the project review.

I agree. I think estimating is atleast half the problem. another 25% is the job staging and prep not being 100%. 

Ive got a plan in place for improving estimating and staging, but I dont think its going to be enough and Ive been seeing a trend I dont like.

Any more advice is appreciated. Bluntness is appreciated.

A

First get an absolute understanding of the qualifications of your staff, meaning know everyones weakness and strong point. Team the right players together, offer incentives and make them feel they are part of something and not just mundane employees drawing a check and most importantly make sure that YOU understand what it takes to do every task yourself.

I worked for an Integrator in Nashville that never has written a quote (ever) and has been in business over 25 years. He only Estimates the hours and cost of materials, documents the labor expended well and passes this on to the client X 2 on every job plus 20% on material purchases. Completely different approach to the standard security business model, all T & M. And to the Naysayers he just opened a second location and is doing very well with 60+ employees.

Labor is the hardest to estimate.

actually accountability is the real culprit due to the integrity of people, personnel, environments 

Estimating may say 1 hour to install , 1 hour to test,train, and 1 hour to travel . 

other factors not in the estimate are hard to predict. 

Social time, unforeseen circumstances such as wait, late, delays from others . 

in everything there is a fudge factor or a % given for mistakes, delays, and unforeseen. 

I have seen so many Jobs where the norm cannot be set due to inept employees, untrained, lack of experience, or unforeseen problems from others on the Jobs . 

Best advice is Good oversight, Well paid management , Extreme expectation on manager s to perform their job.

Training, Detail, Good Experienced leadership, and well thought out plan of action.

Detail, Plan, Process, Performance

GL