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WorkforceGlossary Term

Labour Burden Rate

The total cost of employing a field worker beyond their base wage, expressed as a percentage. It includes CPP (Canada Pension Plan), EI (Employment Insurance), WCB (Workers' Compensation Board) premiums, and benefits. Subcontractors must factor this rate into crew pricing to avoid underbidding contracts.

Related Terms

Onboarding

Workforce

The process a subcontractor completes before starting work for a new client or general contractor. It typically includes submitting insurance, certifications, and banking details for payment setup. Delays in onboarding can push back mobilisation and hold up first invoices.

Planned Labour Percentage

Workforce

The portion of a project's total budget allocated to labour costs, expressed as a percentage. Subcontractors use it to bid competitively and protect margins. Tracking it against actual labour spend reveals cost overruns early.

Retention Bonus

Workforce

A lump-sum payment offered to keep skilled field workers or subcontractors committed through a project's duration. It is typically paid at a set milestone or project completion. Primes use it to reduce crew turnover during long campaigns or tight labour markets.

Colocation

Workforce

When a subcontractor embeds personnel or equipment at a client's site for an extended engagement. This reduces mobilisation costs and improves response time for ongoing work. It is common on large construction or production sites requiring continuous support.

IRP (Integrated Resource Plan)

Workforce

A client's long-term plan outlining labour, equipment, and service needs across a project or portfolio. Subcontractors use it to forecast crew deployment and equipment commitments. It helps field service companies align capacity and bids with upcoming work cycles.

Fly-In/fly-Out (fifo)

Workforce

A rotation model where workers are flown to remote job sites for a set number of days, then returned home. Subcontractors must account for mobilisation costs and crew availability when bidding FIFO contracts. Rotation schedules vary widely, such as 14 days on and 14 days off.

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