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.
Planned Labour Percentage
Related Terms
Field-to-Office Ratio
WorkforceThe number of field workers supported by each administrative/office employee. A ratio of 10:1 is common for paper-based operations; digitized operations often achieve 30:1 to 40:1.
Horizontal Joint Employment
WorkforceOccurs when two unrelated companies — such as a labour agency and a subcontractor — are considered co-employers of the same worker. Both parties may share legal responsibility for wages, overtime, and labour standards compliance. Field service firms must understand this to avoid unexpected liability for workers hired through third-party staffing arrangements.
Labour Burden Rate
WorkforceThe 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.
Colocation
WorkforceWhen 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.
Scheduling Compression
WorkforceWhen a client shortens a project timeline without reducing scope, forcing subcontractors to mobilise faster and overlap tasks. This often drives up labour costs through overtime and split shifts. Subcontractors should ensure contracts address compressed schedules with change order provisions.
Spare Capacity
WorkforceThe portion of a subcontractor's available workforce, equipment, or service hours that is not currently committed to active contracts, representing untapped revenue potential that can be offered to clients on short notice or used to absorb surge demand without turning down work.
Latest Workforce News
Contractors Bet on Training as Skilled Labor Stays Scarce
Construction Dive reports that ABC and AGC firms are ramping up apprenticeship, multiskilling and college partnership programs as skilled labor shortages persist despite a softer construction market.
20 hours agoWorkforcePentagon Rebuild Offers Playbook for Compressed Heavy-Civil Schedules
Facilities Dive details how the Pentagon renovation team used short interval production scheduling and integrated project delivery to finish under budget and ahead of a shortened 10-year timeline. The approach offers lessons for today's fast-tracked heavy-civil rebuilds.
yesterdayWorkforceUntapped US Dams Could Add 15.2 TWh of Hydropower, Study Finds
A new Oak Ridge and Idaho National Laboratory study finds existing US dams could generate 15.2 terawatt-hours of additional power through retrofits, pointing to future licensing and construction work at non-powered dams.
yesterdayWorkforceOil and Gas Extraction Jobs Edge Up in August, BLS Data Shows
US oil and gas extraction employment rose from 114,700 in July to 114,900 in August, a rare month-over-month gain that Rigzone notes has only happened three times in the past decade.
4 days agoRelated Guides
When Your Crew's Behaviour Becomes a Business Problem: Managing Field Conduct on Active Subcontracts
What subcontractors are liable for when field personnel create conflict on a GC-managed site, and how to protect your contracts before it becomes a termination issue.
Workforce GuideHow to Get Your First Oilfield Job: A Practical Guide for Tradespeople and CDL Holders
No oilfield experience? No problem. Learn which certifications, service lines, and job boards actually get tradespeople and CDL holders hired.
Workforce GuideFrom the Field to the Office: What Oilfield Workers Should Know Before Making the Switch
Thinking about moving from field work to an office role? This guide covers how your field experience translates into technical and operations positions, what the transition actually looks like, and the trade-offs most people do not talk about until it is too late.
Stay sharp on field operations
Industry news and insights, delivered to your inbox.
Subscribe to FieldNews
