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
Journeyman
WorkforceA tradesperson who has completed an apprenticeship and holds a recognised certification in their trade. Subcontractors often bill journeymen at a higher labour rate than apprentices. Many project specs or collective agreements require a minimum ratio of journeymen on site.
Fissured Workplace
WorkforceA jobsite where work is performed by multiple layers of subcontractors rather than direct employees of the site owner. For field service companies, this means accountability, liability, and payment flow through several parties. Subcontractors must track their position in the contracting chain carefully.
SJT (Situational Judgment Test)
WorkforceA pre-hire assessment used to evaluate how candidates respond to realistic workplace scenarios. Operators and prime contractors use SJTs to screen field workers for safety judgement and decision-making. Subcontractors may encounter these tests when onboarding crews for client-managed worksites.
Utilisation
WorkforceThe percentage of time your crew or equipment is actively deployed on billable work. Low utilisation means idle resources eating into your margins. Subcontractors track this closely to assess profitability and plan workforce levels.
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.
Rotational Worker
WorkforceA field worker employed on a fixed schedule of alternating work and rest periods, such as 14 days on and 14 days off. Subcontractors must account for rotation cycles when planning crew mobilisation and maintaining consistent headcount on site.
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