Estimate Labor Rates

The Assembly Unit Pricing Method


The Assembly Unit Pricing Method of a house or structure is the standard in the Insurance billing industry. Knowing and understanding the key (10) terms listed below is what helps make us expert witnesses on the witness stand in a court of law.

  • Component Price (hourly rate)
  • Direct Yield
  • Yield (Actual)
  • Yield Formula
  • Supporting Events
  • Labor Worker’s Wage
  • Labor Burden
  • Labor Overhead
  • Contractors Overhead
  • Contractor’s Profit

Component Price is the cost hourly to make example a square foot of roofing including felt, shingle and plywood. This is a worker that does this on an hourly basis as we know in the real world it does not work like that. “ Everything always comes with an associated price”.

Direct Yield is based on the amount of time necessary for one or more workers to complete the task and this is not including the most important factor Supporting Events such as employees breaks, tool packing time and set up time in the morning.

Actual Yield is the production that the worker is truly putting out in the specified amount of time.

Labor burdens are costs like Workers Comp, General Liability, State & Federal Unemployment Benefits and any other outside Company Benefits.

Labor Overhead is a little bit different than the burden cost of labor examples company vehicles, uniforms, depreciation replacement of hand tools, general and administrative expenses and profit that associated to employees performing billable tasks this labor cost is not included in General Contractor Overhead and Profit Markup.