What value do you place on labor?

How many times have you compared quotes based on the hourly cost of labor? It is perfectly normal that, in the case of identical supplies and guarantees, the one who offers quality work at a lower price wins.

I would like to draw your attention to how an apparently high hourly rate can actually be justified when an offer is correctly structured and analyzed.

A worker, beyond the basic hourly rate, must be contextualized according to the task they must perform within your company—and managed accordingly.

In this context, it becomes clear that a wide range of costs must be considered and included in the overall offer, all of which contribute to increasing the hourly rate.

Often, in industrial maintenance quotes, the hourly cost per worker is calculated simply by dividing the total labor amount by the total hours worked.

The resulting figure is then compared across the various offers and used as the benchmark.

So, what are the items that contribute to defining the overall cost of labor? Being able to correctly analyze and evaluate these items is essential for making an informed decision.

To the base hourly price—generally ranging from 20 to 28 euros per hour—you must also consider (where applicable):

• 30% increase for weekday night work
• 50% increase for pre-holiday night work
• 50% increase for holiday daytime work
• 60% increase for holiday night work
• site setup costs
• container used as a break room
• container used as showers and changing rooms
• various utility connections
• provisioning of worksite equipment
  • toolboxes with mixed wrenches, hammers, screwdrivers, crowbars, screwdrivers, extensions, etc.
  • replacement materials
• safety-related costs
  • specific training
  • PPE
  • POS (Operational Safety Plan)
  • inspections by the HSE Manager and Site Safety Manager
• travel expenses
  • vehicle rental for personnel transfers
  • diesel fuel
  • tolls
• costs for sourcing and hiring any specialized personnel
• personnel organization costs
• costs for temporary construction site INAIL declaration (if required)
• meal costs for personnel
• costs for technical coordination and the various inspections carried out
• costs to “valorize” the knowledge, technical skills, and experience gained on other worksites—useful for optimizing the technical solutions required (often mandated in the specifications of various RDOs)

Do you fully understand the economic impact of these items individually? It is clear that the trend in comparing different offers is to relate everything to the hourly cost of personnel—but in that case, this hourly cost should be broken down in every specification to enable a more accurate comparison.

A comparison is correct only when similar items are evaluated against each other: it is the differentiating elements that should guide the choice between one offer and another.

This step is essential to being able to make a strategically correct decision, because the signature you place on a contract may influence your reputation for years to come.