Someone shared this article with me so I thought I’d share it here. Be the change.
Thanks for that article. It can be helpful but unless I missed it, what he doesn’t cover is yield. IMHO, that has a bigger impact and is more often incorrect in Xactimate, than the actual labor rates themselves.
What do you mean by yield?
Drill into the Xactimate pricing under labor. You’ll see Yield. That is the Units/HR they’re rating the labor rate at. In other words, for roofing, they’re basing the total labor rate on the actual wager per hour plus all the overhead and burden and then factoring in the yield. I’ve changed this to up the rate multiple times, with success, for exotic roof materials such as cedar shake and tile. IMHO, their yield was significantly higher than it should be, especially in a market where there weren’t so many roofs with those type of shingles where the crews could get really proficient. I was able to win those arguments.
Good point. I’ll explore that. I’m willing to learn anything that helps. In the end, my goal is not to make a million dollars, but to have employees with health care and 401k. Ha, that would be the day!