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Units of Measureaka: labor houraka: person-houraka: MH

Man-Hour

In Plain English

One hour of work by one person, the basic unit for measuring and estimating construction labor.

Definition

A man-hour (also person-hour or labor-hour) is a unit of labor equal to one hour of work performed by one worker. Man-hours are the fundamental unit for labor estimating, productivity analysis, and workforce planning in construction. Labor productivity is expressed as man-hours per unit of output (e.g., man-hours per cubic yard of concrete placed), and total project labor hours drive direct labor cost estimates and scheduling.

Why It Matters in Bidding

Man-hours are the backbone of every labor estimate; converting takeoff quantities into man-hours via productivity rates is how estimators turn drawings into priced labor and a realistic schedule. Small errors in assumed productivity compound across thousands of units, so disciplined man-hour estimating protects against the single largest source of cost overrun and drives crew sizing, cash flow, and bid competitiveness.

Example

After the takeoff, the estimator multiplies 400 cubic yards of placed concrete by an assumed 0.6 man-hours per yard, then applies the loaded labor rate to convert 240 man-hours into a direct labor cost line.

Related Terms

Frequently Asked Questions

They multiply estimated man-hours by a fully loaded labor rate that includes base wages, payroll taxes, insurance, and fringe benefits. Total man-hours come from takeoff quantities times productivity factors. Keeping man-hours separate from the rate lets estimators adjust for wage changes, overtime, or shift premiums without re-running the entire labor takeoff.
Estimators draw on historical cost data from completed jobs, published unit-cost references, and crew experience. Rates are adjusted for project-specific factors like access, height, weather, repetition, and schedule compression. Because conditions vary, the most reliable man-hour rates are a contractor's own tracked productivity from similar past work.
Overlooked learning curves, congested or constrained work areas, overtime fatigue, weather, rework, and unrealistic schedule compression all erode productivity beyond baseline assumptions. Failing to apply a productivity adjustment for these conditions is a common cause of labor budget overruns, since the priced rate no longer matches actual field output.

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