Introduction
You’ve probably felt it: the gap between what you bid and what the crew actually produces. That gap eats margin. Production rates close it. They’re simple—how much work a crew completes in a defined time under defined conditions. With solid rates, you price fast, schedule realistically, and hold the line in the field. In this guide, we’ll build your rate library step-by-step, show you how to adjust for real-world conditions, and run through clear examples. Then we’ll tie it to proposals so you turn rates into revenue quickly.
Table of Contents
Key Takeaways
- Good production rates start with clear units, observed field data, and written assumptions.
- Adjust rates for conditions—access, height, weather, occupied spaces—using simple multipliers.
- Converting quantities to labor hours is straightforward: Hours = Quantity ÷ Rate.
- Track actuals weekly; many contractors find consistent review improves output noticeably in the first month.
- Use your rates to speak scopes into proposals and send faster with tools like Donizo.
What Are Production Rates?
Production rates quantify output—square feet per hour, linear feet per day, pieces per crew-day—under defined conditions. They’re the backbone of accurate labor estimates and realistic schedules.
Problem: Many contractors price work on gut feel. It’s common for setup, material handling, and access to consume more time than expected and blow the budget.
Solution: Document a repeatable rate with assumptions (crew size, materials, access, height, tools). Then apply it consistently.
Data points you can expect:
- In general, crews lose 30–60 minutes per day to travel/setup if staging isn’t tight.
- Commonly, poor site access or long carries cut output by 15–25% compared to wide-open sites.
Step-By-Step: Build Your Rate Library
1. Pick Clear Units
Choose units your crew already thinks in: SF/hour for drywall, LF/day for baseboard, blocks/day for CMU, LF/hour for trenching. Write the crew size and shift length that rate assumes.
2. Break Work Into Repetitive Tasks
Group tasks that repeat with similar effort: “hang 1/2-inch drywall on open walls,” “paint first coat walls, unoccupied,” “trench 24 inches deep in soft soil.” Avoid mixing conditions in one rate.
3. Measure What You Actually Do
Use a simple time study for a few hours or a full day. Count quantity installed and time elapsed, and note conditions (weather, access, height, congestion).
- Commonly, 10–20 observed cycles or a full shift gives a usable average for a new rate.
Tools: phone stopwatch, tally sheet, laser measure, photos.
4. Normalize With Allowances
Account for breaks, safety talks, material handling, inspection pauses.
- In general, include 10–15% allowance for necessary non-installation time on interior trades; heavy civil may need more when trucking or inspections drive waits.
5. Document Baseline Assumptions
Record crew size, tools, standard shift hours, site type, and what’s included/excluded (e.g., excludes lifts, includes fasteners). This avoids apples-to-oranges later.
6. Convert Quantities to Hours
Use simple math:
- Labor Hours = Quantity ÷ Rate
- Crew-Days = Labor Hours ÷ (Crew Size × Shift Length)
Example: 1,200 SF drywall at a rate of 1,000 SF per 2-person crew-day (8 hours). Crew-days = 1,200 ÷ 1,000 = 1.2; Labor hours = 1.2 × 2 × 8 = 19.2 hours.
7. Pilot, Then Lock the Rate
Price a small job with the draft rate, track actuals, and tweak. Once it aligns, lock it as your baseline.
8. Keep It Alive
Revisit weekly. Update rates when tools, crew mix, or materials change.
- In general, contractors who review rates weekly see noticeable 5–15% productivity gains in the first month as crews align on targets.
Sample Baseline Rates (For Context)
Use these as directional checks; set your own based on your crews and conditions.
| Task | Common Baseline Rate | Drivers | Improvement Idea |
|---|
| Drywall hang, open walls/ceilings, 2-person crew | Commonly, 800–1,200 SF/day | Ceiling height, congestion, number of cutouts | Pre-cut and stage board near rooms |
| CMU 8-inch block, 3-person crew | Commonly, 200–400 blocks/day | Weather, lift height, mortar type | Mix station within 30 feet of wall |
| Interior paint, one coat, 2 painters | In general, 1,500–2,500 SF/day | Prep level, masking, color changes | Mask once, spray then back-roll |
| Trenching 24 inches deep, 3-ton mini | In soft soil, 80–150 LF/hour |
Adjusting Rates For Real-World Conditions
Problem: Baselines rarely match site reality—occupied spaces, tight access, weather swings, inspections. Ignoring this is a fast path to profit fade.
Solution: Apply simple multipliers based on common factors. Write them down with your rate so the estimator and foreman see the same target.
Common Adjustments
- Access and Staging: Poor staging/long carries typically reduce output 15–25%. Improve staging to claw back time.
- Height Work: Ladders and lifts commonly reduce output 10–30% compared to floor-level work.
- Weather: In general, extreme heat above 90°F or cold below 20°F reduces productivity 10–30% depending on task.
- Occupied/Live Environments: Work around clients or tenants often slows by 15–35% due to protection, coordination, and restricted hours.
- Learning Curve: New crew or new system? Expect 10–20% slower for the first couple of days.
- Regulations and Breaks: Many jurisdictions require specific rest/meal periods. Plan them into allowances; don’t assume 8 continuous hours of installation.
How to Apply Multipliers
Pick your baseline rate, then multiply by the combined factor. Example for a drywall crew: baseline 1,000 SF/crew-day. Height factor 0.9 (10% slower), occupied factor 0.85 (15% slower). Adjusted rate = 1,000 × 0.9 × 0.85 = 765 SF/crew-day.
Estimating Examples You Can Copy
Example 1: Drywall Hanging
Scenario: 3,200 SF of 1/2-inch board, 10–12 foot ceilings, occupied clinic after hours, 2-person crew, 8-hour shifts.
- Baseline rate: commonly 1,000 SF/crew-day (open, 8–9 foot ceilings).
- Factors: 12-foot ceilings (0.9), occupied after-hours with extra protection (0.85).
- Adjusted rate: 1,000 × 0.9 × 0.85 = 765 SF/crew-day.
- Crew-days: 3,200 ÷ 765 ≈ 4.18.
- Labor hours: 4.18 × 2 × 8 ≈ 66.9 hours.
Tip: Stage lifts and board per room. In general, pre-staging reduces nonproductive time by 10–15% on interior trades.
Example 2: CMU Block Wall
Scenario: 1,800 blocks of 8-inch CMU, 3-person crew, hot weather (95°F), mixer 80 feet from wall, 8-hour shifts.
- Baseline rate: commonly 300 blocks/crew-day.
- Factors: heat (0.8), long carry/mix distance (0.9).
- Adjusted rate: 300 × 0.8 × 0.9 = 216 blocks/crew-day.
- Crew-days: 1,800 ÷ 216 ≈ 8.33.
- Labor hours: 8.33 × 3 × 8 ≈ 199.9 hours.
Tip: Moving the mix station within 30–40 feet can reclaim a noticeable 10–15%.
Example 3: Trenching for Conduit
Scenario: 220 LF trench, 24 inches deep, soft soil except 40 LF of hard clay, 3-ton mini excavator, 1 operator + 1 laborer.
- Baseline rates: soft soil commonly 120 LF/hour; hard clay 40–60 LF/hour.
- Split quantities: 180 LF at 120 LF/hour = 1.5 hours; 40 LF at 50 LF/hour = 0.8 hours.
- Dig time: 2.3 hours. Add allowances: traffic control and locating (in general 0.5–1.0 hours), cleanup (0.5 hours).
- Total machine time: about 3.3–3.8 hours. Add mobilization if it’s a small standalone job (commonly 1–3 crew-hours).
Tip: Call in locates early and paint the route. Many contractors find it prevents stop-start delays that can cut hourly production by 20% or more when utilities surprise you.
Tracking And Improving Your Rates
Problem: Rates drift when no one measures. Crews work hard but not always on the right constraints—material flow, access, inspection timing.
Solution: Track quantity and hours daily, review weekly, and remove the biggest blocker first.
Daily Quantities and Photos
- Foreman logs: quantity installed, crew hours, conditions, blockers. A single photo per area helps verify scope.
- In general, when foremen log quantities daily, variance between estimate and actual narrows noticeably within a few weeks.
Weekly Review
- Compare planned vs. actual crew-days per task.
- Identify the top delay (material, access, equipment, info). Fix that before adding labor.
- Commonly, resolving one flow constraint (staging, lift availability, inspection timing) improves output 10–20% the following week.
Close the Loop= Into Proposals
Use your live rates to price faster and more accurately.
- Speak your scope, quantities, and assumptions into Donizo. The voice-to-proposal workflow captures details and generates a professional proposal quickly.
- Send branded PDFs, collect client e-signatures, and—when accepted—convert to invoices in one click. Paid plans add custom branding, templates, analytics dashboard, and in Autopilot, a margin estimator and work report exports.
Many contractors find this cuts proposal prep by a few hours a week and reduces back-and-forth because the assumptions are written right in the proposal.
Frequently Asked Questions
What Is a Construction Production Rate?
A production rate is how much work a defined crew completes in a defined time under defined conditions, like “1,000 SF of drywall per 2-person crew-day, open walls, 9-foot ceilings.” It’s the bridge between quantity and labor hours.
How Do I Calculate a Production Rate From Scratch?
Measure installed quantity over time under clear conditions, include allowances, and divide quantity by hours. Lock the assumptions (crew size, tools, access). Then use Hours = Quantity ÷ Rate to estimate labor.
How Often Should I Update My Rates?
Review weekly on active tasks and after any change in crew, tools, or material. Commonly, crews improve 5–15% in the first month just by aligning on targets and removing obvious blockers.
How Do I Adjust for Union Rules or Required Breaks?
Build required meal/rest periods into your allowance and don’t assume eight continuous installation hours. Check local requirements and your agreement; plan your rate around the actual productive window.
Can I Use One Rate for Small Jobs and Big Jobs?
You can, but add mobilization and cleanup. Commonly, small jobs carry 1–3 crew-hours of mobilization/cleanup regardless of quantity, so use a minimum labor charge or separate line item.
Conclusion
Production rates aren’t theory—they’re your crew’s real output turned into a simple, repeatable tool. Define units, measure a baseline, adjust for conditions, and keep the loop= tight with daily quantities and weekly reviews. Then use those rates to price work fast: speak your scope and assumptions into Donizo, generate a branded proposal, get an e-signature, and convert to an invoice in one click. Do the simple things consistently and your bids, schedules, and profits get a whole lot steadier.
- construction-production-rates
- estimating
- field-management
- contractor-operations
- profitability