HVAC Labor Cost Guide
HVAC Labor Cost Guide
How HVAC contractors can calculate realistic labor cost instead of using wage alone.
Quick Answer
Use this page as a practical starting point, then adapt it to your company's costs, workflow, market and requirements.
HVAC Labor Cost Guide
An HVAC technician's wage is only one part of the labor cost used for pricing.
Paid vs. Productive Hours
If a technician is paid for 40 hours but only part of that time is revenue-producing, using 40 as the denominator can understate productive labor cost.
Include Payroll Burden
Consider payroll taxes, workers' compensation, benefits, paid leave, training, tools and other employment costs.
Review Actual Labor
Compare estimated and actual hours on completed jobs to identify estimating, dispatch, training or pricing problems.
Practical Next Steps
Keep your information current, document assumptions, compare estimates with actual results, and update the process when costs or workflows change.