Labour
Regular and overtime hours multiplied by the applicable loaded hourly rate.
The short answer
A project total tells you how much the whole site cost. Job costing explains where that money went. A contractor may divide a project into jobs such as demolition, partitions, electrical installation, flooring or decoration, then record each cost against the correct job.
The three main actual-cost categories
Materials
Supplier costs assigned to the job where the materials were used, normally compared excluding VAT.
Subcontractors
Outside labour or specialist-company costs recorded separately from the internal team.
Total actual cost
The sum of labour, material and subcontractor costs for the job.
Total actual cost = Labour cost + Material cost + Subcontractor cost
Why the job level matters
One profitable activity can hide another activity that is losing money. Recording costs only at project level may show the final result but does not explain which estimate, working method or purchasing decision needs attention. Job-level history turns a completed project into useful information for the next estimate.
Estimated, actual and billed are different
- Estimated cost is the original cost allowance used when pricing the work.
- Actual cost is what labour, materials and subcontractors have really cost so far.
- Billed value is the amount charged for completed work.
These values should remain separate. Comparing estimate with actual shows budget performance. Comparing billed value with actual cost shows real profit.
A practical routine
- Create the project and its jobs.
- Enter estimated labour, material and subcontractor budgets.
- Record team hours, materials and subcontractor invoices against the correct job.
- Add staged billings as the work is submitted for payment.
- Review budget remaining and profitability by job—not only by project.