What is the difference between individual labor rates and unit cost pricing for labor?

What is an Individual Labor Rate?

Individual Labor Rate pricing calculates labor based on the number of labor hours required and the hourly labor rate. It provides greater detail and flexibility for estimating labor-intensive or variable tasks. Best for jobs with variable complexity or where tracking labor hours is important.

To calculate labor using this method, you'll use the following:

• Labor Rate - The cost per labor hour.
• Unit Labor (Hours) - Estimated hours needed per unit of work.
• Difficulty Factor - Multiplier applied to labor hours to account for complexity or crew size.
• Total Labor (Hours) - Unit Labor × Quantity × Difficulty.
• Total Labor Cost - Total Labor (Hours) × Labor Rate.

What is Unit Cost Pricing for Labor?

Unit Cost Pricing assigns a flat labor cost per unit of measure. This method simplifies labor cost estimation without tracking hours or difficulty. Ideal for repeatable, standardized tasks where labor requirements are predictable.

This method relies on the following inputs:

• Labor Cost (per unit) - Fixed cost of labor per unit of measurement.
• Total Labor Cost - Quantity × Labor Cost (per unit).

Individual Labor Rate vs. Unit Cost Breakdown

Other Considerations

• Your default labor method is configured at the tool level (Bid Board or Estimating tool). You can still override it per estimate.
• Both methods feed into downstream tools such as budgets, change orders, and proposals with corresponding labor calculation logic.
• The unit cost view provides richer detail and transparency into individual components.

How Do I Configure This in Procore?

• To configure at the company level, follow steps to Configure Default Estimating Settings. 
• To configure at the project level, follow steps to Configure Settings for an Estimate in the Estimating Tab.