Average rates for painting - Resene

Resene Professional development programme(c) Occasionally painters are engaged on a ‘timeand material’ basis and can apply these unitrates for their work. The costs per hour areinclusive of full daily rates but contractorsshould be careful when working throughpublic holidays or for lengthy periods workingtimes outside normal working conditions.’Time and a half’ or ‘Double time’ entitlementsto waged staff does not have the same effectwhen translated to charge out rates becausemany elements of overheads are fixed, andin fact, as a percentage of your costs actuallydecrease as the optimum hours increasebeyond the average times worked.(b) Being a successful painting contractor isall about managing the productivity of theprocess to at least equal the ‘charge’ rate foreach hour worked. The built up rates in thetables are on this basis and good painterswill earn more than the average.(c) Back costing is an essential part of properlyrunning your business. Analytical systemsare simple to setup for the painting tradeexcept that many ‘off the shelf’ programmestend to capture labour costs as nett actual bytime sheet analysis. Remember that the ruleof thumb method of simply doubling the netthourly rate (NZ average $20 per hour) prettywell covers the overheads, holidays, accidentand sickness requirements and leaves a littlebit of profit).(d) Labour only subcontractors, are on an hourlybasis, not the full cost to the contractor, andan allowance must be added to allow foryour overheads and profit margins.Labour calculationOrdinary time 45 hours x $20.00 = $900.00Add Holiday and sick leave (+16.00%) 144.00Public Liability InsuranceACC and First Week Liability (+6%) 59.52Subtotal $1103.52Divide by Productive Hours$1103.52 ÷ 43.33 = 25.47(Deduct smoko time each day)Plus Brushware/rollers/sundries supplied by employer 5.10Direct cost (@ $20 per hour) $30.57Add your overheads ($10 per hour) $40.62Add profit $44.68+7