Estimated Regular Hourly Rates for Work Sites with a Full Two-Day Weekend System Plus Public Holidays

Hello, everyone.

This is Enta.

Did you know?

Today! I guess it's the Spring Equinox, lol.

To everyone in the construction industry. That’s basically on the level of asking, “Is that even good?” lol

That said, while I think the Ministry of Land, Infrastructure, Transport and Tourism’s pilot program with a full two-day weekend is great, doesn’t it just end up unnecessarily driving up costs?

That's what I think.

With a full two-day weekend plus holidays off, the number of working days in a month (January) falls below 20.

At best, it'll be around 20 days.

Two-day weekend system

For example, let's say the regular monthly rate per person is 25,000 yen. (Labor costs only)

25,000 yen × 4 people × 20 days = 2,000,000 yen (500,000 yen per person)

If you're a sole proprietor, you might be able to do it. (Travel expenses not included?)

That said, when you factor in social insurance and other costs, it’s still pretty tough.

If this were a corporation with "other expenses" listed under company expenses, it would be virtually impossible.

 

If you send out four craftsmen, how much does a slope contractor earn in a month?At least 3,000,000 yenRight?

Since we're running a business, we're bound to have expenses.

Even taking that into account, is a full two-day weekend system actually feasible??

If you divide 3,000,000 yen among 4 people and then divide that amount by 20 days, the result isThe price per person is 37,500 yen.

This is cutting it close.

 

I imagine some of you might be wondering, “What’s the basis for that?”

Since I run a business, I look at the numbers all the time, so I totally get it. (Though I know some people don’t, lol.)

If you're not sure what this means, just search for it on Google.

Ministry of Land, Infrastructure, Transport and Tourism: Labor Cost Unit Rates

If you search for this, it will always appear at the top

"Regarding Labor Unit Rates for Public Works Design Effective March Heisei 30"

...will appear.

 

When you open the PDF file for this article, you'll see the labor cost rates for that year and that period.

The labor cost rates for the whole country are listed, but way down at the bottom...

Reference Announcement: Disclosure of Expenses Necessary for the Employment of Construction Workers (Pilot Program)

There's something like that. (It's just for reference, but it's not a lie either.)

Top Row: Labor Unit Rates for Public Works Design
(Bottom row): Labor unit rates for public works design + necessary expenses (statutory welfare benefits [employer’s share], labor management fees, housing expenses, etc.) (Reference values)

 

It says this, but,Unit Cost for Slope Stabilization Work

The yellow section (slope stabilization work) represents the unit price, which includes expenses. (Nationwide unit prices are available, so please check them.)

Generally speaking, this means you'll need a unit price of about 150% of the standard unit price.

 

It's just a rough estimate, but it's not a bad number, is it?

Especially at work sites that operate on a full two-day weekend plus public holidays, failing to calculate it this way could lead to a pretty dire situation.

Thinking, “I’m paying 20,000 yen, so I’ll be fine, right?”—that’s already a world that’s completely out of the question.

Since subcontractors are also paying social insurance, if you don’t set your budget based on a minimum labor rate of 25,000 yen, going over budget will be inevitable.

When preparing the operating budget, calculate labor costs at a rate of 25,000 yen or more!(If possible, even more ↑)

 

And you're telling us to boost productivity under these circumstances? We can't just cut corners to shorten the construction schedule, can we?

Huh, are you stupid??

That's kind of how it is, lol.

 

At a worksite that operates on a full two-day weekend system plus holidays, you’d be in big trouble if you didn’t pay close attention to cost management.

Please be careful.

 

See you later.

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