Is excessive profit taking eating up the productivity?
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Not here labor is almost always our largest cost by far and away. Labor costs are typically 4 or more multiples of profit for most of our work.
It labor's like 80% of marginal costs 1/4 of it would be tremendous profit margins matched by exceptions like google and pharma. You can see why I'm probing. Can you disclose the typical industry margin?
Are your costs Hawaii costs as the username suggests?
Yes, Honolulu County.
We are typically lucky to make 10 to 15% profit on Prevailing Wage Work, (Federal or State).
We do occasionally but it's generally luck coupled with good management and having the ideal crew on the job.
https://labor.hawaii.gov/rs/files/2012/12/WRS489.pdf
Prevailing Wage Schedule for Hawaii for Public Works. New York localities are even higher.
We do laborer classification work, with some small percentage of "Operators". The skilled trades are even higher.
The next bump for Laborer 1 (what we pay the workers when they are performing asbestos removal) occurs in September 2017. At that point they will be making $55.66 an hour.
We pay the entire Base wage and Fringe to the workers, as opposed to union shops.