LEMS billing is a method used in the construction industry to determine the cost of construction projects. It is an acronym that stands for “Labour, Equipment, Materials and Services.” LEMS billing involves breaking down the cost of a construction project into these four categories.
The cost of labor is calculated by determining the number of hours worked by each worker and multiplying it by their hourly rate. This includes all on-site labor required for the construction project, including construction workers, engineers, architects, and other professionals.
The cost of equipment includes all machinery and tools used on the construction site. This includes excavators, cranes, bulldozers, and other equipment necessary for the project.
The cost of materials includes all materials required for the construction project, such as cement, steel, lumber, and other building supplies.
The cost of services includes all other costs associated with the project, such as permit fees, design fees, inspection fees, and any other services required for the construction project.
Once the costs for each of these categories have been determined, they are added up to determine the total cost of the construction project. LEMS billing is a detailed and comprehensive way of estimating the cost of a construction project, as it takes into account all the different components required for the project. This helps ensure that the construction project is completed within budget and on schedule.
Abio’s Field Management web-based tool guides you through the LEMS process, from capturing labour costs and material receipts, through to presenting daily LEMS reports to clients for their approval and sign-off.