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CFE guide · Estimating

Set Up Installer Labor Pay on Net Areas

Turn on View › Net Area. CFE adds a Net column before Qty. Where a line has a Net value, Labor $/u is multiplied by the net instead of the Qty, and a red corner marks that labor price. Material, Prep $/u and Man Days still use the full Qty, so you pay installers on what they actually install and still buy the full rolls, cartons and waste.

  • 3 minutes
  • Intermediate
  • Needs: net areas from the takeoff
  • Trial and subscription
CFE View tab with Net Area turned on, the Net column added before Qty and the Net Area banner on the Eastgate estimate

Why price labor on the net area?

The quantity you order is not the quantity your installers lay. A carpet takeoff carries full rolls and seam waste, tile and LVT come in full cartons, and every material carries its waste factor. That gross number is right for buying material. It is wrong for paying labor if your installers are paid on the floor they actually put down.

Some companies price install labor on what the installer actually installs, the net area, and not on what is carried to the site. If you pay installers on the net but price labor on the gross, your bid carries labor for floor nobody installs, and on a close bid that can be the difference. CFE lets you keep both numbers on one line. Our article on net vs gross flooring quantities explains where each one comes from.

The four steps

  1. Turn on Net AreaView tab, Net Area under Layout.
  2. Read the bannerCFE tells you exactly what changes.
  3. Enter the net areasType the net beside each Qty.
  4. Check labor and man daysLabor total drops; material and man days do not.

1Turn on Net Area from the View tab

CFE View tab with the Net Area button and its tooltip: Labor priced based on Net surface area installed, instead of Qty ordered
View › Layout › Net Area: labor priced on the net surface area installed, instead of Qty ordered.

Open the View tab and press Net Area in the Layout group. The tooltip sums it up: Labor priced based on Net surface area installed, instead of Qty ordered. Press the same button to turn it off.

2Read what changes

CFE banner: Net Area is ON. Where a Net is entered, Labor $/u is multiplied by Net instead of Qty; Material, Prep $/u and Man Days still use Qty
The Net Area banner across the top of the takeoff grid.

A banner appears over the takeoff grid: where a Net is entered, Labor $/u is multiplied by the Net instead of the Qty, with a red corner on Labor $/u. Material, Prep $/u and Man Days still use Qty. Lines with no Net value keep pricing labor on the Qty, so you only fill in the lines your installers are paid on net.

3Enter the net area on each line

CFE Estimate Quote with the yellow Net column added before Qty on every takeoff line of the Eastgate Retail Center estimate
The yellow Net column sits right before Qty on every line.

Type the net area into the yellow Net column. Callidus Summary Reports print both a net and a gross for laid-out products, so the two numbers are already on your takeoff; the Callidus import brings in the gross as the Qty. Keep the Qty as the amount you order.

Estimator tip

Base, transitions and seam welding are usually paid by the linear foot as measured, so there is no net and gross to separate. Net Area matters most on carpet, carpet tile, sheet goods, LVT and tile, where waste and full units add the most.

4Check the labor total and man days

Look at Labor Sub and Labor Total on each line with a net: they now follow the net. Mat’l Sub does not move, because you still buy the full quantity. Project Man Days are still worked out from the Qty. Run Home › Checks before sending.

Worked example: one floor tile line, labor on gross vs net

The YMCA Early Learning Center takeoff in the Callidus guide shows PT-1 floor tile at 114.78 sf net and 131.00 sf gross. Say your installer labor is $2.25 per sf (the labor rate on the LVT lines of the Eastgate sample).

Net Area offNet Area on
Qty (material ordered)131 sf131 sf
Net–114.78 sf
Labor sub at $2.25 / sf131 × $2.25 = $294.75114.78 × $2.25 = $258.26
MaterialPriced on 131 sfPriced on 131 sf
Labor difference$36.49 less labor cost (12.4%)

On one small line it is $36.49. Across a building with thousands of square feet of tile, carpet and LVT, pricing labor on the gross adds a labor cost your installers never earn, and that is the kind of number that decides a close bid.

What to do next

Next, turn the labor into crew days with man days from installation rates and set your labor rates and overtime. The man days and labor rates page shows both sheets.

Price labor on net areas free

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Frequently Asked Questions

What does Net Area do in CFE?

It adds a Net column before Qty. Where a line has a Net value, Labor $/u is multiplied by the Net instead of the Qty. Material, Prep $/u and Man Days still use the Qty.

Do I have to enter a net on every line?

No. Lines with no Net value keep pricing labor on the Qty, so you only fill in the products your installers are paid on net.

How do I know which lines are priced on net?

A red corner appears on Labor $/u for every line where the Net is used.

How do I turn Net Area off?

Press Net Area on the View tab again. The banner names the same place: View › Layout › Net Area.

Cristian Valcu, founder of Commercial Flooring Estimating LLC

Written by

Cristian Valcu – Founder & CEO, Commercial Flooring Estimating LLC

Cristian has estimated commercial flooring for over 20 years and built CFE - Advanced Estimating Worksheet around the way flooring contractors actually price, propose and track their bids.