Labor Equipment Material Form Template
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This Labor Equipment Material (LEM) form is free and readily available to record the daily labor, equipment, and materials cost in a project. It features easy-to-fill tables that users can effortlessly use to provide the required data for the day-to-day project reconciliation.
Want a more streamlined process? This LEM Form automatically calculates the total cost of labor, equipment, and materials used daily in a project, which helps users finish the form more efficiently and allows a more prompt response to discrepancies.
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What is Labor Equipment Material Form?
A Labor Equipment Material Form, commonly known as a job material and labor record, is a form that logs the daily cost of these resources in a project. This tool monitors the project's budget and cost flow to verify if it aligns with the planned expenses. Having this tool ensures that LEM cost discrepancies are easily spotted and corrected to prevent any losses.
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Visit the example below to understand how this Labor Equipment Material Form can provide more convenience than traditional paper-based forms, as it's an easy fill-out form that can be easily accessed using a mobile phone or tablet across all projects on-site. Create tables and data about workers and labor costs and easily compute them with formula fields.
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Applicable Standards and Policies for Labor Equipment Material Form
The Labor Equipment Material Form is primarily used in construction, project management, and field reporting. It aligns with several standards and frameworks in both the USA and Canada.
In the United States, the LEM form aligns with the following provisions:
- Fair Labor Standards Act (FLSA)
- Davis-Bacon Act
- American Institute of Architects (AIA) G702/G703
- Occupational Health and Safety Administration (OSHA)
In Canada, the Labor Equipment Material Form is part of the following provisions:
- Canada Labour Code (Federal)
- Provincial Employment Standards Acts
- Construction Specifications Canada (CSC)
- Occupational Health & Safety (OHS) Laws
Staff Members and Parties that use Labor Equipment Material Form
Leaders typically use the Labor Equipment Material Form. They have the appropriate position and information on how to handle this form to ensure that there is full accountability, cost control, quality, and risk management. Here are the common staff members that make use of the Labor, Equipment, and Materials form.
- Site Foreman—They oversee the day-to-day site operations and are responsible for logging the equipment and materials being used and the labor hours of the crew. They are the first point of contact in capturing accurate labor data.
- Construction Manager—They manage the broader execution of the project, ensuring there is efficiency in the operations. They use the form to monitor the material and labor costs across projects.
- Project Manager—They are responsible for the project success from start to finish, so they rely on the form to track the spending against the project budget and make informed decisions on resource allocation.
Business Risks Reduced by Labor Equipment Material Form
The Labor Equipment Material Form provides accurate monitoring of the main resources used in a project. It reduces business risks by providing timely, precise, and auditable records of labor, equipment, and materials. Using the LEM form reduces the following risks:
Cost overrun
The Labor Equipment Material Form provides full data that prevent untracked labor hours, equipment time, and material usage, which can result in cost overruns and inefficiencies in the record; significant variances will surface during financial audits. The LEM supports data accuracy since it provides support for precise cost forecasting and financial control.
Quality risks
The Labor Equipment Material Form can also track the efficiency of the laborers, equipment, and materials. Catching discrepancies in the budget also means that one of these resources wasn’t fully used, which provides elbow room for processes. Using this kind of approach ensures that the processes are continuously improving, which also improves the quality of the product or structure being created or built.
Health and safety risks
The Labor Equipment Material Form is also a guide for site foremen and supervisors in maintaining a safe and healthy work environment. The form helps ensure that only certified personnel and approved equipment and materials are used. This reduces the risks of incidents and mishaps in the field.
Business Opportunities Created by Labor Equipment Material Form
The Labor Equipment Material Form is not just another paper you fill out and set aside. It is so much more than a compliance chore that businesses need to complete. Effective use of this form provides business opportunities through improved visibility, control, and decision-making across projects. Here are the possible business opportunities when utilizing the LEM form effectively:
Data-driven decision making
Data collected through the Labor Equipment Material Form is always accurate. The Labor, Equipment, and Materials form always presents labor and equipment hours along with their relevant rates, as well as materials with their quantity and cost. Recording these items daily can help easily identify discrepancies, allowing relevant stakeholders to provide solutions that improve systems and processes based on the acquired data.
Improvement in quality and safety
The Labor Equipment Material Form ensures continuous improvement and reduces health and safety risks by monitoring efficiency in the project and verifying approved personnel, equipment, and materials are used, respectively. By implementing this process, companies will continuously reduce risk costs and enhance their brand reputation, thereby attracting more investors for future projects.
Accurate bidding and estimating
The historical data gained from these forms helps streamline the estimation process for other prospective projects, thereby providing a more accurate and confident bid. This guarantees a reduction in pricing risk and budget inflation.
What should a Labor Equipment Material Form contain?
This is a general checklist of what a LEM Form should contain.
- List of all employees involved in the project or activity
- List of all equipment used in the project or activity
- List of all materials used in the project or activity
- Employee rates, Equipment Rates, and material costs per unit.
- Total Cost for Labor, Equipment, and Material
Labor Equipment Material Form: The basics
LEM is an important aspect of construction, as it is the primary process that monitors the high-cost resources. Understanding the fundamentals of LEM construction gives businesses an advantage in making sure they use and spend these high-cost resources as planned.
Material-Labor: Why should we align them?
A project’s workforce and materials must work together, as one cannot function without the other. They are directly dependent on one another because laborers are responsible for making use of the materials to create the wanted product or structure. In an actual work setting, planning for both the workforce and materials must be paralleled to ensure that there is always a sufficient amount of necessary materials available for the workers to use each day.
Equipment reconciliation guide
Construction almost always uses equipment such as cranes, excavators, and compactors. They greatly help simplify laborious activities such as heavy-material lifting, earth-moving, and material transportation. However, these pieces of equipment are paid by the hour.
Businesses should track the cost of using equipment daily to ensure that they don’t overspend. The daily reconciliation report should include a list of all equipment used in a given day, the rate for each piece of equipment, the total cost for each item, and the overall total cost for all equipment combined.
Labor reconciliation guide
Another resource cost that businesses should track is the labor cost, since it is the most expensive resource in any given project. Therefore, it is crucial to conduct a daily labor reconciliation to guarantee the balance of forecasted costs and planned costs.
Just like equipment reconciliation, labor reconciliation should include names of all employees conducting a specific activity for the project, their hourly rates, the total cost per employee, and the overall total cost of employees.
How to create a Labor Equipment Material Form template?
This is a simple practice for a Labor Equipment and Material Form. The guidance includes the things you need, how to format the form, best practices, and a practical guide when using the form.
Prerequisites in making the Labor Equipment Material Form
When creating the Labor Equipment Material Form template, ensure that the following items are defined and in place:
- A defined project structure
- Standard labor classification and rates
- Approved equipment and asset list
- Material specs and approvals
- Defined roles and responsibilities
- Compliance requirements for safety, health, environment, and quality.
Creating the Labor Equipment Material Form
A Labor Equipment Material Form should be kept simple for more efficient use. Overly complicated forms can invite confusion, especially for the users. The goal in making this form is consistency and completeness. To achieve that, here is what you must do.
- Provide fields for standard information, like date, location, activity, project codes, and other important information that helps define the whole project and what is monitored.
- Provide clear and particular sections for labor, equipment, and material.
- Add a guide, especially on the rates for labor, equipment, and materials rates and prices, to ensure consistency
- The form should allow users to provide all relevant LEMs used in an activity, so make sure there is enough space or tables for individuals to place this required data.
- Make sure the form has a logical flow. This ensures that the form actually mirrors what is on-site.
- Provide guides on the relevant formulas in the form, especially for the total cost of labor, equipment, and materials.
- Signature fields should include “prepared by,” “reviewed by,” and “approved by” to establish full accountability and traceability.
Best practices in making the LEM Form
As mentioned, the goal of the form is to show completeness and consistency. Here are some best practices that one should follow when designing the form
- Make sure the form design is practical for site conditions.
- Have a clear definition of terms. It would prove advantageous to define terminologies in the form to prevent confusion.
- Only provide sections that are required for reporting. Keeping the form straightforward ensures consistency.
- Make sure the form captures accountability, which is why signature fields are a must.
- Ensure the form is user-friendly for daily use without requiring complex and frequent reformats.
A guide on the using the Labor Equipment Material Form
The Labor Equipment Material Form also depends highly on how it is used. Here is a practical guide on how to use the form efficiently.
- The form should be completed on a daily or per-shift basis for more accurate data.
- Avoid estimation. Actual number of hours or pieces used should be reflected on the form
- Make sure that staff using the form know how it works and understand its terms.
- Make sure to follow the review and approval process.
- Keep the form clean and write data legibly to prevent errors
Frequently asked questions
How to create Labor Equipment Material Form Process in an App or Software System
A well-designed Labor Equipment Material process should enable users to record all primary resources and costs in accordance with approved best practices and regulatory standards. To achieve completeness, this process must be followed:
- Preparation – The establishment should define project details and scope of work and ensure that the correct template version is used.
- Data Entry – The template user should thoroughly enter the required data, which includes the laborers, pieces of equipment used, and materials consumed, along with their computed costs.
- Attach Supporting Details – This will help validate the accrued costs.
- Review and Validation – This step ensures that all logged data are error-free and are factually correct.
- Approval – This is the final step of the process. This means that the form will be placed on record.
45 minutes
Medium difficulty
Use an app or software to create the Labor Equipment Material Form
Most people still create forms manually using Excel or Word and then print them out, which is a tedious process. However, an app or software can enhance the efficiency of this process, offering the following benefits:
- Create digital forms that can be created once and recycled for other projects.
- Provides standard fields for data capture, which helps with consistency.
- Formulas and automations can be integrated.
- A central storage, which allows easy searching and retrieval
- Reviews and approvals can be done digitally
Define the purpose of your job material and labor record
The purpose of the form needs to be clearly defined. For an LEM form, here are the things on how it should be used:
- Track daily labor, equipment, and material usage
- Help support cost control, and material consumption
- Help support payroll, claims, and audits.
Identifying the users for the job material and labor record
Identifying the users is crucial to the entire process and the validity of the form, which is why the following must be clarified:
- Who creates and edits the form
- Who completes the form
- Who reviews the form
- Who approves the form
- How the process of review and approval works
Creating the general information section in the Labor Equipment Material Form
These are the vital fields that provide an overview of the project, which helps users and readers understand the whole scope. To achieve this goal, here are the steps you must follow to create a complete general information section for the LEM form:
- Add a date field for when the user started filling the form
- Add a field for the project name
- Add a field for the contractor name involved in the project
- Add a field for the specific or activity being conducted
- Add a date range field to provide details about the project duration
- Add a field where users can provide the description and details of the activity
Creating the labor cost section in the Labor Equipment Material Form
This section is a summary of the labor cost of each employee involved in the project. To ensure that all the required data are captured, here are the necessary steps that you must follow to create the labor cost section for the LEM form:
- Provide a default table with 7 columns.
- The first column should be a field for the employee names
- The second column should be a field for employee ID no.
- The third column should be a selection field for the type of role.
- The fourth column should denote the type of day. The column could be formatted into a selection list, where users can easily pick the type of day.
- Each different selection on columns 3 and 4 could be associated with colors to make the form more appealing.
- The fifth column should allow users to input the number of hours each employee has garnered.
- The sixth column is formatted to return the rate per hour for each employee. The analysis behind this column is to determine each employee’s role and the type of day they worked to determine their hourly rate.
- The last column presents the total labor cost of each employee. The formula integrated in this column should be based on the general labor cost computation in the US: Labor Cost=(Regular Hours×Hourly Rate)+(Overtime Hours×Hourly Rate×1.5)
- Add another table that sums up the total labor costs of all employees.
Creating the equipment cost section in the Labor Equipment Material Form
This section presents a summary of the total cost for each piece of equipment used in the project. To ensure this section is complete, here are the steps for making the equipment cost section:
- Provide a default table with 6 columns.
- The first column should be a field for the equipment name
- The second column should be a field for equipment ID no.
- The third column should be a field to input how the equipment was used
- The fourth column should allow users to input the rate per hour of each equipment
- The fifth column should allow users to input the total number of hours each piece of equipment was used.
- The last column should total the cost of each piece of equipment. (Equipment Cost = Equipment Rate x Total Hours)
- Add another table that sums up the total equipment costs of all pieces of equipment used
Creating the material cost section in the Labor Equipment Material Form
This section presents a summary of the total cost for all the materials used in the project. To ensure this section is complete, here are the steps for making the material cost section:
- Provide a default table with 6 columns.
- The first column should be a field for the material name
- The second column should be a field for material ID no.
- The third column should be a field to input how the material was used
- The fourth column should allow users to input the price of each material
- The fifth column should allow users to input the total number of individual materials consumed by the project.
- The last column should total the cost of individual materials consumed by the project. (Material Cost = Material price x Total Quantity)
- Add another table that sums up the total equipment costs of all materials used.
Configuring the TOTAL LEM Value section
This section totals all the costs of the specific activity in the project. To have a more accurate result in the LEM Form, here are the steps for making this section:
- Make sure that the total labor cost section is complete
- Make sure that the total equipment cost section is complete
- Make sure that the total material cost section is complete
- Add a table that sums up all the costs—labor, equipment, and materials (Total cost = Total labor cost + Total equipment cost + Total materials cost)
Creating the Signatories Section
This section provides accountability for the form’s users and also validates the LEM Form. To ensure these, the following fields must be present:
- Add a field for the supervisor’s signature
- Add a field for the manager’s signature
Rolling out and Publishing the Labor Equipment Material form
Once everything is ready, the Labor Equipment Material Form must be
- Published as a controlled template
- Oriented to all users
- Monitored and updated.
About the author
Felmar Mantalaba
Engineering Content Writer
Education:
Cebu Institute of Technology - University - Mechanical Engineering with Mechatronics
Bio:
Felmar is a mechanical engineer, whose four years of experience in the mining industry inspired him to write and share stories to progress the revolution of new technologies and create smarter, smoother ways of living.
Project Details:
Safety, Health, and Environment Management System (SHEMS) Coordination
SHEMS Coordinator at Atlas Consolidated Mining, ensuring organizational compliance with ISO 14001 and ISO 45001 standards, performing risk assessments, developing policies, and conducting audits and inspections to maintain a safe and environmentally responsible workplace.
Maintenance Management and Optimization
Senior Maintenance Manager (OIC) leading equipment maintenance and operational efficiency initiatives, reducing downtime by 10%, improving Mean Time Between Failure (MTBF) and Mean Time To Repair (MTTR) for major equipment, and managing maintenance schedules, manpower, and materials, while overseeing capital project optimization.
Inspection Engineering and Equipment Reliability
Inspection Engineer responsible for technical blueprint interpretation, vendor collaboration, preventive maintenance scheduling, and data collection for vibration and temperature readings, delivering actionable recommendations and comprehensive reports to improve equipment reliability and operational performance.
End-to-End Operational Oversight in Mining Engineering
Contributed to multiple facets of operational management, including SHEMS compliance, maintenance optimization, inspections, and capital project evaluation, integrating safety, reliability, and efficiency improvements across all stages of copper production operations.
Version History:
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