Alexander Ruin

AI Systems Design Consultant

Alexander Ruin — systems design consultant. I help design architecture, assess risks, and establish transparent processes — from technology selection to support. AI executors handle routine tasks. Areas: automation, integrations, AI products.

Time and Material Pricing Calculator 2026: Automate Labor Cost Estimation

Time and Material (T&M) contracts remain the preferred choice for construction projects with evolving scopes and uncertain requirements. However, accurate T&M pricing calculation requires careful labor cost estimation, material tracking, and overhead calculations—tasks that traditionally consume 6+ hours per project estimate.

The Challenge of T&M Cost Calculation

Traditional T&M pricing methods involve manual spreadsheet work: calculating burdened labor rates (base wages + 25-50% for taxes, insurance, benefits), tracking material costs with markup (10-30%), and ensuring all overhead expenses are captured. Contractors using Excel templates or legacy estimating software often face:

  • Human errors in labor burden calculations (FICA 7.65%, workers' comp 2-15%, benefits 10-25%)
  • Time-consuming material cost lookups from catalogs
  • Inconsistent pricing across similar projects
  • Delayed proposal delivery to clients

AI-Powered T&M Calculator: The Modern Approach

TimeMaterial bot revolutionizes T&M pricing through AI-assisted automation. Simply upload project descriptions in any format (Excel, Google Docs, PDF, or text), and the system:

  1. Analyzes work items using Claude AI to match labor rates from GESN catalogs (500+ positions)
  2. Calculates burdened labor rates automatically including all overhead components
  3. Suggests material quantities based on project scope
  4. Generates ready-to-send estimates in your preferred Excel template

Unlike manual Excel calculations or rigid traditional estimating software, TimeMaterial adapts to your existing workflow—working through Telegram bot interface, integrating with Microsoft 365/Google Workspace, and learning from your past estimates.

Pricing & ROI

Subscription: 5,000 ₽/month per operator One-time setup: 30,000 ₽ (includes integration, training, custom rate catalogs)

Typical ROI: If you prepare 20 estimates per month, saving 5.5 hours each, that's 110 hours saved monthly. At 500 ₽/hour smetcher rate = 55,000 ₽ monthly savings (11x return on investment).

Related Resources

Ready to automate your T&M pricing? Request demo access or calculate automation cost for your team.

About the service "TimeMaterial — AI-powered estimate automation"

AI system for automatic estimation from any materials: Excel, Google Docs, PDF, text descriptions. Works with GESN (State Elemental Estimate Norms) price catalogs. Saves 5+ hours of estimator's work on each project.

Key Benefits:

  • Saving 5+ hours of estimator's work on each project
  • Calculation accuracy 95%+ thanks to AI
  • Reduction of human errors by a factor of 10
  • ROI pays off in 10-15 estimates

Target Audience:

Construction companies (design, installation) Design bureaus Engineering companies Contractors' estimating departments Sales Department Heads (Complex Technical Sales)

Use Cases:

💡 Preparation of estimates for installation work (ventilation, heating, electrical)
💡 Calculation of labor costs according to the GESN reference books
💡 Preparing commercial proposals based on FC and FR
💡 Automating repetitive operations in tender preparation