Taking work in other cities can grow your company, if you plan the crew costs right.
In this article
Why it matters
Out-of-town projects can be profitable and keep crews busy. But lodging, meals, travel time and fatigue add costs that many contractors underestimate in their bids. Poorly managed travel also hurts morale and retention.
Per diem rules
Daily amounts, who qualifies and how it's paid.
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Lodging
Clean, safe and close to the job.
Travel time
Pay rules for travel days follow labor laws.
Vehicles
Company trucks, mileage and fuel.
Safety and fatigue
Long drives after long shifts are risky.
Morale
Regular trips home and good communication.
Taxes
Follow tax rules for per diem and reimbursements.
Bids
Include all travel costs in the estimate.
Know your numbers
Track travel cost per worker per week.
A message to the crew
"For the Charlotte job, lodging is booked near the site, per diem is paid weekly and we'll rotate trips home every other weekend."
Where to start
Write a one-page travel policy and a travel cost line in your estimate template.
Common mistakes
Leaving travel out of bids, poor lodging and no rotation home.
Local hiring
On long out-of-town projects, hiring part of the crew locally can reduce travel costs. Keep key leaders from your team to protect quality and culture.
Run tighter jobs and win the right ones.
We help construction companies build the systems, online presence and client relationships that bring better projects.
Frequently asked questions
What is per diem in construction?
A daily allowance for meals and incidental expenses paid to workers traveling for out-of-town jobs, often along with lodging, following company policy and tax rules.