Skip to main content

Factors on which unit rate depends

Short answer

Unit rates depend on location and lead, material availability and price, wage rates and labour productivity, specification and quality, quantity of work, equipment and method, climate and site conditions, time of completion, norms and wastage allowances, and overhead, profit, taxes and contract terms.

What are the factors on which the unit rates of a particular item of work depend?

The unit rate of an item of work depends on:

  1. Location and lead: the distance of material sources from the site, and the lift; transport can double the cost in remote hills.
  2. Availability and price of materials: local or imported, royalty, taxes and market fluctuations.
  3. Wage rates and labour productivity: availability of skilled labour and the output per day.
  4. Specification and quality: mix proportions, grade, thickness and finish.
  5. Quantity of work: a large quantity lowers the unit rate.
  6. Equipment and method: manual or mechanical work, the cost of machines and fuel.
  7. Climate, season and site conditions: rain, altitude, access, soil and working space, height of work.
  8. Time of completion: a short time needs more resources.
  9. Norms and wastage allowances adopted.
  10. Overhead, profit, taxes and the terms of the contract.

✓ Answer checked by Claude Opus 5.5 (high effort)

Related questions

All Estimating and Costing chapter 4 questions →