---
title: "Factors on which unit rate depends"
subject: "Estimating and Costing"
chapter: 4
key: "semester_7/estimating_and_costing:factors-unit-rate-depends"
source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/factors-unit-rate-depends
site: BCT Engineering
---

# Factors on which unit rate depends

Estimating and Costing · Chapter 4: Analysis of Rates

- Asked in: 2074 Asoj, 4 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/factors-unit-rate-depends
- Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-4

## Question

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

## 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.

## Answer

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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why can the rate be much higher in a remote hill district?
   A. Higher concrete strength
   B. Lower wages
   C. Lower taxes
   D. Long lead and transport cost of materials
   Answer: D. Transport from the source raises material cost. (Key point: Location and lead)

2. How does quantity of work affect the unit rate?
   A. A large quantity lowers the unit rate
   B. A large quantity raises it
   C. No effect
   D. Only affects labour wages
   Answer: A. Economy of scale. (Key point: Quantity)

3. Why does a short completion time raise the rate?
   A. It lowers wastage
   B. It needs more resources and overtime
   C. It reduces overhead
   D. It removes taxes
   Answer: B. More labour/equipment is needed to finish quickly. (Key point: Time of completion)

4. Which specification factors affect the unit rate?
   A. Colour of drawings
   B. Name of contractor
   C. Mix proportion, grade, thickness and finish
   D. Size of site office
   Answer: C. Quality and mix change material quantity. (Key point: Specification)

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