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Estimating fundamentals

Unit rate estimating.

Unit rate estimating is the most common method for pricing construction work. Each item of work is given a rate per measurable unit — per square metre of brickwork, per cubic metre of concrete, per linear metre of drainage.

Authored by Alexandr Vreme & Maksym Vasylkov
Published — Next review

Who this guide is for

Estimators, quantity surveyors, and contractors who need to build rates from first principles or adjust standard rates for specific projects.

Building a unit rate

A unit rate has three components: labour, materials, and plant. Labour is calculated from gang composition and productivity. Materials include the base cost plus waste. Plant includes hire, fuel, and operator costs. Overheads are sometimes added as a percentage uplift rather than included in individual rates.

Miniature example

Concrete in foundations (per m³):
Materials: C25 concrete £115/m³ + 5% waste = £120.75
Labour: 2 labourers × £20/hr, 0.5 hrs/m³ = £20.00
Plant: poker vibrator £8/hr × 0.25 hrs = £2.00
Total unit rate: £142.75 per m³

Common mistakes

  • Using composite rates for non-standard work without adjustment
  • Double-counting overheads in unit rates and in a separate preliminaries section
  • Not updating material or labour elements when costs change mid-project
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Approximate quantities estimating
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Assembly-based estimating

Related guides and tools

Learn about building up labour rates and material pricing. Try the Construction Estimator to apply your own unit rates.