← Estimating process

Estimating process

Labour productivity and gang rates.

The gang rate is the combined hourly cost of a team of operatives. Productivity is their output per hour. Together these determine the labour element of every unit rate.

Authored by Alexandr Vreme & Maksym Vasylkov
Published July 2026 — Next review July 2027

Who this guide is for

Estimators calculating rates for direct labour, site managers planning gang sizes, and contractors deciding between direct labour and subcontractor pricing.

Calculating a gang rate

Sum the all-in hourly rates of every operative in the gang. A typical bricklaying gang: 1 bricklayer £31.53 + 1 general operative £22.50 = gang rate £54.03/hour. Then apply expected output — if the gang produces 8 m² of brickwork per day (8-hour day), the labour cost per m² is £54.03 × 8 ÷ 8 = £54.03 per m².

Miniature example

Plastering gang (2 plasterers + 1 labourer):
2 plasterers × £28.50 = £57.00
1 labourer £20.00
Total gang rate £77.00/hour
Output: 15 m² per hour. Labour cost = £77.00 ÷ 15 = £5.13/m².

Common mistakes

• Assuming standard productivity without adjusting for site access, working height, or weather
• Using the wrong gang composition — one bricklayer with two labourers in the rate, but only one labourer on site
• Forgetting that productivity varies by project type — a new build is faster than a refurbishment