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