ABSTRACT

Adjustments should be made to the rates shown for time, location, local conditions, site constraints and any other factors likely to affect the costs of a specific scheme.

Materials cost

Materials costs within the rates have been calculated using the 'list prices' contained in Part 4: Resources, adjusted to allow for delivery charges (if any) and a 'reasonable' level of discount obtainable by the contractor, this will vary very much depending on the contractor's standing, the potential size of the order and the supplier's eagerness and will vary also between raw traded goods such as timber which will attract a low discount of perhaps 3%, if at all, and manufactured goods where the room for bargaining is much greater and can reach levels of 30% to 40%. High demand for a product at the time of pricing can dramatically reduce the potential discount, as can the world economy in the case of imported goods such as timber and copper. Allowance has also been made for wastage on site (generally 2.5% to 5%) dependent upon the risk of damage, the actual level should take account of the nature of the material and its method of storage and distribution about the site.