ABSTRACT
Materials costs within the rates have been calculated using the 'list prices' contained in Part 3: Resources (pages 40 to 118), with an Index appearing on page 39), 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 greaIBr and can reach levels of 30% to 40%. High demand for a product at the time of pricing can drarnalically 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'.4% to 5%) dependent upon the risk of damage, the actual level should lake account of the nature of the material and i1s method of storage and distribution about the site.
