ABSTRACT
Different organisations will have varying views on rates and costs, which will in any event be affected by the type of job, availability of labour and the extent to which mechanical plant can be used. However this information should assist the reader to: (1) compare the prices to those used in his own organisation (2) calculate the effect of changes in wage rates or prices of materials (3) calculate prices for work similar to the examples given From 25 June 2008 basic weekly rates of pay for craft and general operatives are £401.70 and £302.25 respectively; to these rates have been added allowances for the items below in accordance with the recommended procedure of the Chartered Institute of Building in its “Code of Estimating Practice”. The resultant hourly rates are £14.27 and £10.69 for craft operatives and general operatives respectively. The items for which allowances have been made are: ƒ Lost time ƒ Construction Industry Training Board Levy ƒ Holidays with pay ƒ Accidental injury, retirement and death benefits scheme ƒ Sick pay ƒ National Insurance ƒ Severance pay and sundry costs ƒ Employer's liability and third party insurance The tables that follow illustrate how the above hourly rates have been calculated. Productive time has been based on a total of 1801.8 hours worked per year for daywork calculations above and for 1953.54 hours worked per year for the all-in labour rates (including 5 hours per week average overtime) for the all in labour rates below. How the Labour Rate has been Calculated
A survey of typical landscape/external works companies indicates that they are currently paying above average wages for multi skilled operatives regardless of specialist or supervisory capability. In our current overhaul of labour constants and costs we have departed from our previous policy of labour rates based on national awards and used instead a gross rate per hour for all rate calculations. Estimators can readily adjust the rate if they feel it is inappropriate for their work. The productive labour of any organisation must return their salary plus the cost of the administration which supports the labour force. The labour rate used in this edition is calculated as follows: Team size A three man team with annual salaries as shown and allowances for National Insurance, uniforms, site tools and a company vehicle, returns a basic labour rate of £14.85 per hour.
