ABSTRACT
The components of a unit rate, that is the rate used to price a bill of quantities or a specification, are composed from some or all of labour costs, material costs, plant costs, overheads and profit. Increasingly, much of the work attributed to a general contractor is carried out by subcontractors. Domestic subcontractors are employed directly by the main contractor; it is a private arrangement between the two parties. Named subcontractors are often used in public sector projects and for projects based on the form of contract where there is no provision for nomination. Collateral warranties provide a contractual relationship in situations where one does not exist and are used in cases where the subcontract involves an element of design. Labour costs are determined by the calculation of the so-called 'all-in' hourly rate and is the basic costs associated with labour with the addition of the costs that comply with a range of statutory requirements.
