Construction Rates and Costs
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Construction cost calculation involves determining the costs of labor, materials, and plant equipment for a construction project. The CIOB Code of Estimating Practice (COEP) provides a method for estimating all-in rates for labor, which is based on the annual cost of employing an operative divided by the actual hours worked. It is important to periodically check the accuracy of these calculations and consider factors such as the availability of labor in the area, local union agreements, and bonus payments.
The cost of materials can be affected by factors such as transport costs, the size and quantity of the load, and the specifications of the materials. Estimators may also need to consider the cost of distributing and unloading materials, checking samples, and storing materials
. Plant rates, or the cost of using plant equipment, can be calculated using a similar method to labor rates. The annual cost of owning and maintaining the equipment is divided by the actual hours of use. It is important to consider factors such as the size and type of equipment, the location of the project, and any necessary repairs or maintenance.
Overall, accurate construction cost calculation requires considering a variety of factors and regularly reviewing and updating estimates to ensure that they are realistic and accurate.