Construction Glossary
Labour Rate
Definition
A labour rate is the cost of a worker's time, usually expressed per hour or per day. It should reflect not just wages but the all-in cost of employing someone, including national insurance, holiday, pension and non-productive time. Labour rates are combined with measured quantities and outputs to price the labour content of each item. Getting them right is central to a profitable estimate.
A realistic labour rate is more than the wage you pay. It builds in employer's costs, holidays, training and the hours that are paid but not productive, so the rate reflects what the worker truly costs you per productive hour.
In an estimate the labour rate is multiplied by an output, for example how long it takes to lay a square metre of brickwork, to price the labour in each item.
Why it matters
Use a rate that only covers the basic wage and you are quietly losing money on every hour worked. A correct all-in labour rate, paired with honest outputs, is what makes the difference between a job that looks profitable and one that actually is.
We price the labour content of your estimates using realistic all-in rates and outputs so the figures reflect what the work really costs you.
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