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The construction industry is the largest in the world, representing 13% of global GDP and presenting a potential $265 billion in annual global profit. Whether large or small, your business’s growth depends on estimating costs and productivity for every project through accurate rate analysis.

What is rate analysis?

Factors to consider in rate analysis

Rate analysis can be applied to all levels of construction work, from concrete work and plastering to entire building projects. Implementing rate analysis even on smaller jobs can be revelatory – in the cost estimating process, business owners tend to underestimate the amount of labour required in addition to variable costs.

With this in mind, when starting on rate analysis calculation, there are five main factors to consider:

1. Material costs

2. Labour costs

3. Equipment costs

4. Overheads

5. Contractor’s profit

Tools for rate analysis: construction estimating software and more

Rate analysis can be performed on projects as straightforward as plastering and painting or as complex as building a house, with tools to match. To ensure you have the accurate and up-to-date rates, you may also want to invest in a construction cost database.

Download our guide on how to reduce delays and streamline your project workflow through precision printing of your technical drawings.