Labour rates

Labour rates represent the cost or charge used for a type of work in an estimate.

Labour rate fields

A labour rate can include:

  • rate name;
  • optional code;
  • work centre;
  • category;
  • aliases;
  • unit;
  • currency;
  • default rate;
  • linked companies.

Name the activity clearly

Good examples:

  • Workshop Fabrication Labour
  • Certified Welder
  • Site Installation Crew
  • Mechanical Design Engineer
  • Project Supervision

Avoid using one generic “Labour” rate when materially different activities have different costs.

Work centre and category

Use Work Centre for the practical location, machine area, or operational centre, such as Welding, Laser, Workshop, or Site.

Use Category for a broader grouping, such as Fabrication, Installation, Engineering, or Site Labour.

Keep the distinction consistent across the workspace so search and review remain useful.

Choose a time unit

Common labour units include hour and day.

Check whether a day rate represents:

  • one person-day;
  • one crew-day;
  • a standard number of hours;
  • overtime or ordinary time.

If the meaning is not obvious from the name, clarify it in the business’s reusable guidance or estimate notes.

Default rate considerations

Decide whether the rate is intended as internal cost, selling rate, or another business convention, then use that convention consistently.

Review allowances such as:

  • payroll overhead;
  • leave and statutory costs;
  • supervision;
  • travel;
  • overtime;
  • consumables;
  • margin.

Do not silently mix rates based on different conventions.

Linked companies

Link a company when the rate is associated with an external labour provider or another relevant organisation. Internal labour rates do not require a company link.

Example: workshop and site labour

Keep separate records for workshop fabrication and site installation when the units, costs, or operating conditions differ. This makes later review clearer than applying one blended rate everywhere.