It’s a question quantity surveyor Tim Phillips gets asked a lot. Here, he shares typical rates and the factors that can influence the costs
Whether embarking on a full new-build house project or just an extension, one of the first things you’ll want to establish is how much a builder is going to cost. This is a big question and the answer will depend on a variety of factors, ranging from what you’re building and the level of design/finish, to where it’s located and the type of ‘builder’ undertaking the project.
If your build project is fairly small, your builder may be doing all the work. Or it may be a building company dealing with the core infrastructure on site and engaging with subcontractors for specific trades to complete the build.
Understanding how much builders and other trades might cost will help you budget correctly. I’ll explain some typical rates, how builders provide their costs and the factors influencing these variables.
THE GOING RATES?
London and the south east typically command the highest day rates for builders, but rates are rising even higher in some areas of the country – such as Yorkshire and Humberside – where supply and demand has pushed up day rates since Covid. The chart below left shows average hourly and day rates for trades, based on an eighthour day. While comparing day rates across builders can be useful as an initial guide to ascertain costcompetitiveness, it’s not necessarily a good indication as to how much the job will cost.
For larger projects, a builder will usually calculate their total price on a ‘measured rates’ basis. This means they’ll provide a rate per unit measurement of work (i.e. m, m2, m3, number/item) which will include everything (labour, plant, materials, etc.) to arrive at their cost per element of the build and total quote. Individual trades typically provide fixed cost quotes based on labour and materials.
When a project is too small for a builder to work competitively on a ‘measured rates’/fixed-quote basis, day and hourly rates can be useful. A builder would usually provide a d
