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Estimating process

Labour productivity and gang rates.

The gang rate is the combined hourly cost of a team of operatives. Productivity is their output per hour. Together these determine the labour element of every unit rate.

Who this guide is for

Estimators calculating rates for direct labour, site managers planning gang sizes, and contractors deciding between direct labour and subcontractor pricing.

Calculating a gang rate

Sum the all-in hourly rates of every operative in the gang. A typical bricklaying gang: 1 bricklayer £31.53 + 1 general operative £22.50 = gang rate £54.03/hour. Then apply expected output — if the gang produces 8 m² of brickwork per day (8-hour day), the labour cost per m² is £54.03 × 8 ÷ 8 = £54.03 per m².

Miniature example

Plastering gang (2 plasterers + 1 labourer):
2 plasterers × £28.50 = £57.00
1 labourer £20.00
Total gang rate £77.00/hour
Output: 15 m² per hour. Labour cost = £77.00 ÷ 15 = £5.13/m².

Common mistakes

• Assuming standard productivity without adjusting for site access, working height, or weather
• Using the wrong gang composition — one bricklayer with two labourers in the rate, but only one labourer on site
• Forgetting that productivity varies by project type — a new build is faster than a refurbishment