What does it mean?
A rate build-up shows the components used to calculate a unit rate. It can include materials, waste, labour, plant, subcontract costs and selected commercial additions. The build-up should state productivity and inclusion assumptions so that it can be checked. It is especially useful when a quoted lump sum needs to be compared against another pricing basis.
In practice
An illustrative unit cost of 40 for materials plus 25 for labour and 5 for plant totals 70 before commercial additions. Adding a 10% markup produces a selling rate of 77, not a 10% margin.
Keep in mind
For a useful comparison, record the currency, pricing date, scope and exclusions alongside the amount. Separate measured quantities from unit prices so you can identify whether a change comes from design or pricing. Use project-specific quotations where available, and distinguish an illustrative allowance from a confirmed cost. The calculators show arithmetic relationships; they do not supply current market rates, tax advice or a complete project budget.