Setting Unit Costs

Setting Unit Costs

In 14Build, defining unit costs and quantities ensures accurate project cost estimation. This page explains how to set unit prices for materials, labor, and combined tasks in an SOQ (Schedule of Quantities).

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What Are Unit Costs?

Unit Costs are prices per unit for project jobs like materials, labor hours, or task completions. They form the basis of total project costs by multiplying quantities with corresponding unit prices.

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How to Set Unit Costs in an SOQ

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Step 1: Open the SOQ Editor

• Go to SOQ Management.
• Select the relevant SOQ and click “Edit”.

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Step 2: Select a Job to Update

1. Choose a Job Category (e.g., Electrical Installations).
2. Select a Job (e.g., Install Electrical Wiring).

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Step 3: Define Job Quantities and Costs

1. Quantity: Enter the required amount (e.g., 500m of wiring).

2. Unit Type: Choose the unit type (e.g., meters, hours, pieces).

3. Unit Cost: Set the cost per unit (e.g., $5/meter).

4. Total Cost Calculation: The system will automatically calculate the Total Cost as:

   Total Cost = Quantity × Unit Cost

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Step 4: Save the Updated Costs

• Click “Save Job” to update the SOQ.
• Repeat the process for all SOQ jobs as needed.

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Job Cost Example: Unit Cost Breakdown

Job Name	Quantity	Unit Type	Unit Cost	Total Cost
Supply Electrical Wire	500m	Meters	$5/m	$2,500
Install Circuit Panels	10 panels	Pieces	$150/panel	$1,500
Plumbing Pipes Install	100m	Meters	$20/m	$2,000

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Best Practices for Setting Unit Costs

1. Use Industry-Standard Rates:

   • Apply rates based on market prices for materials and labor tasks.

2. Define Accurate Quantities:

   • Ensure precise measurements for all project tasks.

3. Consider Price Fluctuations:

   • Review unit costs regularly to account for market changes.

4. Use Cost Templates:

   • Create predefined cost templates for common jobs to save time.

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Use Case Example: Setting Unit Costs

Scenario:

A client managing the Commercial Office Construction Project sets unit costs for tasks like:

• Electrical Wiring: 500m @ $5/meter → $2,500
• Light Fixtures Installation: 20 fixtures @ $100/fixture → $2,000

The total project cost is automatically calculated, ensuring budget transparency and simplifying bid evaluation.

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Benefits of Setting Unit Costs in 14Build

1. Accurate Cost Estimation:

   • Ensures clear project budgets based on materials and labor costs.

2. Bid Standardization:

   • Contractors bid against predefined unit costs, simplifying comparisons.

3. Automated Calculations:

   • The platform automatically calculates total costs, reducing human error.

4. Real-Time Budget Updates:

   • Changes to unit costs update project totals instantly.

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System Flow Diagram: Unit Cost Setup Process

graph TD
A[Open SOQ Management] --> B[Select SOQ]
B --> C[Choose Job Category]
C --> D[Select Job]
D --> E[Enter Quantity & Unit Cost]
E --> F[Calculate Total Cost]
F --> G[Save Job]

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Conclusion

Defining Unit Costs and Quantities in 14Build ensures accurate budgeting, transparent tendering, and secure project payments. This process simplifies project cost management and guarantees contractors submit precise, itemized bids.

Next Up: Learn how SOQs integrate with Projects for tenders, bids, and payments.

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### **Page Highlights**

1. **Detailed Steps**: Covers how to set **unit costs** and **quantities** for jobs.
2. **Job Cost Example Table**: Demonstrates job-specific cost breakdowns.
3. **Best Practices**: Provides industry-specific tips for cost management.
4. **Flow Diagram**: Visualizes the **unit cost entry process** for better understanding.

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