A unit price analysis, or APU, explains how the price of a unit of work is formed. It allows you to know what resources you need to execute a line item, how much you consume of each one and how the budget changes when a price or a productivity rate is modified.
The unit can be a square meter of paint, a cubic meter of excavation or an installed part. Before calculating, you must describe the scope: two line items with the same unit may include different jobs and therefore have different prices.
What is the difference between direct cost and unit price
The direct cost brings together the resources attributable to the execution of the line item. The selling price also incorporates the charges that correspond to the budget: overhead, financing, profit and other applicable charges.
Therefore, a card that only adds materials and labor still does not necessarily show the price you will charge. In the federal public works framework, article 185 of the Regulations of the Law on Public Works and Services Related Thereto (LOPSRM) links the unit price to the payment for a unit of line item completed in accordance with the project. Source: Regulations published by the Chamber of Deputies, article 185.
In private work, also clarify what each column represents: direct cost, selling price without taxes or final amount. This definition avoids adding the same charges twice.
What does a unit price analysis include?
| Element | What you should check |
|---|---|
| Materials | Consumption per unit, price, presentation, waste and delivery |
| Labor | Composition of labor crew, cost of workday and productivity rate |
| Machinery and equipment | Hourly equipment cost and hours required per unit |
| Tool | Explicit consumption or percentage with defined base |
| Auxiliaries | Reusable compositions, such as a mixture or labor crew |
| Price integration | Overhead, financing, profit and applicable charges |
An auxiliary unit price analysis allows a composition to be reused. If the mortar already has its materials and labor, avoid loading them again as independent resources in the same line item, unless they correspond to additional jobs.
How to calculate resource consumption and productivity
For a material, the basic amount is:
Amount = consumption per unit of line item × price of resource.
In a hypothetical example, a theoretical consumption of 0.20 liters per m² with 5% of waste becomes 0.21 liters per m². Both data are assumptions of the exercise: in a work they must be justified according to the material and the procedure.
The difference between productivity and crew-day consumption
Let's assume, just to explain the operation, that a labor crew runs 25 m² per workday and costs $1,000 MXN per workday. Each m² consumes 1 / 25 = 0.04 workdays, with a contribution of $40 per m². The productivity rate and cost are hypothetical.
The same information can be expressed as productivity of 25 m²/workday or consumption of 0.04 workdays/m². Check which quantity the software expects. Entering its reciprocal in the wrong field changes the result.
The cost of the labor crew must consider the labor cost that you have determined for the project. Do not mix nominal salary with fully burdened wage or apply labor burden factor (FSR) twice.
Worked APU example: painting per m²
All prices, consumption, consumption factors and productivity rates and following percentages are hypothetical and exclusively educational. These are not market prices, quotes or application specifications. The manufacturer, the condition of the substrate and the required coats determine the actual consumption.
Let's assume the application of primer and paint on a surface ready to receive the coating. The exercise does not include substrate repairs and groups the labor into a labor crew to simplify the table. Values in MXN, without VAT.
| Resource | Unit | Consumption per m² | Assumed price | Amount per m² |
|---|---|---|---|---|
| Painting | L | 0.25 | $160.00 | $40.00 |
| Primer | L | 0.20 | $90.00 | $18.00 |
| Labor crew | workday | 0.04 | $1,000.00 | $40.00 |
| Minor tool | labor percentage | 5% | Base: $40.00 | $2.00 |
| Direct cost | $100.00 |
The example does not include machinery. If the procedure requires access equipment or other resources, you must incorporate them before using the analysis on a job site.
From direct cost to selling price
To illustrate a successive integration, we will apply overhead of 10%, financing of 2% and profit of 10%. These are assumptions of the exercise, not recommended percentages. In this simplified calculation additional charges are not considered.
| Step | Calculation basis | Amount |
|---|---|---|
| Direct cost | — | $100.00 |
| Overhead: 10% | $100.00 | $10.00 |
| Financing: 2% | $110.00 | $2.20 |
| Profit: 10% | $112.20 | $11.22 |
| Selling price per m², without VAT | $123.42 |
For 80 m², the amount would be 80 × $123.42 = $9,873.60, without VAT. In a real proposal you must support the charges, define their basis and address the contract or the rules of the contest. Do not copy these percentages as universal values.
The bases of financing and profit used in the exercise correspond to those described in articles 214 and 219 of the federal regulations: direct cost plus overhead for the first, and direct cost plus overhead and financing for the second. Source: Regulations, articles 214 and 219.
Errors that should be detected before closing the analysis
- Mix liters with buckets or kilograms with unconverted tons.
- Apply waste to a consumption that already includes it.
- Use consumption factors and productivity rates from another work without reviewing access and procedure.
- Duplicate tool within a labor crew and as an additional percentage.
- Compare a direct cost with a selling price.
A useful check is to change a resource and check which line items are affected. If there are multiple independent copies of the same price, keeping them consistent will require reviewing each one.
To take the analysis to the complete catalog, review how to make a construction budget step by step. You can also consult how to calculate resource breakdown from their consumption.
How KOSAN can help you
KOSAN allows you to organize resources, auxiliary unit price analyses and unit price analysis by project. In your APUs you can work on quantities, consumption factors and productivity rates, waste and conversions, and recalculate the linked line items.
The tool makes it easy to maintain relationships between data; The person responsible for the budget continues to define and validate the scope, consumption and prices of the project.
Frequently asked questions
Are APU and unit price the same?
The APU is the analysis that underpins the price. The unit price is the amount per unit of line item. Check if the card you are looking for only has direct cost or also the integration of selling price.
Does waste apply to all materials equally?
It is not advisable to do so. It must respond to the presentation, cuts, handling and procedure of each material. Also, check if it is already included in the captured consumption.
Can a unit price analysis be reused from a cost database?
It can serve as a reference if you have the right to use it. Before incorporating it, check scope, unit, date, region, quotes and consumption factors and productivity rates. A reference unit price analysis does not replace the analysis of the conditions of your work.
Get to know KOSAN and review how to organize your resources, unit price analyses and budgets in the same project.
From unit price analysis to a construction estimate
Calculate the daily cost of labor with the labor burden factor (FSR) calculator. Then check how it integrates into a example work budget in PDF and Excel, with catalog, unit price analyses APU and resource breakdown.