Gang rate activity

Fill in the highlighted area with the rates provided in the module

Average Contract Rate for tenders or quotations, for gang

No of staff Hourly Total Cost
Carpenter (for calculation, below) 5 Rate $1.27 $6.35
Labourer (for calculation, below) 1 $0.03 $0.03
Total gang cost per hour $6.38
Divided by number of staff ÷ 6
Gives Average Contract Rate (net) = $1.06

Labour Rate Build Up—Weekly Basis—Carpenter

Description Hours Rate Amount Sub-Total
Taxable payments
Ordinary time 45 $0.00
Weekly Taxable Pay $0.00
Kiwisaver employer contribution 2.00% $0.00 $0.00
Holiday pay and sick leave etc. (see 16.02% $0.00 $0.00
calculation below)
Public liability insurance, ACC premiums and 6.35% $0.00 $0.00
residual levy, and first week liability (see
calculation below)

Redundancy provision (optional) 2.00% $0.00 $0.00

Non taxable payments
Tool, clothing & footware allowance 45 $1.00 $45.00 $45.00
Add costs of supervision by Leading Hand
Total of carpenters costs as calculated $45.00
Plus charge allowance 47.5 $0.45 $21.38
$66.38
Leading Hand cost: Assume control of 5
operatives for 25% of the time, i.e., 25%
divided by 5, gives 5% loading.

Add leading hand cost to Carpenter rate 5% $66.38 = $3.32

Total weekly cost $48.32
Divide by productive time (38 hrs) gives Nett Contract Rate 38 $1.27
Labour Rate Build Up—Weekly Basis—Labourer
Description Hours Rate Amount Sub-Total
Taxable payments
Ordinary time 45 $0.00
Weekly Taxable Pay $0.00
Kiwisaver employer contribution 2.00% $0.00 $0.00
Holiday pay and sick leave etc. (see 16.02% $0.00 $0.00
calculation below)
Public liability insurance, ACC premiums and 6.35% $0.00 $0.00
residual levy, and first week liability (see
calculation below)

Redundancy provision (optional) 2.00% $0.00 $0.00

Add costs of supervision by Leading Hand
Total of labourers costs as calculated $0.00
Plus charge allowance 47.5 $0.45 $21.38
$21.38
Leading Hand cost: Assume control of 5
operatives for 25% of the time, i.e., 25%
divided by 5, gives 5% loading.

Add leading hand cost to Labour rate 5% $21.38 = $1.07

Total weekly cost $1.07
Divide by productive time (38 hrs) gives Nett Contract Rate 38 $0.03