Step 4 - Transform Component Budget Rates to Pricing Sheet/Line Item Unit of Measure

In our example, you can see that in order to get to our unit rate per square foot of plastering, we added in the two labor resources mentioned above as well as our mortar cluster which makes up the material portion. The resource budget rate, as well as the cluster budget rate, were then transformed using the applicable mathematical functions in order to get to our total allowable cost per square meter of plastering.

One thing to note here is that the labor resources are measured in units of time, in this case, a work day, so in order to convert them to a square foot rate, we divide the resource allowable by the production rate, i.e. the number of square meters which can typically be produced in a day (in this case 270 SF/day). Typically, we will model the production rate with a variable, the primary production factor, which will be explained in the next unit.

Video: Worksheets