Construction rates

Find the default rates and information about what projects they are used for.

The Ministry uses construction rates to calculate project funding for some types of property work. Construction rates are generally for projects where new square metres are being provided to cater for roll growth, except for when we use modular buildings. 

• When are construction rates used
• Default rates
• Reviewing rates
• More information

When are construction rates used?

The rates apply to all new capital budgets provided to schools for the provision of new square metres.

They apply to the gross (total) area of the project (the area enclosed by all the exterior walls of a building):

• including mezzanines, internal partitions, corridors, toilets, lifts, stairwells, cupboards, etc.
• excluding balconies, roof overhangs, porches, external walkways, exterior covered circulation, covered ways between buildings, projecting columns and sunshades.

The rates include:

• base construction rate
• trade costs, contractors' preliminaries and general (P&G), margin
• contingency (construction and project) 
• consultants' fees 
• consent fees.

The construction rate is not used to calculate 5YA funding. 

Default rates for projects approved after 1 December 2016

These rates are based on assumptions about the size and complexity of the project. Individual components (for example, contingency or fees allowances) may be varied to reflect the characteristics of specific projects.

Other standard costs

Reviewing rates

These rates are based on a survey of Ministry projects over the preceding 18 months. They'll be reviewed regularly against recent projects undertaken.

Last reviewed: 24 January 2024 Has this been useful? Give us your feedback