Rates for construction and buildings
The term ‘rates’ is most commonly used to refer to a type of property tax in the United Kingdom that is used to fund local government.
Historically, rates were established by the Poor Law Act 1601, with rates on residential properties based on their nominal rental value. This was assessed in revaluations which were held periodically. These rates were abolished in England, Scotland and Wales in 1990 and replaced, first with the widely-unpopular Community Charge (or ‘poll tax’) and then the council tax. Unlike the poll tax, in which a fixed tax was set for everyone within a council area, the council tax is based on the estimated market value of property set in bands of incremental value.
Domestic rates remain the form of local government taxation in Northern Ireland and consist of a regional rate (set by the Northern Ireland Assembly) and the district rate (set by district councils).
Business rates are a local tax paid by the occupiers of non-domestic property in England and Wales. Business rates are calculated and collected by local authorities. They are put in a central pool and then redistributed back to local authorities to help pay for local services. For more information, see Business rates.
The term ‘rates’ has many other applications in construction.
The term ‘hourly rate’ refers to the amount of remuneration a worker receives for each hour that they work.
This often informs a schedule of rates. In its most simple form, a schedule of rates can be a list in a contract setting out the staff, labour and plant hire rates the contractor will use for pricing cost reimbursable instructed daywork. However, on a much larger scale, a 'schedule of rates term contract', 'term contract' or 'measured term contract' may be used when the nature of work required is known but it cannot be quantified, or if continuity of programme cannot be determined.
For more information, see Schedule of rates.
According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘unit rate(s)’ means:
‘…the monetary rate applied to an element, sub-element or component per unit of measurement (e.g. cost per m, cost per m2 and cost per m3).
[edit] Related articles on Designing Buildings Wiki
- Air change rates.
- Charge-out rate.
- Compound Annual Growth Rate (CAGR).
- Cost per functional unit.
- Council tax.
- Dwelling emission rate DER.
- Element unit rate.
- Fees.
- Functional unit of buildings.
- Heating plant emission rate.
- Hourly rate.
- Internal rate of return for property development.
- Rate relief schemes for small business.
- Rateable value.
- Target emission rate TER.
- Unit rate.
- Unit rates basis of payment.
Featured articles and news
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.
The benefits of engaging with insulation manufacturers
When considering ground floor constructions.
Lighting Industry endorses Blueprint for Electrification
The Lighting Industry Association fully supports the ECA Blueprint as a timely, urgent call to action.