Unit Rate Determination

A unit rate is the average or quoted cost of constructing or delivering a unit quantity of a particular item.

Unit rates are used to value or revalue most infrastructure asset types. The total value of a particular group of assets is found by multiplying the quantity of assets by the unit rate adopted for that asset type.

For example if a Council has 175 km of 300 mm diameter stormwater pipes and 300 mm stormwater pipes are know to cost $200/m to install, the total value of all 175 km of 300 mm pipes would be 175,000 * 200 = $35,000,000.

Likewise if the overall cost of laying 3 km of 300 mm storm water pipes in a particular year is know to be $650,000 then this equates to a unit rate of $216.67/m.

Where a supply contract exists and unit rates are included in the supply contract these rates are often used for valuation purposes.

Related Pages


The following site members have contributed to this page:

External Links & References

  1. Google Search
Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License