Figuring Unit Rates for Projects

The unit rate needs to consider all the expenses related to the project. It is fair to estimate and try to recover organizations resources that were invested in the project.

The total cost of the project is divided by a conservative estimate of the number of units (people, hours, days, or months) that will be provided.

Example: Provide Lawn Industry Employee Training - Project specifics

Class size - 10 - 15 trainees (Figure costs on 10 participants)

Length of training - 40 hours

Professionals involved - 4 professionals will share the training responsibilities. Several will sometimes team-teach.

Materials will cost $150 per person

Some materials will be donated

Teaching location will be rented

Meals will be served

Estimated Budget Summary for $ 10,100

Breakdown:$6500 personnel

500 support

1000 administrative

1300 meals

250 room

400 supplies

150 travel

How costs were figured:

Personnel: For this project consider (and these are probably conservative estimates):

6070 hours 40 hours of actual instruction but there are several different people teaching and they will probably overlap some, so calculate total instructor time. List employees or positions that are identified in the project’s Scope of Services. Do not list personnel who have no identified function in the Scope of Services.

40 hours spent developing an original project, (1 hour development for every hour taught is reasonable.) Less time is normally spent to modify or update an existing project.

10 hours 2 hours spent (1 hour before and 1 hour after class gathering and organizing materials, traveling to and from, preparing teaching space, answering questions, packing up, etc. ) for each day of teaching,

5 hours 1 hour time spent traveling each day

Total: 125 hours X $50 = $6500 in instructor time

Support staff time with benefits - calculate at its own rate depending on who will actually do the work.

5 hours for the receptionist

5 hours copying

10 hours assisting with organizing materials

Total: 20 hours X $25 = $500

Anticipated administrative costs for the life of the project (such as progress meetings, reporting, trouble shooting) should be included:

_____

20 hours X $50 = $1000

Travel: Figure real travel costs based on how far each professional will drive each day

460 miles @ (current mileage rate) cents = $150

Food: Include lunches, coffee, and afternoon snacks for participants and instructors.

50 meals and snacks (10 participants X 5 meals)

12 meals and snacks (4 instructors X 3 meals)

______

72 meals & snacks X $18 = $1300

Supplies: $40 X 10 participants = $400

Room Rental: $50 X 5 days = $250