APPA Library

"Charge of the Rate Brigade: A Rate Template for In-House Construction Labor"
Author: Guckert, Donald J., and Jeri Ripley King
Published In: Facilities Manager
Date: July/August 2004

Summarizes research conducted by the authors under the auspices of APPA's Center for Facilities Research.  Begins with the premise that most campuses charge a fee for in-house construction (minor improvements, alterations, and repairs that fall beyond the scope and funding of normal maintenance) to protect maintenance and operation budgets from being eroded by the costs of elective improvements.  Notes that recharge systems do not always capture all the costs associated with in-house construction.  Developed basic template that could be applied to all types of institutions and situations to ensure that all costs, direct and indirect, would be recovered. Discusses survey conducted to compare ratio of recharge rates to direct wages, subsidies, and overhead costs.  Describes how to use the template to determine and set rates.

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