The estimate must show person-hours by the rate for the job title. Additionally, unit costs for labor will be acceptable when the utility’s system of accounts provides for this method of estimating. This type of cost estimating is usually done by cooperatives involving RUA facilities.

However, if items of overhead are included in the unit cost for labor, these items are detailed separately to be analyzed to assure the costs were incurred after execution of a Utility Agreement. The utility should also include in the estimate the amount of time anticipated for supervisory labor, costs incidental to the preparation of the plans, estimates, and agreement documents, and expenses that will be paid to individuals directly engaged in the proposed adjustment.

All labor charges and expenses shown must be in conformity with similar charges that are reflected in the accounts of the utility and incurred in its normal operations.