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Labour costs and safety charges

📐 Article8 min read

What this page covers Three figures that are regularly confused, the regime applying to each, the estimation of labour costs and their separate declaration, safety charges and their exclusion from the tender discount, and the consequences for how the bill is set up.

Everyday usage refers interchangeably to safety costs and personnel costs. The law distinguishes three figures with different regimes, and confusing them produces errors that surface at tender stage, in the assessment of bids and in valuation.

Three distinct figures

Figure Origin Regime
Oneri della sicurezza Health and safety plan, quantified by the contracting authority Not subject to discount, paid in full
Labour costs Estimated by the authority under article 41 paragraph 13 Quantified and stated separately in the tender documents
The contractor's own safety costs Specific to the economic operator's organisation Declared by the bidder in its own offer

The first belongs to the design and concerns the safety measures specific to the site. The second belongs to the design and concerns the labour component embedded in the work. The third belongs to the bid and concerns how the individual firm organises its own safety.

Safety charges

These derive from the health and safety plan and are quantified by the contracting authority. In the bill they must be kept separate from the work items, and the separation should be built into the structure of the document from the outset rather than extracted afterwards.

The regime that characterises them is exclusion from the discount. The tender amount therefore comprises two parts: the work on which the economic operator offers its reduction, and the safety charges which remain unchanged and are recognised in full.

Confusing the two has a measurable effect. Including safety charges among ordinary items exposes them to the discount, reducing the resources devoted to safety in proportion to the reduction offered: precisely the outcome the law is designed to prevent.

Labour costs

Article 41 paragraph 14 of the code places on the contracting authority the obligation to quantify and state labour costs separately in the tender documents. On the bidding side, the economic operator must declare personnel costs and its own safety costs separately in addition to the discount on the tender amount, failing which it is excluded.

The scope of this figure is precisely delimited. The labour costs estimated by the authority under article 41 paragraph 13 relate solely to those costs and may not incorporate any other element.

This delimitation is where the most frequent error concentrates, and it should be read together with the rules on price analysis. The analyses used by the authority to determine the tender amount include, beyond technical costs, overheads and a percentage for the contractor's profit. It follows that the figure to be entered in the separate declaration is not the result of the analysis increased by those percentages, but the labour component alone taken as an elementary cost.

A worked reading

Returning to the structure of a price analysis, the distinction between the two readings of labour is clearest on a single item. The difference lies in the uplifts included.

Component of the item Amount per unit Enters the separate declaration
Materials 8.37 No
Labour 18.10 Yes, at this figure
Plant hire and transport 1.50 No
Technical cost 27.97
Overheads 4.20 No
Contractor's profit 3.22 No
Unit rate 35.39

The figure feeding the separate declaration is 18.10, not the labour share reproportioned onto the unit rate of 35.39, which would come to roughly a quarter more. The error looks marginal on one item and becomes material across a whole project, with the risk of a declaration inconsistent with the statutory definition. The values are illustrative.

On a bill of ordinary size, aggregating the labour column returns the figure to be declared directly, provided the column has been populated item by item rather than reconstructed by subtraction. The condition is that the column was set up from the outset.

Extracting the two readings

The practical need is to hold two different figures from the same bill without recalculating by hand. How the working file is structured decides whether that is possible.

Reading What it covers What it serves
Labour as an elementary cost Hours times hourly cost, without additions The separate declaration in the tender documents
Labour embedded in the rates The same component after overheads and profit are applied The labour incidence schedule and internal consistency checks

The operational answer is to set up the working file with a column dedicated to labour input per unit of work, populated from the analyses or from the incidence data published in the price books. Both readings are then obtained from that column by aggregation, without duplicated effort and without the risk of inconsistency between deliverables.

Why the separation matters beyond the tender

The two figures leave the strictly documentary sphere at three later moments. In each they produce different effects.

In the assessment of bids, consistency between the personnel costs declared by the bidder and those estimated by the authority is one of the elements on which the sustainability check turns. The regime governing abnormally low bids belongs to the rules on tender procedure.

In valuation, safety charges follow their own route and are not subject to the discount applied to the work items, which requires the registro di contabilità to maintain the distinction. The separation must therefore be maintained during construction too.

In site management, the quantification of safety charges determines the resources actually available for the measures the plan requires, and insufficient quantification translates into pressure on those measures. An understatement translates into unfunded measures.

The most frequent errors

Safety charges included within work items are the first, and strip the component of its protection from the discount. The component thereby loses its protection from the discount.

Labour costs declared gross of overheads and profit are the second, and produce a figure inconsistent with the statutory definition. The figure ends up inconsistent with the statutory definition.

Confusing the safety charges from the plan with the contractor's own safety costs is the third. The two have different origins and different owners: the first belongs to the design, the second to the bid.

Estimating labour as a percentage of the total is the fourth. It returns an aggregate figure that looks plausible and has no analytical basis, and does not survive a request to reconstruct it item by item.

In private construction

Private work carries no obligation of separate declaration, but the distinction retains concrete value. Isolating in the quotation the share devoted to site safety measures makes that item visible and removes it from the negotiation on the overall price, which is the mechanism through which it tends to be compressed.

Note: the values used in the example are illustrative. Legislative references relate to Italy and are current as at the date of publication: the version in force should be checked before any operational use.

Frequently asked questions

No. They are quantified by the contracting authority and paid to the contractor in full.

No. They cover labour costs alone and may not incorporate other elements.

The contracting authority, on the basis of the design, under article 41 paragraph 13 of the code.

No. Safety charges derive from the health and safety plan and belong to the design. The contractor's own safety costs concern the organisation of the individual operator and are declared in its bid.

If the separation was not built in from the outset, it has to be reconstructed item by item from the health and safety plan. No percentage extraction method survives verification, which is why the separation should be provided for in the structure of the document before measuring begins.

The computo metrico estimativo: from preparation to price books and specification