You are on page 1of 2

SABRA, Abdul Rahman



Phone: +971 2 6414151 Fax: +971 2 6412010 Mobile: +971 50 6414151



DEFINITION: Star Rate is a built up rate which can be assessed by raw materials cost, labor cost, installation cost along with the required plant, tools, equipment & consumable items, testing and commission plus reasonable overhead and profit. The assessment method revealed hereinafter will be applied for all Star Rates. 1. MATERIAL COST: The direct cost of the material supported with suppliers quotation (In case of nominated / Approved Supplier) or with three quotations from different suppliers. The direct cost of material should include transportation, custom fees or any miscellany expenses. Consequently the cost should cover the all expenses of material until reach the site. 1. LABOR COST: The total cost of labor required to install the material, divided in to three category unskilled labor, skilled labor and supervision/ charge hand. The breakdown structure of labor cost in general: Unskilled 20% Skilled 70% Charge Hand 10% Total 100%

The percentages could vary depending on the type of material and the method statement of installation. 1. INSTALLATION COST: The breakdown of installation cost as follows: 1.1 Engineering / Workshop drawings / Method statement: Verification by Senior Engineer of all Parameters related to Additional Equipment Review by Engineer and preparation of Information for Draftsman and rechecking after drafting. Final review will be by the Engineering Manager. Engineering cost is 2-3% of Material Cost


1.2 Consumable items: All items required to install the material as of but not limited to: Stainless steel nuts & Bolts, Clamps, Glue, Stainless steel supports, small tools, etc... Consumable Items is 1-3% of Material Cost. 1.3 Major Plant: This is to include all major plant machinery used & constitutes percentage of all the major plant used in the execution of work in the project. Also include handling of the material by Tower Cranes or Forklift etc... Major Plant Cost is 7% OF Material Cost. (If required) 1.4 Testing and commissioning: This include Manpower, Engineering, and in some cases special devices or equipment. Also testing and commissioning include the third party testing if required. 3.4.1 Manpower: Labour to prepare area for T & C as of False Ceiling removal, electrical panels, DDC Controllers, Electrical Rooms among other requirement 3.4.2 Engineering: Engineers are to carry all tests required for all additional equipment (mugger test, pressure test, air test, continuity test, noise test and others) 3.4.3 Special Devices or equipment: Equipment required that includes Multi Meters Air Hoods Muggers, Manometers and others): TESTING AND COMMISSIONING BREAKDOWN: MANPOWER 1% ENGINEERING 1.5% EQUIPMENT 0.5% TOTAL 3%

INSTALLATION BREAKDOWN: Engineering / Workshop drawings 3% Consumable items 3% Major Plant 7% Testing & Commissioning 3%

MARK-UP / OVERHEAD AND PROFIT: The agreed Mark-up is 10-14 % of the total costs of labor & Material