You are on page 1of 15

Analysis of Rates.

• The method of working out the rate of an item of work considering
the cost of quantities of material, cost of labour, hire charge of
tools and plants (T&P). Supervision charges overhead charges and
contractors profit (usually 10%) is known as Rate Analysis or
Analysis of Rates.

• The rates of materials and labour vary from place to place and hence
the rates of different items of works also vary from place to place.
For the purpose of analysis, following details about the operation
involved in carrying out the work should be available.

• Quantities of materials required and their cost

• Number of different categories of laborers

• The capacity of doing work per laborer

• Wages of laborer per day

• To work out the actual cost of per unit of the items.

• To work out the economical use of materials and processes in

completing the particulars item.

• To work out the cost of extra items which are not provided in the
contract bond, but are to be done as per the directions of the client.

• To revise the schedule of rates due to increase in the cost of material

and labour or due to change in technique
• Specifications of works and material, quality of material, proportion
of mortar and method of constructional operation.
• Quantity of materials and their rates.
• Different types of labours and their wages.
• Location of site of work and the distances from source of material and
conveyance charges.
• Availability of water
• Overhead and establishment charges (Includes office expenses, rent, taxes, supervision)
• Profit and miscellaneous expenses of the contractor
• The analysis of rates is worked out for the unit of payment of the
particular item of work under two heads.
• Materials
• Labour
• Material Cost + Labour Cost = Cost of Items of Work (the cost of material
are taken as delivered at site inclusive of transport, local tax and other charges)
• Other items included are: Tools and Plants ( T & P ) = 2.5 to 3 % of the labour
• Transportation cost more than 8 km is considered
• Water charges = 1.5 to 2 % 0f total cost
• Contractor ‘ s profit = 10 %
• The costs of materials are taken as delivered at site of work.

• This is inclusive of
• The first cost (cost at origin),
• Cost of transport , railway freight (if any), etc.
• Local taxes and other charges.

• The distance between the source of availability of material and construction site is
known as "Lead " and is expected in Km.
• The cost of conveyance of material depends on lead. This statement is required
when a material is transported from a distant place, more than 8kms (5 miles).
• The labour can be classified into the following
• Skilled 1st Class
• Skilled 2nd Class
• Unskilled

• The labour charges can be obtained from the standard schedule of

• 30% of the skilled labour provided in the data may be taken as Ist
class, remaining 70% as II class.
• The overhead costs comes to about 6-8% of the project cost and include the indirect expenses incurred during
the execution of a project.

• General Overheads
a) Establishment (office staff) b) Stationary, printing, postage
c) Travel expense d) Telephone
e) Rent & taxes

• Job Overheads
a) Supervision (salaries of engineer, supervisor etc)
b) Handling of materials
c) Repairs, carriage, depreciation of T&P
d) Labour amenities
e) Workers compensation, insurance etc
Rates of Materials:
• 1st class bricks = Rs 6000 per 1000 Nos.
• 2nd class bricks = Rs 5000 per 1000 Nos.
• Brick Ballast = Rs 800 per cum
• Stone Aggregate = Rs 1400 per cum
• Coarse sand = Rs 900 per cum
• Cement 50 kg bag = Rs 350 per bag
• Tor Steel = Rs 5000 per Quintel
• Bitumen = Rs 10 per kg
• Distemper = Rs. 80 per Kg
• Rates of Labours :
• Mason = Rs 450 per day
• Plaster = Rs 400 per day
• Black Smith = Rs 500 per day
• Carpenter = Rs 500 per day
• Bhishti (waterman) = Rs 300 per day
• Mazdoor = Rs 250 per day
• Painter = Rs 300 per day
Procedure for Rates Analysis
1. Let the cost of material for unit item = x
2. Let the cost of labour (T&P etc) for unit item =y
3. Total cost of material & labour per unit item =(x+y)
4. Add 1.5% for water charges =1.5/100(x+y)
5. Add 10% contractor Profit =10/100(x+y)

Rate per Unit

= x+y(1+1.5/100+10/100)
= 1.115 (x+y)
Analysis of Rates
Example 1: Find out dry materials required for 1 cu m. C. concrete 1:4:8 in
Ratio = 1:4:8 (cement, sand and aggregate) Sum = 1+4+8=13
Total dry mortar for 1 cu m cement concrete =1.54 cu m
Therefore the following materials are required:
Cement= (1*1.54*28.8)/13 = 3.41 bags @ 350/ bag = Rs. 1193.5
Sand = (4*1.54)/13 = 0.47cum @ Rs.900/cum = Rs.423
Aggregate (Brick Ballast) =(8*1.57)/13 =0.94Cum @ 800/cum = Rs. 752
Total Cost of material for 1 cum = Rs. 2368.5