CH.

5
ANALYSIS OF RATES AND COSTS
 Analysis of Rates and Costs

In order to determine the rate of a particular item, the

factors affecting the rate of that item are studied carefully and
then finally a rate is decided for that item.
The process of determining rate of any work like
earthwork, concrete work, brickwork, plastering, painting ..etc.
is known as Analysis of Rates or simply Rate Analysis.
The rates of these works further help in determining cost of
particular work and in turn cost of the project.
 Purpose of analysis of rates

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

2. To work out the economical use of materials and processes in

completing the particulars item.

3. 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
department.

4. To revise the schedule of rates due to increase in the cost of

material and labour or due to change in technique.
 Cost of Materials and Working fees

Rate of Items = Cost of materials + Working Fees

The costs of materials are taken as delivered at site inclusive of the
transport local taxes and other charges.

The working fees can be founded by calculating an employee's labor

cost per hour by adding their gross wages to the total cost of related
expenses (including annual payroll taxes and annual overhead), then
dividing by the number of hours the employee works each year.
 Factors effecting the rate of any item
1. Specifications of works and material about their quality,
proportion and constructional operation method.
2. Quantity of materials and their costs.
3. Cost of labours and their wages.
4. Location of site of work and the distances from source and
conveyance charges.
5. Height or Level of work at which it is being executed.
6. Environmental and climatic conditions.
7. Overhead and establishment charges.
8. Profit
 Cost and types of labour

The labour can be classified in to

1) Skilled – 1st class
2) Skilled – 2d Class
3) Unskilled
The labour charges can be obtained from the standard schedule
of rates 30% of the skilled labour provided in the data may be
taken as Ist class, remaining 70% as II class.
The rates of materials for Government works are fixed by the
superintendent Engineer for his circle every year and approved by
the Board of Chief Engineers. These rates are incorporated in the
standard schedule of rates.
 Productivity

Definenition
Productivity is a measure of economic efficiency which shows
how effectively economic inputs are converted into output.

Advances in productivity, that is the ability to produce more

with the same or less input, are a significant source of increased
potential national income.

Productivity is measured by comparing the amount of goods

and services produced with the inputs which were used in
production. Labor productivity is the ratio of the output of goods
and services to
 Analysis of Rates of Items
Before analyzing the rates & costs of any item , the prices of
all materials, labors & equipment fees must be known and
scheduled.
1. Earth Excavation :
The rate of excavation of soil is given below:
Given: Laborer fees 25000 ID/day .
Productivity of each laborer = 2m3 /day .
∴ The Rate of excavation of 1m3 of earth =
25000
= = 12500 ID/ m³
2
2- Building Brick Wall

The rate of 1m³of building walls by bricks with 1:3 mortar

calculated as follows:.
1. Materials quantities :
Bricks →435 bricks/m³
Cement→107kg/m³
Sand →0.23m³
2. Materials prices in ( ID ) :
Bricks →250 ID/ one brick
Cement→ 80000ID / Ton
Sand → 250000ID /Truck of 10m3=25000ID/m3
3. Materials costs
Bricks →435×250 =108,750 ID
Cement→0.107×80000 = 8,560 ID
Sand →0.23×25000 = 5,750 ID
Total costs of the materials = 123,060 ID
4. Building the wall
𝟒 builder(Mason) + 𝟏𝟐 Laborer will built 𝟑𝟎 m3 Τday
5. Fees of workers:
Builder(Mason) → 70,000 IDΤDa y
Building laborer → 25,000 IDΤDa y
Curing laborer → 15,000 IDΤDa y
∴ work feesΤday = 4 × 70,000 + 12 × 25,000 =
580,000 ID
 580,000
∴ working feesΤm3 = = 19,334 ID/m3
30
 Curing :
The wall must be cured at 7 days .

3
15,000 × 7
∴ curing feesΤm = = 3500 ID
30
Total working fees = 19,334 + 3,500 = 22,834 ID
Final costs = cost of material + working
133760 + 22834 = 156594 IDΤm3
3. Reinforced Concrete :
Reinforced concrete for column with mix of ( 1:2:4 )
𝐶𝑒𝑚𝑒𝑛𝑡 → 1.0 𝑡𝑜𝑛 = 60,000 𝐼𝐷
𝑆𝑎𝑛𝑑 → 1.0𝑚3 = 25,000 𝐼𝐷
𝐺𝑟𝑎𝑣𝑒𝑙 → 1.0 𝑚3 = 15,000 𝐼𝐷
𝑆𝑡𝑒𝑒𝑙 → 1.0 𝑡𝑜𝑛 = 600$ = 720,000 𝐼𝐷
Materials /m³

Cement=0.300 ton ×60,000 =18,000ID

Sand =0.45m³×25,000 =11,250 ID
Gravel =0.85m³×150,000/10 =12,750 ID
𝑠𝑡𝑒𝑒𝑙 = 118𝑘𝑔 × 720,000/1000 =84,960 ID
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠 = 126,960ID

Working Fees
For concreting 24m3 of concrete it required
15 labor × 30,000 ID = 450,000 ID
Mixer & winch = 150,000 ID
Total = 600,000 ID
600,000
For 1.0m3 = = 25,000 ID
24
Concreting fees = 25,000ID
Form with steel = 0.3 + 0.5 × 2 × 6.66 × 6,000 = 64,000ID
10,000 × 7
Curing = = 2,920 ID
24
Total working fees =91,920ID
∴Total rate of reinforced concrete = 126960+91,920= 218,880 ID
4. Rate of cement plastering

The rate of plastering 1.0m² using cement -sand mix 1:3

Materials :
cement =10 kg ×60,000/1000 =600 ID
sand =0.02 m³ ×25000 =560 ID
Total cost of materials =1160 ID

Working fees
Plastering =2000 ID
Curing =(10,000×7)/500=0140 ID
Total =2140 ID
∴Total rate of the items = 1160+2140=3300 ID