Unit 3

RATE ANALYSIS
 Analysis of Rate
• The determination of rate per unit of a particular item of work
from the cost of quantities of materials, the cost of laborers,
tools, plants and machineries and other petty expenses
required for its completion
• A reasonable profit, usually of 10% for the contractor is also
included
• Taken as the rates delivered at the site of work and include
the first cost ( cost of origin), cost of transport, railway freight,
taxes applicable etc.
• Transport cost if > 8kms
• The details about all operations involved in carrying out the
work should be available
• Qualities of materials required
• Their cost
• Number of different categories of laborers required like
skilled, semiskilled, unskilled etc.
• Capacity of doing work per laborer
- 1.25 CUM/mason/day for brickwork
- 0.80 Cum/mason/day for coursed rubble masonry in
cement mortar including dressing and their wages per
day
Mason Rs. 450-500 per day Helper Rs. 300-350 per day
These are known from experience of practical works
 The rates of a particular item of work depends
on the following
i. Specification of works and materials, proportion of mortar,
method of constructional operation etc.
ii. Quantities of materials and their rates, number of different
types of labor and their rates
iii. Location of site work and its distances from the sources of
materials, transportation cost, availability of water, power
supple etc.
 Overhead costs
Include general office expenses, rents, taxes, supervision cost
and other costs which are indirect expenses and not productive
expenses on the job
a. General overheads
i. Establishment (office staff)
ii. Stationary, printing, postages
iii. Travelling expenses
iv. Telephone
v. Rent and taxes
b. Job overheads
i. Supervision (salaries of engineers, overseers)
ii. Handling of materials
iii. Repairs, carriage and depreciation of tools and plants
iv. Amenities of labor
v. Workmen compensation, insurance etc.
vi. Interest on investment
vii. Losses on advances

The contractor may be allowed a net profit of 6-8%

It is usual practice to add 10% under the head of profit
the analysis of rates is usually worked out for the unit of
payment of the particular item of work under two heads
i. Materials
ii. Labor
and their costs added together gives the cost of items of work.
Task or out-turn work:
Task: the capacity of doing work by an artisan or skilled labor in
the form of quantity of work per day
Varies a/c to the nature, size, height, situation, location etc.
Out-turn or task for an average artisan per day