Professional Documents
Culture Documents
OBJECTIVE
The rate analysis is the method of
deriving the rate per unit of a
particular item of work , from the
cost of material, labour, machineries
and other miscellaneous expenses
for its completion.
Normally 15% on the account of
contractors’ profit and overhead
charges are added to arrive final
rate.
Analysis of rate include assessment of
five essential aspect contributing
towards the cost of an item of work
1. Estimating various operations involved.
2. Material cost – Evaluation of material constants,
requirement of quantities and cost.
3. Labour cost – Estimating labour constant and
cost.
4. Plant cost - Estimating the type and no. of
equipment required and rate thereof.
5. Contractors’ over head & profits - cost of
supervision charges and reasonable contractors
profit.
INFORMATION REQURIED FOR RATE
ANYALISIS
1. Unit of that particular item.
2. Rate of materials including transportation
charges, sale tax, local tax , royalty etc.
3. Actual labour required and their rates.
4. Running, hiring and operational cost of
machinery.
5. Charges of tools and tackles to execute
that particular item.
FACTORS AFFECTING THE RATE ANYLISIS
1. Specification of works.
2. Specification of materials.
3. Method of constructional operation
4. Quantities of materials and their rates .
5. Location of the site of work and distance from
the source of material.
6. Rate of transport.
7. Availability of water if water is required to
complete the item.
8. Profit of contractor.
9. Over head expenses of contractor.
10. Labour required and their rate.
RATE ANALYSIS FOR MANUAL WORKING
The analysis of Rate for Manual Working is
usually worked out for the unit of payment of the
particular item of work under two heads :
(i) Materials
(ii) Labour
And their costs added together give the cost of
the item of the work.
For tools and Plants (T&P) and Misc. petty items
which can not be accounted in details, lump sum
provision (Generally 3%) is made.