20CE603 Construction Cost Estimation and

1
Valuation

Module 2
Specification, Tenders and Rate Analysis

Prepared by

Mr. S. C. Boobalan
AP / Civil Engg.
SKCET / Civil Engg. / CCEV / Module - 2
 Topic
2

2.7 Schedule of Rates and Data Book

SKCET / Civil Engg. / CCEV / Module - 2

 Rate Analysis
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 The determination of rate per unit of a particular

item of work, from the cost of quantities of materials,

cost of labourers and other miscellaneous petty

expenses require for its completion is known as the

Analysis of Rate.

SKCET / Civil Engg. / CCEV / Module - 2

 Rate Analysis
4

 A reasonable profit of 10% for the contractor is also

included in the analysis of rates

 Rates of materials are usually taken as the rates

delivered at the site of work and include the cost at

origin, cost of transport, railway freight in any, taxes,

etc.

SKCET / Civil Engg. / CCEV / Module - 2

 Rate Analysis
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 If the materials are to be carried from a distant place,

more than 8 kms, then the cost of transport is also

added

 The rates of materials and labour vary from place to

place and therefore, the rates of different items of

work also vary from place to place

SKCET / Civil Engg. / CCEV / Module - 2

 Rate Analysis
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 The rates of particular item of work depends on the

following:
1. Specifications of the works and materials, quality of
materials, proportion of mortar method of
constructional operation, etc.
2. Quantities of materials and their rates, number of
different types of labourer and their rates
3. Location of the site of work and its distances from
the source of materials and the rate of transport,
availability of water
4. Profits and miscellaneous, overhead expenses of
contractor

SKCET / Civil Engg. / CCEV / Module - 2

 Purpose of Rate Analysis
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 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 particular 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 department
 To revise the schedule of rates due to increase in the
cost of material and labour or due to change in technique

SKCET / Civil Engg. / CCEV / Module - 2

 Schedule of Rates
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 Schedule of rates are the rates of different items of works

generally executed by the department in different
construction and maintenance works
 The rates are analysed adopting prevailing market rates
of labour and material at the time of preparation of
schedule of rates
 It help as guiding factors for preparing estimates of works
to be taken up for execution and for justification of rates
quoted by the tenderers for award and execution of works

SKCET / Civil Engg. / CCEV / Module - 2

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 Data Book

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 The measurement of all works and supplies are

recorded in the measurement book and payment of all

works and supplies are made on the basis of

measurement recorded.

 It is very important account records

SKCET / Civil Engg. / CCEV / Module - 2

 Overhead Cost
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 Overhead costs include general office expenses,

rents, taxes, supervision and other costs which are

indirect expenses and not productive expenses on

the job

SKCET / Civil Engg. / CCEV / Module - 2

 Overhead Costs
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 The miscellaneous expenses on overheads may

be under the following heads:

1. General Overheads

i. Establishment

ii. Stationary, printing, postages, etc

iii. Travelling expenses

iv. Telephone, rent and taxes, etc.

SKCET / Civil Engg. / CCEV / Module - 2

 Overhead Costs
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2. Job Overheads

i. Supervision (salary of engineers, supervisors,

etc)

ii. Handling of materials

iii. Repairs, carriage and depreciation

iv. Amenities of labour

v. Workmen’s compensation, insurance, etc

vi. Interest on investment

vii. Losses on advances

SKCET / Civil Engg. / CCEV / Module - 2

 Task or Out-Turn Work
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 The capacity of doing work by artisan or skilled labour

in the form of quantity of work per day is known as the

task –work or out-turn of the labour

 The out-turn of work per artisan varies to some extent

according to nature, size, height, situation, location, etc

- well organized work less labour is required – out-turn

is larger in bigger cities

SKCET / Civil Engg. / CCEV / Module - 2

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 Course Contents
19

Review Question:
Discuss in detail about the Schedule of Rates and Data Book.

SKCET / Civil Engg. / CCEV / Module - 2

20 Thank You

SKCET / Civil Engg. / CCEV / Module - 2