The construction project consists of multiple activities. All of the activities have a cost associated with them. The cost of completing an activity majorly involves the material cost, labor cost, equipment cost.
However, some other expenses are minor and fixed. Furthermore, rate analysis is a method for identifying the actual cost of a job unit. It is both quantitative and qualitative.
Therefore, the actual cost of the job is determined by calculating the requirement of material, labor, and equipment required to complete the job. Subsequently, the requirement and specification of the same determine their respective cost.
Other than the fair price calculation, rate analysis also identifies the process of job, materials, and equipment required to conduct a job. This article enlists the general steps for rate analysis and rate analysis for brickwork, earthwork, concrete, and plaster.
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What Data Is Required For Rate Analysis?
Rate analysis requires multiple inputs and needs a holistic approach. It needs a complete and detailed analysis of a job life-cycle. Following is the information required for rate analysis.
1. Material Cost
First, calculate the material required to complete a unit of job. Now, determine the market price of the material and the material landing cost at the site. The material site landing cost includes the following aspects-
Material market cost
Packing cost
Loading cost
Transporting cost
Unloading cost
Storing cost
Taxes & Customs etc.
2. Manpower Cost
The manpower cost corresponds to the workforce engaged in completing a job unit. Two methods calculate the manpower-
Based on productivity.
Based on previous experience.
Also, the requirement of each class of manpower (skilled and unskilled) is determined. Since the daily wages of skilled, semi-skilled, and unskilled manpower are different, therefore it is necessary to calculate the requirement of each manpower type separately.
The labor may be deployed through a sub-contractor or directly employed. For directly employed labor, indirect cost is increased for their accommodation, transportation, insurance, food, leaves, etc.
3. Equipment Cost
The equipment may be purchased or rented depending upon the quantum of work to be done. The equipment, tools, and tackles include general and specialized tools. The plant machinery cost includes their operation and maintenance.
The cost includes spare parts, oiling, greasing, periodic maintenance, operator salary, upgrade, setting up and transportation, interest capital, and depreciation.
4. Overheads
There are fixed and variable overheads. The overheads include all the indirect expenses are incurred in performing a job. The fixed overheads are office establishment, furniture, IT, storage sheds, labor accommodation, toilets, fencing, approach road, drinking water, electricity, and telephone.
The variable overheads are the running cost, for example, interest on debt, salaries of indirect staff, stationery, utility bills, office refreshments, office maintenance, housekeeping, fuels, oils, tax, penalties, and scaffolding material.
5. Profit
The profit includes the net amount a contractor shall earn by working on the job. The profit is decided to accommodate the minor price variations and risks. The profit is generally 10% of the project cost.
Rate Analysis for Brickwork
Specifications
Machine molded FPS Bricks of Class 125
Cement mortar of 1:6 (1 cement and 6 coarse sand)
Assumptions
1. Carriage of material includes transportation by mechanical means, including loading, unloading, and stacking.
The mortar rate is calculated as below.
Description
Unit
Quantity
Rate
Amount
Material
Coarse Sand
Cum
1.07
600
642
Carriage of Coarse aggregate
Cum
1.07
53.21
56.93
Cement
Tonne
0.25
4500
1125
Carriage of cement
Tonne
0.25
47.29
11.82
Labour
Beldar
Day
0.75
135.25
101.43
Bhishti
Day
0.07
138.45
9.69
Mixer
L.S
26.91
1
26.91
Sundries
L.S
13.52
1
13.52
Cost of 1 cum
1987.31
The rate analysis for brickwork is as follows-
Description
Unit
Quantity
Rate
Amount
Material
FPS Bricks of Class 125
1000 Nos.
487
3200
1558.40
Carriage of Bricks
1000 Nos.
487
141.88
69.10
Cement Mortar 1:6
Cum
0.22
1987.3
437.21
Sundries
Cum
2.73
1
2.73
Labour
Mason 1st Class
Day
0.44
151.5
66.66
Mason 2nd Class
Day
0.44
141.6
62.30
Coolie
Day
1.43
135.25
193.41
Bhishti
Day
0.18
138.45
24.92
Scaffolding
L.S
16.38
1
16.38
Extra labor element required for the lifting of materials
Coolie
Day
1.13
135.25
152.83
Total
2583.94
Add 1 % for water charges
25.84
Total
2609.78
Add 15% for profit & overheads
391.47
Cost of 1 cum
3001.24
Rate Analysis For Earthwork
The specifications of the excavation are
Excavation by mechanical means (hydraulic excavator).
Excavated material to be disposed of 50 m (lead) away from the pit. The material is to be watered and neatly dressed.
The depth of excavation is 1.5 m (lift).
Soil strata change from soft to hard clay.
Assumptions
Excavator hourly output in the given strata = 30 cum
Excavator rate per day for 8 hours working = INR 6000 (including driver and fuel)
Loader used for mucking and dressing the excavated material. The daily rate for 8 hours working is INR 800.
Calculations
Let us calculate the cost for 10 cum excavations.
Description
Unit
Quantity
Rate
Amount
Machinery
Hydraulic excavator with driver and fuel
Day
0.04125
6000
247.5
Loader charges
Day
0.04125
800
33
Labour
Mate
Day
0.4
138.45
55.38
Beldar/Coolie
Day
4
135.25
541
Total
876.88
Add 1% for water charges
8.77
Total
885.65
Add 15% contractor profit & overheads
132.85
Total Cost for 10 cum.
1018.50
Cost of 1 cum
101.85
Rate Analysis for Concrete
Specification
Providing and laying RCC up to plinth level
Grade of Concrete – M20 (1:1.5:3)
Aggregate nominal size = 20 mm
Assumptions
Material carriage rates are inclusive of transportation by mechanical means, loading, unloading and stacking by 6 Beldars / coolies.
Concrete mixer capacity = 0.14 cum
Vibrator needle size = 40 mm
Description
Unit
Quantity
Rate
Amount
Material
20 mm stone aggregate
cum
0.57
700
399.00
10 mm stone aggregate
cum
0.28
700
196.00
Carriage of Aggregate
cum
0.85
53.21
45.23
Coarse Sand
cum
0.425
600
255.00
Carriage of Coarse aggregate
cum
0.425
53.21
22.61
Cement
tonne
0.4
4500
1800.00
Carriage of cement
tonne
0.4
47.29
18.92
Labour
Mason
Day
0.17
146.55
24.91
Beldar
Day
2
135.25
270.5
Bhishti
Day
0.9
138.45
124.61
Mixer
Day
0.07
400
28.00
Vibrator
Day
0.07
200
14.00
Sundries
L.S
14.3
1
14.30
Total
3213.08
Add 1 % for water charges
32.13
Total
3245.21
Add 15% for profit & overheads
486.78
Cost of 1 cum
3731.99
Say
3732.00
Rate Analysis For Plaster
Specification
Mortar grade for plaster = 1:6 (1 cement and 6 fine sand)
The thickness of plaster = 12 mm for interior wall
The thickness of plaster = 20 mm for the outer wall
Assumptions
1. Material carriage rates include transportation by mechanical means, loading, unloading and stacking by 6 Beldars / coolies.
The rate analysis for 1:6 mortar-
Description
Unit
Quantity
Rate
Amount
Material
Fine Sand
cum
1.07
320
342.40
Carriage of Fine aggregate
cum
1.07
53.21
56.93
Cement
tonne
0.25
4500
1125.00
Carriage of cement
tonne
0.25
47.29
11.82
Labour
Beldar
Day
0.75
135.25
101.44
Bhishti
Day
0.07
138.45
9.69
Mixer
L.S
26.91
1
26.91
Sundries
L.S
13.52
1
13.52
Cost of 1 cum
1687.72
The rate analysis for plaster of 12mm thickness for 1 sqm area-
Description
Unit
Quantity
Rate
Amount
Material for 10 sqm 12 mm thick plaster
Cement Mortar 1:6
cum
0.144
1687.716
243.03
Labour for 10 sqm
Mason
Day
0.67
146.55
98.19
Coolie
Day
0.75
135.25
101.44
Bhishti
Day
0.92
138.45
127.37
Scaffolding & Sundries
L.S
12.61
1
12.61
Total
582.64
Add 1% for water charges
5.83
Total
588.47
Add 15% profit and overheads
88.27
Total
676.74
Cost of 1 sqm
67.67
The rate analysis for plaster of 20 mm thickness for 1 sqm area-
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