What Is Rate Analysis? | Rate Analysis For Brickwork, Earthwork, Concrete & Plaster

What Is Rate Analysis?

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.

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

1. Machine molded FPS Bricks of Class 125
2. 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

1. Excavation by mechanical means (hydraulic excavator).
2. Excavated material to be disposed of 50 m (lead) away from the pit. The material is to be watered and neatly dressed.
3. The depth of excavation is 1.5 m (lift).
4. 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

1. Providing and laying RCC up to plinth level
2. Grade of Concrete – M20 (1:1.5:3)
3. Aggregate nominal size = 20 mm

Assumptions

1. Material carriage rates are inclusive of transportation by mechanical means, loading, unloading and stacking by 6 Beldars / coolies.
2. Concrete mixer capacity = 0.14 cum
3. 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

1. Mortar grade for plaster = 1:6 (1 cement and 6 fine sand)
2. The thickness of plaster = 12 mm for interior wall
3. 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-

Description	Unit	Quantity	Rate	Amount
Material for 10 sqm 20 mm thick plaster
Cement Mortar 1:6	cum	0.224	1687.72	378.05
Labour for 10 sqm
Mason	Day	0.94	146.55	137.76
Coolie	Day	1.02	135.25	137.96
Bhishti	Day	1.1	138.45	152.30
Scaffolding & Sundries	L.S	12.61	1	12.61
Total				818.67
Add 1% for water charges,				8.19
Total				826.85
Add 15% profit and overheads,				124.03
Total				950.88
Cost of 1 cum				95.09
Say				95.10

Also Read –

• How To Calculate Floor Space Index (FSI)
• Types Of Construction Contracts
• Types Of Estimates In Civil Engineering

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