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.
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.
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
- Machine molded FPS Bricks of Class 125
- Cement mortar of 1:6 (1 cement and 6 coarse sand)
1. Carriage of material includes transportation by mechanical means, including loading, unloading, and stacking.
The mortar rate is calculated as below.
|Carriage of Coarse aggregate||Cum||1.07||53.21||56.93|
|Carriage of cement||Tonne||0.25||47.29||11.82|
|Cost of 1 cum||1987.31|
The rate analysis for brickwork is as follows-
|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|
|Mason 1st Class||Day||0.44||151.5||66.66|
|Mason 2nd Class||Day||0.44||141.6||62.30|
|Extra labor element required for the lifting of materials|
|Add 1 % for water charges||25.84|
|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.
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.
Let us calculate the cost for 10 cum excavations.
|Hydraulic excavator with driver and fuel||Day||0.04125||6000||247.5|
|Add 1% for water charges||8.77|
|Add 15% contractor profit & overheads||132.85|
|Total Cost for 10 cum.||1018.50|
|Cost of 1 cum||101.85|
Rate Analysis for Concrete
- Providing and laying RCC up to plinth level
- Grade of Concrete – M20 (1:1.5:3)
- Aggregate nominal size = 20 mm
- 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
|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|
|Carriage of Coarse aggregate||cum||0.425||53.21||22.61|
|Carriage of cement||tonne||0.4||47.29||18.92|
|Add 1 % for water charges||32.13|
|Add 15% for profit & overheads||486.78|
|Cost of 1 cum||3731.99|
Rate Analysis For Plaster
- 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
1. Material carriage rates include transportation by mechanical means, loading, unloading and stacking by 6 Beldars / coolies.
The rate analysis for 1:6 mortar-
|Carriage of Fine aggregate||cum||1.07||53.21||56.93|
|Carriage of cement||tonne||0.25||47.29||11.82|
|Cost of 1 cum||1687.72|
The rate analysis for plaster of 12mm thickness for 1 sqm area-
|Material for 10 sqm 12 mm thick plaster|
|Cement Mortar 1:6||cum||0.144||1687.716||243.03|
|Labour for 10 sqm|
|Scaffolding & Sundries||L.S||12.61||1||12.61|
|Add 1% for water charges||5.83|
|Add 15% profit and overheads||88.27|
|Cost of 1 sqm||67.67|
The rate analysis for plaster of 20 mm thickness for 1 sqm area-
|Material for 10 sqm 20 mm thick plaster|
|Cement Mortar 1:6||cum||0.224||1687.72||378.05|
|Labour for 10 sqm|
|Scaffolding & Sundries||L.S||12.61||1||12.61|
|Add 1% for water charges,||8.19|
|Add 15% profit and overheads,||124.03|
|Cost of 1 cum||95.09|
Also Read –
- How To Calculate Floor Space Index (FSI)
- Types Of Construction Contracts
- Types Of Estimates In Civil Engineering