Estimati on and Costing RATE ANALYSIS Submitted By Submitted to Vansheika (202601) Er. Akash Bhardwaj
RATE ANALYSIS “ The determination of rate per unit of a particular item of work, from the cost of quantities of materials, the cost of labourers and other miscellaneous petty exp e nses required for its completion is know n as the analysis of rates.” In order to determine the rate of a particular item, the factors affecting the rate of that item are studied carefully and then finally a rate is decided for that item.
PURPOSE OF RATE ANALYSIS •To work out the actual cost of per unit of the items. •To work out the economical use of materials and processes in completing a 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.
FACTORS AFFECTING RATE ANALYSIS Specification of works and material, quality of materials, proportion of mortar method of construction and operation. Quantities of materials and their rates N umber of different types of labourer and their rates. Location of site of work and its distance from the sources of materials and the rates of transport, availability of water. Profit and miscellaneous and overhead expenses of contractor.
How is a new unit rate defined? The starting point to define the new unit rate, is to run a careful analysis of the elements and resources that build up to form the new work item. The elementary components, or resources, are generally the following: • workforce • materials • hired equipment • overheads • company profits
Labor & Materials The cost of labor is defined by the type of workers (specialized, qualified operators) and the hours of work necessary per quantity unit. To define the cost of the necessary materials, you need to determine the following: • the purchase price • on-site transport costs • unloading • stacking and storage • waste (an excess percentage of unwanted material due to the production processes)
OVERHEAD COSTS It includes general office expense, rents, taxes, supervision and other costs which are indirect expense and not productive expense of job. The miscellaneous expense on overheads may be under the following heads; General overheads Establishment (office staff) Stationary, printing, postages etc. Travelling expense Telephone Rent and Taxes
OVERHEAD COSTS Job overheads Supervision (salary of Engg., Overseers, Supervision etc.) Handling of materials Repairs, carriage and depreciation of T&P Amenities of labour Workmen’s compensation and insurance Interest on investment Losses on advances
Note* The contractor may allowed to have a net profit of 6%-8% The miscellaneous overheads expenses may come to about 5%-10% Total 15% of the actual cost may be reasonable amount but it is usually practice to add 10%. 1.5% of water charges is also added If material has to be transported from more than 8km than transportation cost should b e calculated separately. 10% should be extra added to contractors profit if cement and steel has to be arranged by him.
Lead statement The distance between the source of availability of material and construction site is known as "Lead " and is expected in Km. The cost of conveyance of material depends on lead. This statement will give the total cost of materials per unit item. It includes first cost, conveyance loading, unloading stacking, charges etc.
TASK OR TURN-OUT WORK Task : the capacity of doing work by an artisan or skilled labour in the form of quantity of work per day. It varies to some extent according to the nature, size, height, situation, location etc. example For the excavation of foundation of a building. 4 labours worked out for 2 days and total quantity of earthwork was 24cu.mt. So total labours worked = 2 x 4 = 8 Nos Task of one labour = 24/8 = 3 cu.mt.
Calculations of Quantities Concrete work For 1 m 3 of wet concrete, dry volume is taken about 52% more That is 1 m 3 of wet concrete = 1.52 m 3 of dry concrete Quantity of materials for 1: 2 : 4 cement concrete Proportion 1: 2 : 4 C : S : A Total = 7 Cement 1/ 7 x 1.52 0.217 14 /0.035 6.204 say 7 nos. of bags Sand 2 / 7 x 1.52 0.4 34 m 3 Aggregate 4 / 7 x 1.52 0.8 68 m 3
Rate analysis of RCC ( 1:2:4 ) for slab – 10 m 3 (A) Material required Sr Type of material Quantity Rate Per Amount 1 Cement Q=1/7 x 10 x 1.52 = 2.17 / 0.035 62 280 bags 17360 2 Sand Q= 2/7 x 10 x 1.52 4.34 1200 m 3 5208 3 Course Agg. Q= 4/7 x 10 x 1.52 8.68 1100 m 3 9548 4 Steel (1%) 785 50 Kg 39250 5 Binding wire 8 35 Kg 280 4 Miscellaneous - - Lump sum 100 Total (A) 71,746
Rate analysis of RCC ( 1:2:4 ) for slab – 10 m 3 (B) Labour required Sr Type Quantity Rate Per Amount 1 Head mason 1 500 day 500 2 Mason (Mixing, Trans., Placement) 10 350 day 3500 3 Mason (binding, bending) 9 250 day 2250 4 Mason (centering ,shuttering) Lump sum 5000 6 Rent for Equp. (2000 Rs) Lump sum 2000 Total (B) 13,250 Total ( A + B ) = Rs. 84,996 Add 1.5% of water charges = Rs. 1275 Add 10% of contractor’s profit = Rs. 8500 Rate for 10.0 m 3 = Rs. 94,771 Rate for 1.0 m 3 = Rs. 9,477