CTN PRESS

CTN PRESS

NEWS & BLOGS EXCLUCIVELY FOR INFORMATION TO ENGINEERS & VALUERS COMMUNITY

METHOD OF RATE ANALYSIS WITH CALCULATION IN CIVIL ENGINEERING

METHOD OF RATE ANALYSIS WITH CALCULATION IN CIVIL ENGINEERING

RATE ANALYSIS

The rate analysis process gives a clear idea of different forces acting behind the performance of a specific item. It should be noted that the rate analysis of any item is never finished.

The basic of arriving at a reasonable or true rate per unit work or supply, for a particular item of work, from the cost of labor, cost of quantities of materials, and other miscellaneous minor expenses need for its completion is also called rate analysis.

 For example, in the rate analysis of brickwork, a certain rate for bricks is assumed. But this rate for bricks is derived by the maker of bricks by his own rate analysis for making bricks.

Thus, theoretical, the rate analysis of an item is incomplete, but in practice, acts as a helpful guide to come at a fair rate for a specific item.

Rate analyses are given below-

  1. Information about costs of labour, equipment and materials.
  2. Good knowledge of construction work and familiarity with the trade.
  3. Output of labour that is out turn of works per day for different trades.

Purpose of rate analysis

  • To work out the actual cost of per unit of the item.
  • To work out the economical use of materials and processes in completing the perticular items.
  • To work out the cost of extra items which are not provided in the contract bond but are to be done as per the direction of the department.
  • To revise the schedule of rates due to increase in the cost of materials and labour due to change in technique.

Works are measured separately

  • Work in or underwater.
  • Work in liquid mud.
  • Work in or under foul situation.
  • Work under tides.
  • Work in snow.

Rate analysis process

  1. Task or out-turn of work.
  2. Materials for various items or works.

Task or out-turn of work

The capacity of an artisan or skilled labor for completing works in the form of quantity of work per day is called task-work or out-turn of the labor. The outturn of work per artisan differs to some extent depending on the height, nature, size, location, situation, etc. In well-planned work, less labor is needed. In bigger cities where skilled and experienced labor is available the outturn is larger than small towns and countrysides.

Materials for various items or works

The following five subheads are estimated and added together to details to get the rate per unit of an items

Quantity of materials and cost –

According to detailed specifications, the estimate maker takes off the quantities of different materials needed per unit quantity of an item and computes costs from local market rates. Quantities of materials are needed per unit rate of work delivered at the site of work and its cost consists of first cost, transportation, railway freight, sales tax, and insurance charges, etc. For the material which is supplied departmentally, profit on the cost of materials is not allowed, but the cost of transport from godown to site of works shall be included.

Labor cost –

To get labor costs, the wages and number of the various categories of skilled and unskilled labor like mason or carpenter, Mazdoor boy, etc. Needed for every part of work should be known and this number is to multiply by the breadth respective wage per day.

Cost of equipment, tools, and plant –

Whenever poss the cost of equipment and ordinary T and P, those are needed for general use should be allocated to a particular item of rate.

For instance, the concrete mixer operating cost should be spread over those items of rates for which it is used.

It is difficult to allocate their use to a  separate item of rates for certain tools and plants and it is, therefore, suggested to include costs in such cases of expenditure to over-head, establishment charges.

Overhead or establishment charges –

This includes such items as office rent and depreciation of equipment, plan, specifications, traveling, salaries of office staff, telephone account, lifting, and postage, etc. This is generally 2.5% of the net cost of a unit of rate and may increase up to 5% when the progress of a work is delayed, the overhead charges increase.

Profit 

Usually, 10% should be included reasonably for the ordinary contract after allocating all charges of establishment, equipment, etc.

Source Link:

error: Content is protected !!
Scroll to Top