Government Polytechnic Jalna

A Micro-project on

RATE ANALYSIS
Annexure-1

Guide: Prof. S.H.KOLEKAR

Roll no. Name of students Enrollment no.

32 KHAN UBED IFTEKHAR 1916000021

33 MOHAMMAD AASHIQUE RAZIQUE 1916000022

34 MOHAMMAD AMAN ALTAF 1916000023

Certificate
This is to certify that this group has satisfactorily carried out
the investigation/experimentation and successfully
completed the Micro-Project work entitled “RATE ANALYSIS
”.This work is being submitted for the award of Diploma in
Civil Engineering. It is submitted in the partial fulfillment of
the prescribed syllabus of Maharashtra State Board of
Technical Education Mumbai for the academic year 2021–
2022.
S.H.KOLEKAR A.S.Bhageriya P.R.Patalwar
Guide Head of Department Principal
 RATE ANALYSIS
• The process of determining rate per unit of any
work in Civil Engineering project like earthwork,
concrete work, brickwork, plastering, painting etc. is
known as Analysis of Rates or simply Rate Analysis.
The rates of materials and labour vary from place to
place and hence the rates of different items of
works also vary from place to place. The rates of
these works further help in determining cost of
particular work and in turn cost of the project.
 Necessity of Rate Analysis
• To determine the actual cost per unit of the items.
• To work out the economical use of materials and
processes in completing the particulars item.
• To calculate the cost of extra items which are not
provided in the contract bond, but are to be
executed as per the directions of the department.
• To revise the schedule of rates due to increase in
the cost of material and labor or due to change in
technique.
 Factors Deciding Rate of Items
The various factors that are involved in determining rate of
any item, process or work are mentioned below:
• Specifications of works and material about their quality,
proportion and constructional operation method.
• Quantity of materials and their costs.
• Cost of labor and their wages.
• Location of site of work and the distances from source
and conveyance charges.
• Overhead and establishment charges
• Profit and miscellaneous expenses of the contractor
 Procedure of Rate Analysis
The analysis of rates is worked out for the unit payment of the
particular item of work under two heads: Materials and
Labour.
• The cost of items of work = Material cost + Labour cost
• Other costs included to the above cost of items of work are:
• Tools and Plants ( T & P ) = 2.5 to 3 % of the labour cost
• Transportation cost (if conveyance more than 8 km is
considered.)
• Water charges = 1.5 to 2 % 0f total cost
• Contractor’s profit = 10 %
 Material cost
The rate of various materials as per
specifications for the items under
consideration can be chalked out from market
survey. The costs of materials are taken as
delivered at site of work. This is inclusive of:
• The first cost (cost at origin),
• Cost of transport, railway freight (if any), etc.
• Local taxes and other charges.
 a) Lead statement
• The distance between the source of availability of
material and construction site is known as "Lead”
and is expressed in Km. The cost of conveyance of
material depends on lead. This statement is
required when a material is transported from a
distant place, more than 8kms (5 miles). The lead
statement will give the total cost of materials per
unit item including first cost, conveyance loading-
unloading, stacking charges etc.
 Labour cost
• To obtain labour cost the number and wages of different
categories of labourers, skilled (Skilled 1st Class), semi-
skilled (Skilled 2nd Class) and unskilled, required for each
unit of work should be known and this number is
multiplied by the respective wage per day. The labour
charges can be obtained from the standard schedule of
rates. 30% of the skilled labour provided in the data may
be taken as 1st class, remaining 70% as 2nd class. The
length of time required to do a certain piece of the work
may vary according to the skill and mental development of
the workmen and working conditions to the particular job.
 Task or out-turn work
• This is the quantity of work which can be done
by an artisan or skilled labour (with the help of
semiskilled and unskilled labours) of the trade
working for 8 hours a day. The outturn of work
per artisan varies according to the nature, size,
height, situation, location etc. Out-turn is
more in larger cities, as the more specialized
and experienced labours are available, than
the small cities and country sides.
 Miscellaneous cost
a) Cost of equipment, Tools and Plants (T & P) The
cost of equipment and ordinary tools and plats
and miscellaneous petty items (sundries) are
added to the specific item rate as lump-sum. A
provision of 2.5 to 3 % of the labour cost is made
for such items. In certain tools and plants if it is
difficult to allocate their use for a particular item
of rate; then the cost of such tools or plants may
be allocated to the over-head expenditure.
 Miscellaneous cost
b) Water charges
For drinking purpose of the workers and for the
work, arrangement of water is made sinking
tube well; bore well or from temporary
connection from municipality. For this purpose
a provision of 1.5 to 2 % of total cost (Material
+ Labour+ Sundries) is made in the estimate
 Miscellaneous cost
c) Over head charges
Overhead charges include general office expanses,
rents, taxes, supervision and other cost which are
indirect expanses on the job. Expanses for small
tools such as planks, ladders, ropes and other hand
tools are also included in the over-head charges. A
provision of 2.5% to 5% is made in the rate analysis
as overhead charge. Overhead charges can be
divided under two categories: General Overhead
and job overhead.
 Over head charges
General overhead:
• These are the expanses made throughout the year
irrespective to running works in hand. These include:
• o Establishment charge including rent of office space
and taxes
• o Salaries to office staff
• o Purchase of stationary, Printing, postage etc.
• o Electricity, telephone and water bills
• o Travelling expanses
 Over head charges
Job overhead:
These are the expanses indirectly incurred for the job or the
project. These include:
o Salaries of personnel engaged for the work (Site engineers,
Surveyors or site office staff)
o Rent of temporary site office space, electricity, telephone and
water bills o Handling of materials
o Repairs, carriage and depreciation of T & P
. o Labour welfare, safety measures and insurance etc.
o Interest on investment
o Thept and other losses.
 c) Contractor’s profit
• Generally a provision of 10% is made in the
rate analysis as contractor’s profit for ordinary
contracts. For small jobs 15% profit and for
large jobs 8% profit may be considered as
reasonable. Contractors profit is not included
in rate analysis if material is supplied by the
department.
Rate Analysis of Important Items