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Lect 10 Rate Analysis

Rate Analysis in Civil Engineering involves determining the cost per unit of various works such as earthwork and concrete work, which varies by location. It is essential for calculating actual costs, optimizing material use, and adjusting for additional items not included in contracts. The analysis includes factors like material specifications, labor costs, and overheads to establish a comprehensive cost for projects.

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13 views21 pages

Lect 10 Rate Analysis

Rate Analysis in Civil Engineering involves determining the cost per unit of various works such as earthwork and concrete work, which varies by location. It is essential for calculating actual costs, optimizing material use, and adjusting for additional items not included in contracts. The analysis includes factors like material specifications, labor costs, and overheads to establish a comprehensive cost for projects.

Uploaded by

MAYUR LAMBADE
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ENGINEERING ECONOMICS,

ESTIMATION & COSTING


RATE ANALYSIS

Prof. S.J.Kumbhar
Asst. Professor
Civil Engineering Department
Sardar Patel College of Engineering

1
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.

2
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.

3
Factors Deciding Rate of
Items
•Specifications of works and material about their quality,
proportion and constructional operation method.
• Quantity of materials and their costs.
• Cost of labour 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

4
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 % 5
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.

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