Professional Documents
Culture Documents
Rate Analysis: what is it and what’s the correct procedure for building up a unit
rate
• workforce
• materials
• hired equipment
• overheads
• company profits
Labor
The cost of labor is defined by the type of workers (specialised, qualified operators) and the
hours of work necessary per quantity unit.
Materials
To define the cost of the necessary materials, you need to determine the following:
Rentals
Meaning the rented equipment or machinery that may be of 2 main types:
• “operated equipment”: this means that the rental cost is inclusive of both the equipment, or
machinery, and the necessary operational labor (eg. a crane and the crane operator).
The operated equipment rental includes the labor costs required for its use, the fuel, lubricants,
insurance costs and maintenance.
• “without operator”: in this case the equipment or machinery is rented with the operator. This
kind of freight cost does not include the cost due to labor required for its use. Neither does it
take into account the cost for fuel, lubricants or maintenance.
Overheads
Overheads are the costs incurred in an indirect way and not directly related to the works or to
the construction site.
On average they are quantifiable with a fixed percentage of between 13% and 17% – (may vary
from zone to zone).
Overhead costs include the following items:
Company Profits
Known as the expected revenue for the company and is typically 10% of the costs incurred.
The software allows you to dynamically calculate the rate of a given work item.
PriMus, in fact, allows you to easily and dynamically build up a new rate by means of a rate
analysis feature and therefore calculate the total unit rate from elementary resources or even
from other structured rates whose final rate is the result of a combination of several sub-
resources. To determine the rate of an item, the following may be used:
• primary costs
• compounds costs
• data from price lists
• data from other rate analysis items and references
The Rate Analysis document can also be very useful for the building company in the preparation
of tenders or in setting up the site, but also for the surveyor who needs to draft a project plan of
works or follow the works on-site.
PriMus can also determine the “Site Requirements” through a quantitative evaluation of those
elementary items (materials, human resources, equipment, etc.) needed for the project.
This aspect may be different from country to country and for this reason, where in Brazil, the
“Site Requirements” is replaced by the so called “ABC analysis”, this has been integrated into
the software with the ‘ABC curve”, thus adapting to local legislation. One of the most obvious
advantages of using a software to perform a Rate Analysis is the dynamic management of price
variations. With the software, in fact, we can change the unit rate of an element used in a rate
analysis and notice that the any analyzed rates that contain the varied rate, are all updated
throughout the entire construction estimate document.
The Rate Analysis module configuration allows you to set the values for Overheads, Company
Profits, etc).
The analysis elements can be acquired from other reference documents too such as price
books, other price lists, estimates, etc. In the numeric fields, you can:
Use of specific variables can be very useful in order to automatically acquire values from other
elements used in the same rate analysis. In this case, all price list item data is seamlessly
updated.
An example of how variables are used in PriMus
For each item, the software also allows the user to customise the data settings so as to obtain
a useful amounts summary to print as a Rate Analysis report, a Site Materials Requirements
report (with or without the unit rates) and a construction estimate.
Organisation of an on-screen data and amounts summary in PriMus
Click here to learn more about PriMus, the Construction Estimating software
Related Posts
Languages
Deutsch
Español
Français
Português
Search ...
Recent Posts
Classical and modern townhouses. The Lafayette Park project by Mies Van der Rohe
Townhouses drawing plans with Area Views, 3D BIM Models and CAD resources
Categories
BIM Projects
Concepts
Focus
News
Problem Solving
Tech Research
Uncategorized
Archives
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
Find us on Facebook
LANGUAGES
Deutsch
Español
Français
Português
Copyright © - ACCA software - All rights reserved - Privacy Policy - Term of Use and Disclaimer - Uninstall Guidelines