Analysis of Price or (Rate)

Analysis of Price or (Rate)

• It is process of arriving at a correct & reasonable rate per

unit work or supply, for a particular item following its
specification and detailed survey of materials, labour,
equipment etc as required for the unit of work and their
prevailing market rates may be called as an analysis of
rate.
 Purpose of analysis of rates
a) To determine the current rate per unit of item at the locality
b) It enables the contractor in quoting the appropriate rate for the various items of
construction
c) To fix up labour contract rates.
d) To calculate the quantity of materials and labour strength required for project
planning
e) It is useful for preparing detailed estimates of the proposed project
f) The analysis of rate also helps in the comparison of actual cost incurred with the
estimated cost of work
g) It also enable in comparing the expenditure of the other similar works.
h) In Government organizations, it helps in checking or comparing the rates quoted by
the contractor in the tenders i.e. to determine the viability of rates offered by
contractors.
i) It also helps in arriving at the reasonable rate for different items of construction not
included under the District Schedule of rates (DSR)
 Factors effecting rate analysis

1. Specification of the item which indicates the quality and proportion

of materials,
2. The methods of construction and protection of works
3. The present rate of materials for the item of work up to the work site.
4. Daily wages of different categories of labourer at the locality with
their respective outputs
5. The range of lead and lift required for deposition of materials to
carry out the item of work
6. % charge for overheads which includes insurance and other
possibility of theft or loss etc.
7. The range of profit (%)
 How to determine per Unit Rate of Item

• The determining the rate per unit of a particular

item of construction after taking consideration of
following-
• The Quantities of materials required and its cost
• The cost of labor to be employed
• The cost of Equipment / hire charge of ordinary and
special tools and plants required
• Overhead charges
• Establishment charges of Head office of the contractor
• The contractor's reasonable profit
• Analysis of Rate= Direct Cost + Indirect Cost
• Direct Cost
• Materials + Labor + Tools and Plant (T &P) cost
• Indirect Cost
• Overhead charges, Establishment charges, Profit
Analysis of Rate= Direct Cost + Indirect Cost
Direct Cost=Materials Cost +Labour +Tools &
Plants
• Material Cost-
– Quantities of materials- by taking off quantities of materials
required per unit of item as per specifications
– Material cots- rate per unit of material delivered at work site
includes basic cost, freight, sale tax and (transit) insurance charges
if any, loading & unloading charges, internal site shifting charges
if any.
Analysis of Rate= Direct Cost + Indirect Cost
Direct Cost=Materials Cost +Labour +Tools &
Plants
• Labour Cost-
– To obtain labour cost, the number and wages of the different
categories of labourers, skilled, unskilled, (mason, carpentor,
mazdoor, khalasi, office boys, helpers etc) required for per unit of
work should be known and this numbers is to be multiplied by
respective wage per day (or per hour).
Analysis of Rate= Direct Cost + Indirect Cost
Direct Cost=Materials Cost +Labour +Tools &
Plants
• Cost of equipments, Tools & Plants (T&P)-Plants used at
site are subdivided into-
– Plant used for specific item of work which enables charging cost
of its use to the basic rates of particular item of work
– Plants like cranes, hoist, scaffolding, staging etc the cost of which
cannot be broken down and allocated to individual item of work
and therefore has to be accounted for in overhead.
– Cost of plant should include-
• Standing Charges- Interest of capital outlay and depreciation to cater
for replacement cost, major maintenance & repairs
• Running cost- Fuel, oil & lubricants, consumables, repairs
• Variable cost- setting up the plant, temporary site work required in
connection with use of plant, shifting location etc.
Analysis of Rate= Direct Cost + Indirect Cost
Indirect Cost=Overhead +Establishment +Profit
• Overhead Charges-
– Denotes expenses incurred for a particular job/site by the
contractor but which cannot be conveniently included in basic
cost of specific item of work such as concrete, brickwork etc
– Overhead charges are subdivided into-
• Fixed or One time expenses- should include for all cost incurred in
initial setting up of efficiently operating work site such as providing
temporary site offices, stores, godown, labour camps, canteen,
fencing, approach road, casting yard, water tanks, curing tanks,
taking utility connections, & demolishing, clearing all temporary
works on completion of work. All expenses incurred on shifting
plants & fares paid to employees for shifting to new sites
(importation & repatriation) are considered as fixed or one time
expenses.
• Overhead Charges-
• Variable or time related overheads-
– Taxes (Turnover tax, Income tax, Sales tax, duties, royalties etc)
– Finance Charges (BG & Interest)
– Insurance & risks cost
– Owning, using & Depreciation of general plant (scaffold, pumps,
hoist, cranes etc)
– Staff Salaries & Site amenities
– Contingencies
– Site office running expenses (stationery, postage, telephone
/mobile bills, faxes, tea, refreshment, furniture, equipments (IT
other), accommodation, rent, traveling, tours (site-HO-Site), car
hire
– Business development expenses
– Staff / Labour welfare
– Demobilization cost
• Following items should not loose sight while totaling up the overhead
charges-
– Taxes (Turnover tax, Income tax, Sales tax, duties, royalties etc).
– In tendering for works for which an impossibly short period of
completion coupled with penalty or pre-assessed liquidated
damages (LD) are stipulated, the contractor may have to be
reluctantly work out the likely penalty or damages in advance &
include them in overhead cost.
– Contractors being pragmatic community may also have to accept
the facts of life & allow for likely expenses on client’s
entertaining or miscellaneous BD expenses in overhead cost.
Analysis of Rate= Direct Cost + Indirect Cost
Indirect Cost=Overhead +Establishment +Profit
• Establishment Charges-
– Incurred on running the permanent head office of
builders/contractor’s firm.
– It includes salaries of head office staff, head office running
expenses, maintenance expenses, office furniture, IT services,
depreciation of office building, furniture and other assets,
– Insurance, legal fees paid to lawyer, professional fees to CA &
consultants, local property taxes, bills
– External Client meet, business development expenses etc
– Any other expenses coming under HO
• Generally % (1% - 5%) on cost of construction (Direct +Indirect
Overhead) are to be made in each tender cost by comparing the annual
turnover of the firm during previous year and its total expenses of the
head office during the previous year.
Analysis of Rate= Direct Cost + Indirect Cost
Indirect Cost=Overhead +Establishment +Profit
• Profit-
– Generally profit of 10% should be considered reasonable for ordinary
contracts after allocating all charges.
– For Small jobs 15% profit and for large jobs 8% profit should be
considered as reasonable.
 Important elements to be kept in mind

• Basic units of measurement

• Conversion factors
• Conversion rates
• Weights of building materials
• Weights of steel sections
• Output of Plants & Machinery
• Labour Constants
• Cement Constants
• Material Constants
 Some important units & conversion factors

• Common units like mm, cm, m, sqm, cum, litres etc

• 1 guntha= 1089 sqft
• 40 guntha = 1 acre
• 1 acre= 4047 Sqm
• 1 Hectare = 2.47 Acre
• 1 Hectare = 10000 Sqm
• 1 brass=100 cft=2.83 cum
• Conversion factors- used for converting one unit to another units
• Conversion of rates- factors used to convert rate from one unit to other
unit
 Weights of building materials
• Cement- 1440 Kg/cum
• Steel- 7850 kg/cum
• Aggregate- 1600-1870 kg/cum
• Sand- 1540-1600 kg/cum
• Single (3-38mm)- 1460 kg/cum
• PCC /RCC- 2240-2600 kg/cum
• Bricks- 1600-1920 kg/cum
• Lime- 1200-1400 kg/cum
• Bitumen- 1040 kg/cum
• Paint- 960 kg/cum
• Petrol- 690 kg/cum
• Diesel 960 kg/cum
• Soil/Earth 1410 -1840 kg/cum
• Water 1000 kg/cum
Standard Output of plants-road works
Prod.
Activity Equipment Name Unit
Norm

Excavation
Excavator-90cum/hr m3/hr 72
Embankment with Borrow Area
Vibratory Compactor (for
earth-120 cum/hr) m3/hr 90
Motor Grader m3/hr 130
Crowler Dozers m3/hr 200
Tractor with Disc Horrow m3/hr 160
Water Tanker m3/hr 75
Embankment with Pond Ash
Vibratory Compactor m3/hr 90
Motor Grader m3/hr 130
Crowler Dozers m3/hr 200
Tractor with Disc Horrow m3/hr 160
Water Tanker m3/hr 75
Embankment with Roadway Excavation
Vibratory Compactor m3/hr 90
Motor Grader m3/hr 130
Crowler Dozers m3/hr 200
Tractor with Disc Horrow m3/hr 160
Water Tanker m3/hr 75
Subgrade
Vibratory Compactor m3/hr 90
Motor Grader m3/hr 130
Tractor with Disc Horrow m3/hr 160
Water Tanker m3/hr 75
DL
Vibratory Compactor m3/hr 90
Grader m3/hr 100
Water Tanker m3/hr 75
DL / GSB Plant m3/hr 77
Wheel Loader m3/hr 77
G.S.B
Tandom Roller (120 cum/hr) m3/hr 90
Grader m3/hr 100
Water Tanker m3/hr 75
DL / GSB Plant m3/hr 77
Wheel Loader m3/hr 77
 Prod.
Activity Equipment Name Unit
Norm
WMM
WMM Plant-150TPH m3/hr 53
WMM Paver (Non Sensosr) m3/hr 60
Tandom Roller (120 cum/hr) m3/hr 90
Wheel Loader m3/hr 77
Prime Coat
Bitumen sprayer m2/hr 500
Tack Coat
Bitumen sprayer m2/hr 500
DBM
Hot Mix plant-100 TPH m3/hr 42
DBM Paver (Sensor) m3/hr 42
Tandam Roller m3/hr 26
Pneumatic Tyre Roller m3/hr 54
Wheel Loaders m3/hr 40
Water Tanker m3/hr 4
SDBC
Hot Mix plant-100 TPH m3/hr 42
DBM Paver (Sensor) m3/hr 42
Tandam Roller m3/hr 26
Pneumatic Tyre Roller m3/hr 54
Wheel Loaders m3/hr 40
Water Tanker m3/hr 4
Concrete BP 1 (30 Cum/Hr.)
Batching Plant No. 1 m3/hr 25
Transit Mixers 6 cum cap m3/hr 4
Mobile Concrete Pump with Placer
m3/hr
Boom 24
Concrete Pump m3/hr 20
DLC
Dumpers m3/hr 5
Sensor Paver m3/hr 85
Tandum Roller m3/hr 43
Water Bowsers m3/hr 43
PQC
Dumpers m3/hr 5
Slipform Paver with Sprader, TCM,
m3/hr
Tia Bar Inserter.
85
Excavator m3/hr 85
Water Bowsers m3/hr 75
Piling 1000 mm Ø
Soilmec Piling Rig Lm/hr 3
Casagrande Piling Rig. Lm/hr 1
Bentonite Mixer 2
Bentonite Pump 2
Bull Dozer
D155-320 HP m3/hr 75
D80-190 HP m3/hr 75
HM dozer D6H-165 m3/hr 45
• Concrete Mixers
Concrete Mixers Capacity of Mixer
Capacity of per batch in cft of
dry & wet mix 7/5 10/7 14/10 18/12 21/14
Batch output in cum (yeild) 0.14 0.2 0.28 0.34 0.4
No of batches per cum 7.14 5 3.57 2.94 2.5
Time in min /cum (3min/cycle) 21.42 15 10.71 8.82 7.5
Output in cum/hr 2.8 4 5.6 6.8 8
 Formwork Constants

Shuttering requirment / Cum of Concrete

I Girder 5.8 to 6.8 sqm per cum
Solid Slab 1.5 sqm per cum
Deck Slab 3.5 sqm per cum
Diaphragm wall 3.8 to 4.2 sqm per cum
Friction slab 5.8 to 6.1 sqm per cum
T Beam 3.7 to 4 sqm per cum
Box Girder 4 sqm per cum
Diaphargm 7.3 to 7.4 sqm per cum
Pedestal for Bearing 5.3 to 5.4 sqm per cum
Crash Barrier 5.5 to 6 sqm per cum
Well Curb 2 to 3 sqm per cum
Well Cap 0.35 to 0.5 sqm per cum
Well Steining 1.45 to 1.8 sqm per cum
Open Foundation 1.5 to 1.6 sqm per cum
Pier - 2 m dia 2 to 2 sqm per cum
Pier- 2.3 m dia 1.75 to 1.8 sqm per cum
Pier Cap 1.6 to 1.75 sqm per cum
Pile Cap 2.4 to 2.8 sqm per cum
Solid RCC Wall type substructure 7 to 7 sqm per cum
Wing Wall (PCC) 1.55 to 1.6 sqm per cum
Box Culvert 1m x 1m 2.6 to 2.75 sqm per cum
Labour Output Constants-

Task Work- Quantity of work which can be done by an artisan or

skilled labour for working of 8 hrs a day.

•Earthwork
Concrete works
Brickwork
Roofing
Plastering
Finishing
 Cement Constants
CEMENT CONTENTS IN CONCRETE MIX

Grade of Minimum As per

concrete cement content British
presently Practice
adopted in India (kg/m3)
(kg/m3)

M-15 250
M - 20 290 225
M - 25 310 250
M - 30 325 275
M - 35 350 300
M-35 Pile 440 -
M - 40 375 325
M - 45 440 350
DLC 150 150
PQC 360 400
 Material Constants-for various Concrete Mix

Item Unit Density M15-DLC M40-PQC M15 M20 M25 M30

1,428 0.15 0.36 0.25 0.28 0.32 0.35

Cement MT/Cum
1,530 0.79 0.64 0.69 0.69 0.69 0.69
Aggregate - 20 mm MT/Cum
1,530 0.43 0.52 0.60 0.60 0.60 0.60
Aggregate - 10 mm MT/Cum
1,626 0.54 0.66 0.56 0.56 0.56 0.56
Natural Sand MT/Cum
1,810 0.50 0.11 0.21 0.21 0.21 0.21
Sand Crushed MT/Cum
2.60 2.00 2.24 3.20 3.50
Admixture Kg/Cum

Admix % 0.72 0.80 0.80 1.00 1.00

 Material Constants-for various Concrete Mix

Item Unit Density M35 PILE M40 M45 M50 M60

1,428 0.40 0.40 0.40 0.41 0.415 0.435

Cement MT/Cum
1,530 - 0.58 0.69 0.69 0.69 0.69
Aggregate - 20 mm MT/Cum
1,530 - 0.47 0.57 0.57 0.57 0.57
Aggregate - 10 mm MT/Cum
1,626 - 0.59 0.56 0.56 0.56 0.56
Natural Sand MT/Cum
1,810 - 0.15 0.21 0.21 0.21 0.21
Sand Crushed MT/Cum
4.40 6.00 3.50 3.53 4.15 4.33
Admixture Kg/Cum

Admix % 1.10 1.50 0.88 0.86 1.00 1.00

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