RATE ANALYSIS

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 labour 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 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
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:
o Tools and Plants ( T & P ) = 2.5 to 3 % of the labour cost
o Transportation cost (if conveyance more than 8 km is considered.)
o Water charges = 1.5 to 2 % 0f total cost
o 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.

A typical lead statement is provided as follows:

Sl. Materials Unit Cost at Lead Conveyance Total Total

No. Source (in charges (Per Conveyance Cost (In
(per Km) Km/ Per charges Rs. /Per
unit) Unit) (/Per Unit) unit)
1 Rough Cum 250.00 25 5.00 125.00 375.00
Stone
2 Sand Cum 12.00 20 4.00 80.00 92.00
3 Cement Bag 370.00 Local - - -
 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.

a) 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 out-
turn 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.
The recommendation of All India Standard Schedule of Rates and various other govt.
reports are used to work out approximate quantity of labour required to prepare the
analysis of rates. IS: 7272 (part 1)-1974, provides recommendations for labour output
constants for building work which can be used to fix up the labour cost.
A typical labour output constant issued by National Building Organization is provided
bellow:
 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.

For big works and projects where it becomes necessary to use special types of equipment
like batching plants or WMM plant or dumpers or cranes for transportation of concrete
mix, provisions of an amount 1% to 1.5% of the estimated cost is provided in the estimate
under the head “special tools and plants”.

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.

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.

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
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

1) Earthwork in excavation in foundation including filling in trenches up to 30m lead

and 1.5 m lift

Assume volume of excavation = 100 cu m

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges - - -
Labour Charges
1. Head Mason 0.5 Nos. 450.00 per day 225.00

2. Beldar 18 Nos. 250.00 per day 4500.00

3. Mazdoor 14 Nos. 220.0 per day 3080.00
T&P, Sundries, etc. LS 240.00 LS 240.00
Total Materials and Labour 8045.00
Add 1.5% water charges 120.67
 Add 10% Contractors profit 804.50
Grand Total 8970.17
Rate per cu m Rs. 89.70

2) First class brickwork in super structure with cement mortar (1:6)

a) Estimation of Materials

Assume volume of brickwork = 10 cu m

Nominal size of modular brick = 10 cm×10 cm× 20 cm

Hence, the number of bricks required =10/(0.1 × 0.1 × 0.2) = 5000 No
Actual size of modular brick = 9 cm× 9 cm× 19 cm

The remaining space is filled by mortar, hence the volume of mortar required for 10 cum

= 10 – (5000 × 0.09 ×0.09 × 0.19) = 2.3 cu m.

Additional mortar required for frog filling, brick bonding and wastages @ 15%.

Thus volume of set mortar = 2.3 + 2.3 × 15\100 = 2.64 cum.

But, 1.25 cu m of dry volume of mortar materials produces 1.0 cu m set mortar.

Hence, volume of dry materials required for 2.64 cu m of set mortar

= 1.25 × 2.64 cu m = 3.30 cu m.

Sum of proportion of cement and sand = 1+6 = 7

Hence, volume of cement = 3.3/7 = 0.47 cu m.

However, cement is available in 50 kg bag whose volume is 0.0347 cu m.

1 cu m of cement = 30 bags of cement

Therefore, number of bags required = 0.47 × 30 ≈ 14 bags.

Volume of sand required = 0.47 × 6 = 2.82 cu m.

b) Rate Analysis

Assume, the volume of brickwork = 10 cu m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Brick 5000 Nos. 250.00 (/100 nos.) 12500.00
2. Cement 14 bags 320.00 per bag 4480.00
3. Sand 2.82 cu m 350 per cu m 987.00
Labour Charges
1. Head Mason 2 Nos. 450.00 per day 900.00
2. Mason 6 Nos. 350.00 per day 2100.00
3. Mazdoor 16 Nos. 220.00 per day 3520.00
4. Bhisti 08 Nos. 220.0 per day 1760.00
T&P, Sundries, etc. LS 200.00 LS 200.00
Total Materials and Labour 26447.00
Add 1.5% water charges 394.30
Add 10% Contractors profit 2628.70
Grand Total 29470
Rate per cu m Rs. 2947.00

3) 12 mm thick plaster with cement mortar (1:6)

a) Estimation of Materials

Assume plastering area = 100 sq m

Hence volume of mortar for 12 mm plaster = 100 m × 0.012 m = 1.2 cum

Add 30 % more to the above volume for filling of joints, for making an uniform surface and for
wastages

Thus total set volume of mortar including wastages and joint filling etc.

= 1.2 + 1.2 × 30/100 = 1.56 cu m.

As, 1.25 cu m of dry volume of mortar materials produces 1.0 cu m set mortar;

Volume of dry materials required for 1.56 cu m of set mortar is

 = 1.25 × 1.56 cu m = 1.95 cu m,

Hence, volume of cement = 1.95/7 = 0.28 cu m.

Number of bags required = 0.28 × 30 ≈ 8 bags.

Volume of sand required = 0.28 × 6 = 1.68 cu m.

b) Rate Analysis

Assume, the area of plastering = 100 sq. m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Cement 8 bags 320.00 per bag 2560.00
2. Sand 1.68 cu m 350 per cu m 588.00
Labour Charges
1. Head Mason 2 Nos. 450.00 per day 900.00
2. Mason 6 Nos. 350.00 per day 2100.00
3. Mazdoor 08 Nos. 220.00 per day 1760.00
4. Bhisti 02 Nos. 220.0 per day 440.00
T&P, Sundries, etc. LS 200.00 LS 130.00
Total Materials and Labour 8478.00
Add 1.5% water charges 127.17
Add 10% Contractors profit 847.80
Grand Total 9452.97
Rate per sq m Rs. 94.53

4) Cement Concrete (1:2:4) for RC work excluding reinforcement and form work

a) Estimation of Materials

Assume volume of R.C.C. = 10 cu m (Set volume)

1.54 cum dry volume of concrete making materials produces 1.0 cu m set concrete

Therefore volume of dry materials required for 10 cu m of set concrete is 15.4 cu m.

Sum of proportion of cement, sand and course aggregate = 1+2+4 = 7

Hence, volume of cement = 15.4/7 = 2.2 cu m.

Number of bags required = 2.2 × 30 ≈ 66 bags.

Volume of sand required = 2.2 × 2 = 4.4 cu m.

Volume of course aggregate required = 2.2 × 4 = 8.8 cu m.

b) Rate Analysis

Assume, volume of R.C.C. = 10 cu m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Cement 66 bags 320.00 per bag 21120.00
2. Sand 4.4 cu m 350 per cu m 1540.00
3. C. aggregate 8.8 cu m 800 per cu m 7040.00
Labour Charges
1. Head Mason 1/2 Nos. 450.00 per day 225.00

2. Mason 2 Nos. 350.00 per day 700.00

3. Beldar 10 Nos. 220.00 per day 2200.00
4. Mazdoor 10 Nos. 220.00 per day 2200.00
5. Bhisti 05 Nos. 220.0 per day 1100.00
T&P, Sundries, etc. LS 200.00 LS 200.00
Scaffolding LS 400.00 LS 400.00
Total Materials and Labour 36725.00
Add 1.5% water charges 551.00
Add 10% Contractors profit 3672.50
Grand Total 40948.50
Rate per Cum Rs. 4094.85

Note: If concrete mixture is employed for mixing of concrete, hiring and running charges
may add @ Rs. 100.00 per cu m of concrete; but the labour may be reduced by 2 beldars
per 10 cu m of concrete.
5) Providing cold twisted steel reinforcement in R.C.C. slab including bending, binding and
placing in position complete.

a) Estimation of Materials

If bar bending schedule is available, then reinforcement quantity may be estimated from
the schedule. Alternatively, reinforcement steel for beams and slabs may be taken as @
1% of volume of concrete and for columns @ 2% of volume of concrete. The weight of 1
cum of steel is 78.5 quintals.

Consider, first 10 m × 10 m of continuous slab of thickness 100 mm.

The volume of reinforced concrete = 10 m × 10 m × 0.1 m = 10 cu m

Reinforcement required by volume = 10×1/100 = 0.1 cu m

Weight of reinforcement required = 0.1 × 78.5 qu. = 7.85 qu.

Increase this amount by 5% for wastages.

Thus the volume of reinforcement required = 7.85 + 7.85 × 5/100 = 8.25 qu.

Black iron wire (Binding Wire) @ 1kg per quintal = 8.25 kg.

b) Rate Analysis

Assume, volume of R.C.C. slab = 10 cu m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Reinforcement 8.25 qu. 3800.00 per qu 31350.00
2. Black Iron wire 8.25 kg 45.00 per kg 371.25
Labour Charges
1. Blacksmith 8.25 Nos. 450.00 per day 3712.50
2. Mazdoor 8.25 Nos. 220.00 per day 1815.00
T&P, Sundries, etc. LS 300.00 LS 130.00
Total Materials and Labour 37378.75
Add 1.5% water charges 560.70
 Add 10% Contractors profit 3737.88
Grand Total 41677.33
Rate per cu m Rs. 4167.75
Note: R.C.C. works are paid separately for cement concrete work; for steel reinforcement
and for centering and shuttering as per the PWD practices.

6) 25 mm thick cement concrete (1:2:4) damp proof course.

a) Estimation of Materials

Assume area of DPC is = 100 sq m

The volume of concrete will be = 0.025*100= 2.5 cum.
Following example 21.5.4, the quantity of cement, sand and course aggregates required
for 2.5 cu m concrete are estimated as:
Number of cement bags required = 16½ bags.
Volume of sand required = 1.10 cu m.
Volume of course aggregate required = 2.20 cu m.
Quantity of water proofing compound required = 3% by weight of cement =
= 3% of 16½×50 kg = 25 kg.

b) Rate Analysis

Assume, area of DPC = 100 sq m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Cement 16½ bags 320.00 per bag 5280.00
2. Sand 1.1 cu m 350.00 per cu m 385.00
3. C. aggregate 2.2 cu m 800.00 per cu m 1760.00
4. Water proof 25 kg 25.00 per kg 625.00
compound
Labour Charges
1. Head Mason ⁄ Nos. 450.00 per day 225.00

2. Mason 08 Nos. 350.00 per day 2800.00

3. Mazdoor 08 Nos. 220.00 per day 1760.00
 4. Bhisti 01 Nos. 220.0 per day 220.00
T&P, Sundries, etc. LS 500.00 LS 100.00
Total Materials and Labour 13155.00
Add 1.5% water charges 197.33
Add 10% Contractors profit 1315.50
Grand Total 14667.83
Rate per sq m Rs. 146.70

7) Random Rubble Masonry in cement mortar (1:6) in foundation and plinth.

a) Estimation of Materials

11.7 cu m of undressed stone and 0.80 cu m of through stone (header) is required for 10
cu m of RR masonry. Further, 4.2 cum of dry mortar materials (cement and sand) are
required for same volume of RR masonry work.

b) Rate Analysis

Assume, volume of RR masonry = 10 cu m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Cement 17 bags 320.00 per bag 5440.00
2. Sand 3.6 cu m 350.00 per cu m 1260.00
3. Undressed 11.7 cu m 200.00 per cu m 2340.00
Stone
4. Through 0.8 cu m 250.00 per cu m 200.00
Stone
Labour Charges
1. Head Mason ⁄ Nos. 450.00 per day 225.00

2. Mason 10 Nos. 350.00 per day 3500.00

3. Mazdoor 17 Nos. 220.00 per day 3740.00
4. Bhisti 2 Nos. 220.0 per day 440.00
T&P, Sundries, etc. LS 200.00 LS 200.00
Total Materials and Labour 17345.00
Add 1.5% water charges 260.17
 Add 10% Contractors profit 1734.50
Grand Total 19339.67
Rate per cu m Rs. 1934.00

8) Rule pointing in cement mortar (1:3) on brickwork on wall.

a) Estimation of Materials

An empirical quantity of 0.63 cum (dry) mortar is required for 100 sq. m of Rule and Tuck
pointing. In case of Flush pointing 75% of above quantity is required.

b) Rate Analysis

Assume, area of Rule pointing = 100 sq m.

Particulars Qnty/Nos. Rate (Rs.) Cost (Rs.)

Material Charges
1. Cement 4.8 bags 320.00 per bag 1536.00
2. Sand 0.48 cu m 350.00 per cu m 168.00
Labour Charges
5. Head Mason ⁄ Nos. 450.00 per day 225.00

6. Mason 10 Nos. 350.00 per day 3500.00

7. Mazdoor 09 Nos. 220.00 per day 1980.00
8. Bhisti 1 Nos. 220.0 per day 220.00
T&P, Sundries, etc. LS 120.00 LS 120.00
Scaffolding LS 360.00 LS 360.00
Total Materials and Labour 8109.00
Add 1.5% water charges 121.64
Add 10% Contractors profit 810.90
Grand Total 9041.54
Rate per sq m Rs. 90.42