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Example - Unit Rate

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Example - Unit Rate

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Example: Unit Rate Analysis for Excavation of Earthwork (Trenching)

Work Description:

Excavation of earthwork in trenches for laying foundation, with a depth of 1.5 meters and a width of 0.6
meters, and a length of 100 meters.

1. Materials:

Excavated earth: The amount of soil to be excavated per meter length of the trench.

Volume = 1.5m (depth) × 0.6m (width) × 1m (length) = 0.9 m³ per meter length of trench.

Total volume for 100 meters = 0.9 m³ × 100 meters = 90 m³.

2. Labor:

Labor required for excavation: Skilled labor and unskilled labor for excavation and removal of earth.

1 skilled laborer = 0.5 m³ per hour.

1 unskilled laborer = 1 m³ per hour.

Working hours per day = 8 hours.

Total labor required for excavation = Total volume / Excavation capacity per laborer.

Skilled labor: 90 m³ / (0.5 m³ per hour × 8 hours) = 22.5 labor days.

Unskilled labor: 90 m³ / (1 m³ per hour × 8 hours) = 11.25 labor days.

3. Machinery:

Excavator: A mechanical excavator can be used for the work.

Excavator productivity = 40 m³ per hour.

Operating hours per day = 8 hours.

Total excavator hours needed = 90 m³ / 40 m³ per hour = 2.25 hours.


4. Overheads:

Site Supervision: A small amount of supervision is required.

Site supervisor = 1 supervisor for 1 day.

Transport: Transporting excavated earth to the disposal site.

Transport cost = $100 per truckload.

Number of truckloads required = 90 m³ / 10 m³ per truck = 9 truckloads.

5. Costing:

Material cost: There are no material costs involved, as excavation involves removing earth.

Labor cost:

Skilled labor: 22.5 labor days × $50 per day = $1125.

Unskilled labor: 11.25 labor days × $30 per day = $337.5.

Machinery cost:

Excavator cost: 2.25 hours × $75 per hour = $168.75.

Overhead cost:

Site supervisor: 1 day × $80 = $80.

Transport cost: 9 truckloads × $100 per load = $900.

6. Unit Rate Calculation:

To calculate the unit rate for the excavation of earthwork:

Total Cost = Labor cost + Machinery cost + Overhead cost

\text{Total Cost} = 1125 + 337.5 + 168.75 + 80 + 900 = 2611.25

\text{Unit Rate per Meter} = 2611.25 / 100 = 26.11 \, \text{USD per meter}

Thus, the unit rate for excavation of earthwork for trenching in this example is $26.11 per meter.

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