Professional Documents
Culture Documents
Rate Anaylsis
Rate Anaylsis
UNIT - 2
Rate Analysis
2.1 Prime Cost
Prime cost is the net cost or purchase cost of articles at shop, and refers to the supply
of the articles only and not to the carrying out of work. No profit for such supply of materials
is allowed. But the cash discount if any during purchase (up to 3% of material) and the actual
cost of carriage mar be allowed to a contractor. The owner or the Engineer-in-charge should
have the right to call for the accepted accounts from the merchants or manufacturers in
respect of those items. During preparation of an estimate it is not always possible to specify
the exact type or brands of materials required as in the case of door and window or water
supply and sanitary fittings according to the choice of the owner. The owner may supply such
articles or may instruct a contractor to purchase such articles for the work. The fitting and
fixing charges are paid separately. In order-to execute such items of work a reasonable
amount is provided in the estimate as Prime Cost.
For example:- Suppose for the door and window fittings approved by the Engineer-in-
charge, the actual cost is Rs. 1,000/- for material including carriage. For fitting/fixing, a
separate cost shall be provided in the estimate. So Rs, 1,000/- is the prime cost.
The items of work against which provisional sums or prime costs as lump sum
amounts are provided are known as provisional sum items and prime cost items respectively.
Work which by classification, or nature can not be accurately ascertained or taken off
should be desired as Provisional.
These are additional quantities against schedule items but uncertain in execution and
provided separately in the estimate. During preparation of an estimate when it is apprehended
that additional quantities against some items may be required due to variation of site
condition, then those quantities are estimated separately from the dimensions of the drawing
and kept separate in the bill of quantities with a heading "Provisional quantities".
An example is the preparation of an estimate for a building at the mixed soil area
where it is apprehended that extra depth of foundation may be required due to uncertain soil
condition. So the quantities of earthwork, foundation concrete, brickwork etc. will probably
be more and accordingly additional quantities are estimated separately from the dimensions
of the drawing. These quantities are provisional quantities and only will be required in
execution if there be extra depth of foundation.
The advantages of such provision are that the execution of work does not get delayed
due to sanction of the Revised estimate for the cost of excess quantities and also in the
schedule of contract the probable variations of quantities can be shown as a perfect contract.
This is the finding out of the quantities of works from the detailed measurements of
various items of works involved in a scheme. The estimator takes off the various dimensions
from the plan, sections and drawings and tabulates them in a measurement sheet also called
the dimension paper which usually contains the following columns in order viz . description,
number, length, breadth, depth or thickness and quantity.
Measurement of quantities
Abstract of estimate
The cost of each and every individual item of work is calculated by multiplying the quantity
computed in the Measurement Form with the specified rate in a tabular form known as
'Abstract form' as shown below ' and are added all together, to get the actual estimated cost of
work.
(1) Long and Short wall or 'out-to-out' & 'in-to-in' method or P.W.D. method.
In this method the longer walls in a building (generally in one direction) are
considered as long walls and measured from out-to-out; and the shorter or partition walls, in a
perpendicular direction of the long walls, are considered as short walls and are measured
from in-to-in for a particular layer of work. These lengths of long and short walls are
multiplied separately by the breadth and height of the corresponding layer and are added to
get the quantity. Such lengths. of long and short walls vary in every layer of footing.
To calculate the lengths of long and short walls determine first their centre to centre
lengths individually from the plan. Then the length of the long wall, out -to-out may be
calculated after adding half breadth of wall at each end to its centre to centre length. Thus the
length of the short wall measured in-to-in may be found out after subtraction of half breadth
at each end from its centre to centre length. The length of the long wall generally decreases
from earthwork to brickwork in superstructure and in the case of the short wall, its length
increases (see Fig. 4-12). Thus the length of long wall is found out by adding one breadth of
the footing to the centre to centre length of that footing. The length of short wall is found out
by subtracting one breadth of the footing from the centre to centre length.
In some of the working examples it may be noticed that a wall is considered as a short
wall at one end and as a long wall at the other end. Such a case arises in a wall which joins as
a long wall with another long wall previously considered. The joining end of the wall later
considered as long wall is actually treated as short end. such a wall is termed a Long-Short
wall in this book.
In this method calculate the total centre line length of walls in a building and multiply
the same by the breadth and depth of the respective item to get the total quantity at a time.
For different sections of walls in a building, the centre line length for each type shall be
worked out separately. In case of partition or verandah walls joining the main walls, the
centre line length shall be reduced by half of the breadth of the layer of main wall that joins
with the partition or verandah wall at the same level Number of such Joints are studied first to
calculate the centre line length.
By this method estimates may be prepared more quickly and this method is as
accurate as the other methods. Only in the case of an unsymmetrical wall which is generally
rare. no advantage may be claimed by tlus method over others as the centre line length varies
at every layer. But to estimate circular Hexagonal octagonal, etc. shaped building this method
is specially useful.
In this method calculate the overall perimeter of the building and subtract from this,
four times the thickness of the wall to obtain the centre line length.
Internal walls are grouped separately to their sections and measured in between the
internal faces of the main wall at that level.
Principally this method is the same as the centre line method but differs in the process
of calculation to find the centre line lengths.
English Method of taking out quantities :- The dimension sheet used for taking-off is a
foolscap sheet divided into main sections each section having four columns. Column (1) is
termed “timesting" and is used for setting the number of the item. Column (2) is known
'dimension column'. In this column measurements are written. Column(3) is called 'squaring
column'. Quantities worked out are entered in this column. Column (4) is called 'description
column'. Descriptions of the items of works are stated in this column. This is a lengthy
process of recording measurements and not followed here. So further details are not
described.
Difference between Long wall short wall & Centre line method
Example- 2.1. Fig. 4-9 represents plan and section of a trench which is 80 cm wide and 60
cm deep. It is required to calculate the volume of earthwork for the trench:
Long and Short wall method :- Following Fig. 4-9. the two longer sides of the proposed
excavation 6m in length on plan and parallel to each other are named Long walls. The other
two sides at right angles to the Long walls 4m in length on plan and parallel to each other are
named as short walls.
Centre to centre length of excavation for a Long wall = 6m - 1/2 of trench width from
each side = 6m - 1/2 x 80cm - 1/2 x 80cm i.e. 6m - 2 x 1/2 x 80cm = 5.2m.
Quantity of earthwork for Long walls = 2 x (c/c length + 1/2 width at each side) x
Breadth x Depth= 2(5.2m + 2 x 1/2 x 80cm) x 80cm x 60cm = 5.76 cu m.
Thus, Quantity for Short walls = 2 x (c/c length - 2 x 1/2 width at each side) x Breadth
x Depth = 2 x (3.2m - 2 x 1/2 x 80cm) x 80cm x 60cm = 2.304 cu m.
The shaded area on the plan of excavation shown in Fig. 4-9 measuring out-to-out is
the area of excavation for the two Long sides and unshaded area measures In-to-In from the
inner borders of excavation of long walls represents the area of excavation for two Short
walls. Thus the whole area of the trench have been excavated and no area left out
unexcavated or considered twice.
For Long walls (i) Calculate the centre to Centre length, (ii) add with this length half the
width of work at each side, (iii) multiply the length by the width and depth to find the
quantity.
For short walls; (i) Calculate the centre to centre length, (ii) subtract from this half the width
of long wall with which it joins (iii) multiply the length by the width and depth to find the
quantity.
In case of foundation concrete, masonry work with different footings or for superstructure
walls these centre to centre .lengths remain constant, provided the section of the wall is
symmetrical (as illustrated in the next article). But for unsymmetrical sectioned wall the
centre to centre lengths are to be calculated for each footing individually.
Centre line the method :- Fig. 4-10 represents plan and section of the same trench as in the
previous method which is 80 em wide and 60 em deep. It is required to calculate the volume
of earthwork for the trench.
Centre line for long wall = 6m - half trench width from each side = 6m - 40cm – 40cm =
5.20m
Following the Fig. 4-10 line ab + be + cd + da = total length of centre line. Let us first
excavate the line 'a' to 'b' with 40 cm width on each side, but not beyond 'a' or 'b'. Similariy
excavate lines be, cd and da. Investigating the excavation following the shaded lines it is
observed that blocks in which the letters a, b, c and d are marked have not been considered at
all i.e. it appears that these blocks are remaining unexcavated, whereas blocks opposite to
them have been considered twice (as shown by double hatched lines). Now, the adjacent
block of 'a' which has been considered twice may represent once its equal and opposite block
'a'. Similarly the Blocks 'b', 'c' and 'd' are to be represented by their respective adjacent and
equal blocks. Therefore, by centre line method the entire work has been considered and no
portion has been left out 'without excavation or considered twice. It is important to note that
at corners of trench or walls no addition or subtraction of the centre line is required.
Example-2.2 Single Room building :- Fig. 4-11 represents the plan and section of the
foundation wall (after removal of earth) of a building internally measuring 3m x 2.5 m.
Estimate the quantities of (1) Earthwork in excavation in foundation, (2) Lime concrete in
foundation, (3) Brickwork in foundation and plinth.
Centre line method:- To estimate the quantities, calculate first the total length of centre line
which remains constant for varying widths of works, and multiply this constant length of the
centre line with the respective breadth and height Thus quantitites of all items may
recalculated easily.
The lengths of long walls out-to-out and short walls in-to-in vary in every layer of footing. To
calculate the lengths of long walls add half the breadth of that layer at each end 10 the centre
to centre length and for short walls subtract half the breadth of the layer from each end.
Lengths thus obtained may also be verified from the plan as shown in the Fig. 4-12. Thus the
length of long wall gradually decreases from earthwork to brickwork in superstructure and in
the case of a short wall, its length increases.
ANALYSIS OF RATES
2.6 What is analysis of rate?
The basis of arriving at a correct and reasonable rate per unit work or supply, for a particular
item following its specification and detailed survey of materials, labour, equipments etc. as
required for the unit work and their prevailing rates may be called as an analysis of rate.
2.7 Purposes of rate analysis. - Main purposes of rate analysis are the following
(a) To determine the current rate per unit of an item at the locality,
(c) To calculate the quantity of materials and labour strength required for project
planning and
(Unit means unit of rate viz, cost of 1 cu m brickwork, l cu m concrete work etc.) The
following five sub-heads are estimated and a summation of these is the rate per unit of an
item.
(e) Profit.
(a) Quantity of materials and cost: The estimator takes off the quantities of various materials
required per unit quantity of an item following the detailed specification and calculates costs
from local market rates.
Quantities of materials are those required per unit rate of work delivered at work site and its
cost include first cost, freight, transportation, sales tax and insurance charges as arises in
question. In case when materials like cement, steel, stone chips and bitumen are supplied
departmentally then profit on the cost of materials is not allowed, but cost of carriage from
godown to work site shall be added.
(b) Labour cost. - To obtain labour costs, the number and wages of the different categories of
labourers, skilled, and unskilled, namely mason or carpenter, mazdoor, boy etc. required for
each unit of work should be known and this number is to be multiplied by the respective
wage per day (or per hour).
(c) Cost of equipments, Tools and Plant (T & P). - Wherever possible the cost of equipments
and ordinary T. & P. those are required for general use should be allocated to specific item of
rate. For example, the cost of operating a concrete mixer should be spread over those items of
rates for which it is used. For certain tools and plants it is difficult to allocate their use to an
individual item of rates and it is, therefore, suggested to add costs in such cases of
expenditure to over-head i.e. establishment charges.
Special Tools and Plants. - For big work or project it becomes necessary to use
special type of tools and plants, viz, special type of concrete mixing machines named as
Batching plants, special type of mixed concrete transport vehicles named as 'Tripping wagon
or Dumper'. Cranes etc. are in use. In order to purchase such type of special equipments an
amount of 1% to 11% of the estimated cost is provided in the estimate.
(d) Overhead or Establishment Charges. - This includes such items as office rent and
depreciation of its equipments, salaries of office staff, postage, lighting, travelling, telephone
account, plan and specification etc. Small tools, planks, ladders, ropes and such hand-tools as
the contractor provides for his workman should also be included in the overhead charge as
suggested in (c). This is usually 2"1" % of the net cost of a unit of rate and may rise up to 5%.
(A) General Overheads: A contractor firm used to maintain office through the years
irrespective to running works in hand. At times there may be no work or several works under
execution. But general expenses to maintain the office have to be borne and all such expenses
are considered general overheads such as (i) Salaries of office staff, (ii) Purchase of
stationery articles, printings, postages; repairs etc. (iii) Office rent, (iv) Telephone and
electric bills, (v) Travelling etc. and all such expenses required to the run the office.
General overhead is a recurring known expenditure and does not depend on the volume of
work under execution.
This account is spread proportionately on all work in a year. A construction Firm has to bear
such expenditure even though there is no work in hand. For a big Firm general overhead is
high. On the other hand small Firms require nominal general overhead. Any amount for such
expenses can not be recovered from the work. Volumes of work can be executed with
proportionally low general overhead establishment
(B) Job Overheads: These are the nature of expenses directly incurred to construct a job or
project such as (1) Salaries of all personnels (technical or non-technical) engaged for the
work, (2) Temporary sheds or house and godown rents for the work, (3) Small tools, planks
ladders, ropes and hand tools as the contractor provides for his workmen, (4) Repairs and
depreciation for Tools and Plant, (5) Lighting at site, (6) Mobilization of establishments,
Tools and Plant, (7) Public relations, (8) Labour welfare and safety measures, (9) Workmen's
compensation, Insurance etc., (10) Interest on investment, (11) Theft or loss etc. All such
other expenses required till the work is completed and handed over to the owner for which no
separate payment is received by a contractor against the work. Job overhead is not a known
expense, depends on the volume of work under execution. When there be no work no
expense is required. In case there be idle labour or maintenance due to owner's fault recovery
of expenses for such part of job overhead becomes possible.
(C) Profit. - Generally a profit of 10% should be considered reasonable for ordinary contracts
after allocating all charges of equipments, establishments etc. For small jobs 15% profit and
for large jobs 8% profit should be considered as reasonable.
The method of preparation of an analysis of rate has been based on All India Standard
Schedule of Rates which is documentary and prepared by the National Building Organisation
and U. N. Regional Housing Centre. ESCAP (India). The conference of State Housing
Ministers held at Bhopal during October 1975 has recommended that the Standard Schedule
of Rates being a necessary adjunct to the National Code should also be adopted by all
construction agencies in the country. There may be some variations between the prevailing
practice and the provisions made in the analysis of rates but "All India Standard Schedule of
Rates" may be considered as authentic and a basic document.
Water Charge: -
For drinking purpose of the workers and for the work, arrangement of water either by sinking
tubewell or by taking temporary water connection from the Corporation or Municipality
becomes necessary. In order to meet up the expense an amount of 1% of the total cost of
materials and labour has been provided in the analysis of Rate as per provision made in the
Standard Analysis of Rates.
1) Specification of the item which indicates the quality and proportion of materials, the
methods of construction and protection of work ;
2) The present rate of materials for the item of work up to the work site
3) Daily wages of different categories of labourer at the locality with their respective
outputs.
4) The range of lead and lift required for deposition of materials to carry out the item or
work.
5) Percentage charge for overheads which includes insurance and the possibility of theft
or loss etc
6) The range of profit and availability of water in connection with the construction work.
Beside these the site condition, site organisation and cost-control during execution
etc. should be considered as these factors affect the cost per unit of work done at site.
The task work per day represents the quantity of an item which an ordinary labourer
of a particular trade can do in a working day of eight hours and thus, it depends on various
variable factors such as type of labour, nature of work, climatic conditions, situation of work,
skill of labourer, site organization and many other factors often outside the control of the
contractor. The task work per day is also known as the labour constant and it is the most
uncertain part of rate analysis.
The task work per day is calculated either by maintaining a record of labours
employed and the work done or by experience. The task work per day becomes useful in
framing the rate of an item. The public organizations such as PWD have standardized the task
work per day for different categories of labourers. It is however found that if the work is
given on piece work basis, the efficiency of the labour increases considerably and in some
cases, the turn out may be double than the task work per day under normal conditions for
such category of labourer.
Material Rates
Labour Rates
To facilitate the preparation of estimates, and also to serve as a guide in settling rates
in connection with contract agreements, a schedule of rates for each kind of work commonly
executed (viz. works, materials, wages of labour, transport etc.) should be maintained by
different engineering departments or authorised organizations and kept up to date. This is
prepared on the basis of the rates prevailing in each locality including the cost of transport
and profit. All rates should be inclusive of labour, materials and unless specifically
mentioned otherwise should include all charges like octroi, toll, ferry charges, local charges,
income tax, sales tax, Royalties etc, as may have to be incurred by the contractor for getting
the respective items of works executed to proper order and complete and finish. Unless
specifically mentioned otherwise in the description of the item itself, no extra charges should
be paid for scaffolding (including stage scaffolding), centering shuttering, curing etc. and the
rates are to be deemed to be inclusive of the same. In the schedule necessary analysis of the
rates for the varying conditions should be provided.
The completion period for big project works is usually long and the cost of materials
and labour becomes more and more day by day. It is therefore difficult for a contractor to
foresee the magnitude of such future increase at the time of submission of his tender. The
result is that a contractor does not find interest to carry out the work due to high rise of basic
cost. Thus, progress of many important works is hampered.
A Volume of 10 cum has been considered in the calculations to avoid one place of
decimal.
But it is difficult to assess exactly the amount of each material required to produce 10
cu m of wet concrete when deposited in place. Quantities of ingredients may closely be
determined by a 'thumb rule' as given below.
To find out the volumes of cement, sand and coarse aggregate divide a numerical
number 15.4 variable up to 15.7 according to the proportioning and 'Water cement ratio' by
the summation of the proportions of the ingredients, used and then multiply the result thus
obtained by their respective strength of proportioning. In case of brick ballast (or jhama
chips) the numerical number is variable from 15.7 to 16.0 as void in brick ballast is higher
than that of stone chips. Variation should be adjusted with an aim to get a round number as
far as possible.
For 1 : 2 : 4 proportion
To find out the volumes of cement, sand and coarse aggregate divide a numerical
number 15.4 variable up to 15.7.
Summation of proportion = 1 + 1.5 + 3 = 5.5. The numerical number should be 15.6 to obtain
a Round figure (as far as possible) after dividing the number by 5.5.
(a+b)]
Total of (a) + (b) +(c) 46674.7
Profit and Overhead Lumpsum 4667.5 4217.0
d
[10% of (a+b+c)]
Total of (a) + (b) +(c) + (d) 51342.2
Due to frog filling, brick bonding courses and wastage etc. increase this quantity by 15%
Summation of proportion = 6 + 1 =7
Calculate first the volume of mortar (wet) from the thickness and surface area.
Increase this amount by 20% for filling the depression, joints, wastage etc. Calculate then the
volume of mortar when dry by increase 1/3rd volume.
Summation of proportion = 6 + 1 =7
Summation of proportion = 4 + 1 = 5