Factors affecting rate analysis; necessity

Factors affecting rate analysis

1. Location and lead: distance from the source of materials to the site (lead) and the lift; remote hill districts have a high transport cost.
2. Availability and price of materials: local or imported materials, royalty, taxes and market fluctuation.
3. Labour: wage rates, availability of skilled labour and productivity (output per day).
4. Specification and quality: mix proportion, grade, thickness and finish required.
5. Quantity of work: a large quantity lowers the unit rate through economy of scale.
6. Equipment and method of construction: manual or mechanical, the cost of machines, fuel and operators.
7. Climate, season and site conditions: rain, altitude, access, difficult soil or water, working space and height of work (lifting).
8. Time of completion: a short time needs more resources and overtime.
9. Wastage and norms: the standard wastage allowance and the consumption norms of the department.
10. Contractor's overhead and profit, taxes (VAT) and insurance, and the mode of payment and contract conditions.

Necessity of rate analysis in civil engineering

• The cost of a work cannot be found without the unit rates, and these are not constant; they depend on place, time and specification, so each item must be analysed.
• It is required to prepare estimates, BOQs and tender documents, to evaluate bids, and to value variations.
• It shows the quantity of materials and labour needed per unit, so planning and procurement are accurate.
• It allows comparison of alternative designs and methods, and helps keep the cost under control.