Requirements and factors of rate analysis

Requirements of rate analysis

1. Drawings and specifications of the item (to know the dimensions, quality and method).
2. Material rates: local market rates and the District Rate of the materials, with the transport (lead) and loading/unloading charges.
3. Labour rates: wages of skilled and unskilled labour from the District Rate, and the labour productivity.
4. Norms: the standard consumption of materials and labour per unit of work (DUDBC norms for building and sanitary work, Department of Roads norms for road work).
5. Equipment data: hire or running cost of machines, with their output.
6. Wastage allowances and conversion factors, such as dry volume of mortar and compaction factors.
7. Overhead, profit and tax: contractor's overhead and profit (15% in the DUDBC norms), VAT 13% and any royalty or insurance.
8. Site data: lead, lift, location and conditions of the work.

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.