---
title: "Factors affecting rate analysis (explain)"
subject: "Estimating and Costing"
chapter: 4
key: "semester_7/estimating_and_costing:factors-affecting-rate-p"
source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/factors-affecting-rate-p
site: BCT Engineering
---

# Factors affecting rate analysis (explain)

Estimating and Costing · Chapter 4: Analysis of Rates

- Asked in: 2071 Chaitra, 6 marks
- Video: [Factor Affecting Rate Analysis || (QSC) - [HINDI]](https://www.youtube.com/watch?v=VkDfc5UKVlE) — Learn Civil Tech & Tricks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/factors-affecting-rate-p
- Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-4

## Question

Explain various factors which affect the rate analysis.

## Short answer

Rate analysis is affected by location/lead, material prices, labour wages and productivity, specification, quantity, equipment/method, climate/site, time, norms/wastage, and overhead/profit/taxes. For example, brickwork in remote hills costs more because of transport and scarce skilled masons.

## Answer

Rate analysis is the process of finding the cost of one unit of an item of work from the materials, labour and equipment needed, plus overhead and profit. The following factors affect the rate.

1. **Location and lead:** the distance of material sources from the site, and the lift; transport can double the cost in remote hills.
2. **Availability and price of materials:** local or imported, royalty, taxes and market fluctuations.
3. **Wage rates and labour productivity:** availability of skilled labour and the output per day.
4. **Specification and quality:** mix proportions, grade, thickness and finish.
5. **Quantity of work:** a large quantity lowers the unit rate.
6. **Equipment and method:** manual or mechanical work, the cost of machines and fuel.
7. **Climate, season and site conditions:** rain, altitude, access, soil and working space, height of work.
8. **Time of completion:** a short time needs more resources.
9. **Norms and wastage allowances** adopted.
10. **Overhead, profit, taxes** and the terms of the contract.

For example, the rate of brickwork in a remote hill district is much higher than in the Terai, because bricks, cement and sand must be carried a long way and skilled masons are scarce.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why can the rate be much higher in a remote hill district?
   A. Higher concrete strength
   B. Lower wages
   C. Lower taxes
   D. Long lead and transport cost of materials
   Answer: D. Transport from the source raises material cost. (Key point: Location and lead)

2. How does quantity of work affect the unit rate?
   A. A large quantity lowers the unit rate
   B. A large quantity raises it
   C. No effect
   D. Only affects labour wages
   Answer: A. Economy of scale. (Key point: Quantity)

3. Why does a short completion time raise the rate?
   A. It lowers wastage
   B. It needs more resources and overtime
   C. It reduces overhead
   D. It removes taxes
   Answer: B. More labour/equipment is needed to finish quickly. (Key point: Time of completion)

4. Why is brickwork costlier in a remote hill than in Terai?
   A. Bricks are lighter
   B. Mortar is not needed
   C. Materials carried far and skilled masons scarce
   D. Wages are lower
   Answer: C. Transport and scarce skilled labour raise the rate. (Key point: Example)

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