--- title: "How Nepal Government takes norms and rates" subject: "Estimating and Costing" chapter: 4 key: "semester_7/estimating_and_costing:nepal-govt-norms-rates" source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/nepal-govt-norms-rates site: BCT Engineering --- # How Nepal Government takes norms and rates Estimating and Costing · Chapter 4: Analysis of Rates - Asked in: 2080 Bhadra, 2+2 marks - Video: [What is NORMS ! NORMS for rate analysis ! Department of road and bridge norms ! Road & bridge norms](https://www.youtube.com/watch?v=P7oErrqKFOg) — Civil Engineering King - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/nepal-govt-norms-rates - Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-4 ## Question Explain in detail how Nepal Government agencies take norms and rates for rate analysis. ## Short answer Government agencies use published norms specifying materials, labour, and equipment per unit. Material/labour rates are taken from the annual District Rate or market survey with transport added. Direct cost is summed, then 15% contractor's overhead and profit is added; VAT and contingency are added in the estimate. ## Answer #### Norms Government agencies in Nepal (DUDBC, Department of Roads, DWSSM, DoLI, local governments) use published **norms for rate analysis**. A norm tells, for one unit of an item of work (such as 1 m³ of 1:4 brickwork), the quantity of each material (with wastage), the days of skilled and unskilled labour, and the equipment hours needed. These norms are standardized so that all offices analyse an item in the same way. #### Rates - Every district has a **District Rate** (published yearly by the District Rate Fixation Committee) giving the prices of materials at the district centre or at the source, and the daily wages of the labour, with the transport rates. - If a material is not listed, its rate is found by a **market survey**. - **Transport cost** for the lead from the source or district centre to the site is added to the material rate (by road, mule, or porter, as the case may be). #### Rate calculation 1. Cost of each resource = norm quantity x rate (including transport). 2. Sum of all costs is the direct cost. 3. **Contractor's overhead and profit**, 15% of the direct cost, is added to get the unit rate. 4. **VAT** of 13% is added in the estimate, and contingency separately. These rates are then used in the engineer's estimate under the Public Procurement Act. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What does a norm tell? A. Final bid price B. Site address C. Tax paid D. Material quantity with wastage, labour days and equipment hours per unit of work Answer: D. A norm is standard consumption per unit. (Key point: Norm meaning) 2. Who publishes the District Rate? A. District Rate Fixation Committee yearly B. Contractors' union C. Customs office D. Bank Answer: A. Published yearly by the committee. (Key point: District Rate) 3. What if a material is not listed? A. Skip the item B. Rate found by market survey C. Use zero D. Use last year's Answer: B. Market survey is used. (Key point: Unlisted material) 4. How is the unit rate obtained? A. Sum with VAT first B. Sum minus overhead C. Sum of norm x rate (with transport) plus 15% overhead and profit; VAT 13% added in estimate D. Only labour Answer: C. Direct cost + 15%. (Key point: Rate calculation) ## Related in Estimating and Costing - [Departmental norms for rate analysis in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Adepartmental-norms-nepal) — Estimating and Costing, chapter 4 - [Importance of rate analysis; how rates taken](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arate-analysis-importance-rates-taken) — Estimating and Costing, chapter 4 - [Rate analysis: one metric ton reinforcement](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arate-reinforcement-per-mt) — Estimating and Costing, chapter 4 - [Rate analysis: plain cement concrete (1:3:4)](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arate-pcc-1-3-4) — Estimating and Costing, chapter 4 - [Rate analysis: brickwork 1:4, 10 m³](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arate-brick-1-4-superstructure) — Estimating and Costing, chapter 4 - [Significance and requirements of rate analysis](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arate-analysis-significance-requirements) — Estimating and Costing, chapter 4, asked 3× ## Related in other subjects - [DSM techniques implemented by Nepal Government](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Adsm-techniques-nepal-government) — Utilization of Electrical Energy, chapter 6 - [Government support and startup policy in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Astartup-policy-government-support-nepal) — Entrepreneurship Development, chapter 8 - [Development, energy rate, HDI of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Adevelopment-energy-hdi-nepal) — Energy Environment and Society, chapter 1 - [SWOT analysis of wind power in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Awind-swot-nepal) — Power Plant Design, chapter 1