Analysis of rates for construction works is the procedure of separation of works into components/elements (Viz. Labour, materials, machinery,transport, overheads and profit) of work and pricing them.
a) Material cost inclusive of wastage
c) Plant & machinery owning and operating charges
f) Insurance/ risk coverage charges
g) Contractor’s overheads and profit
Element of profit normally varies from 5 to 10%. Overheads vary from 3 to 7 ½%. The total element of overheads and profit shall not normally exceed 17 ½% on estimated rates. This should be restricted to 10% if paid bills/ days work is considered.
The cement constants for various items of work including wastage of 2 ½%. The constants are shown in Appendix ‘A’. These constants are based on observations made by CBRI Roorkie, concrete association of India, CPWD, MES and other construction organizations.
Cost of materials includes the supplier’s price, transportation, loading/ unloading, haulage to site, handling for incorporation into the work, wastages/breakage/pilferage, storage charges, deterioration on storage, returning of empty bags/ cases and taxes and other incidentals. The constants in use in various departments and organizations is as per Appendix ‘B’.
Some of the labour output constants are covered in IS – 7272. The constants given by NBO, CPWD, MES, State governments are also considered and given in Appendix ‘C’.
Where no such standards exist the relevant British/ American standards in so far as they are applicable could be followed. Generally the construction substances shall conform to the relevant Indian standards. The substances of local origin (Within 40 km or distance as specified) shall be best available and approved by competent authority.
6. Basic costs: Cost of materials, labour, machinery, instruments & plant (depreciated cost), and direct overheads connected to the particular undertaking.
Indirect costs: Not directly related to the undertaking but otherwise involved. 7. The corporate office expenses, consultant charges, outsourced costs etc.
8. Daily wages: Wages which the builder is bound to pay to labour which will not be less than statutory wages.
9. All in rates: Wages + proportionate element of terminal benefits such as bonus, gratuity.
10. Standing charges: Includes element of depreciation, interest whereas running charges include cost of operation of plant, POL, operator & supporting staff.
11. Fixed/ variable overheads: fixed overheads are those incurred only once like construction of site office, where as variable overheads are salaries paid and other expenses as per employment of labour hours every month.
Standard schedule of rates: Many organizations/ departments shall have schedule of rates of substances/ items of works. 12. These schedules contain specifications for substances & methods giving references to relevant Indian standards. In certain cases certain percentage addition/ deduction is specified to bring them in line with market rates. The schedules are revised at periodic intervals of 3 to 5 years or yearly.
13. Derived rates: The rates derived by interpolation/ extrapolation of rates inserted in the contract. For e.g. The rate for M-20 can be derived from quoted rate for M- 25 concrete. – The rate for PCC 1:3:6 can be derived from quoted rate for PCC 1:4:8.
Star rates/ Market rates: The rates worked out based on market enquiry/ quotations and applying the percentage above/ below for similar quoted trade items plus overheads and profit. Alternately rates worked out for material/ labour based on paid bills/ vouchers produced by contractor plus profit. 14.
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