1_-_Analysis_of_Rates

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    Analysis of Price or (Rate)

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    It is process of arriving at a correct & reasonable rate per

    unit work or supply, for a particular item following its

    specification and detailed survey of materials, labour,equipment etc as required for the unit of work and their

    prevailing market rates may be called as an analysis of

    rate.

    Analysis of Price or (Rate)

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    Purpose of analysis of rates

    a) To determine the current rate per unit of item at the locality

    b) It enables the contractor in quoting the appropriate rate for the various items of

    construction

    c) To fix up labour contract rates.

    d) To calculate the quantity of materials and labour strength required for project

    planning

    e) It is useful for preparing detailed estimates of the proposed project

    f) The analysis of rate also helps in the comparison of actual cost incurred with the

    estimated cost of work

    g) It also enable in comparing the expenditure of the other similar works.

    h) In Government organizations, it helps in checking or comparing the rates quoted by

    the contractor in the tenders i.e. to determine the viability of rates offered by

    contractors.

    i) It also helps in arriving at the reasonable rate for different items of construction not

    included under the District Schedule of rates (DSR)

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    F

    actors effecting rate analysis

    1. Specification of the item which indicates the quality and proportion

    of materials,

    2. The methods of construction and protection of works

    3. The present rate of materials for the item of work up to the work

    site.

    4. Daily wages of different categories of labourer at the locality with

    their respective outputs

    5. The range of lead and lift required for deposition of materials to

    carry out the item of work

    6. % charge for overheads which includes insurance and other

    possibility of theft or loss etc.

    7. The range of profit (%)

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    The determining the rate per unit of a particularitem of construction after taking consideration offollowing-

    The Quantities of materials required and its cost

    The cost of labor to be employed The cost of Equipment / hire charge of ordinary and

    special tools and plants required

    Overhead charges

    Establishment charges of Head office of the contractor

    The contractor's reasonable profit

    How to determine per Unit Rate ofItem

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    Analysis of Rate= Direct Cost + Indirect Cost

    Direct Cost

    Materials + Labor + Tools and Plant (T &P) cost

    Indirect Cost

    Overhead charges, Establishment charges, Profit

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    Material Cost-

    Quantities of materials- by taking off quantities of materials

    required per unit of item as per specifications

    Material cots- rate per unit of material delivered at work site

    includes basic cost, freight, sale tax and (transit) insurance charges

    if any, loading & unloading charges, internal site shifting charges

    if any.

    Analysis of Rate= Direct Cost + Indirect CostDirect Cost=Materials Cost +Labour +Tools &Plants

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    Labour Cost-

    To obtain labour cost, the number and wages of the different

    categories of labourers, skilled, unskilled, (mason, carpentor,

    mazdoor, khalasi, office boys, helpers etc) required for per unit of

    work should be known and this numbers is to be multiplied by

    respective wage per day (or per hour).

    Analysis of Rate= Direct Cost + Indirect CostDirect Cost=Materials Cost +Labour +Tools &Plants

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    Cost of equipments, Tools & Plants (T&P)-Plants used atsite are subdivided into-

    Plant used for specific item of work which enables charging cost of

    its use to the basic rates of particular item of work Plants like cranes, hoist, scaffolding, staging etc the cost of which

    cannot be broken down and allocated to individual item of workand therefore has to be accounted for in overhead.

    Cost of plant should include-

    Standing Charges-

    Interest of capital outlay and depreciation to caterfor replacement cost, major maintenance & repairs

    Running cost- Fuel, oil & lubricants, consumables, repairs

    Variable cost- setting up the plant, temporary site work required inconnection with use of plant, shifting location etc.

    Analysis of Rate= Direct Cost + Indirect CostDirect Cost=Materials Cost +Labour +Tools &Plants

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    Analysis of Rate= Direct Cost + Indirect CostIndirect Cost=Overhead +Establishment +Profit

    Overhead Charges-

    Denotes expenses incurred for a particular job/site by the

    contractor but which cannot be conveniently included in basic cost

    of specific item of work such as concrete, brickwork etc

    Overhead charges are subdivided into-

    Fixed or One time expenses- should include for all cost incurred in

    initial setting up of efficiently operating work site such as providing

    temporary site offices, stores, godown, labour camps, canteen,

    fencing, approach road, casting yard, water tanks, curing tanks,

    taking utility connections, & demolishing, clearing all temporary

    works on completion of work. All expenses incurred on shifting

    plants & fares paid to employees for shifting to new sites

    (importation & repatriation) are considered as fixed or one time

    expenses.

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    Overhead Charges-

    Variable or time related overheads-

    Taxes (Turnover tax, Income tax, Sales tax, duties, royalties etc)

    Finance Charges (BG & Interest)

    Insurance & risks cost Owning, using & Depreciation of general plant (scaffold, pumps,

    hoist, cranes etc)

    Staff Salaries & Site amenities

    Contingencies

    Site office running expenses (stationery, postage, telephone/mobile bills, faxes, tea, refreshment, furniture, equipments (IT

    other), accommodation, rent, traveling, tours (site-HO-Site), carhire

    Business development expenses

    Staff / Labour welfare

    Demobilization cost

    Following items should not loose sight while totaling up the overheadcharges-

    Taxes (Turnover tax, Income tax, Sales tax, duties, royalties etc). In tendering for works for which an impossibly short period of

    completion coupled with penalty or pre-assessed liquidateddamages (LD) are stipulated, the contractor may have to bereluctantly work out the likely penalty or damages in advance &include them in overhead cost.

    Contractors being pragmatic community may also have to accept

    the facts of life & allow for likely expenses on clientsentertaining or miscellaneous BD expenses in overhead cost.

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    Analysis of Rate= Direct Cost + Indirect CostIndirect Cost=Overhead +Establishment +Profit

    Establishment Charges-

    Incurred on running the permanent head office of

    builders/contractors firm.

    It includes salaries of head office staff, head office running

    expenses, maintenance expenses, office furniture, IT services,

    depreciation of office building, furniture and other assets, Insurance, legal fees paid to lawyer, professional fees to CA &

    consultants, local property taxes, bills

    External Client meet, business development expenses etc

    Any other expenses coming under HO

    Generally % (1% - 5%) on cost of construction (Direct +Indirect

    Overhead) are to be made in each tender cost by comparing the annual

    turnover of the firm during previous year and its total expenses of the

    head office during the previous year.

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    Analysis of Rate= Direct Cost + Indirect CostIndirect Cost=Overhead +Establishment +Profit

    Profit-

    Generally profit of 10% should be considered reasonable for ordinary

    contracts after allocating all charges.

    For Small jobs 15% profit and for large jobs 8% profit should be

    considered as reasonable.

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    Important elements to be kept in mind

    Basic units of measurement

    Conversion factors

    Conversion rates Weights of building materials

    Weights of steel sections

    Output of Plants & Machinery

    Labour Constants

    Cement Constants

    Material Constants

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    Some important units & conversion factors

    Common units like mm, cm, m, sqm, cum, litres etc

    1 guntha= 1089 sqft

    40 guntha = 1 acre

    1 acre= 4047 Sqm

    1 Hectare = 2.47 Acre

    1 Hectare = 10000 Sqm

    1 brass=100 cft=2.83 cum

    Conversion factors- used for converting one unit to another units Conversion of rates- factors used to convert rate from one unit to other

    unit

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    Weights of building materials

    Cement- 1440 Kg/cum

    Steel- 7850 kg/cum

    Aggregate- 1600-1870 kg/cum

    Sand- 1540-1600 kg/cum

    Single (3-38mm)- 1460 kg/cum

    PCC /RCC- 2240-2600 kg/cum

    Bricks- 1600-1920 kg/cum

    Lime- 1200-1400 kg/cum

    Bitumen- 1040 kg/cum

    Paint- 960 kg/cum

    Petrol- 690 kg/cum

    Diesel 960 kg/cum

    Soil/Earth 1410 -1840 kg/cum

    Water 1000 kg/cum

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    Standard Output of plants-road works

    Activity Equipment Name UnitProd.

    Norm

    Excavation

    Excavator-90cum/hr m3/hr 72

    Embankment with Borrow Area

    Vibratory Compactor (for

    earth-120 cum/hr) m3/hr 90

    Motor Grader m3/hr 130

    Crowler Dozers m3/hr 200

    Tractor with Disc Horrow m3/hr 160

    Water Tanker m3/hr 75

    Embankment with Pond Ash

    Vibratory Compactor m3/hr 90

    Motor Grader m3/hr 130

    Crowler Dozers m3/hr 200

    Tractor with Disc Horrow m3/hr 160Water Tanker m3/hr 75

    Embankment with Roadway Excavation

    Vibratory Compactor m3/hr 90

    Motor Grader m3/hr 130

    Crowler Dozers m3/hr 200

    Tractor with Disc Horrow m3/hr 160

    Water Tanker m3/hr 75

    Subgrade

    Vibratory Compactor m3/hr 90

    Motor Grader m3/hr 130

    Tractor with Disc Horrow m3/hr 160

    Water Tanker m3/hr 75DL

    Vibratory Compactor m3/hr 90

    Grader m3/hr 100

    Water Tanker m3/hr 75

    DL / GSB Plant m3/hr 77

    Wheel Loader m3/hr 77

    G.S.B

    Tandom Roller (120 cum/hr) m3/hr 90

    Grader m3/hr 100

    Water Tanker m3/hr 75

    DL / GSB Plant m3/hr 77

    Wheel Loader m3/hr 77

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    Act

    v

    ty

    e t Na e U

    t

    r

    N

    r

    WMM

    WMM Plan

    -150

    PH

    3

    hr 53

    WMM Pa

    er(Non Seno

    r)

    3

    hr 60

    ando Roller(120 cu

    hr)

    3

    hr 90

    WheelLoader

    3

    hr 77

    r

    e C

    at

    i

    u

    en spra

    er

    2

    hr 500

    Tack C

    at

    i

    u

    en spra

    er

    2

    hr 500

    DBM

    Ho

    Mi

    plan

    -100 TPH

    3

    hr 42

    D

    M Pa

    er(Sensor)

    3

    hr 42

    Tanda Roller

    3

    hr 26

    Pneu

    a

    ic TyreRoller

    3

    hr 54

    WheelLoaders m3

    hr 40

    Wa

    erTaner m3

    hr 4!

    DBC

    Ho

    Mi

    plan

    -100 TPH m3

    hr 42

    D M Pa

    er(Sensor) m3

    hr 42

    Tandam Roller m3

    hr 26Pneuma

    ic TyreRoller m3

    hr 54

    WheelLoaders m3

    hr 40

    Wa

    erTan

    er m3

    hr 4

    C

    crete B 1 (30 C /Hr )

    a

    ching Plan

    No.1 m3

    hr 25

    Transi

    Mi

    ers 6 cum cap m3

    hr 4

    MobileConcre

    e Pumpwi

    h m3

    hr 24

    Concre

    e Pump m3

    hr 20

    D " C

    Dumpers m3

    hr 5

    SensorPa

    er m3

    hr 85

    Tandum Roller m3

    hr 43

    Wa

    erBowsers m3

    hr 43

    QC

    Dumpers m3

    hr 5

    Slip#

    orm Pa

    erwi

    h Sprader, m3

    hr 85

    $

    ca

    a

    or m3

    hr 85

    Wa

    erBowsers m3

    hr 75

    l

    %

    1000

    Soilmec PilingRig Lm/hr 3

    Casagrande PilingRig. Lm/hr 1

    Ben

    oni

    e Mi

    er 2

    Ben

    oni

    e Pump 2

    Bull Dozer

    D155-320HP m3/hr 75D80-190HP m3/hr 75

    HM do&

    erD6H-165 m3/hr 45

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    Concrete Mixers

    Concrete Mixers

    Capacity of perbatch in cft ofdry & wet mix 7/5 10/7 14/10 18/12 21/14

    Batch output in cum (yeild) 0.14 0.2 0.28 0.34 0.4

    No of batches percum 7.14 5 3.57 2.94 2.5

    Time in min /cum (3min/cycle) 21.42 15 10.71 8.82 7.5

    Output in cum/hr 2.8 4 5.6 6.8 8

    Capacit of Mixer

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    Formwork Constants

    I Girder 5.8 o 6.8 sq per cuo id Slab 1.5 sq per cu

    eck Slab 3.5 sq per cu

    iaphrag wall 3.8 o 4.2 sq per cu

    Frictionslab 5.8 to 6.1 sq per cu

    Beam 3.7 to 4 sqm per cum

    Box Girder 4 sqm per cum

    Diaphargm 7.3 to 7.4 sqm per cum

    Pedestal for Bearing 5.3 to 5.4 sqm per cum

    Crash Barrier 5.5 to 6 sqm per cum

    Well Curb 2 to 3 sqm per cum

    Well Cap 0.35 to 0.5 sqm per cum

    Well Steining 1.45 to 1.8 sqm per cum

    OpenFoundation 1.5 to 1.6 sqm per cum

    Pier - 2 m dia 2 to 2 sqm per cum

    Pier- 2.3 m dia 1.75 to 1.8 sqm per cumPier Cap 1.6 to 1.75 sqm per cum

    Pile Cap 2.4 to 2.8 sqm per cum

    Solid RCC Wall typesubstructure 7 to 7 sqm per cum

    Wing Wall (PCC) 1.55 to 1.6 sqm per cum

    Box Culvert 1m x 1m 2.6 to 2.75 sqm per cum

    Shutte e uirme t / Cum of Concrete

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    LabourOutput Constants-

    TaskWork- Quantity of work which can be done by an artisan or

    skilled labour for working of 8 hrs a day.

    Earthwork

    Concrete works

    Brickwork

    Roofing

    PlasteringFinishing

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    Cement Constants

    CEMENT CONTENTS IN CONCRETE MI

    Grade of

    concrete

    Minimum

    cement content

    presently

    adopted in India

    (kg/m3)

    As per

    British

    Practice

    (kg/m3)

    M-15 250

    M - 20 290 225

    M - 25 310 250

    M - 30 325 275

    M - 35 350 300M-35 Pile 440 -

    M - 40 375 325

    M - 45 440 350

    DLC 150 150

    PQC 360 400

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