What is analysis of rates? What are the various items to be included in analysis of rates?
To determine the rate of particular item of work from quantities of materials and labours required
and their cost is known as analysis of rates.
A profit of 10% for the contractor is also included in the analysis of rates. The rates of materials
and labour are fluctuating from place to place and therefore the rates of different items of work also vary
from place to place. Every estimate should be accompanied by the analysis of rates of the items provided in it.
It comprises of the following items:
1. Cost of material
2. Cost of Labour
3. T&P and Sundries
4. Carriage
5. Contractor’s Profit
1. The cost of materials: In analysis of rates the cost of materials is taken at site including carriage
local taxes etc. Depending upon the quantities and their nature the cost of materials is calculated.
2. Cost of labour: The labour is necessary to execute the project. The labour required for each item
depends upon the nature of work, their wages are taken into consideration to arrive at the cost.
3. T&P and Sundries: A lump sum (L.S) amount is, provided in the analysis of rates for tools and
plants and other pretty items (Sundries) which cannot be accounted in details. 2 to 3% of the
labour cost should be considered both for T&P and Sundries charges for that item in the analysis
of rates.
A provision for water charges @1% of the total cost may be added where water is not available.
4. Carriage: If the construction is located in a remote place (i.e. more than 5 km or 2 miles), the
analysis of the carriage of materials must be done separately.
5. Contractor’s profit: The provision of 10% as contractors profit must be added to obtain the rate
per unit of the item of work. If cement and steel are supplied by the department 10% contractors
profit will not be given to the contractor but if cement and steel be supplied by the contractor, 10% must be added as contractors profit on these items.
Notes: Generally 10 % contractor’s profit must be added over the whole cost of labour and such
materials (including cement and steel) which are not supplied by the department from store.