The procedure to fix up rate per unit of item is known as rate analysis.

There is format sheet used for doing rate analysis is known as rate analysis sheet.

### How to fix up rate per unit of item:

**The procedure to calculate rate per unit of item is as follows,**

1. Decide the item for which unit rate is to be calculated.

2. Assume the quantity of item for further calculation.

3. Calculate the material quantity required to complete assumed quantity of item. (including wastages, compaction, dry wet of mortar if any)

4. Calculate the material cost required to complete depending on material quantity.

5. Calculate the labour quantity required to complete assumed quantity of item.

6. Calculate the labour cost required to complete depending on material quantity. This rate is as per market rate per unit of item.

7. Calculate the overall wastages of work considering 5% wastage cost.

8. Consider plant and equipment cost at 1% and calculate the cost.

9. Consider water charges and electricity charge at 1%.

10. Consider profit and overheads depending upon project type. (generally 10% – 20%)

11. Calculate total cost for assumed quantity by making summation of all cost. (this cost is total cost for assumed quantity.

12. Calculate unit rate per unit item by total cost/assumed quantity.

Total cost for assumed quantity = material cost + labour cost + wastage cost + P&T cost + water & electricity cost + profit and overheads.

**We have to put up all the quantity**