Rate Analysis: Definition:
The process of finding out the correct or reasonable rate per unit item of work with the consideration of rate & specification of materials, labour, plants and equipment etc.
To calculate the rate of item per unit, the individual cost for following factors are considered,
a. Materials
b. Labour
c. Plants, tools and equipment
For example, Rate of Concrete Per CUM, we need to consider
- Materials (cement, sand, aggregates, steel, admixture) used for per cum concrete
- Labour (mason, labour, carpenter) per cum concrete
- Equipment (vibrator, pump, transit mixer, batching plant cost) per cum concrete
What is the Rate Analysis and Its Purpose
Purpose of Rate analysis:
There are various purpose of rate analysis,
- To find out actual cost per unit of the item
- To determine the current rate of an item per unit at the locality
- To examine the viability of rates
- To calculate labour and equipment quantity required for Project Planning.
- To fix up labor contract rates.
Importance of Rate Analysis:
Rate analysis is very important especially at the stage of planning & design. By the process of rate analysis we can easily calculate the expected expenditure for the project and in this way we will clearly get the idea of finances for completion of entire project.
At the same time, rate analysis is also helpful to figure out the quality, quantity and specification for the materials, labours and machinery.
The analysis gives the clear idea about purchase and use of material, labours and equipment including the process, method of construction for the finished product.
For example,
For brick masonry, the materials, labour, scaffolding, water for curing, mortar proportions and preparation etc is already known and we can plan activity according to that. Again for same brickwork we requires materials is brick, mortar (cement, sand, water) and labour like mason, bhishti and helper is required to perform the activity. And tools and plants need for same. Water is required for curing. So final rate per cum for brickwork of finished product is calculated by the considering all the above factors.