factors affecting rate analysis

1. Er.A.B.Jadhav 90750
09500
Estimating and Costing
Factors affecting the Rate analysis forVarious Items of
Construction in Civil Engineering
1
SHARAD INSTITUTE OF TECHNOLOGY,
COLLEGE OF ENGINEERING,YADRAV

2. Er.A.B.Jadhav 90750
09500
Factors Affecting Rate Analysis
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 Rate analysis is the process of determining the cost per unit of
an item of work, considering all associated expenses. Several
factors influence rate analysis, which can be broadly classified
into technical, labor-related, material-related, and external
factors.
 1. Material Cost
 Type, quality, and quantity of materials required
 Source of procurement and transportation cost
 Market fluctuations in material prices
 Wastage and handling losses

3. Er.A.B.Jadhav 90750
09500
Factors Affecting Rate Analysis
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 2. Labor Cost
 Type of skilled, semi-skilled, and unskilled labor required
 Wage rates based on location, government regulations, and trade
unions
 Productivity and efficiency of labor
 Working conditions and site constraints
 3. Equipment and Machinery Cost
 Type and size of machinery required
 Ownership cost (depreciation, interest, maintenance) or rental cost
 Fuel, power, and lubricants consumption
 Operator wages and maintenance cost

4. Er.A.B.Jadhav 90750
09500
Factors Affecting Rate Analysis
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 4. Transportation Cost
 Distance of material sources from the site
 Mode of transportation and handling charges
 Site accessibility and road conditions
 5. Site Conditions and Location
 Nature of the soil and site topography
 Availability of water, electricity, and storage space
 Climatic conditions affecting work progress

5. Er.A.B.Jadhav 90750
09500
Factors Affecting Rate Analysis
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 6. Overheads and Contingencies
 Establishment charges (office expenses, staff salaries, etc.)
 Contractor’s profit margin
 Insurance, permits, and legal fees
 Contingency provisions for unforeseen costs
 7. Government Regulations and Taxes
 GST, VAT, excise duty, and import duties on materials
 Minimum wages act, labor welfare laws, and safety regulations
 Environmental and pollution control norms

6. Er.A.B.Jadhav 90750
09500
Factors Affecting Rate Analysis
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 8. Method of Execution and Work Efficiency
 Manual or mechanized construction methods
 Productivity of labor and equipment
 Use of prefabrication or modular construction
 9. Market Conditions and Inflation
 Demand and supply of materials and labor
 Seasonal variations affecting availability and cost
 Inflation and price escalation trends
 10. Contractual and Specification Requirements
 Type of contract (item rate, lump sum, cost-plus, etc.)
 Specification standards (IS codes, CPWD specifications, etc.)
 Quality requirements and testing provisions