UNIT 2.pptx

INTRODUCTION – RATE ANALYSIS
AND COSTING

UNIT II RATE ANALYSIS AND COSTING 9
• Standard Data – Observed Data – Schedule of rates – Market rates –
Standard Data for Man Hours and Machineries for common civil
works – Rate Analysis for all Building works, canals, and Roads– Cost
Estimates (additional practice in class room using Computer
softwares) - (Analysis of rates for the item of work asked, the data
regarding labour, rates of material and rates of labour to be given in
the Examination Question Paper)

DATA
• The process of working out the cost or rate per unit of each item is
called as Data. In preparation of Data, the rates of materials and
labour are obtained from current standard scheduled of rates and
while the quantities of materials and labour required for one unit of
item are taken from Standard Data Book

DATA REQUIRED TO PREPARE AN ESTIMATE
1. Drawings i.e. plans, elevations, sections etc.
2. Specifications.
3. Rates.
1. DRAWINGS
• If the drawings are not clear and without complete dimensions the
preparation of estimation become very difficult. So, It is very essential
before preparing an estimate.

2. SPECIFICATIONS
a) General Specifications:
This gives the nature, quality, class and work and materials in
general terms to be used in various parts of work. It helps to form a
general idea of building.
b) Detailed Specifications:
These gives the detailed description of the various items of work
laying down the Quantities and qualities of materials, their
proportions, the method of preparation workmanship and execution of
work.

3. RATES:
For preparing the estimate the unit rates of each item of work
are required.
1. For arriving at the unit rates of each item.
2. The rates of various materials to be used in the construction.
3. The cost of transport materials.
4. The wages of labour, skilled or unskilled of masons, carpenters,
Mazdoor, etc.,

COMPLETE ESTIMATE:
Most of people think that the estimate of a structure includes cost of
land, cost of materials and labour, But many other direct and indirect
costs included and is shown below.
The complete Estimate includes
i) Cost of Land
a) Actual cost of land
b) Cost of surveying
c) Cost of Verification of deeds & execution of deeds
d) Brokerage if any
ii) PS & contingencies at 5%
iii) Legal expenses between owner and contractor

iv) Cost of Structure
a) Cost of materials
b) Cost of labour
c) Consulting Engineer fee
i) cost for preparation of plan, estimate and design
ii) Cost of supervision
d) Permit fees for construction water, electricity from concerned
authorities

LUMPSUM
While preparing an estimate, it is not possible to work out in detail in caseof
petty items. Items other than civil engineering such items are called lumpsum
items or simply L.S.Items.
The following are some of L.S. Items in the estimate.
1. Water supply and sanitary arrangements.
2. Electrical installations like meter, motor, etc.,
3. Architectural features.
4. Contingencies and unforeseen items.
• In general, certain percentage on the cost of estimation is allotted for the
above L.S.Items
• Even if sub estimates prepared or at the end of execution of work, the actual
cost should not exceed the L.S. amounts provided in the main estimate.

WORK CHARGED ESTABLISHMENT:
• During the construction of a project considerable number of skilled
supervisors, work assistance, watch men etc., are employed on
temporary basis. The salaries of these persons are drawn from the
L.S. amount allotted towards the work charged establishment. that is,
establishment which is charged directly to work. an L.S. amount of 1½
to 2% of the estimated cost is provided towards the work charged
establishment.

FIXING OF RATE PER UNIT OF AN ITEM
The rate per unit of an item includes the following:
• Quantity of materials & cost
• Cost of labour
• Cost of equipment (T&P)
• Overhead charges

1. Quantity of materials & cost
The requirement of materials is taken strictly in accordance with standard
data book(S.D.B). The cost of these includes first cost, freight, insurance
and transportation charges.
2. Cost of labour:
• The exact number of labourers required for unit of work and the
multiplied by the wages/ day to get of labour for unit item work.
3. Cost of equipment (T&P):
• Some works need special type of equipment, tools and plant. In such
case, an amount of 1 to 2% of estimated cost is provided.
4. Overhead charges:
To meet expenses of office rent, depreciation of equipment salaries of
staff postage, lighting an amount of 4% of estimate cost is allocated.

SCHEDULE OF RATES
Definition:
• In order to determine the rate of a particular item, the factors
affecting the rate of that item are studied carefully and then finally a
rate is decided for that item. This process of determining the rates of
an item is termed as analysis of rates or rate analysis.

The rate of particular item of work depends on the following
1. Specifications of works and material about their quality, proportion
and constructional Operation method.
2. Quantity of materials and their costs.
3. Cost of labours and their wages.
4. Location of site of work and the distances from source and
conveyance charges.
5. Overhead and establishment charges
6. Profit

PROCEDURE OF RATE ANALYSIS
• Cost of materials at source and at site of construction.
• The costs of materials are taken as delivered at site inclusive of the
transport local taxes and other charges.
Purpose of Analysis of rates:
• To work out the actual cost of per unit of the items.
• To work out the economical use of materials and processes in completing
the particulars item.
• To work out the cost of extra items which are not provided in the contract
bond, but are to be done as per the directions of the department.
• To revise the schedule of rates due to increase in the cost of material and
labour or due to change in technique.

REQUIREMENT OF LABOUR AND MATERIALS
• Cost of labour -types of labour, standard schedule of rates
• The labour can be classified in to
1) Skilled 1st class
2) Skilled IInd Class
3) un skilled
• The labour charges can be obtained from the standard schedule of
rates 30% of the skilled labour provided in the data may be taken as Ist
class, remaining 70% as IInd class. The rates of materials for
Government works are fixed by the superintendent Engineer for his
circle every year and approved by the Board of Chief Engineers. These
rates are incorporated in the standard schedule of rates.

Lead statement:
The distance between the source of availability of material and
construction site is known as "Lead " and is expected in Km. The cost of
conveyance of material depends on lead. This statement will give the
total cost of materials per unit item. It includes first cost, conveyance
loading, unloading stacking, charges etc. The rate shown in the lead
statement are for metalled road and include loading and staking
charges. The environment lead on the metalled roads are arrived by
multiplying by a factor
• a) for metal tracks - lead x 1.0
• b) For cartze tracks - Lead x 1.1
• c) For Sandy tracks - lead x 1.4

Contractor’s Profit and Overhead Charges:

Contractor Profit & Overhead Charges
In the Standard Data, 14% is added towards Contractor’s Profit &
Overhead Charges
Overheads include
• Site accommodation, setting up plant, access road, water supply,
electricity and general site arrangements
• Office furniture, equipment and communications
• Corporate office of contractor
• Site Supervision
• Documentation and “as built” drawings
• Mobilization/ de-mobilization of resources

Cont…
• Labour camps with minimum amenities and transportation to work
sites
• Light vehicles for site supervision including administrative and
managerial requirements
• Laboratory equipment and quality control including field and
laboratory testing
• Minor T&P and survey instruments
• Watch and Ward
• Traffic Management during construction
• Expenditure on safeguarding environment
• Work Insurance/ Compensation

Preparation of Cost Estimate:
It Should include the following as Enclosure to the Estimate.
(i) Checklist or Slip
(ii) Inspection Report
(iii) Report, accompanying Estimate
(iv) General Abstract
(v) Abstract Estimate
(vi) Detailed Estimate
(vii) Civil Data or Rate Analysis
(viii) Lead Statement
(ix) Quarry Map
(x) Approved Drawings, should contain
(a)LS & (b)CS
(xi) Index Map on Toposheet

ANALYSIS OF RATES
• Analysis of rates – is usually worked out for the unit of payment of the
particular item of work under two heads
i) Materials and
ii) Labour
• Cost added together give the cost of items of work.
• a) For tools and plants and miscellaneous items provision should be
made.
• b) 1 ½ % of total cost should be provided for water charges
• c) 10% of total cost should be added for Contractors Profit

• Task or Out Turn – The capacity of doing work by an artisan or skilled
labour in the form of quantity of work per day is known as task-work
or out-turn of the labour.
• The out-turn of work artisan varies to some extent according to the
nature, size, height, situation, location etc.
To Remember:
• 1 ft. = 30.48 cm
• 1 cu.m = 35.3 cu.ft
• 100 cu.ft = 2.83 cu.m
• 1000 cu.ft = 28.30 cu.m
• 1 sq.m = 10.7 sq.ft - approx. 10 sq.ft
• 10 sq.m = 100 sq.ft (approx)

Steps to be followed for the Rate Analysis :
a) First work out the quantities of materials required for particular item
of work, then cost of materials.
b) Allocate number of labours required and cost of labour
c) Workout the cost of tools and plants and other miscellaneous
items(Under Lump sum head)
d) Then add 1 ½ % for water charges and 10 % profit
e) Work out the rate per unit

For Rate Analysis following sub-head cost area taken account:
a. Cost of materials: Original cost plus taxes.
b. Cost of labour: Number of labours x wages of labour per day.
c. Cost of equipment or T & P: Tools required for particular work.
d. Cost of water charges: 1 to 2% of cost of materials and labour.
e. Cost of overhead and profit: 10% of cost of material and labour.
• Total cost = a + b + c + d+ e
• Rate per unit item of work = Total Cost / Total quantity

Generally quantity taken for the rate analysis as follows
a. For mass works: 10 cu m(Example: Cement concrete work, RCC, Brick
Masonry work, etc.)
b. For surface works: 100 sq.m(Example: Pointing, Plastering, Flooring,
etc)
c. For Running meter works: 100 rmt (Example: Pipe line works, etc)
d. For Piece work: Per Number(1)
(Example: Fixing of plumbing items such as wash basin, WC, Taps etc)

MEASUREMENT OF MATERIALS AND WORKS UNITS OF MEASUREMENTS
• The units of measurements are mainly categorized for their nature, shape and
size and for making payments to the contractor and also. The principle
of units of measurements normally consists the following:
• Single units work like doors, windows, trusses etc., are expressed in
numbers.
• Works consists linear measurements involve length like cornice, fencing, hand
rail, bands of specified width etc., are expressed in running metres (RM)
• Works consists areal surface measurements involve area like plastering, white
washing, partitions of specified thickness etc., are expressed in
square meters (m2)
• Works consists cubical contents which involve volume like earth work,
cement concrete, Masonry etc are expressed in Cubic metres.

RULES FOR MEASUREMENT
The rules for measurement of each item are invaribly described in IS-1200.
However some of the general rules are listed below.
• Measurement shall be made for finished item of work and description of
each item shall include materials, transport, labour, fabrication tools
and plant and all types of overheads for finishing the work in required
shape, size and specification.
• In booking, the order shall be in sequence of length, breadth and height or
thickness.
• All works shall be measured subject to the following tolerances.
• Linear measurement shall be measured to the nearest 0.01m.
• Areas shall be measured to the nearest 0.01 sq.m
• Cubic contents shall be worked-out to the nearest 0.01 cum

RULES FOR MEASUREMENT
• Same type of work under different conditions and nature shall be
measured separately under separate items.
• The bill of quantities shall fully describe the materials, proportions,
workmanships and accurately represent the work to be executed. 6. In
case of masonry (stone or brick) or structural concrete, the categories
shall be measured separately and the heights shall be described:
• from foundation to plinth level
• from plinth level to First floor level
• from Fist floor to Second floor level and so on.

Points to remember
• Weight and Volume of one bag of cement = 50 kg and 0.034 cu m
• Weight of steel = 7850 kg/m3
• For RC columns 1.5 to 2.0%(60 to 120 kg/m3)
• For RC beams 1.0 to 1.5%(80 to 120 kg/m3)
• For RC slabs 0.5 to 1.0%(40 to 80 kg/m3)
• For RC footings 0.5% (40 kg/m3)

Dry Volume requirement for Various Items of work
S.No. Items of Work
Total Dry Volume
reqd
1. Cement mortar for 10m3 volume 3 m3
2. Lime mortar for 10m3 volume 3.5 m3
3. Bricks required for 1m3 volume 500 nos
4. 12mm thick plastering in walls for 100 sq.m area 2 m3
5. 20mm thick plastering in walls for 100 sq.m area 3 m3
6. 12mm thick plastering in ceiling for 100 sq.m area 1.8 m3
7. 6mm thick plastering in ceiling for 100 sq.m area 1 m3
8. 2.5cm thick cement concrete flooring for 100 sq.m area 4.125 m3
9. 4cm thick cement concrete flooring for 100 sq.m area 6.6 m3
10. 20mm thick cement concrete flooring for 100 sq.m area 3.3 m3
11. Plain cement concrete for 10m3 volume 15.2 m3
12. Cement pointing for 100 sq.m area. 0.6 m3

Cost of Labour as per SOR 2020-21
S.No. Particulars Rate
1. Head Mason Rs. 650/Day
2. Mason Rs. 550/Day
3. Mazdoor - Men Rs. 400 - 500/Day
4. Mazdoor - Women Rs. 300 - 400/Day
5. Blacksmith Rs. 650/Day
6. Painter, Carpenter Rs. 600 - 700/Day
7. Bhisti Rs. 650/Day
8. Plumber Rs. 650/Day

Cost of Material as per SOR 2020-21
1. 1st class Brick Rs. 7 – 7.50/no
2. 2nd class Brick Rs. 6 – 6.50/no
3. Fly ash brick Rs. 6 – 6.50/no
4. Brick jelly (40mm size) Rs. 670/ cu.m
5. Brick jelly (20mm size) Rs. 750/ cu.m
6. HBGS Jelly 40mm size Rs. 1000/ cu.m

Cont…
10. M-Sand Rs. 1250/ cu.m
11. Quarry Dust Rs. 120/ cu.m
12. Lime Rs. 1000/ cu.m
13. Steel Rs. 48000/ MT
14. Cement Rs. 5800/ MT

Pblm 1. Calculate the quantity of material required for brickwork of volume 10m3
and take mix ratio of mortar as 1:6.
Solution:
• Size of brick = 20cm x 10 cm x 10cm
• Brick without mortar = 19 x 9 x 9 cm
• Number of brick required for 1cu.m of brick masonry = 1 / 0.2 x 0.1 x 0.1 = 500
nos
• Brick masonry for 10 cu.m = 10 x 500 = 5000 nos
• Actual volume = 5000 x .19 x .09 x .09 = 7.70 cu.m
• Thus quantity of wet mortar = 10 – 7.70 = 2.30 cu.m
• Add 10% wastage 2.30 + 0.23 = 2.53 cu m for 10 cu.m
• For 1 cu m quantity of wet mortar of Brickwork = 0.25 cu.m
• Dry mortar required for 1 m3 of Brickwork = 0.25 x 1.2 = 0.3 cu.m
• Dry mortar required for 10 m3 of Brickwork = 3 cu.m

• Sum of mix proportion: 1 + 6 = 7
Material Requirement:
• Cement = 3 / 7 = 0.43 cu m ~ 0.45 cu m
= 0.45/0.034 = 13 bags
• Sand = 0.43 x 6 = 2.58 cu m ~ 2.7 cu m

Pblm 2. Calculate the quantity of material required for plain cement
concrete of volume 10m3 and take mix ratio of mortar as 1:2:4.
Solution:
• To determine the quantity of materials for 10 cum concrete, the dry
volume 15.2 is divided by total proportion of the materials which gives
the quantity of cement in cu m. For 1:2:4
• Summation = 1 + 2 + 4 = 7
• Cement = 15.2 / 7 = 2.17 cu.m
• Sand = 2.17 x 2 = 4.34 cu.m
• Coarse aggregate = 2.17 x 4 = 8.69 cu.m
• Volume of 1bag of cement = 0.034 cu.m
• No, of cement bags required = 2.17/0.034 = 65.7 bags ~= 66bags

Pblm 3. Calculate the Quantity of material for the following items. –
for 1 m3
a) C.C. (1:2:4) for 20m3 of work
Solution:
• Summation = 1 + 2 + 4 = 7
• Quantity of cement = 1.52/7 x 20 = 4.34m3 = 4.34/0.034 = 127 bags
• Quantity of Sand = 2 x 4.34 = 8.63m3
• Quantity of aggregate = 4 x 4.34 = 17.36m3

b) C.C. (1:3:6) for 15m3 of work
Solution:
• Summation = 1 + 3 + 6 = 10
• Quantity of cement required = 1.52/10 x 15 = 2.28m3 = 2.28/0.034 =
67 bags
• Quantity of Sand required = 3 x 2.28 = 6.84m3
• Quantity of course aggregate = 6 x 2.28 = 13.68m3

Pblm 4. Calculate the quantity of material required for 12 mm thick plaster with
cement mortar (1:6). Also prepare a cost estimate for materials and labour using
schedule of rates.
Solution:
a) Estimation of Materials
Assume plastering area = 100 sq.m
Hence volume of mortar for 12 mm plaster = 100 m × 0.012 m = 1.2 cum
Add 30 % more to the above volume for filling of joints, for making un uniform surface
well and for wastages
Thus total set volume of mortar including wastages and joint filling etc.
= 1.2 + (1.2 × 30100) = 1.56 cu.m.
As, 1.25 cu.m of dry volume of mortar materials produces 1.0 cu.m set mortar;
Volume of dry materials required for 1.56 cu m of set mortar is
= 1.25 × 1.56 cu.m = 1.95 cu m,
≈ 2 cu.m
Hence, volume of cement = 2 / 7 = 0.28 cu m.
Number of bags required = 0.28 / 0.0347 ≈ 8 bags.
Volume of sand required = 0.28 × 6 = 1.68 cu m.

Pblm 5. Calculate the quantity of material required for Cement
Concrete (1:2:4) for RC work excluding reinforcement and
formwork. Also prepare a cost estimate for materials and labour
using schedule of rates.
Solution:
Assume volume of R.C.C. = 10 cu m (Set volume)
1.52 cu.m dry volume of concrete making materials produces 1.0
cu.m set concrete
Therefore volume of dry materials required for 10 cu.m of set concrete is
15.2 cu m.
Sum of proportion of cement, sand and course aggregate = 1+2+4 = 7
Hence, volume of cement = 15.2/7 = 2.17 cu.m. ≈ 2.2 cu.m
Number of bags required = 2.2 / 0.0347 ≈ 64 bags.
Volume of course aggregate required = 2.2 × 4 = 8.8 cu m.

Pblm 6. Calculate the quantity of material required for Rule
pointing in cement mortar (1:3) on brickwork on wall. Also
prepare a cost estimate for materials and labour using
schedule of rates.
Solution:
An empirical quantity of 0.6 cu.m (dry) mortar is required for 100 sq.
m of Rule and Tuck pointing. In case of Flush pointing 75% of above
quantity is required.
Hence, volume of cement = 0.6 / 4 = 0.1575 cu m.
Number of bags required = 0.15 / 0.034 ≈ 4.8 bags.

UNIT 2.pptx

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