ESC 1
ESC 1
UNIT – 1
General items of work in Building: General items of work in Building – Standard Units
Principles of working out quantities for detailed and abstract estimates –Approximate method
of Estimating. Rate Analysis – Working out data for various items of work over head and
contingent charges.
Rate Analysis
The process of determining rate per unit of any work in Civil Engineering project like
earthwork, concrete work, brickwork, plastering, painting etc. is known as Analysis of Rates
or simply Rate Analysis. The rates of materials and labour vary from place to place and hence
the rates of different items of works also vary from place to place. The rates of these works
further help in determining cost of particular work and in turn cost of the project.
Necessity of Rate Analysis
• To determine the actual cost per unit of the items.
• To work out the economical use of materials and processes in completing the particulars
item.
• To calculate the cost of extra items which are not provided in the contract bond, but are to
be executed 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.
Procedure of Rate Analysis
The analysis of rates is worked out for the unit payment of the particular item of work under
two heads: Materials and Labour.
The cost of items of work = Material cost + Labour cost
Other costs included to the above cost of items of work are:
Tools and Plants (T & P) = 2.5 to 3 % of the labour cost
Transportation cost (if conveyance more than 8 km is considered.)
Water charges = 1.5 to 2 % of total cost
Contractor’s profit = 10 %
Material cost
The rate of various materials as per specifications for the items under consideration canbe
chalked out from market survey. The costs of materials are taken as delivered at site of work.
This is inclusive of:
The first cost (cost at origin),
Cost of transport, railway freight (if any), etc.
Local taxes and other charges.
Lead statement
The distance between the source of availability of material and construction site is known as
"Lead” and is expressed in Km. The cost of conveyance of material depends on lead. This
statement is required when a material is transported from a distant place, more than 8kms (5
miles). The lead statement will give the total cost of materials per unit item including first cost,
conveyance loading-unloading, stacking charges etc.
A typical lead statement is provided as follows:
Sl. Materials Unit Cost at Lead(in Conveyance Total Total Cost
No. Source Km) charges (Per Conveyance (In Rs.
(per unit) Km/ PerUnit) charges (/Per /Perunit)
Unit)
1 RoughStone Cum 250.00 25 5.00 125.00 375.00
Labour cost
To obtain labour cost the number and wages of different categories of labourers, skilled (Skilled
1st Class), semi-skilled (Skilled 2nd Class) and unskilled, required for each unit of work should
be known and this number is multiplied by the respective wage per day. 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 1st class, remaining 70% as 2nd class.
The length of time required to do a certain piece of the work may vary according to the skill
and mental development of the workmen and working conditions to the particular job.
Miscellaneous cost
Cost of equipment, Tools and Plants (T & P)
The cost of equipment and ordinary tools and plats and miscellaneous petty items (sundries)
are added to the specific item rate as lump-sum. A provision of 2.5 to 3 % of the labour cost is
made for such items. In certain tools and plants if it is difficult to allocate their use for a
particular item of rate; then the cost of such tools or plants may be allocated to the over-head
expenditure.
For big works and projects where it becomes necessary to use special types of equipment like
batching plants or WMM plant or dumpers or cranes for transportation of concrete mix,
provisions of an amount 1% to 1.5% of the estimated cost is provided in the estimateunder the
head “special tools and plants”.
Water charges
For drinking purpose of the workers and for the work, arrangement of water is made sinking
tube well; bore well or from temporary connection from municipality. For this purpose, a
provision of 1.5 to 2 % of total cost (Material + Labour+ Sundries) is made in the estimate.
Overhead charges
Overhead charges include general office expanses, rents, taxes, supervision and other cost
which are indirect expanses on the job. Expanses for small tools such as planks, ladders, ropes
and other hand tools are also included in the over-head charges. A provision of2.5% to
5% is made in the rate analysis as overhead charge. Overhead charges can be divided under
two categories: General Overhead and job overhead.
General overhead:
These are the expanses made throughout the year irrespective to running works in hand. These
include:
• Establishment charge including rent of office space and taxes
• Salaries to office staff
• Purchase of stationary, Printing, postage etc.
• Electricity, telephone and water bills
• Travelling expanses
• Job overhead:
These are the expanses indirectly incurred for the job or the project. These include:
• Salaries of personnel engaged for the work (Site engineers, Surveyors or siteoffice staff)
• Rent of temporary site office space, electricity, telephone and water bills
• Handling of materials
• Repairs, carriage and depreciation of T & P.
• Labour welfare, safety measures and insurance etc.
• Interest on investment
• Theft and other losses.
Contractor’s profit
Generally, a provision of 10% is made in the rate analysis as contractor’s profit for ordinary
contracts. For small jobs 15% profit and for large jobs 8% profit may be considered as
reasonable. Contractor’s profit is not included in rate analysis if material is supplied by the
department.