# Importance of Rate Analysis in Estimation

The method of determining the rate of an item of work considering:
– the cost of quantities of materials
– the cost of labors ( skilled and unskilled)
– cost o the tools and plants
– contractor profit and taxes or VAT etc.

## Purposes of Rate analysis in estimation

1. To work out the actual cost per unit of items.
2. For the economical use of materials.
3. To find out the cost of extra items which are not provided in the contract document
4. To revise the schedule of rates due to an increase in the cost of materials, labors or due to change in the technics.

## Requirements of Rate Analysis

A common question from most people: Why the rate analysis is important or necessary?

Actually, without rate analysis no civil work can get starts.

During performing rate analysis of an item of civil work following things are required:
1) Correct information about the market rate of the materials.
2) Correct information about the rate of the various categorize of labours.
3) The output of labors (for per meter cube work, number of skilled and unskilled manpower required )
4) Knowledge, rate and outturn of the various types of plants to be used during the construction works.
5) Appropriate standard norms of government or local government.
6) Up to date knowledge of construction.

## Factors affecting the Rate Analysis

1) Quantity of materials
2) Quality of materials
3) proportion of mortar
4) Location of site
5) Availability of tools and plants near the construction site
6) transportation charge, condition of the road site
8) miscellaneous expenditure and profit
9) experience of work
10) proper management and guidance

## Procedure Of Rate Analysis in Estimation

Basically, we adopt the following procured for basic rate analysis.

Follow the following steps for rate analysis while estimation of civil work.
1) Let us consider the
cost of materials= x
Cost of labours = y
hire of tools and plants = z
subtotal = x+y+z= P (say)
2) Contractor overhead and profit = 15% of the total cost of construction
= 15% of P
= 0.15 P
Total cost after contractor profit = 1.15 P
3) Contractor Tax = 5% of 1.15P
= 0.0575 P
Therefore, the total cost = 1.2075 P

In this way, you can easily analyze the rate for civil engineer works.

Here is the method to find out the quantity of materials in rate analysis.

Read this also: How To Calculate quantities of Materials For Concrete?