In order to settle a rate for a specific item, the factors liable for influencing the rate of that item, should be analyzed cautiously. So, the method of finding out the rates of an item is called as analysis of rates or rate analysis and it is dependent on the following elements :-
1.Specifications of works and material concerning 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
Cost of materials at source and at site of construction: The costs of materials are assumed as supplied at site all-encompassing the transport local taxes and other charges.
The objective of Analysis of rates:
1. To compute the per unit real cost of the items.
2. To calculate the reasonable exercise of materials and processes in accomplishing the specific items.
3. To calculate the cost of additional items which are not presented in the contract bond, but should be executed following the instructions of the department.
4. To modify the schedule of rates because of raising in the cost of material and labor or owing to alteration in technique.
standard schedule of rates: The labor charges is gathered from the standard schedule of rates 30% of the skilled labour submitted in the data may be considered as Ist class, left over 70% as II class. The rates of materials for Government works are predetermined by the superintendent Engineer for his circle annually and accepted by the Board of Chief Engineers. These rates are integrated in the standard schedule of rates.
Lead statement: The “Lead” is defined as the distance among the source of accessibility of material and construction site and it is presented in Km. The cost of conveyance of material relied on lead.
This statement will provide the total cost of materials per unit item. It consists of first cost, conveyance loading, unloading stacking, charges etc.
The rate demonstrated in the lead statement are intended for metalled road and contain loading and staking charges. The environment lead on the metalled roads are obtained 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