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 :-
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:
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.