Water surcharged: -1% water surcharge is generally added in the rate analysis.
- Profit – The profit targeted in construction works is between 7-15%. In large jobs, profit is low where as profit considered is higher in smaller jobs.
We shall illustrate the calculation of rate analysis through the examples –
- Obtain the unit rate of production of M20 concrete.
- Obtain the cost of brick masonry for one cubic meter, for one brick thick wall.
Prime Cost
The owner or the department, in the case of government construction, supplies many Items during construction. The contractor's job is to install such items. Examples of such items are door and windows, water supply and sanitary fittings, fan and other electrical appliances or Internet cables, etc. Cost of these items at the shop is called Prime Cost. Let an organization provide the fan to the contractor. The owner buys the fan at the cost of Rs. 700. Thus the prime cost of the fan is Rs. 700/-. The prime cost of an item is obtained based on the cash memo (Purchase bill) of the owner.
In many cases, it is possible to give exact specification of certain items during the preparation of estimate or contract awarding. The owner can specify such items and the contractor purchases the item. The payment is made based on the prime cost. The government departments in our country follow such practices. CPWD specifies various rules regarding handling of such an item. |