Market rate Analysis

In any Building and Construction project, when the rate of any particular item is to be calculated, several factors which determine or affect the rate, those factors are studied properly and accordingly the rates are calculated. This process of determining the rates of the items is known as Rate Analysis

Rate Analysis
What is Rate Analysis ?
Why Analysis of Rates is required ?
  • To check whether the rates inserted in the tenders are reasonable or not.

  • Assessing quantity of labor, material, machinery, money and and using alternatives to optimize the resources.

  • Assessing rates payable for deviations, extra items of work to the builder.

  • To compare the costs with amount sanctioned and to take action for regulating of  cost.

  • To workout the budget and cash flows during the life cycle of the project and arrange the payments.

  • To serve as basic data if disputes arouse in future.

Rate Analysis
Considerations while Determining Rate :
  • Percentage of profits & overhead expenses

  • Cement constants

  • Material constants

  • Labor output constants

  • Specifications of resources used as building material.

  • Basic costs

  • Indirect costs

  • Daily wages

  • All in rates

  • Standing charges

  • Fixed/variable overheads

  • Standard schedule of rates

  • Derived rates

  • Star rates/Market rates