ANALYSIS OF RATES:- The determination of the rate of a particular item of work from the quantities of materials likely to be consumed and labours required and their cost at the prevailing market rates is known as analysis of rates. A profit of 15% for the contractor is also included in the analysis of rates. All expenditures likely to be incurred on the item of the work are taken in to account.
1. COST OF MATERIALS:-
In analysis of rates the cost of materials is taken at site including carriage, local taxes etc.
2. COST OF LABOUR:-
The Labour required for each item depend upon the nature of work. Their wages are also taken into consideration to arrive at the cost. The base for wages may be taken as the minimum wages fixed by the State govt./Central govt. for the zone in which the work is to be executed.
3. T & P AND SUNDRIES:-
A lump sum amount is provided in the analysis of rates for tools & plants (T & P) and other petty items (Sundries) which cannot be accounted in detail.
4. CONTRACTOR's PROFIT:-
Contractor profit@ 15% of the cost of materials & Labours must be added to obtain the rate per unit of the item of work.
