What is Rate Analysis?

In order to determine the rate of a particular item, the factors affecting the rate of that item are studied carefully and then finally, a rate is decided for that item. This process of determining the rate of an item is termed as the analysis of rate or rate analysis.

Purpose of Rate Analysis:

Following are the two main purposes of carrying out the rate analysis an item:

• To determine the actual cost per unit of items.
• To examine the item for economic processes and economic uses of materials involve in making the item.

Importance of Rate Analysis:

The process of rate analysis gives a clear picture of various factors, tools & machinery and services involved in manufacturing of finished item. For example- In case of brickwork, raw material is brick which is purchased at certain rate, then using mortar (cement: sand) bricks are layed. In laying of bricks materials such as cement, sand, water etc. is required and all activities is performed by Mason and bhisti, etc. as required. Now final analysis of rate of brickwork is determined considering all these factors.

Essentials of rate analysis:

For arriving at the correct rate of analysis of a particular item, the following essentials are necessary for the person carrying out the rate of analysis:

• Good knowledge of construction work and familiarity with the trade;
• Information regarding costs of materials, labour and equipment’s
• Output of labourer, i.e task works per day for various trades.

A schedule or list of rates of various items is prepared after the analysis of rates of these items. It is prepared by large concerns or public bodies such as CPWD, State Governments etc.  You can go through these and know more in detail. Let’s see an example of Analysis of Rate done by CPWD.

Link to download latest revised CPWD Analysis of Rate:

https://www.cpwd.gov.in/Documents/cpwd_publication.aspx

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Amit Sah