A rate analysis for an item of work determines the:
Choose the correct answer
Total project cost directly
Unit cost of an item by computing materials, labour, hire of plant/equipment, overhead, and profit per unit of measurement
Labour cost only
Material cost only
Correct Answer
B. Unit cost of an item by computing materials, labour, hire of plant/equipment, overhead, and profit per unit of measurement
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Rate analysis components: (1) Materials with wastage allowance at market rates; (2) Labour (skilled, unskilled) at prevailing wages; (3) Plant/equipment hire charges; (4) Overhead (10-15% of direct cost); (5) Profit (5-10% of direct + overhead). DSR (Delhi/State Schedule of Rates) provides standard rate analyses for common items.
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