Introduction Cost Estimation

and Rate Analysis

 Cost Estimation
 Cost estimation is part of the engineering profession. It is used to
predict the quantity, cost and price of the resources required by
the scope of a project.
 Estimating is done by breaking down the total scope of a project
in manageable parts, to which resources can be assigned and
costed. There are standardized ways of breaking down a project,
if the project is commercial building it might be breaking down
like foundation estimation, RCC and walls estimation, windows
and doors estimation, painting and finishes estimations and so on.
 Estimating is the technique of calculating or computing the
various quantities and the expected Expenditure to be incurred on
a particular work or project.
 Purpose Of Cost Estimation
 To ascertain the exact amount of money required by the
owner to complete the proposed work for the construction
work.
  To ascertain quantities of materials required in order to
programmed their timely procurement to produce
controlled materials.

 Rate Analysis
 DEF
Every construction project is divided into number of
activities. Each activity consists of different types of
civil or construction works.
Rate analysis of Civil Works or Building Works is the
determination of cost of each construction work per
unit quantity. This cost includes the cost of materials,
labors, machinery, contractors profit and other
miscellaneous petty expenses required for the
particular work to be complete in unit quantity.

 Factors Affecting Rate Analysis

Specification of the civil work and materials such as
quality of materials, proportion of mortar or concrete,
thickness of plastering, number of coats of painting,
depth of excavation, type of soil etc.
Location of the construction site – Distance of
construction site from source of materials, availability
of labors, availability of water, machinery etc.
Quantity of materials.
 Profit of the contractor, miscellaneous expenses and
other overheads also influence the rate analysis.
 Elements Of Rate Analysis
Material cost inclusive of wastage
Labor cost
Plant & machinery owning and operating charges
Water charges
Taxes
Insurance/ risk coverage charges
Contractor’s overheads and profit