MODULE 3

Introduction to the use of CPWD schedule of rates as per latest DSR and Analysis of the rate as per
latest DAR.
Analysis of rates, cost of materials and labour for various works such as Earth work in excavation
for foundation, mortars, reinforced cement concrete Works, finishing work, masonry work, stone
works, and flooring about the latest DSR and latest DAR (Data should be given).A brief
introduction to different methods of execution i.e., piece work, daily basis, lump sum, labour rates
and percentage etc.
RATE ANALYSIS

• The Analysis of Rates is the process of

determining the cost (rate per unit )of a
particular piece of work by calculating the
cost of materials, workers, and other
miscellaneous expenses needed to
complete it.

• Rates for materials and labour vary

depending on the location, which means
that rates for different types of work also
differ from location to location.
Purpose of Rate Analysis

• Determining the Real Cost: Uncover

the true cost for each unit of the items.
• Economical Material Usage: Find the
most cost-effective way to use
materials and processes to complete
specific items.
• Costing Additional Items: Calculate
the cost of additional items not
included in the contract but required
by the department.
• Updating Rate Schedules: Adjust the
schedule of rates to reflect changes in
material and labour costs or
techniques.
Importance of Rate Analysis
 Rate Analysis provides a comprehensive view of
the different types of labour and materials needed
to complete a specific task.
 It’s like a blueprint for understanding the
resources needed for a project.
Requirements for Rate Analysis
• Market Insights: Accurate information about
market rates and materials.
• Labour Rates: Precise data on the rates for
various categories of labourers.
• Labour Output: Information on the daily tasks or
output for different types of labourers.
• Plant Knowledge: Understanding of the rates and
output of various types of plants used in
construction.
• Construction Updates: Up-to-date knowledge of
construction work.
Factors Affecting Rate Analysis
• Material Quality
• Mortar Proportions
• Construction Facilities
• Site Location
• Transportation Facilities
• Transportation Charges
• Overhead Charges(Costs related to the project but not
directly tied to a specific task, such as administrative costs or
equipment rentals.)
• Miscellaneous Expenditure and Profit: Other costs and the
desired profit margin can also affect the rate analysis.
• Worker Experience and Amenities: The skill level of the
workers and the amenities provided to them can influence
productivity and cost.
• Management and Guidance: Effective management and
guidance can improve efficiency and reduce costs.
 Elements of Rate Analysis of Civil Works
Rate analysis of civil works is a crucial aspect of construction project management. It
involves the systematic determination of the costs involved in a construction project. Here are the
elements that constitute the rate analysis:
• Material Cost: This includes the cost of all materials + wastage during the construction
process.
• Labour Cost: It includes wages, benefits, and any other expenses related to labour.
• Plant & Machinery Owning and Operating Charges.
• Water Charges: These are the costs associated with the use of water in the construction
process.
• Taxes: It could include sales tax, service tax, and any other applicable taxes.
• Insurance/Risk Coverage Charges
• Contractor’s Overheads and Profit: These are the costs that the contractor incurs in
managing the construction project, plus the profit that the contractor expects to make from the
project.
 CPWD Schedule of Rates (DSR) and Delhi Analysis of Rates (DAR)
The DSR and DAR are key documents used in construction projects by the Central Public Works Department (CPWD)
and other government agencies in India.
Here’s a breakdown of their use:
CPWD Schedule of Rates (DSR)
 Purpose: It provides estimated costs for various construction activities, materials, and labor.
 Latest Version: The most recent DSR is typically from 2023, and it’s periodically updated to reflect changes in material
prices, labor wages, and construction practices.
 Content: The DSR includes unit rates for various construction items like earthwork, brickwork, concreting, carpentry,
plumbing, etc. These rates are based on Delhi market prices for materials and prevailing labor wages.
 Limitations: The DSR rates are indicative and may not reflect actual project costs due to variations in location, project
specifics, and market fluctuations.
Delhi Analysis of Rates (DAR):
 Purpose: It offers a detailed breakdown of how DSR rates are calculated.
 Analysis: The DAR provides insights into material quantities, labour inputs, and equipment required for each DSR item.
 Benefits: Understanding the DAR helps in preparing more accurate project estimates, identifying areas for cost optimization,
and justifying DSR rates during project tendering.
 Different methods of execution
There are various methods of determining compensation for labour. They are,
 Piece work
 Daily basis,
 Lump sum,
 Labour rates and
 Percentage
Piecework
Piecework is a method commonly used in construction where tasks are broken down into
manageable units, allowing workers to focus on individual components. Each completed unit
contributes to their overall pay, fostering a sense of ownership and efficiency.
Lump Sum
Lump Sum, also known as a stipulated sum contract, is a method that involves the project owner
providing detailed specifications for the work, and the contractor offering a fixed price for the
entire project. This method is commonly used in construction projects and ensures that the project
is completed within a set budget.
• Labour Rates
Labour rates in construction refer to the total cost of employing a worker for a specific task
or project. This includes not only their basic wage or salary, but also any additional costs associated
with employing that worker, such as benefits, insurance, and taxes.
Labour Rates vary based on the skill level of the workers. Skilled Labor, for instance,
refers to highly trained workers with specialized skills who command higher rates. Semi-skilled
labour, on the other hand, refers to workers with moderate skills who are compensated accordingly.
Unskilled Labor refers to basic tasks performed by labourers with limited skills, and their rates
reflect their level of expertise.
• Percentage method
The percentage method is not commonly used for work execution, but some contractors
may charge a percentage of the total project cost as their fee. This method is more prevalent in
consulting or project management services, where the contractor provides oversight and guidance
throughout the project.