It is done to arrive a correct and reasonable rate per unit work and also determines the local rates at that particular region. It calculate the quantity of materials and labour strength required for the project planning and finally it examines the viability of rates offered by the contractors.
Factors to be Considered
Quantity of Materials and Cost
The cost of materials used in the project including the cost of transportation, sales tax etc.
Overhead or Establishment Charges
Factors to be Considered
- Quantity of Materials and Cost
- Labour Costs
- Cost of Equipment's
- Overhead or Establishment Charges
- Profit
Quantity of Materials and Cost
The cost of materials used in the project including the cost of transportation, sales tax etc.
Labour Costs
It gives the detail on number of skilled and unskilled labour needed for a particular type of work, namely mason,carpenter etc. The cost is calculated per unit of work per day.
Cost of Equipment's
The instruments which is used in the construction project like paver, roller,Scaffolding's etc.
 |
| Paver |
 |
| Roller |
Overhead or Establishment Charges
General Overhead It includes the cost of managing the staffs in the organisation through out the year irrespective of the running project, stationary, electricity , staff salaries telephone bill etc.
Job Overheads It includes the cost of managing the technical people during the running of the project which includes temporary shed, labour safety etc.
Profit
The profit percentage is fixed based on the type and size of project.
No comments