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Estimating & Costing

Rate analysis that stands up in a meeting

3 lessons · 20 min · 2 videos · 3 articles

Lessons

Every rate is built from four blocks: material, labour, plant, and overhead + profit. Build them separately and the rate survives scrutiny; guess a lump figure and it never does.

Material is quantity per unit of work × landed rate, plus wastage. Labour is the number of mason-days and helper-days per unit × the prevailing daily wage. Plant covers mixers, vibrators, pumps and hoists. Overhead and profit is usually taken at 10–15 % combined on smaller works.

Remember on site

  • Material + labour + plant + overhead & profit — always the same four blocks.
  • Wastage: 3–5 % cement, 5 % bricks and blocks, 5–10 % tiles, 2–3 % steel.
  • Quote the date and source of every material rate used.

Check yourself

Which four blocks build every rate?

Typical wastage allowed on steel?

In a construction rate build-up, which four components are typically combined before adding profit?

As per common CPWD rate analysis practice, what percentage is typically added for contractor's profit and overheads combined?

What does 'lead' refer to in a rate analysis for materials like sand or aggregate?

What does 'lift' mean in a rate analysis?

A market rate analysis differs from a schedule of rates (SOR) rate mainly because it uses:

If material cost is Rs 4000, labour cost is Rs 1500, and plant cost is Rs 500 per unit, what is the basic cost before overheads and profit?

Using the basic cost of Rs 6000 and adding 15% for overheads and profit, what is the final rate?

Why is it important to re-verify labour constants used in a rate analysis periodically?

Overheads in a rate build-up typically include which of the following?

Why might two contractors quote very different rates for the same item despite using the same IS-code based analysis?

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Rate analysis of brickwork explained

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