Chapter 6 — Analysis of Rates

Syllabus Topics

6.1 Importance and purpose of rate analysis
6.2 Data required for rate analysis
6.3 Factors affecting rate analysis
6.4 Prevailing rate analysis norms and district rates in Nepal
6.5 Analysis of rate for building, road, sanitary and water supply works
◆ Sources consulted

6.1 Importance and purpose of rate analysis208220812079

Past Exam Questions on this Topic

What do you mean by rate analysis? What are the purposes and factors that affecting rate analysis? [1+2+3] (2082 Bhadra, Q.5)
The last part of this question also belongs to Section 6.3.
Solution
Analysis of rates. The process of working out the cost of one unit of an item of work — per m³, per m², per running metre — by adding up the cost of all the materials, labour, plant and overheads that go into that unit, together with the contractor's profit.
rate of one unit of work = cost of materials ( quantity × rate, including carriage ) + cost of labour ( man-days × daily wage, each category ) + cost of plant ( hire or running charge ) + water and sundries ( 1 – 2 % of materials ) + overhead charges ( 5 – 10 % ) + contractor's profit ( 10 – 15 % )
Purposes / importance of rate analysis
1. To fix the correct rate of each item, and hence arrive at a realistic estimate. Without it, an estimate is only a guess.
2. To find the quantity of each material and each class of labour required, so that they can be procured and programmed.
3. To examine a contractor's quoted rate and judge whether it is reasonable, abnormally high, or unworkably low.
4. To fix the rate of extra, substituted and non-scheduled items that arise during execution.
5. To show the effect of a change of specification — how much the rate rises if the mix is made richer — and so to help choose between alternatives.
6. To update an estimate when material or labour rates change, without re-measuring the quantities.
7. To settle claims, price escalation and disputes.
8. To prepare the district rate and the departmental schedule of rates.
Factors affecting the analysis of rates
1. Specification of the item — the mix and the class of material. A richer mix or a better class of brick raises the rate directly.
2. Market rate of materials, which fluctuates with season and demand.
3. Lead and mode of transport — carriage can exceed the basic cost of a material in a remote district.
4. Lift — the height to which materials must be raised; work at a great height or depth costs more.
5. Wage rates and availability of labour of each category in the locality.
6. Out-turn / task of the workman, which depends on his skill and on supervision.
7. Site conditions — nature of soil, water table, congestion, access, and the need for dewatering or shoring.
8. Location and accessibility — a remote hill site costs far more than an urban one for identical work.
9. Season and weather — monsoon work is slower and costlier.
10. Quantity and repetition — a large or repetitive quantity lowers the unit rate; a very small quantity raises it.
11. Method of construction and plant used — manual or mechanised.
12. Availability of water and power at the site.
13. Overheads, profit, taxes and insurance.
14. Wastage allowed for each material.
ENCE 351 §6.1.
Explain the significance of analysis of rates in civil engineering projects. What are the requirements for analysis of rates? [3+3] (2081 Baishakh, Q.4)
The second part of this question also belongs to Section 6.2.
Solution
a) Significance of analysis of rates in civil engineering projects
Analysis of rates. The process of working out the cost of one unit of an item of work — per m³, per m², per running metre — by adding up the cost of all the materials, labour, plant and overheads that go into that unit, together with the contractor's profit.
rate of one unit of work = cost of materials ( quantity × rate, including carriage ) + cost of labour ( man-days × daily wage, each category ) + cost of plant ( hire or running charge ) + water and sundries ( 1 – 2 % of materials ) + overhead charges ( 5 – 10 % ) + contractor's profit ( 10 – 15 % )
Purposes / importance of rate analysis
1. To fix the correct rate of each item, and hence arrive at a realistic estimate. Without it, an estimate is only a guess.
2. To find the quantity of each material and each class of labour required, so that they can be procured and programmed.
3. To examine a contractor's quoted rate and judge whether it is reasonable, abnormally high, or unworkably low.
4. To fix the rate of extra, substituted and non-scheduled items that arise during execution.
5. To show the effect of a change of specification — how much the rate rises if the mix is made richer — and so to help choose between alternatives.
6. To update an estimate when material or labour rates change, without re-measuring the quantities.
7. To settle claims, price escalation and disputes.
8. To prepare the district rate and the departmental schedule of rates.
b) Requirements for analysis of rates
Requirements / data for rate analysis
1. Detailed specification of the item — the mix, the class of material, and the method of doing the work. The rate cannot be analysed until the item is defined.
2. Standard norms (departmental / Nepal norms) giving the material, labour and plant required per unit of the item.
3. Rates of materials at the source — cement, sand, aggregate, brick, steel, timber — at the current market or district rate.
4. Carriage / transportation cost, which needs the lead of each material from its quarry or market, and the mode of transport.
5. Rates of labour of each category — skilled, semi-skilled, unskilled — as fixed by the district rate.
6. Hire and running charges of plant — mixer, vibrator, roller, excavator.
7. Task or out-turn of work — how much a workman does in a day — which converts a quantity into man-days.
8. Lead and lift involved, and the site conditions.
9. Percentages allowed for water and sundries, overheads and profit, and the taxes applicable.
ENCE 351 §6.1 and §6.2.
Why analysis of rate is important for civil engineering work? Also, explain how rates are taken for analysis. Calculate the quantities of materials required for PCC (1:1.5:3) for RCC roof [2+2+4] (2079 Bhadra, Q.4)
Solution
a) Why analysis of rate is important
Purposes / importance of rate analysis
1. To fix the correct rate of each item, and hence arrive at a realistic estimate. Without it, an estimate is only a guess.
2. To find the quantity of each material and each class of labour required, so that they can be procured and programmed.
3. To examine a contractor's quoted rate and judge whether it is reasonable, abnormally high, or unworkably low.
4. To fix the rate of extra, substituted and non-scheduled items that arise during execution.
5. To show the effect of a change of specification — how much the rate rises if the mix is made richer — and so to help choose between alternatives.
6. To update an estimate when material or labour rates change, without re-measuring the quantities.
7. To settle claims, price escalation and disputes.
8. To prepare the district rate and the departmental schedule of rates.
b) How rates are taken for analysis
1. The quantity of each material, each class of labour and each plant per unit of the item is taken from the departmental norms (DUDBC for buildings, DoR for roads, DWSS for sanitary works). These are national and do not change from district to district.
2. The price of each material and of one man-day of each class of labour is taken from the district rate, published every fiscal year by the District Rate Fixation Committee under the Chief District Officer.
3. Carriage is added for the actual lead of each material from its quarry or market, supported by a lead statement.
4. Quantity × rate is worked out for every component and summed; then water and sundries (1–2%), overheads and profit (15–20%) are added. VAT at 13% is added at the summary stage.
c) Quantities of material for 1:1½:3 concrete in an RCC roof
The volume of the roof slab is not legible in the available copy of this paper. The calculation is therefore done per m³ and then shown for a 10 m³ slab; multiply by the volume given in your paper.
Mix 1 : 1½ : 3 (M20) · dry volume factor 1.54 · density of cement 1440 kg/m³ · 1 bag = 50 kg
Dry volume and sum of the proportions
wet volume of concrete = 1.00 m³ dry volume = 1.00 × 1.54 = 1.54 m³ sum of proportions = 1 + 1.5 + 3 = 5.5
Cement
volume of cement = 1.54 × (1 / 5.5) = 0.28 m³ weight = 0.28 × 1440 = 403.20 kg bags = 403.20 / 50 = 8.064 ≈ 8.06 bags
Sand and coarse aggregate
sand = 1.54 × (1.5 / 5.5) = 0.42 m³ aggregate = 1.54 × (3 / 5.5) = 0.84 m³ check : 0.28 + 0.42 + 0.84 = 1.54 m³ ✓
For a 10 m³ roof slab
cement = 8.064 × 10 = 80.64 bags ( ≈ 4032 kg ) sand = 0.42 × 10 = 4.20 m³ aggregate = 0.84 × 10 = 8.40 m³
Per m³ of 1:1½:3 concrete: 8.06 bags (403.2 kg) of cement, 0.42 m³ of sand and 0.84 m³ of coarse aggregate.
Note the wording of the question: a 1:1½:3 mix is an M20 RCC mix, not a plain-concrete mix — PCC is normally 1:2:4 or leaner. If the roof is reinforced, the steel is measured and paid separately in kg, and is not part of this calculation.
ENCE 351 §6.1 and §6.5.

Analysis of rates is the process of working out the rate of one unit of an item of work from first principles — the cost of the materials it consumes, the labour it takes, the hire of tools and plant, plus the contractor's overheads and profit.

rate per unit = cost of materials + cost of labour + hire charge of tools, plant and equipment + overheads (water, electricity, supervision, office) + contractor's profit + taxes and levies as applicable

Purpose

To fix a fair and workable rate for each item, so that the estimate reflects the true cost.
To work out the quantities of material and labour the item will consume, so that they can be procured and programmed.
To examine tenders — to judge whether a bidder's rate is reasonable, unbalanced or below cost.
To settle rates for extra and substituted items that arise during execution and were never in the contract.
To revise the rates in the departmental schedule of rates when market prices move.
To provide a defensible basis for claims and arbitration.

Importance

Without rate analysis a rate is only a guess. Two consequences follow:

An estimate built on unanalysed rates cannot be defended before a sanctioning authority, and will not match the tenders received.
Rates differ from place to place and from time to time — the same brickwork costs more where the lead for sand is 40 km than where it is 5 km. Only analysis captures that.

The four heads, and the percentages

A standard analysis is built under four heads:

Materials — the quantity required per unit of work, priced delivered at the work site, i.e. including first cost, freight, transport, sales tax and insurance.
Labour — the number of man-days (or labour hours) of each category needed to complete one unit, at the prevailing wage.
Overhead, equipment and establishment charges.
Profit.

water charge = 1% of ( materials + labour ) overhead + profit = 15% of ( materials + labour + water charge ) of which about 10% is the contractor's profit rate per unit = materials + labour + water charge + 15%

Departmentally supplied materials. Where the department itself issues cement, steel, stone chips or bitumen to the contractor, no profit is allowed on the cost of those materials — but the cost of carriage from the departmental godown to the work site is added. This is a favourite examination point, and it is the reason a rate analysis must always state whether a material is contractor-supplied or departmental.

Dawadi, Chapter 4 — Analysis of Rates §4.1–4.3; the percentages and the rule on departmentally supplied materials follow Chakraborti, Estimating, Costing and Specification, ch. XI §11-1, which is based on the All India Standard Schedule of Rates.

6.2 Data required for rate analysis208020782076

Past Exam Questions on this Topic

What is lead and lift? [2] (2080 Bhadra, Q.4(a)(i))
Solution
Lead. The horizontal distance through which excavated earth or a material is carried from the point where it is dug or stacked to the point where it is used or deposited. The first 30 m is normally included in the rate for earthwork; beyond that, extra carriage is paid in stages (30 m, 100 m, 500 m, 1 km, and then per km).
Lift. The vertical height through which the material is raised or lowered above or below the ground level at the point of excavation. The first 1.5 m is included in the rate; each additional 1.5 m of lift is paid extra.
lead → horizontal → free up to 30 m lift → vertical → free up to 1.5 m
Both matter because the same item of work costs different amounts at different places. Two identical foundations, one beside the spoil dump and one 300 m away and 4 m deep, cannot carry the same rate — lead and lift are how the difference is measured and paid.
ENCE 351 §6.2.
What are the requirements for rate analysis? Explain the factors affecting the rate analysis. [4+4] (2078 Bhadra, Q.4)
The second part of this question also belongs to Section 6.3.
Solution
a) Requirements for rate analysis
Requirements / data for rate analysis
1. Detailed specification of the item — the mix, the class of material, and the method of doing the work. The rate cannot be analysed until the item is defined.
2. Standard norms (departmental / Nepal norms) giving the material, labour and plant required per unit of the item.
3. Rates of materials at the source — cement, sand, aggregate, brick, steel, timber — at the current market or district rate.
4. Carriage / transportation cost, which needs the lead of each material from its quarry or market, and the mode of transport.
5. Rates of labour of each category — skilled, semi-skilled, unskilled — as fixed by the district rate.
6. Hire and running charges of plant — mixer, vibrator, roller, excavator.
7. Task or out-turn of work — how much a workman does in a day — which converts a quantity into man-days.
8. Lead and lift involved, and the site conditions.
9. Percentages allowed for water and sundries, overheads and profit, and the taxes applicable.
b) Factors affecting rate analysis
Factors affecting the analysis of rates
1. Specification of the item — the mix and the class of material. A richer mix or a better class of brick raises the rate directly.
2. Market rate of materials, which fluctuates with season and demand.
3. Lead and mode of transport — carriage can exceed the basic cost of a material in a remote district.
4. Lift — the height to which materials must be raised; work at a great height or depth costs more.
5. Wage rates and availability of labour of each category in the locality.
6. Out-turn / task of the workman, which depends on his skill and on supervision.
7. Site conditions — nature of soil, water table, congestion, access, and the need for dewatering or shoring.
8. Location and accessibility — a remote hill site costs far more than an urban one for identical work.
9. Season and weather — monsoon work is slower and costlier.
10. Quantity and repetition — a large or repetitive quantity lowers the unit rate; a very small quantity raises it.
11. Method of construction and plant used — manual or mechanised.
12. Availability of water and power at the site.
13. Overheads, profit, taxes and insurance.
14. Wastage allowed for each material.
ENCE 351 §6.2 and §6.3.
What are the requirements of preparing rate analysis? Explain the factors that affect rate analysis. (The second part of this question also belongs to Section 6.3.) The requirements / data for rate analysis are also asked in Q2, Q3, Q5, Q7 and Q9 of Section 6.1, and the importance of lead and lift is asked again in Q39 [2080 Baishakh] of Section 6.5.1. [4] (2076 Chaitra, Q.4(a))
Solution
a) Requirements of preparing rate analysis
Requirements / data for rate analysis
1. Detailed specification of the item — the mix, the class of material, and the method of doing the work. The rate cannot be analysed until the item is defined.
2. Standard norms (departmental / Nepal norms) giving the material, labour and plant required per unit of the item.
3. Rates of materials at the source — cement, sand, aggregate, brick, steel, timber — at the current market or district rate.
4. Carriage / transportation cost, which needs the lead of each material from its quarry or market, and the mode of transport.
5. Rates of labour of each category — skilled, semi-skilled, unskilled — as fixed by the district rate.
6. Hire and running charges of plant — mixer, vibrator, roller, excavator.
7. Task or out-turn of work — how much a workman does in a day — which converts a quantity into man-days.
8. Lead and lift involved, and the site conditions.
9. Percentages allowed for water and sundries, overheads and profit, and the taxes applicable.
b) Factors that affect rate analysis
Factors affecting the analysis of rates
1. Specification of the item — the mix and the class of material. A richer mix or a better class of brick raises the rate directly.
2. Market rate of materials, which fluctuates with season and demand.
3. Lead and mode of transport — carriage can exceed the basic cost of a material in a remote district.
4. Lift — the height to which materials must be raised; work at a great height or depth costs more.
5. Wage rates and availability of labour of each category in the locality.
6. Out-turn / task of the workman, which depends on his skill and on supervision.
7. Site conditions — nature of soil, water table, congestion, access, and the need for dewatering or shoring.
8. Location and accessibility — a remote hill site costs far more than an urban one for identical work.
9. Season and weather — monsoon work is slower and costlier.
10. Quantity and repetition — a large or repetitive quantity lowers the unit rate; a very small quantity raises it.
11. Method of construction and plant used — manual or mechanised.
12. Availability of water and power at the site.
13. Overheads, profit, taxes and insurance.
14. Wastage allowed for each material.
ENCE 351 §6.2 and §6.3.

Five things are needed before a rate can be analysed:

Specification of the item — the mix, the class of material, the thickness, the workmanship. The rate for 1:4 cement mortar brickwork is not the rate for 1:6.
Norms — the standard schedule stating how much material, labour and equipment one unit consumes. In Nepal these are the norms issued by the Government (DoR / DUDBC), uniform nationwide.
Rates of materials at site — basic rate plus carriage (lead and lift), loading, unloading and stacking.
Rates of labour of each category — skilled (mason, carpenter, bar bender, plumber) and unskilled (mazdoor, bhisti, coolie), taken from the district rate list.
Hire charges of tools, plant and equipment — mixer, vibrator, roller, excavator; usually expressed per hour of use.

Lead and lift

Carriage of material is paid for by lead and lift, and the terms are asked for directly in the exam:

	Lead	Lift
Meaning	The horizontal distance over which material (or excavated earth) is carried from the source to the point of use	The vertical distance through which it is raised or lowered
Measured from	Centre of the borrow pit / quarry to the centre of placing	Ground level datum
Charged	First lead (usually 30 m) is included in the rate; beyond that it is paid per unit per additional lead	First lift (usually 1.5 m) is included; each additional lift is paid separately

Both exist because carrying earth 2 km costs far more than moving it 5 m, and lifting it 6 m out of a deep trench costs more than throwing it onto the bank. The rate must follow the effort.

Dawadi, Chapter 4 — Analysis of Rates §4.4.

6.3 Factors affecting rate analysis207520742071

Past Exam Questions on this Topic

Briefly explain the various factors that affect the rate analysis. Why is rate analysis in civil engineering necessary? [4+4] (2075 Ashwin, Q.4)
The second part of this question also belongs to Section 6.1.
Solution
a) Factors that affect the rate analysis
Factors affecting the analysis of rates
1. Specification of the item — the mix and the class of material. A richer mix or a better class of brick raises the rate directly.
2. Market rate of materials, which fluctuates with season and demand.
3. Lead and mode of transport — carriage can exceed the basic cost of a material in a remote district.
4. Lift — the height to which materials must be raised; work at a great height or depth costs more.
5. Wage rates and availability of labour of each category in the locality.
6. Out-turn / task of the workman, which depends on his skill and on supervision.
7. Site conditions — nature of soil, water table, congestion, access, and the need for dewatering or shoring.
8. Location and accessibility — a remote hill site costs far more than an urban one for identical work.
9. Season and weather — monsoon work is slower and costlier.
10. Quantity and repetition — a large or repetitive quantity lowers the unit rate; a very small quantity raises it.
11. Method of construction and plant used — manual or mechanised.
12. Availability of water and power at the site.
13. Overheads, profit, taxes and insurance.
14. Wastage allowed for each material.
b) Why rate analysis is necessary in civil engineering
Purposes / importance of rate analysis
1. To fix the correct rate of each item, and hence arrive at a realistic estimate. Without it, an estimate is only a guess.
2. To find the quantity of each material and each class of labour required, so that they can be procured and programmed.
3. To examine a contractor's quoted rate and judge whether it is reasonable, abnormally high, or unworkably low.
4. To fix the rate of extra, substituted and non-scheduled items that arise during execution.
5. To show the effect of a change of specification — how much the rate rises if the mix is made richer — and so to help choose between alternatives.
6. To update an estimate when material or labour rates change, without re-measuring the quantities.
7. To settle claims, price escalation and disputes.
8. To prepare the district rate and the departmental schedule of rates.
ENCE 351 §6.1 and §6.3.
What are the factors on which the unit rates of particular item of work depends? [4] (2074 Ashwin, Q.4(a))
Solution
Factors on which the unit rate of a particular item of work depends
Factors affecting the analysis of rates
1. Specification of the item — the mix and the class of material. A richer mix or a better class of brick raises the rate directly.
2. Market rate of materials, which fluctuates with season and demand.
3. Lead and mode of transport — carriage can exceed the basic cost of a material in a remote district.
4. Lift — the height to which materials must be raised; work at a great height or depth costs more.
5. Wage rates and availability of labour of each category in the locality.
6. Out-turn / task of the workman, which depends on his skill and on supervision.
7. Site conditions — nature of soil, water table, congestion, access, and the need for dewatering or shoring.
8. Location and accessibility — a remote hill site costs far more than an urban one for identical work.
9. Season and weather — monsoon work is slower and costlier.
10. Quantity and repetition — a large or repetitive quantity lowers the unit rate; a very small quantity raises it.
11. Method of construction and plant used — manual or mechanised.
12. Availability of water and power at the site.
13. Overheads, profit, taxes and insurance.
14. Wastage allowed for each material.
Grouped another way, the unit rate depends on four things: what is specified (the mix and materials), where the work is (lead, lift, access, locality), when it is done (season, market rates), and how it is done (manual or mechanised, and the out-turn of the workman).
ENCE 351 §6.3.
Explain various factors which affects the rate analysis. The factors affecting rate analysis are also asked in Q1, Q4 and Q10 of Section 6.1 and in Q12 and Q13 of Section 6.2. [6] (2071 Chaitra, Q.4(c))
Solution
Factors affecting the analysis of rates
1. Specification of the item — the mix and the class of material. A richer mix or a better class of brick raises the rate directly.
2. Market rate of materials, which fluctuates with season and demand.
3. Lead and mode of transport — carriage can exceed the basic cost of a material in a remote district.
4. Lift — the height to which materials must be raised; work at a great height or depth costs more.
5. Wage rates and availability of labour of each category in the locality.
6. Out-turn / task of the workman, which depends on his skill and on supervision.
7. Site conditions — nature of soil, water table, congestion, access, and the need for dewatering or shoring.
8. Location and accessibility — a remote hill site costs far more than an urban one for identical work.
9. Season and weather — monsoon work is slower and costlier.
10. Quantity and repetition — a large or repetitive quantity lowers the unit rate; a very small quantity raises it.
11. Method of construction and plant used — manual or mechanised.
12. Availability of water and power at the site.
13. Overheads, profit, taxes and insurance.
14. Wastage allowed for each material.
ENCE 351 §6.3.

The examiners ask for these factors almost every year, usually for 4 marks.

Specification and quality of the work — richer mixes, better finishes and tighter tolerances all raise the rate.
Cost and availability of materials — market price, and whether the material is locally available or must be imported.
Lead and lift — the carriage distance and height, and the condition of the access road.
Location of the site — urban, rural or remote hill; a site reachable only by mule track carries a very different rate.
Availability and wage of labour, and the categories required; a shortage of skilled masons raises the rate.
Quantity (scale) of work — a large quantity spreads the mobilisation cost and lowers the unit rate.
Season and weather — monsoon working, or work at high altitude in winter, reduces output.
Method of construction — manual or mechanised; the plant deployed.
Facilities to be provided to labour — housing, transport, safety equipment.
Overheads and profit expected by the contractor, and the taxes and levies in force.
Wastage allowed on materials, and the output (productivity) assumed for labour and plant.

Dawadi, Chapter 4 — Analysis of Rates §4.5.

6.4 Prevailing rate analysis norms and district rates in Nepal20812080

Past Exam Questions on this Topic

What are the departmental norms used for analysis of rate in Nepal for building works, road works and sanitary works? Also list the data provided in such norms. [4] (2081 Bhadra, Q.6)

Solution

a) Departmental norms used for analysis of rates in Nepal

Type of work	Norms issued by	Document
Building works	Department of Urban Development and Building Construction (DUDBC), Ministry of Urban Development	Norms for Rate Analysis of Building Works
Road works	Department of Roads (DoR), Ministry of Physical Infrastructure and Transport	Standard Norms for Road Works, used with the DoR Standard Specification
Sanitary and water supply works	Department of Water Supply and Sewerage Management (DWSSM)	Norms for Water Supply and Sanitation Works
Irrigation works	Department of Water Resources and Irrigation	Irrigation norms
Electrical works	Department of Electricity Development / NEA	Electrical norms

b) Data provided in such norms

For one unit of each item of work (per m³, per m², per m), the norm gives:

Materials — the quantity of each material required, with the wastage already included. Example: for 1 m³ of 1:2:4 PCC — 6.34 bags of cement, 0.44 m³ of sand, 0.88 m³ of coarse aggregate.
Labour — the number of man-days of each category: skilled (mason, carpenter, bar bender), semi-skilled, and unskilled.
Plant and equipment — the hours or fraction of a day of mixer, vibrator, roller or compressor required.
Task / out-turn of work — how much a workman completes in one day.
Water requirement and the allowance for sundries.
Percentage allowances for tools and plant, overheads and contractor's profit.
The specification of the item to which the norm applies, and the conditions assumed (for example, work up to a stated height or lead).

The norm deliberately gives quantities only, never prices. Prices come from the district rate, which changes every year and differs between districts; the norm is national and stable.

ENCE 351 §6.4.

Explain in detail how Nepal Government agencies take norms and rates for rate analysis. [2+2] (2080 Bhadra, Q.4(c))

Solution

How Nepal Government agencies take norms and rates for rate analysis

Two different things are combined, and the distinction is the point of the question.

	Norms	Rates
What it gives	The quantity of material, labour and plant needed for one unit of an item	The price of one unit of each material and one man-day of each class of labour
Who fixes it	The Department of Urban Development and Building Construction (DUDBC) for buildings, the Department of Roads (DoR) for roads, and the Department of Water Supply and Sewerage (DWSS) for sanitary works	The District Rate Fixation Committee, headed by the Chief District Officer
Scope	National — the same everywhere in the country	Local — different in every district
How often revised	Rarely — only when technology or practice changes	Every fiscal year, and published as the district rate
Example	1 m³ of 1:2:4 PCC needs 6.34 bags of cement, 0.44 m³ sand, 0.88 m³ aggregate, 0.35 mason and 3 labourers	In that district a bag of cement costs Rs 850 and an unskilled man-day Rs 900

The procedure followed

The norms are taken from the relevant departmental Norms for Rate Analysis — DUDBC for building works, DoR (Standard Norms for Road Works) for roads, DWSS for water supply and sanitary works.
The basic rates of materials and labour are taken from the district rate published each year by the District Rate Fixation Committee for that district.
Carriage is added to each material for the actual lead from its quarry or market to the site, using the rate per unit per km in the district rate, supported by a lead statement.
Quantity from the norm × rate from the district rate = cost of that component; the components are summed.
Water and sundries (1–2%), overheads and contractor's profit (together about 15–20%) are added.
The analysed rate is entered in the abstract of cost; VAT at 13% is added at the summary stage.
Items not covered by any norm are analysed separately from first principles and got approved as non-scheduled items.

The reason for the split is control. Norms are technical and must not vary from district to district; prices genuinely do vary, so they are fixed locally and annually. Mixing the two up — using another district's rate, or an out-of-date norm — is the commonest audit objection.

ENCE 351 §6.4.

A structure is to be constructed in Bajhang district with Plain Cement Concrete (PCC) work. Fine and coarse aggregates are available locally @ Rs. 2000/m³. Cement is not locally available and has to be bought from the nearest market 100 km away; its cost is Rs. 600 per bag and the carrying cost is Rs. 0.05/kg/km. Find the cost of 1 cum PCC work at that place if the skilled and unskilled manpower required per cum is 1 and 4 man-days with Rs. 1000 and Rs. 900 daily wages respectively. [7] (2081 Bhadra, Q.8)
Solution
PCC work at Bajhang, mix taken as 1 : 2 : 4
Fine and coarse aggregate available locally @ Rs 2,000 per m³
Cement Rs 600 per bag, market 100 km away, carriage Rs 0.05 per kg per km
Skilled manpower 1 man-day @ Rs 1,000; unskilled 4 man-days @ Rs 900
Dry volume factor 1.54 · density of cement 1440 kg/m³ · 1 bag = 50 kg
Quantity of materials for 1 m³ of 1:2:4 concrete
dry volume = 1.00 × 1.54 = 1.54 m³ sum of proportions = 1 + 2 + 4 = 7 cement = 1.54 × (1/7) = 0.22 m³ = 0.22 × 1440 = 316.80 kg = 316.80 / 50 = 6.336 bags sand = 1.54 × (2/7) = 0.44 m³ aggregate = 1.54 × (4/7) = 0.88 m³ check : 0.22 + 0.44 + 0.88 = 1.54 m³ ✓
Cost of cement, delivered at Bajhang
basic cost = 6.336 bags × Rs 600 = Rs 3,801.60 carriage = weight × rate × distance = 316.80 kg × Rs 0.05 × 100 km = 316.80 × 5 = Rs 1,584.00 ------------- delivered cost of cement = Rs 5,385.60
The carriage must be worked out on the weight of cement, not on the number of bags — the rate is given per kg per km. This is where marks are most often lost.
Cost of aggregates
sand + coarse aggregate = 0.44 + 0.88 = 1.32 m³ available locally, so no carriage is added cost = 1.32 × Rs 2,000 = Rs 2,640.00
Cost of labour
skilled : 1 man-day × Rs 1,000 = Rs 1,000.00 unskilled : 4 man-days × Rs 900 = Rs 3,600.00 ------------- Rs 4,600.00
Rate of 1 m³ of PCC
cement (delivered) = Rs 5,385.60 sand and coarse aggregate = Rs 2,640.00 labour = Rs 4,600.00 ------------- cost of materials and labour = Rs 12,625.60 add overhead and contractor's profit @ 15% = Rs 1,893.84 ------------- RATE OF 1 m³ OF PCC = Rs 14,519.44
Cost of 1 m³ of PCC work at Bajhang = Rs 12,625.60 for materials and labour, or Rs 14,519.44 including 15% overhead and profit (say Rs 14,520 per m³).
The carriage of cement alone adds Rs 1,584 to every cubic metre — about 42% on top of the basic cost of the cement, and 12.5% of the whole rate. That is precisely why the same item of work carries a different rate in every district, and why a lead statement must accompany the rate analysis.
ENCE 351 §6.4 and §6.5. The mix is not stated in the question; 1:2:4 is the standard PCC mix and is assumed here — state your assumption in the examination.

Nepal Government agencies do not invent rates. Two documents are combined:

	Norms	District rates
What it fixes	How much material, labour and equipment one unit of an item consumes	How much one unit of each material, each labour category and each machine costs
Issued by	Department of Roads / DUDBC — the Norms for Building and Road Works	The District Rate Fixation Committee, headed by the Chief District Officer
Varies with	Nothing — uniform across the country	District and year; revised annually
Why	So that an estimate cannot be inflated by assuming generous consumption	Because transport and market conditions genuinely differ between Kathmandu and Humla

rate of item = Σ (norm quantity × district rate) + overheads + profit

The district rate list is published each fiscal year and covers material rates at the district headquarters, carriage rates per km, wage rates by labour category, and equipment hire rates. Where a material is not in the list, a quotation-based rate is approved separately.

This split is the answer to the question "explain how Nepal Government agencies take norms and rates": norms are national and fixed; rates are local and annual.

Dawadi, Chapter 4 — Analysis of Rates §4.6; Government of Nepal norms for building and road works.

6.5 Analysis of rate for building, road, sanitary and water supply works20812080

Past Exam Questions on this Topic

Calculate quantities of material required for brick wall of a building L × B × H = 10 m × 0.23 m × 3 m with 10 mm thick in (1:5) cement sand mortar. The wall contains two windows of size 1.2 m × 1.2 m. Take standard size of brick. [5] (2081 Bhadra, Q.7)
Solution
Brick wall L × B × H = 10 m × 0.23 m × 3 m
Two windows of 1.2 m × 1.2 m
Mortar joints 10 mm thick, cement sand mortar 1 : 5
Standard modular brick 190 × 90 × 90 mm, i.e. 200 × 100 × 100 mm including mortar
Net volume of brickwork
gross volume = 10 × 0.23 × 3 = 6.9000 m³ deduct 2 windows = 2 × 1.2 × 1.2 × 0.23 = 0.6624 m³ ---------- net volume of brickwork = 6.2376 m³
Number of bricks
volume of one brick WITH mortar = 0.20 × 0.10 × 0.10 = 0.002 m³ number of bricks = 6.2376 / 0.002 = 3118.8 ≈ 3119 bricks check by the standard rule ( 500 bricks per m³ ) : 6.2376 × 500 = 3118.8 ✓
Volume of mortar
volume of one brick WITHOUT mortar = 0.19 × 0.09 × 0.09 = 0.0015390 m³ volume of 3119 bricks = 3119 × 0.0015390 = 4.7998 m³ wet volume of mortar = 6.2376 − 4.7998 = 1.4378 m³ ( = 23.1% of the masonry ) dry volume = 1.4378 × 1.30 = 1.8691 m³
Cement and sand in the mortar (1:5)
sum of proportions = 1 + 5 = 6 cement = 1.8691 × (1/6) = 0.3115 m³ = 0.3115 × 1440 = 448.58 kg = 448.58 / 50 = 8.97 ≈ 9 bags sand = 1.8691 × (5/6) = 1.5576 m³
For the wall: 3,119 bricks, 8.97 bags (448.6 kg) of cement and 1.56 m³ of sand.
Two checks worth doing in the examination: bricks should come to about 500 per m³ of masonry, and mortar to about 20–25% of the volume of the masonry. Both are satisfied here (500/m³ exactly, and 23.1%). If your figures fall far outside these, look for an arithmetic error.
ENCE 351 §6.5.
Calculate quantity of materials required for 5 m³ of stone masonry in 1:6 cement sand mortar ratios. [5] (2081 Baishakh, Q.5)
Solution
5 m³ of stone masonry · cement sand mortar 1 : 6
Assumed: mortar = 32% of the volume of random rubble masonry · dry volume factor for mortar 1.30 · cement 1440 kg/m³
Volume of mortar
In random rubble stone masonry the stones are irregular, so the mortar fills a much larger fraction of the volume than in brickwork — usually 30 to 35%. Take 32%. wet volume of mortar = 5.00 × 0.32 = 1.600 m³ dry volume = 1.600 × 1.30 = 2.080 m³
Cement and sand (1:6)
sum of proportions = 1 + 6 = 7 cement = 2.080 × (1/7) = 0.2971 m³ = 0.2971 × 1440 = 427.89 kg = 427.89 / 50 = 8.56 ≈ 8.6 bags sand = 2.080 × (6/7) = 1.7829 m³
Quantity of stone
stones occupy 68% of the masonry, but an extra 25% must be allowed for voids in stacking, breakage and wastage: stone required = 5.00 × 1.25 = 6.25 m³
For 5 m³ of stone masonry in 1:6 mortar: 8.56 bags (427.9 kg) of cement, 1.78 m³ of sand and about 6.25 m³ of stone.
Contrast with brickwork, where the mortar is only about 20–25%. Rubble stone is irregular, so it needs appreciably more mortar — state the percentage you assume, because the answer depends on it.
ENCE 351 §6.5.
Find out quantities of materials required for brick wall of size (10 m × 3 m × [5] (2080 Bhadra, Q.5)
Solution
The wall thickness is not legible in the available copy of this paper. A 0.23 m (one brick) wall in 1:6 mortar is assumed below; substitute the values printed in your paper — the method is unchanged.
Brick wall 10 m × 3 m × 0.23 m, no openings
Cement sand mortar 1 : 6 · standard modular brick 190 × 90 × 90 mm (200 × 100 × 100 mm with mortar)
Volume of brickwork
V = 10 × 3 × 0.23 = 6.9000 m³
Number of bricks
volume of one brick with mortar = 0.20 × 0.10 × 0.10 = 0.002 m³ number of bricks = 6.9000 / 0.002 = 3450 bricks check : 6.9 × 500 = 3450 ✓
Volume of mortar
volume of one brick without mortar = 0.19 × 0.09 × 0.09 = 0.001539 m³ volume of 3450 bricks = 3450 × 0.001539 = 5.3096 m³ wet mortar = 6.9000 − 5.3096 = 1.5904 m³ dry volume = 1.5904 × 1.30 = 2.0676 m³
Cement and sand (1:6)
sum of proportions = 1 + 6 = 7 cement = 2.0676 × (1/7) = 0.2954 m³ = 0.2954 × 1440 = 425.33 kg = 425.33 / 50 = 8.51 ≈ 8.5 bags sand = 2.0676 × (6/7) = 1.7722 m³
For the wall: 3,450 bricks, 8.51 bags (425.3 kg) of cement and 1.77 m³ of sand.
ENCE 351 §6.5.

The standard format

Every rate analysis is set out the same way, whatever the item:

Description	Quantity	Unit	Rate	Amount
a. Materials
… each material at its norm quantity				A
b. Labour
… each category at its norm				B
c. Tools, plant and equipment
… hire per hour × hours				C
Sub-total				A + B + C
Add contractor's overhead and profit @ 15% of (A + B + C)				D
Rate per unit — excluding VAT				A + B + C + D

Two conventions to follow in a Nepali answer. Overhead and profit is taken at 15% of the sub-total (of which roughly 10% is the profit), and the rate so obtained is quoted excluding VAT — the 13% VAT is added later, in the summary of cost, not inside the rate.

Building works — typical norm consumption

These are the figures the worked examples turn on. Quantities are per unit of the finished item.

Item	Unit	Principal materials	Labour
Brickwork in 1:4 cement mortar	m³	bricks ≈ 500 no. · mortar ≈ 0.25–0.30 m³	mason, mazdoor, bhisti
PCC 1:2:4	m³	cement ≈ 6.4 bags · sand 0.43 m³ · aggregate 0.86 m³	mason, mazdoor, bhisti, mixer
RCC 1:1½:3	m³	cement ≈ 8 bags · sand 0.42 m³ · aggregate 0.84 m³	mason, mazdoor, mixer, vibrator
Reinforcement work	quintal / MT	steel + binding wire ≈ 0.9–1 kg per quintal	bar bender, mazdoor
Wood work in frames	m³	timber, nails, screws	carpenter, mazdoor
12 mm cement plaster 1:4	m²	mortar ≈ 0.012 m³ per m² — per 100 m²: cement ≈ 0.35 m³ (10 bags) · sand ≈ 1.50 m³	mason, mazdoor, bhisti
Brick flat soling	m²	bricks ≈ 50 per m² (5000 per 100 m²), joints filled with sand	mason, mazdoor
Flooring — marble / mosaic	m²	tiles, cement, sand, polishing material	mason, polisher, mazdoor

Cement is reckoned at 50 kg = 1 bag, and 1 m³ of cement is taken as 28.8 bags (1440 kg/m³). Dry volume of mortar or concrete is taken as 1.52–1.54 times the wet volume, to allow for the voids in the sand and aggregate — this factor is what turns a 1 m³ concrete item into its bag and m³ quantities.

Road works

Rate analysis for road items is dominated by plant hire rather than labour:

Earthwork in excavation or filling using equipment — excavator, dozer and tipper hours per m³, plus a roller for compaction; the norm gives hours per m³ and the district rate gives the hourly hire.
Gabion work — GI wire mesh crates, boulder filling, labour for filling and lacing.
Stone masonry in retaining and breast walls — stone, mortar, mason and mazdoor.
Plum concrete — concrete plus 30–40% displacer boulders.
Pavement works — WBM (stone aggregate, screening, binding material, roller hours), premix carpet and seal coat (aggregate, bitumen, boiler, paver, roller).

Sanitary and water supply works

These are largely supply-and-fix items, so the material dominates and the labour is a fitting operation:

Wash basin — basin, brackets, waste, trap, tap, C.P. fittings; plumber and mazdoor.
Commode / W.C. pan — pan, flushing cistern, seat cover, connecting pipe, floor trap; plumber and mazdoor.
Pipes and fittings — GI or HDPE pipe per running metre, with specials, clamps, jointing material; measured in running metre and paid per metre.

For a supply-and-fix item the rate is usually stated per number, and the analysis must include the cost of the fitting itself, all accessories, the plumber's and mazdoor's time, and a wastage allowance on the small fittings.

Quantity of water — from the water cement ratio

Water is a material like any other and is asked for in its own right. Once the cement has been worked out, the water follows from the water cement ratio, which is a ratio by weight:

weight of water = (w/c) × weight of cement weight of cement = number of bags × 50 kg 1 kg of water = 1 litre, so the answer is directly in litres w/c used in the Nepali worked examples : 0.50 for PCC and RCC 0.80 for mortar and plastering

The two figures differ because plaster mortar is applied by hand and has to be workable, while concrete is compacted by vibrator and must be kept dry for strength. Note the conflict with the structural specification, which limits mixing water to 30 litres per 50 kg bag (w/c = 0.60): use 0.50 for concrete and 0.80 for plaster when a Nepali paper asks for the quantity of water, and quote the 30 litre limit when writing a specification.

Example. For the 100 m³ M20 raft of §6.5 the cement works out to 806.4 bags. At w/c = 0.50:

weight of cement = 806.4 × 50 = 40,320 kg water = 0.50 × 40,320 = 20,160 kg = 20,160 litres ≈ 20.2 m³

Water for soaking bricks, mixing, washing aggregate and curing, and the cost of the platform, labour shed and site godown, are all included in the rate and are not paid for separately — which is why the rate analysis carries only a small percentage for "water and sundries" rather than a measured quantity. The calculation above is needed when the question asks explicitly for the quantity of water.

Volume of a cement bag — two conventions. Taking the density of cement as 1440 kg/m³, one 50 kg bag occupies 0.0347 m³, so 1 m³ = 28.8 bags. Some Indian texts round the bag to 1/30 m³ (0.0333 m³), giving 30 bags per m³. The Nepali manual and this chapter both use 28.8 — state whichever you adopt, because it changes the cement quantity by about 4%.

Dry volume factors used in the Nepali worked examples: increase the wet volume by 50–55% for concrete (factor 1.50–1.55) and by 30–35% for mortar and plaster (factor 1.30–1.35). The figures in this chapter use 1.54 and 1.30, both inside those ranges.

Two allowances that are easy to forget

Unevenness of the base. For concrete laid on a rough base — a floor over brick soling, or a levelling course on excavated ground — add about 10% to the wet volume before converting to dry volume, to fill the hollows.
Reinforcement as a percentage. Where no bar bending schedule is given, take the steel as a percentage of the volume of concrete and convert at 7850 kg/m³: slab 0.7–1.0%, lintel and beam 1.0–1.5%, column 2.0–3.0%, footing 0.5–0.8%.

Example — 415 m² of 40 mm cement concrete 1:2:4 in a floor:

wet volume = 415 × 0.040 = 16.60 m³ add 10% for unevenness of the base = 18.26 m³ dry volume = 18.26 × 1.50 = 27.39 m³ sum of proportions = 1 + 2 + 4 = 7 cement = 27.39 × (1/7) = 3.913 m³ = 3.913 × 28.8 bags per m³ = 112.7 bags sand = 27.39 × (2/7) = 7.83 m³ aggregate = 27.39 × (4/7) = 15.65 m³ water at w/c = 0.50 = 0.50 × 112.7 × 50 = 2,817 litres

Dawadi, Chapter 4 — Analysis of Rates §4.6–4.7; the water cement ratio calculation, the 10% unevenness allowance and the steel percentages follow the worked examples in Notes by RK Sir; consumption figures cross-checked against the Government of Nepal norms and against Chakraborti, Estimating, Costing and Specification, ch. XI.

Sources consulted for this chapter

These are the references actually used in writing this chapter. Where a worked example is taken from one of them, the figure or the sheet is recomputed here from the stated dimensions rather than transcribed.

Er. Narayan Prasad Dawadi, Estimating and Costing lecture notes (IOE, Pashchimanchal Campus) — ch. 4 — analysis of rates and the worked analyses
Notes by RK Sir (course handwritten notes) — quantity of water from the water cement ratio, the 10% allowance for unevenness of the base, and the steel percentages
Government of Nepal norms for rate analysis (DUDBC, DoR, DWSSM) and the district rate — material and labour consumption per unit, and the district rate
M. Chakraborti, Estimating, Costing and Specification in Civil Engineering — ch. XI §11-1 — the four heads, the 1% water charge, the 15% overhead and profit, and the rule on departmentally supplied materials
B. N. Dutta, Estimating and Costing in Civil Engineering — limit of 30 litres of water per bag of cement, and the alternative 1/30 m³ convention for the volume of a bag
Pandey & Katwal, Complete Manual of Estimating and Costing (T.U., B.E. Civil) — worked rate analyses in the Nepali format, the dry-volume factors (50–55% for concrete, 30–35% for mortar), the 28.8 bags per m³ convention, and the water cement ratios used in the Nepali papers (0.50 for concrete, 0.80 for plaster)