Learn how to do analysis of the unit rates of any BoQ item of construction works.

A contractor who wants to participate in government tenders need to do rate analysis to determine the unit prices to be quoted for each BoQ item. Such analysis does not require much details or systematic approach. But sometimes the procuring entity asks for analysis of some BoQ items or even for all the items. To such such analysis of quoted rates systematic and details analysis are required. Here we shall discuss how such formal rate analysis can be done.
Rate analysis will depend on nature of works, goods or service. Following items may be included in rate analysis:
i) Common cost components for goods, works, services, NCS:

• Value added tax
• Income tax
• Insurance premium
• Profit
• Overhead

ii) For items of works project:

• Cost of direct materials
• Cost of direct labour (skilled labour, unskilled labour, foreman, operator etc.)
• Remuneration of the supervising staffs (e.g. managers, supervisors, engineers etc.)
• Cleaning the site before commencement of wroks
• Cost of temporary works like scaffolding, shuttering, platform etc.
• Cost of material testing
• Hire charge (or depriciation in case of own equipments) of major equipments
• Security cost (fencing, CC camera, security guard etc.)
• Material transportaion and storage cost
• Cost of inspection and supervision
• Cost of site office construction and maintenance
• Removing equipments, materials and temporary establishments from the site after project completion
• Accomodation of labour and other project personnels
• Cost associated with health, safety and environment management activities
• Cost of training for the labour and other professional staffs
• Cost of progress review meetings
• Cost of ceremonies (e.g. foundation stone lying, inauguration etc.)
• Risk Cost i.e. cost associated with defect liability

iii) For items of goods supply:

• Cost of goods,
• Cost of transportaion and handling,
• Cost of installation.
• Cost of required testings
• Cost of training of the users
• Cost of after sales service
• Cost of extended warranty (if applicable)
• Customs duty (for imported goods)
• Cost of spare parts

iv) For consulting services:

• Remuneration of the experts,
• Remuneration of the support staffs,
• Cost of consumables
• Cost of reimbursable items.
• Travel expenditure of the experts
• Office management cost
• Cost for workshops, seminars, training etc.
• Reporting cost
• Overtime of the staffs

v) For non-consulting services:

• Salary of the manpower
• Overtime
• Cost of dress and other materials.
• Festival allowances
• Travel allowance, tiffin allowance, medical allowance and other applicable allowances
• Cost of consumables

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