Rate Analysis for Construction in India

Introduction

Rate analysis (or data) is the process of working out the cost per unit of each item—e.g., ₹/cum for brickwork, ₹/sq m for plastering.

The rate depends on:

• Specifications (quality, proportion, method)
• Material quantities and costs
• Labour types and wages
• Site location and conveyance
• Overheads and profit

This guide explains the process with lead statements and worked examples.

Purpose of Rate Analysis

1. Unit cost – Actual cost per unit of work
2. Economy – Identify economical materials and methods
3. Extra items – Price items not in the contract
4. Schedule revision – Update rates when material or labour costs change

Lead Statement

Lead = Distance from source of material to construction site (in km).

Conveyance cost depends on lead and road type:

Road type	Factor
Metalled road (MT)	1.0
Cart track (CT)	1.1
Sandy track (ST)	1.4

Equivalent lead = (Lead in MT × 1.0) + (Lead in CT × 1.1) + (Lead in ST × 1.4)

Conveyance charge = Equivalent lead × Rate per km

Example Lead Statement

Material	Rate at source	Lead (km)	Conveyance	Total at site
		MT	CT	ST
40 mm HBG metal	₹120/cum	—	5	7
River sand	₹15/cum	3	2	6
Cement	₹135/bag	2	—	4

Material Cost Formulae

Cement (density 1440 kg/cum)

• 1 bag = 50 kg
• Cost per cum cement = (Cost per bag / 50) × 1440

Wet vs Dry Concrete

• 1 cum wet concrete ≈ 1.52 cum dry materials (bulking)
• Weight of concrete ≈ 1440 kg/cum

Cement in Concrete (e.g., 1:2:4)

Cement (bags) = [1 / (1+2+4)] × 1.52 × Volume × (1440/50)

For 20 cum RCC (1:2:4):

• Cement = (1/7) × 1.52 × 20 × 28.8 ≈ 125 bags
• Sand = (2/7) × 1.52 × 20 = 8.69 cum
• Coarse aggregate = (4/7) × 1.52 × 20 = 17.37 cum

Cement in Mortar (e.g., 1:4)

Cement fills voids in sand. For 1 cum CM (1:4):

• Cement = (1/4) × 1 = 0.25 cum = 7.2 bags
• Sand = (4/4) × 1 = 1 cum

Labour Classification

Type	Typical share	Use
Skilled I class	30%	Mason I, Brick layer I
Skilled II class	70%	Mason II, Brick layer II
Unskilled	—	Mazdoor (men/women)

Rates are taken from standard schedule of rates. For current Indian rates, see our labour rates guide.

Worked Example 1: Plastering CM (1:4), 20 mm Thick, 10 sq m

Data (per 10 sq m):

• 0.21 cum CM (1:4)
• 0.66 no. Brick layer I class
• 1.54 no. Brick layer II class
• 0.5 no. Men mazdoor
• 3.2 no. Women mazdoor
• L.S. sundries

Lead statement: Sand ₹112/cum at site, Cement ₹2,100/tonne at site.

Cost of CM (1:4) for 0.21 cum:

• Cement = (1/4) × 0.21 × 1.44 × 2100 = ₹158.76
• Sand = (4/4) × 0.21 × 112 = ₹23.52
• Total = ₹182.28

Labour (illustrative rates): Mason I ₹100/day, Mason II ₹80/day, Mazdoor ₹60/day, Mixing ₹16/cum.

Item	Qty	Rate	Amount (₹)
CM (1:4)	0.21 cum	182.28/0.21	182.28
Brick layer I	0.66	100	66.00
Brick layer II	1.54	80	123.20
Men mazdoor	0.5	60	30.00
Women mazdoor	3.2	60	192.00
Mixing	0.21 cum	16	3.36
Sundries	L.S.		3.36
Total			₹625 per 10 sq m

Rate = ₹62.50 per sq m.

Worked Example 2: RR Masonry in CM (1:6), 1 cum

Data (per 1 cum):

• 1.1 cum rough stone
• 0.34 cum CM (1:6)
• 0.54 no. Mason I
• 1.26 no. Mason II
• 1.4 no. Men mazdoor
• 1.4 no. Women mazdoor
• L.S. sundries

Lead statement: Stone ₹350/cum, Sand ₹112/cum, Cement ₹2,100/tonne at site.

Cost of CM (1:6) for 0.34 cum:

• Cement = (1/6) × 0.34 × 1.44 × 2100 = ₹171.36
• Sand = (6/6) × 0.34 × 112 = ₹38.08
• Total = ₹209.44

Item	Qty	Rate	Amount (₹)
Rough stone	1.1 cum	350	385.00
CM (1:6)	0.34 cum	209.44	209.44
Mason I	0.54	100	54.00
Mason II	1.26	80	100.80
Men mazdoor	1.4	60	84.00
Women mazdoor	1.4	60	84.00
Mixing	0.34 cum	16	5.44
Sundries	L.S.		18.04
Total			₹941 per cum

Overheads and Profit

Typical additions:

• Tools & plant – 1–2% of estimate
• Overheads – 4% (office, depreciation, staff, etc.)
• Contractor profit – 8–10% (if not already in rate)

These may be built into the unit rate or added at the end of the abstract.

Next Steps

• RCC & Steel Estimation – Reinforcement quantities
• Labour Rates India 2026 – Current wage benchmarks