{"id":981,"date":"2017-03-20T11:00:53","date_gmt":"2017-03-20T11:00:53","guid":{"rendered":"http:\/\/biblus.accasoftware.com\/en\/?p=981"},"modified":"2023-02-28T11:03:58","modified_gmt":"2023-02-28T10:03:58","slug":"rate-analysis-what-is-it-and-whats-the-procedure-for-a-unit-rate","status":"publish","type":"post","link":"https:\/\/biblus.accasoftware.com\/en\/rate-analysis-what-is-it-and-whats-the-procedure-for-a-unit-rate\/","title":{"rendered":"Rate Analysis: what is it and what&#8217;s the correct procedure for building up a unit rate"},"content":{"rendered":"<p class=\"sommario\">Rate Analysis: what is it and what&#8217;s the correct procedure for building up a unit rate<\/p>\n<p><!--more--><\/p>\n<p><strong>Rate Analysis<\/strong> can be defined as the analytical study (qualitative and quantitative) that leads to the definition of a new unit rate referring to a given job or work type, by identifying its basic elements.<\/p>\n<h2 id=\"but-when-does-a-rate-analysis-become-necessary\">But when does a Rate Analysis become necessary?<\/h2>\n<p>In normal practice, a quantity surveyor uses the price list items acquired from a regional or any other official Price Book. But what if a specific work description isn&#8217;t available? Well in these cases, we need to resort to &#8220;building up&#8221; the unit rate by identifying the elementary resources as components of the analysed rate.<\/p>\n<h2 id=\"how-is-a-new-unit-rate-defined\">How is a new unit rate defined?<\/h2>\n<p>The starting point to define the new unit rate, is to run a careful analysis of the elements and resources that build up to form the new work item.<br \/>\nThe elementary components, or resources, are generally the following:<\/p>\n<p>\u2022 workforce<br \/>\n\u2022 materials<br \/>\n\u2022 hired equipment<br \/>\n\u2022 overheads<br \/>\n\u2022 company profits<\/p>\n<p><strong>Labor<\/strong><br \/>\nThe cost of labor is defined by the type of workers (specialised, qualified operators) and the hours of work necessary per quantity unit.<\/p>\n<p><strong>Materials<\/strong><br \/>\nTo define the cost of the necessary materials, you need to determine the following:<\/p>\n<p>\u2022 the purchase price<br \/>\n\u2022 on-site transport costs<br \/>\n\u2022 unloading<br \/>\n\u2022 stacking and storage<br \/>\n\u2022 waste (an excess percentage of unwanted material due to the production processes)<\/p>\n<p><strong>Rentals<\/strong><br \/>\nMeaning the rented equipment or machinery that may be of 2 main types:<\/p>\n<p>\u2022 &#8220;operated equipment&#8221;: this means that the rental cost is inclusive of both the equipment, or machinery, and the necessary operational labor (eg. a crane and the crane operator).<br \/>\nThe operated equipment rental includes the labor costs required for its use, the fuel, lubricants, insurance costs and maintenance.<br \/>\n\u2022 &#8220;without operator&#8221;: in this case the equipment or machinery is rented with the operator. This kind of freight cost does not include the cost due to labor required for its use. Neither does it take into account the cost for fuel, lubricants or maintenance.<\/p>\n<p style=\"text-align: left;\"><strong>Overheads<\/strong><br \/>\nOverheads are the costs incurred in an indirect way and not directly related to the works or to the construction site.<br \/>\nOn average they are quantifiable with a fixed percentage of between 13% and 17% &#8211; (may vary from zone to zone).<br \/>\nOverhead costs include the following items:<\/p>\n<p>\u2022 Administrative and Management<br \/>\n\u2022 site technical systems<br \/>\n\u2022 surveys and audits<br \/>\n\u2022 temporary occupations and security arrangements<br \/>\n\u2022 etc.<\/p>\n<p><strong>Company Profits<\/strong><br \/>\nKnown as the expected revenue for the company and is typically 10% of the costs incurred.<\/p>\n<h2 id=\"rate-analysis-the-advantages-of-using-a-software\">Rate Analysis: The advantages of using a software<\/h2>\n<p>In this section we&#8217;ll see how to set up a rate analysis using a construction estimating program, <a class=\"textualLink_primus\" href=\"https:\/\/www.accasoftware.com\/en\/cost-estimating-software\" target=\"_blank\" rel=\"noopener\">PriMus<\/a>\u00a0by <strong>ACCA software<\/strong>.<\/p>\n<p>The software allows you to dynamically calculate the rate of a given work item.<\/p>\n<p><strong>PriMus<\/strong>, in fact, allows you to easily and dynamically build up a new rate by means of a rate analysis feature and therefore calculate the total unit rate from elementary resources or even from other structured rates whose final rate is the result of a combination of several sub-resources. To determine the rate of an item, the following may be used:<\/p>\n<p>\u2022 primary costs<br \/>\n\u2022 compounds costs<br \/>\n\u2022 data from price lists<br \/>\n\u2022 data from other rate analysis items and references<br \/>\nThe Rate Analysis document can also be very useful for the building company in the preparation of tenders or in setting up the site, but also for the surveyor who needs to draft a project plan of works or follow the works on-site.<\/p>\n<p><strong>PriMus<\/strong> can also determine the &#8220;Site Requirements&#8221; through a quantitative evaluation of those elementary items (materials, human resources, equipment, etc.) needed for the project.<\/p>\n<p>This aspect may be different from country to country and for this reason, where in Brazil, the &#8220;Site Requirements&#8221; is replaced by the so called &#8220;ABC analysis&#8221;, this has been integrated into the software with the &#8216;ABC curve&#8221;, thus adapting to local legislation. One of the most obvious advantages of using a software to perform a Rate Analysis is the dynamic management of price variations. With the software, in fact, we can change the unit rate of an element used in a rate analysis and notice that the any analyzed rates that contain the varied rate, are all updated throughout the entire construction estimate document.<\/p>\n<p>The <strong>Rate Analysis<\/strong> module configuration allows you to set the values for Overheads, Company Profits, etc).<\/p>\n<div id=\"attachment_1094\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-1094\" class=\"wp-image-1094 size-full\" src=\"https:\/\/biblus.accasoftware.com\/en\/wp-content\/uploads\/sites\/2\/2017\/02\/configure-PriMus-rate-analysis-module.jpg\" alt=\"Configuration of the Rate Analysis Module in PriMus\" width=\"800\" height=\"450\" \/><p id=\"caption-attachment-1094\" class=\"wp-caption-text\">Configuration of the Rate Analysis Module in PriMus<\/p><\/div>\n<p>The analysis elements can be acquired from other reference documents too such as price books, other price lists, estimates, etc. In the numeric fields, you can:<\/p>\n<p>\u2022 insert quantities and amounts, algebraic formulas<br \/>\n\u2022 acquire values from tables<br \/>\n\u2022 use specific variables<\/p>\n<p>Use of specific variables can be very useful in order to automatically acquire values from other elements used in the same rate analysis. In this case, all price list item data is seamlessly updated.<\/p>\n<div id=\"attachment_1095\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-1095\" class=\"wp-image-1095 size-full\" src=\"https:\/\/biblus.accasoftware.com\/en\/wp-content\/uploads\/sites\/2\/2017\/02\/using-vbariables-in-PriMus.jpg\" alt=\"An example of how variables are used in PriMus\" width=\"800\" height=\"450\" \/><p id=\"caption-attachment-1095\" class=\"wp-caption-text\">An example of how variables are used in PriMus<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_1096\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-1096\" class=\"wp-image-1096 size-full\" src=\"https:\/\/biblus.accasoftware.com\/en\/wp-content\/uploads\/sites\/2\/2017\/02\/rate-analysis-numeric-fields.jpg\" alt=\"A detail of the numeric fields in PriMus\" width=\"800\" height=\"450\" \/><p id=\"caption-attachment-1096\" class=\"wp-caption-text\">A detail of the numeric fields in PriMus<\/p><\/div>\n<p>For each item, the software also allows the user to customise the data settings so as to obtain a useful amounts summary to print as a <strong>Rate Analysis<\/strong> report, a Site Materials Requirements report (with or without the unit rates) and a construction estimate.<\/p>\n<div id=\"attachment_1097\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-1097\" class=\"wp-image-1097 size-full\" src=\"https:\/\/biblus.accasoftware.com\/en\/wp-content\/uploads\/sites\/2\/2017\/02\/rate-analysis-summary-data.jpg\" alt=\"Organisation of an on-screen data and amounts summary in PriMus\" width=\"800\" height=\"450\" \/><p id=\"caption-attachment-1097\" class=\"wp-caption-text\">Organisation of an on-screen data and amounts summary in PriMus<\/p><\/div>\n<p>&nbsp;<\/p>\n<div class=\"international-product-banner-desktop\" style=\"text-align: center;\"><a class=\"product-banner-link\" href=\"https:\/\/www.accasoftware.com\/en\/cost-estimating-software\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"\/wp-content\/themes\/enfold-child\/img\/banner_prodotto\/primus-en.jpg\" alt=\"primus\" \/><\/a><\/div>\n<div class=\"international-product-banner-mobile\" style=\"text-align: center;\"><a class=\"product-banner-link\" href=\"https:\/\/www.accasoftware.com\/en\/cost-estimating-software\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"\/wp-content\/themes\/enfold-child\/img\/banner_prodotto_mobile\/primus-en.jpg\" alt=\"primus\" \/><\/a><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rate Analysis: what is it and what&#8217;s the correct procedure for building up a unit rate<\/p>\n","protected":false},"author":12,"featured_media":982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"keyword_en":"","keyword_es":"","keyword_fr":"","keyword_de":"","keyword_ptb":"","_note_content":"","footnotes":""},"categories":[47],"tags":[58],"class_list":["post-981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bim-news","tag-newsletter-5"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Rate Analysis: what is it and what&#039;s the correct procedure for building up a unit rate - BibLus<\/title>\n<meta name=\"description\" content=\"Rate Analysis: what is it and what&#039;s the correct procedure for building up a unit rate. 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