08/03/2017

Elements of Price Rate

The basic 4 elements:
labour/worker costs,
materials costs,
DIRECT COST
machinery/plant /equipment costs,
Profit.

Labour/worker costs
Salary /payment for the works/activities done by the labours/workers
including over time, bonus, etc.
The payment differs among the workers depending on their skill level,
experience, and market price.

Build Up Rate Labour constant: a duration for a labour/worker to complete a specific

job/work/task.

BFC 31602 (Contract & Estimation)

Dr. Azeanita Suratkon

Elements of Price Rate Build up Rate Excavation Work

Materials costs
Comprises of original price of materials, transportation, storage and Rules of measurement:
wastage.
Excavation can be carried out manually (using hand with aid of tools
such as hoe) or using machine such as excavator.
Machinery/plant/equipment costs Excavation work is calculated in meter cubic (m3) or meter square (m2)
Only motorised machinery/plant/equipment such as lorry, excavator, Addition to volume of excavation due to soil expansion must be
backhoe, etc. will be calculated. calculated.
The price rate will include:
Rental price
Depreciation machinery/plant/equipment Types of soil % of volume soil expansion
Fuel consumption and operating costs Sand 10%
Repair and maintenance costs Clay 20%
General soil 25%
Profit Rock 50%
Normal profit : 10% - 15%

Build up Rate Excavation Work

Rules of measurement:
The build up rate will include costs for:
Excavation to formation level
Filling in and ramming soil (void in the excavation pit after a
structure built)
Carting away remainder load (unused excavated materials)
Spreading up soil in making up level
Strutting work in the excavation pit (if necessary)