LIMITATION OF RATE ANALYSIS PROGRAM
Labour productivity not only varies with the place, but also depends up on:
Application of Machinery to help labour.
Condition of Machinery.
Degree of training.
Availability of Labour.
Attitude of Unions regarding Productivity.
Attitude of management towards Labour.
Following of Local practice.
Daily Wage or Contract Labour.
Male or Female, Heavy Or Light Work & General Physique / Health of the Labour.
Considering the above variables the assumed labour productivity will be always approximate.
The machinery / Plant depreciated costs will have a major bearing on arriving unit cost for Equipments. Similarly inducting latest type of Plant or Equipment in the project will also affect rate analysis.
Material Coefficients are affected by on site quality & quantity control.
Overhead costs / Administrative Costs are affected by availability of trained Engineers in that area, Managerial competency & ability, including project planning, execution, labour & cost control.
The Rate Analysis performed using this software shall be judged by the contractor in light of above factors, before finalizing the Road Tender.