Build-up Rate Element

Four (4) basic elements in build-up rate:

    Cost Cost Cost Cost of of of of material labour machinery and equipment management and profit

Cost of Labour
Consist of the salary which is paid to the party who is execute the work. Salary rate and demand are differs based on the labour competency and current market demand.

The level of competency is mainly rely on the labours expertise and productivity. The labour with more experience and expertise will be able to gain much more money than others.

Labour Categories
Craftsmen or Mason  Person who has an ability in carpentering, brick laying, piping work and others.  Worker with skills and experience obtain a higher salary between 60RM80 per day (8 hours).  The rate are fluctuate by time and depends on current economy.

Foremen
 The chosen leader which is appointed by Main Contractor or Sub-contractor to supervise the construction work.  Important to monitor the workers productivity and help Contractor to expedite the project.

Labourer
 Semi-skilled and unskilled workers.  Usually in concreting work, handling bricks, reinforcement and etc.

Labour Constant
 Time taking by worker in completing a certain work.  Basically, it is uncertainty factor that impossible to identify but it can be measured during a period of time by numerous study and observation on site.  In other words, work cannot be handled and completed by the various workers at the same time or in certain time with other workers

Cost of Material
Comprises of:
    Original price of materials and goods. Transportation cost. Loading and unloading cost. Storage and wastage cost.

Original Price of Material ad Goods.

Considering all costs and discounts. For example, 20mm aggregates according to BS 882 is RM45.00/tan, transport to site with 12 tan with 3% discount. Transportation cost is a part of total cost of material. Type and quality of material. Quantity and ordering method. Source of material.

Transportation Cost
Depends on site distance and situation. Source obtained.

Loading and Unloading Cost

Situation where we need to use machinery to load and unload the material. Normally used machineries: forklift, JCB, etc. Taken as additional cost.

Storage and wastage Cost

Fragile and expensive material and goods should be located inside the store. Need to have adequate and appropriate room in terms of ventilation, humid and climatic. Must be always locked for the safety reasons.

Wastage in construction is an extreme and exceed utilization of materials and goods at site. Most issue at site and need a policy to control it.

Profit and Overhead Cost Gross profit is a combination of nett profit and management cost. Nett profit is calculated by deducting the overhead cost (salary, debts and etc.). Percentage of profit mainly around 10%- 15%.

Overhead Cost
Form in monthly salary, administrative matters, expenditure on machinery and others.

Percentage of Profit = Co. Mgmt. Cost x 100 Turnover

Machine, Machinery, Equipment Cost

Element to be considered
    Rental Price Maintenance and remedial Cost Oil Consumption Cost Operational Cost

Machinery is being used to expedite the work and prevent the heavy duty work to be done by human. Machinery cost is higher and need a proper planning to save cost and time. Machinery and plant selection are based to the project needs. Ratio for Machinery Cost and Labour Cost approximately 1:9 for building construction and 1:1 for Civil Engineering Project.

Build-up Rate: Machine

Factors to be considered:
 Machine Function  Capacity  Cost Analysis on the usage of machine.

Factors to be decided
Profit margin from the usage. Rental or Buy. Machine handling by worker. Number of project that will use the machine. Machine capacity: for example concrete mixer 7/5.

Capital Cost Handling Cost

Cost on the usage of the machine

Capital Cost
     Original machine cost Interest on machine Age of machine Maintenance and remedial cost Transportation cost

Original machine cost

Machine price is excluded inrest rate. Buy and rental price is based on supplier quotation.

Interest on machine
Interest on the purchase of machine. Interest on installment payment. Interest rate is between 5% to 10%.

Age of machine
Period of time that the machine could be used without any remedial and maintenance costs. This is depends on the usage frequency and type of machine.

Maintenance and remedial cost

Remedial cost is needed to repair the machine along its lifetimes. From the previous study, remedial cost to repair the machine is 1/10 from original price.

Transportation cost
Cost to transport the machine from one site to another site. Commonly, we can assume 1/20 from the machine original cost as transportation cost.

Handling Cost
 The machine usage frequency (one year).  Machine capacity.  Usage of combustion materials (oils, petrol, etc.) and engine oil.  Worker and operator salary.

The machine usage frequency (a year).

Period of the machine usage in a year. The usage period of time excluding non-function period within the project duration.

Machine capacity
Machine capacity to execute the work. For example, 5 tonne lorry has a capacity to load the sand about 3.24 m3 in a period of time.

Usage of combustion materials (oils, petrol, etc.) and engine oil

Petrol and diesel or motor oil are basic need for the machine. Type and total consumption of oil and motor oil are depends on the type and usage frequency.

Worker and operator salary

Daily salary for the worker and machine operator basically more than the general worker salary. This is because of the differential basic salary and extension of time to store and clean the machine.

Example of machine calculation

Construction firm has been appointed to produce the price analysis for the usage of excavator with 0.57m3 capacity. Calculate the price for the usage of excavator for an hour.

Description
JCB Price (0.57m3) Period for the usage of machine Interest Rate (per year) Average JCB usage per year Payment to operator per day (8 hours) Payment to general worker per day (8 hours) Petrol/Diesel Usage per day Petrol/Diesel Price Motor Oil Usage per day Motor Oil Price Grease Usage per day Grease Price

Rate
RM575,000.00/unit 5 years 7% 250 days/year RM50.00/day RM20.00/day 54.50 liter/day RM1.45/liter 2.60 liter/day RM6.50/liter 0.50 kg/day RM5.00/kg

Build-up Rate: Excavation Work

Manual or by Machinery. Additional volume of soil need to be added during the effects of soil expansion.

Percentage of Soil Volume Expansion After Excavation

Type of Soil Sand Clay Normal Rock Percentage of Expansion 10% 20% 25% 50%

Excavation Work Process

Excavation work will start from ground level to formation level. Excavated soils will be cart away from site. Surplus of soils will be cart away from site or will be filled in the suitable site. Cut and fill works or compaction work or rammed the soil surface after the excavation work finish.

Build-up Rate: Excavation Work

All excavation cots Transport and disposal the soils Refill the soils Compaction work Rammed the excavation base Temporary work for the excavation work Excavation work unit in meter square (m) and meter volume (m3)

Example for Excavation Work Calculation

Trench excavation not exceeding 1.50m deep, haul and disposal the excavated soils not exceeding 100m from site. Soil type is clay Temporary work is not required.

Additional Info.
Labour constant in manual process:
 Trench excavation not exceeding 1.50m deep is 1.60 hours/m3  Haul the excavated soils away from site not eceeding 100m adalah 1.20 hours/m3.

Labour salary per day RM20.00 Profit and Overhead rate are 10%

50000

30000

Floor Plan of Proposed to construct and complete Multipurpose Court, Parit Karjo, Johor

GL

800 (1:2:4 20mm aggregates 350 Lean concrete 1200 50 1200

Section A-A : Strip Footing

Build-up Rate: Concreting Work

Concreting manually or by machine. Allow additional volume of approximately 50% in considering the losses of water (shrinkage), wasatage and strenthening.

Example Build-up Rate Calculation: Manual Concreting

From the above information, calculate the price of concrete per meter cubic (m3) in the mix ratio of 1:2:4 20mm aggregates by man made.

1 m3 cement equal to 28.4 begs of cement. One beg cement is priced of RM9.00 1 m3 sand equal to RM16.00 1 m3 aggregates equal to RM25.00 Worker salary per day RM20.00 Profit percentage is 10%. Labour constant for manual concreting is 2.5 hours / m3.

Example for Build-up Rate: Concreting by machine

Calculate the rate for 1 m3 concrete mix ratio of 1:1:3 13mm aggregates by a rental mixer. Materials:
 1 beg of portland cement price is RM8.60  1 m3 sand price is RM32.00  1 m3 aggregates with size of 13mm price is RM40.00

Labour
 Labour Constant for concreting work is 3 hours/ m3  Labour salary per day is RM18.00  Working hour per day is 8 hours

Machine
 Capacity of 7/8 will produce 4 m3 concrete in a hour.  Rental cost including maintenance cost per day is RM80.00  Need 4 labours for handling the machine.

Attendance Cost
Attendance defined as worker, equipment, material and accommodation which are provided by Main Contractor for SubContractor (SC has no burden on cost). 2 types of Attendance:

General Attendance  Item for General Attendance is an accommodation provided by Main Contractor to Sub-Contractor and at the same time, it also a needs for Main Contractor. Special Attendance  Special Attendance is an accommodation which is specially provided for the usage of Subcontractor at construction site.