What is the schedule of rates?

Rate schedule: The schedule of rates is a list of prices for various services provided following analysis (SOR full form). These tariffs are set by government organisations like the Central Public Works Division (CPWD). When estimating and computing labourer salaries, it is useful. The terms and conditions of the contract contain a clause saying that any additional goods introduced during construction shall be paid for after SOR.

It contains details on prices and rates for a range of products, including those used in brickwork, concrete, RCC work, demolition, excavation, and more. Due to frequent changes in the market price, the SOR is amend or reissued virtually every year.


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SOR: Full Description

A crucial foundation for evaluating project cost estimates is the schedule of rates. To estimate the actual execution cost, the additional cost relate to transporting materials from authorise sources to the site of work shall be apply throughout the project costing process base on this schedule of rates.

Any government or public organisation, such as public trusts and NGOs, is not permit to appoint a contractor directly to the job. Every process for allocating work must be both competitive and open. In order to ensure transparent system operation and competitive proposals, it is crucial to invite offers from a large number of bidders. The projected cost for establishing financial and budgetary arrangements must be calculate every time a government agency plans to create a structure.

The elaborate design of every architectural element necessitates the use of several materials and labor-intensive procedures. For instance, the cost of brick masonry per cubic metre would be determine by the cost of sand, mortar, the cost of bricks, labour, scaffolding, curing, etc.

All departments decide the rates for various construction goods after conducting rate analysis and calculating the proportionate contributions of each component, material, labour, plant & equipment, tool, scaffolding, and site overheads to the final item.


SOR: Importance

A Schedule of Rates contains a list of the prices charged for various types of work (SOR). This document serves as a pricing manual for proposals and contracts. The SOR normally contains a description of the work to be done, the unit of measurement, the rate per unit, and any other relevant information.

For equivalent work across several projects, a Schedule of Rates sets a standard pricing structure. By doing this, it is made sure that everyone involve in the contracting and tendering process is aware of the expenses relate to specific types of work. Future arguments and misunderstandings can be avoid by using this information.


SOR: Required Paperwork

The tender documents will be a substantial package that looks like a bill of quantities, with a number of options and the possibility of a quantity-based discount. On tender documents, the following headings could be present:

  • general conditions
  • Measurement methods.
  • Code of behaviour.
  • Regulations for protection, waste, transportation, and safety
  • the list of authorised vendors
  • Rating standards and percentage rates.
  • initial site preparation.
  • testing and commissioning.
  • bent work.
  • populated area


SOR: Advantages

  • Variations are typically less expensive and easier to estimate than fixed-price contracts.
  • Construction companies can request quotations from a larger pool of contractors because the process is inexpensive and rapid.
  • Its boundaries and binding commitment are negotiable.
  • The client is free to stop working and then pick it back up again at a pace that may be determine by funding or cash flow.
  • The client can solicit bids early in the project and begin construction before the procedure is complete, therefore a fully thorough design is not essential.


SOR: Drawbacks 

  • To measure effort and validate payments, more resources are require.
  • Contractors may experience personnel changes and a loss of consistency since long-term resource planning is difficult.
  • The client is unaware of the whole cost before consenting to start work.
  • Contractors can be tempt to prepay charges if subsequent projects don’t work out.


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