NATIONAL HIGHWAY AUTHORITY MINISTRY OF COMMUNICATIONS GOVERNMENT OF PAKISTAN ISLAMABAD COMPOSITE SCHEDULE OF RATES APRIL 2014 (KHYBER PAKHTUNKHWA) WORK SPONSORED BY: PLANNING WING OF NATIONAL HIGHWAY AUTHORITY ISLAMABAD (i) CONTENTS 1. Foreword 2. General 3. Manpower Code List 4. Material Code List 5. Equipment Code List 6. Performa for Estimating Owning & Operating Costs of Equipment 7. Plant & Equipment Owning and Operating Cost 8. List of the Districts in Pakistan 9. List of Quarries in Khyber Pakhtunkhwa 10. Conversion Factors 11. Graphs Showing Transportation Rates in Khyber Pakhtunkhwa 12. District wise Composite Schedule of Rates for Khyber Pakhtunkhwa 13. Patronage (Client) 14. Services (Consultant) 15. References (ii) FOREWORD Following the increases in prices of materials and labour in the years 2012-13, the revision / updation of CSR has been carried out. In the years 2012-13 we have seen the prices of steel / diesel / bitumen go up considerably. Analysts are still uncertain with the prices in the year 2014. For the years 2012-13, we have carried out a general revision of all prices up to April 2014 in consultation with leading manufacturers, supplier, and specialist contractors. These rates have been developed using NHA Rate Analysis formulae developed for previous CSRs with slight improvements wherever necessary. The variation in the proposed rates is anticipated in certain cases, which may be due to varying degrees / levels of productivity and price differences of various inputs at the regional level. The rates, prices and outputs included in the resources and unit cost calculations, including allowances for wastage, normal productivity and efficiency are based on roadwork and bridge projects being carried out by NHA. The unit rates are average unit rates for a particular district and not project specific. The market can change very rapidly, which would obviously have an impact on the unit rates. It must be understood that main objective of the CSR is to provide a realistic reference base for preparing Cost Estimates / PC-I and Evaluation of Bids, for NHA projects. Our gratitude is to The Chairman NHA, Member (Planning), Member (Finance), Member (Operations), Member (Construction) and Member (Motorway) without whose support it would have been difficult to develop this Document. In the end, my appreciation is for my team, for all the technical and professional efforts to produce Revised Composite Schedule of Rates 2014. It is hoped that the CSR 2014, would serve as a Basic Engineer’s Estimate reference document for National Highway Authority, various Government Departments and the construction industry in general. Whilst all efforts are made to ensure the accuracy of the data and information used in updating the CSR, neither NHA nor M/s Sampak International (Pvt.) Ltd. can in any way accept liability for loss of any kind resulting from the use of CSR, made by any person, institution, company, department etc. S. M. A. Shirazi Managing Director SAMPAK International (Pvt.) Ltd (iii) 1. GENERAL For many years National Highway Authority has been compiling / updating the Composite Schedule of Rates for use in the Civil Engineering Industry. The Civil Engineering Industry uses this Schedule of Rates for pricing work by the application of unit rates to the quantities measured from the designer’s drawings. The main objective of the CSR is to provide a realistic reference base for cost estimates. One has to understand no two projects are the same, there are variables which effect the price of the project i.e., the volume of work below ground, embankment height, cut & fill, increased exposure to weather, and the tremendous variety of the projects, in terms of type, complexity and scale makes the straight forward use of unit rates less reliable. This uncertainty is compounded by the lower number of bill of items generated in Civil Engineering Projects as compared to Building Works so that the precise nature of work is less apparent from bill descriptions and the statistical effect of ‘swings and roundabout’ has less scope to average out extremes of pricing. To prepare a price for a Civil Engineering project, then, it is necessary to have regard to the method to be adopted in executing the work, draw up a detailed programme and then cost out the resources necessary to execute the chosen method. The first part of this process is the field of construction planner, there has been a tendency to postpone detailed estimating until the tendering stage itself, with the employer relying, up to that point, upon an estimate prepared on a ‘Thumb Rule’ basis. There is increasing growing pressure on the part of project sponsors for an improvement to budgetary advice, so that a decision to commit expenditure to a particular project is taken on firmer grounds. The absence of detailed price method during the pre-contract phase also inhibits the accurate costing of alternative designs and regular cost checking to ensure that the design is being developed within the employer’s budget. The CSR gives unit rates for use when quantities can be taken from available drawings. To take some note of the range of unit rates that might apply to an item, the rates themselves are in some cases related to working method – for example by identifying the different types of equipment that would suit varying circumstances. Nonetheless, it would be a folly to propose that all types of Civil Engineering work could be covered by the use of CSR. While developing these unit rates, we had in mind the type and scale of work to be commissioned by NHA. The CSR does embrace the great majority of work undertaken by NHA. Although almost all projects will have individual features that require careful attention in pricing, there will be some projects that are so specialist that they will not conform to standard pricing information at all. But for most projects, within the range of work covered, this CSR should provide a firm foundation for: Preparing Project Cost Estimate and PC-1 Evaluating Tender / Bids Evaluating Claims and Variation Order Arbitration Matters In order to prepare an authentic Composite Schedule of Rates and to keep it effective, the basic requirements are as under: Collection of first hand, prudent and legitimate information for inputs (Manpower, Material & Equipment) in the rate analysis. (iv) Merging the above information in proper proportion according to Design Specifications and Constructional requirements to create the rate of a work item. Updating the data inputs every year or from time to time, to revalidate the item rates. 2. GENERAL METHODOLOGY: a. Composite Schedule of Rates was originally published in the year 1991 and subsequent revisions were carried out in 1995, 2000, 2005, 2006, 2008, 2009 and 2011. There are total of 109 Districts considered and are given numbers in Alphabetical order and their Province wise breakdown as under: PROVINCE No. of Districts Punjab 36 Sind 20 Khyber Pakhtunkhwa 24 Baluchistan 29 Specifications and Methodology for Construction items have been adopted as given in General Specification of National Highway Authority (1998). Items of work for construction have been given the same numbers as appearing in the General Specifications of National Highway Authority. Some items have been added in CSR-2014, which were necessary but are not covered under General Specifications 1998. Hence, it has become imperative to revise and update the Specifications. b. These rates are based on the existing formulae and equipment efficiency levels used in the preparation of previous CSR 2011 with some modifications. c. The rates analysis of individual items of CSR 2014 consists of four basic inputs, which have been assigned the same code numbers as in the previous Composite Schedule of Rates. i. Manpower code starting from 1001 onwards ii. Material code starting from 2001 onwards iii. Equipment code starting from 3001 onwards iv. Overheads, Profits, Preliminaries & Taxes d. For the preparation of rates following documents have been referred: i. General Specifications 1998 ii. NHA Composite Schedule of Rates 2011 iii. Statistical Bulletins by Federal Bureau of Statistics iv. Current Market rates study (v) Code list of Manpower, Material and Equipment appear at the end of the chapter for the convenience of the users. 2.1 MANPOWER: a. Allocation of Code Numbers: Costs of manpower engaged on Plant & Equipment have been included in rental charges of Plant & Equipment and only site supervisory staff has been considered under the heading of Manpower. Code numbers are allocated accordingly to such manpower that is directly charged to the items of work. Manpower cost for top supervision, administration and other non-productive works of support services have been considered under overhead charges. b. Formulation of Rates: Manpower basic rates collected from districts have been first scrutinized, to eliminate irrational information and following overheads are applied to include fringe benefits and other charges: i. Social Security Payment ii. E.O.B.I. Payment iii. Education Cess Payment iv. Yearly Leave Salary (Earned, casual and sick) v. Bonus (Compulsory) vi. Provident Fund (Contribution of Employer) or Gratuity vii. Mess Expenses (Site Staff) viii. Entertainment Allowance (Provisional) ix. Group Life Insurance x. Site Staff Accommodation After including above overheads, manpower rates for each of the 109 district have been calculated and separate records developed for use by the Computer Program. 2.2 CONSTRUCTION MATERIAL: a. Allocation of Code Numbers to Materials: List of materials required for road construction has been first prepared from the construction items appearing in the General Specifications of National Highway Authority. After arranging the construction material list in order, code numbers have been allocated. (vi) b. Formulation of Rates: Considering the location of each district, Engineers decided the most appropriate source of construction materials for all the code numbers. The cost of material at source has been established from field data and transportation rates calculated, to arrive at the landed cost of material at the district headquarters.