The contractors profit added in analysis of rates is:
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A.
20% of the total material and labour cost
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B.
20% of the total material cost
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C.
10% of total material cost
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D.
10% of total material and labour cost
Correct Answer:
D. 10% of total material and labour cost
Explanation:
The correct answer is 10% of total material and labour cost.
In the process of rate analysis for construction projects, the contractor's profit is a standard addition to the primary costs of the work. This percentage is intended to cover the contractor’s expertise, management, and the risks associated with the project. According to standard engineering practices and departmental guidelines, a profit of 10% is typically added to the combined sum of the material and labor costs. This ensures the final unit rate reflects both the physical cost of construction and a reasonable earning for the contractor.
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