RATE ANALYSIS AND BUDGETING OF ROAD PAVEMENT

Abstract

Pavement of road is important for its complexity and cost. Rate analysis and budgeting are parts of
construction management, prepared by project managers in the planning phase for controlling and reporting of cost
overrun and underrun. Rate analysis and budgeting are challenging tasks for construction project managers. Road
pavement work often faces delay and cost overrun due to inaccurate rate analysis and allocated budget. Objective of
this term paper is accuracy in rate analysis and allocation of budget for road pavement. Analysis of rates and
budgeting are prepared based on scope of work, design, specification, updated rates, availability of resources and
factors affecting them. In this paper, the information is collected about required documents, tools and techniques for
analysis of rates and budgeting, factors affecting rate analysis and budget, and methods of Analogous Cost
Estimation, Parametric Cost Estimation, Bottom-up Cost Estimation and Three point Cost Estimation. Bottom-up
Cost Estimation method is good practice for accurate rate analysis and budgeting of road pavement work.