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Star Rate Breakdown of Mep Items

The document defines star rates as built up rates that include the costs of raw materials, labor, installation, tools/equipment, testing/commissioning, and overhead/profit. It then provides breakdowns of how to calculate the costs that make up star rates, including: [1] material costs using supplier quotations; [2] labor costs broken into unskilled, skilled, and supervision percentages; and [3] installation costs such as engineering, consumables, major plant usage, and testing/commissioning using provided percentages. Finally, it states the agreed markup for overhead and profit is 10-14% of total labor and material costs.

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139 views2 pages

Star Rate Breakdown of Mep Items

The document defines star rates as built up rates that include the costs of raw materials, labor, installation, tools/equipment, testing/commissioning, and overhead/profit. It then provides breakdowns of how to calculate the costs that make up star rates, including: [1] material costs using supplier quotations; [2] labor costs broken into unskilled, skilled, and supervision percentages; and [3] installation costs such as engineering, consumables, major plant usage, and testing/commissioning using provided percentages. Finally, it states the agreed markup for overhead and profit is 10-14% of total labor and material costs.

Uploaded by

DXBGs - Bot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SABRA, ar.sabra@ghantootgroup.

ae
ROAD #4 Phone: +971 2 6414151
Abdul Rahman GHANTOOT BUILDING Fax: +971 2 6412010
ar.sabra@me.com
CONTRACTS MANAGER FIRST FLOOR Mobile: +971 50 6414151
www.ghantootgroup.com

GHANTOOT TRANSPORT & GENERAL CONTRACTING EST. BUILDING DIV

STAR RATE OF MEP ITEMS BREAKDOWN ANALYSES

DEFINITION:

Star Rate is a built up rate which can be assessed by raw materials cost, labor cost,
installation cost along with the required plant, tools, equipment & consumable items,
testing and commission plus reasonable overhead and profit. The assessment method
revealed hereinafter will be applied for all Star Rates.

1. MATERIAL COST:

The direct cost of the material supported with supplier’s quotation (In case of nominated
/ Approved Supplier) or with three quotations from different suppliers.

The direct cost of material should include transportation, custom fees or any miscellany
expenses. Consequently the cost should cover the all expenses of material until reach
the site.

1. LABOR COST:

The total cost of labor required to install the material, divided in to three category
unskilled labor, skilled labor and supervision/ charge hand.
The breakdown structure of labor cost in general:

Unskilled Skilled Charge Hand Total


20% 70% 10% 100%

The percentages could vary depending on the type of material and the method
statement of installation.

1. INSTALLATION COST:

The breakdown of installation cost as follows:

1.1 Engineering / Workshop drawings / Method statement:

Verification by Senior Engineer of all Parameters related to Additional Equipment Review


by Engineer and preparation of Information for Draftsman and rechecking after drafting.
Final review will be by the Engineering Manager. Engineering cost is 2-3% of Material Cost

Reference:
1.2 Consumable items:

All items required to install the material as of but not limited to:
Stainless steel nuts & Bolts, Clamps, Glue, Stainless steel supports, small tools, etc...
Consumable Items is 1-3% of Material Cost.

1.3 Major Plant:

This is to include all major plant machinery used & constitutes percentage of all the major
plant used in the execution of work in the project. Also include handling of the material
by Tower Cranes or Forklift etc... Major Plant Cost is 7% OF Material Cost. (If required)

1.4 Testing and commissioning:

This include Manpower, Engineering, and in some cases special devices or equipment.
Also testing and commissioning include the third party testing if required.

3.4.1 Manpower:
Labour to prepare area for T & C as of False Ceiling removal, electrical panels, DDC
Controllers, Electrical Rooms among other requirement

3.4.2 Engineering:
Engineers are to carry all tests required for all additional equipment (mugger test,
pressure test, air test, continuity test, noise test and others)

3.4.3 Special Devices or equipment:


Equipment required that includes Multi Meters Air Hoods Muggers, Manometers and
others):

TESTING AND COMMISSIONING BREAKDOWN:

MANPOWER ENGINEERING EQUIPMENT TOTAL


1% 1.5% 0.5% 3%

INSTALLATION BREAKDOWN:

Engineering / Consumable items Major Plant Testing &


Workshop drawings Commissioning
3% 3% 7% 3%

MARK-UP / OVERHEAD AND PROFIT:

The agreed Mark-up is 10-14 % of the total costs of labor & Material

Reference:

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