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Topic : Construction Project Management
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Created by : M NITIN SHENOY, PMP, IPMA-D, CEng MICE, Manager  | 04 27 2009 14:47:23 +0000
Industry : ConstructionFunctional Area : Project Management(Technology)
Activity:  12139 views;  last activity : 04 20 2011 16:58:54 +0000

Are the Estimates &  Budgets arrived in line with CPWD Delhi Schedule of Rates (DSR) are viable and competitive enough in the present market trends..?

 Please do support your views based on your experience in Govt. Projects...!!!

 
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            The rates is DSR will give you a basis for estimating and complete nomenclature of the item with pool proof item for avoiding any controversies in execution between government and the contractor. We have add the cost index of that particular area where the work to be executed to assess the exact estimate cost to be obtained. But for quoting the rates you cannot quoate the rates of DSR. We have to arrive the Current Market rate of Each item by using standard set of Analysis of rates. Then only you can get the exact rates to be quoted.

N.S.Rao,

Assistant Engineer,CPWD


By N.Sreenivasa Rao, Construction Management, Central Public Works Department  04 27 2009 18:42:47 +0000
 
Top Argument
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DSR rates doesn't cater to the present variety of specialized works involved in construction. As the intricacies of such specialized works in reality varies from those stated /  covered in DSR, the rates arrived based on DSR are not capable / competitive enough to market rates..

This is one of the reasons why No bids raised by Contractors ( i terms of Market Rates) are accepted as valid Offers in CPWD tenders  as generally the Budget arrived by CPWD based on DSR rates are quite lower that the real market quotes / offers...!!

This is the reasons why Govt.' projects normally don't take off...!!!


By M NITIN SHENOY, PMP, IPMA-D, CEng MICE, Manager  04 28 2009 12:28:48 +0000
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Sir,

I agree with you. DSR rates give the firm basis of cost analysis.

For the tendering purpose updated material rates can be taken from the various manufacturers and the labour rates can be easily obtained from various magzins such as Builders friend and etc. By combining all these with the basis of DSR one can easily do the estimation with strong backup.

Vinay Talkhande

GET-Mechanical, Cost Estimation and Analysis

Lanco Infratech Ltd.


By Vinay Talkhande, Engineer - Mechanical, Cost Estimation & Analysis (Tendering)  | 04 20 2011 16:58:54 +0000
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Sir,

I agree with you to some extent ie to update the items. But every six months updating is a tedious process in govt organization. New materials and new innovations are coming up. Mostly all the items are being updated and we have separate wing to look after this. But certain architectural features which varies case to case it is not possible to modulate into single unified item. Then we have to do the market analysis for the same. So DSR is being updated once in 3 years will be sufficient.

N.S.Rao


By N.Sreenivasa Rao, Construction Management, Central Public Works Department  | 10 30 2010 04:01:07 +0000
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This can be taken as basis for the scope but costing should be as per the prevaiing rates.
By Cyril S M, General Manager & Head - Marketing - High Mast, Bajaj Electricals Limited  | 10 24 2010 13:49:24 +0000
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Most of the items for Constructions Industry are covered in DSR, but it still needs to be reviewed. It's very much better if the CPWD DSR officials review it half yearly and add the items which is still Non-DSR.


By V.P. SUMAN, Head Projects, PMS Buildtech (P) Ltd.  | 10 24 2010 09:53:37 +0000
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DSR Rates are just the base for estimates.almost all items in civil engineering are considered in DSR.This gives the basic idea for estimate.Cost Index are considered for arriving  at the market rates which will be at par with the market rates.The Nomenclature of items executed are clearly mentioned in the items which will help the agencies to quote for the items properly without any litigations.Each and every items are crystal clear so that the agencies will be very clear to understand the items properly to quote accordingly.

M.K.Shaji

Rtd Assistant Engineer(Civil),Pune.

 


By muttath kochukunju shaji, Project management, Fr  | 11 24 2009 00:23:28 +0000
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Yes.It is true. There is lot of recession in the private construction industries.Due to which many builders are taking contracts in government works. Due to which there is tough competetitive tenders are being quoted in CPWD and other govet areas. There is consistancy in govt works though there is recession in the corporate construction sectors.

 

nsrao

AE,CPWd


By N.Sreenivasa Rao, Construction Management, Central Public Works Department  | 05 01 2009 14:44:59 +0000
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It is not correct to say that DSR rates does not represent correct rates specially for specialised items. More tha 95% of building items or item used for civil engineering construction are avaiable in DSR. Specilaised item which are not avilable are to be analysed based on market rates. I like to suggest all to go through DSR 2007 where most of things have been updated now. There has been lot of advancement in construction practices ,lot of machination has taken place in construiction i.e use of batching plants ,concrete pumps tower cranes and sophoistictaed instruments for surveys like total station and digital theodolites. Similarly Computrers are being used for recording and printing measrement and bills and progress reporting and monitoring. All such factors have bearing on construction. Keeeping all these factors in mind DSR rates have been revised and updated. Now trend has reveresed for Govt. Bids . Overwhelmimg response are coming and competetive prices. May be private reality players have slowed down construction so agencies are coming forward for Govt. Projects. But I am of firm opinion that DSR rates are quite reasonable as compared to the market prices. Moreover Bid are evaluated based on current market prices of all materials and Clause 10CA exist in the most agreements which cater for escalation of basic materials of cement and steel. So not correct to say that govt Projects does not take off.


By Er. Harnam Singh, Project Manager, CPWD  | 04 29 2009 17:30:58 +0000
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I support your views, but we can take their rates as base & may give justification for extra rates.


By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 10 30 2010 07:55:52 +0000
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No. current rates are to be used as per DSR. DSR serves only as a Guideline for Tenderer. For biding, current rates & foreseeable risk factor, is to be taken into account. Contractor can not use ,exactly the DSR without considering the present rates.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 10 24 2010 15:07:21 +0000
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