Q.99 Consider the given statements. I: Rate of material used for construction includes the cost of transport. II: For material that is supplied departmentally, cost of carriage from godown to work rate shall be added. Which of the statements is/are true?
- AOnly statement II is true
- BBoth statements I and II are trueCorrect
- CBoth statements I and II are false
- DOnly statement I is true
Solution
Concept
Material rate in rate analysis is the rate at site, so transport is included. For departmental supply, carriage from godown to site is added.
Step-by-step solution
1. In rate analysis, the material rate means the cost of material delivered at the work site. 2. So the material rate includes transport (carriage) cost. Statement I is true. 3. When the department supplies material from its own godown, the issue rate does not cover moving it to site. 4. So carriage from godown to work site is added to the rate. Statement II is true. 5. Both statements are true, so the answer is (B).
Explanation
Material rates used in estimates are 'at site' rates, so they include transport cost. If material is issued from a departmental godown, the cost to carry it from the godown to the site must be added. So both statements are true.
Why the other options are wrong
A: Statement I is also true, because site rate includes transport. C: Both statements are true, not false. D: Statement II is also true, because godown-to-site carriage is added.
Shortcut
Material rate = cost at site. Any carriage up to the site must be included or added.
Common mistake
Thinking material rate means only the purchase cost at the source, without transport.
Correct answer: B) Both statements I and II are true