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SOR decided by
Manufacturing Companies
Government Bodies
Suppliers
Transporter
Government Bodies
SOR, which stands for Schedule of Rates, is a comprehensive document prepared and maintained by government bodies (such as PWD, CPWD, or state electricity boards) to standardize the cost of labor and materials for construction and electrical projects. It serves as the primary benchmark for estimating project costs and preparing tender documents to ensure uniformity in competitive bidding.
SOR, which stands for Schedule of Rates, is a comprehensive document prepared and maintained by government bodies (such as PWD, CPWD, or state electricity boards) to standardize the cost of labor and materials for construction and electrical projects. It serves as the primary benchmark for estimating project costs and preparing tender documents to ensure uniformity in competitive bidding.
TotalCost=тИС(Quantity├ЧSOR) тАФ Basic estimation formula using the Schedule of Rates
The Schedule of Rates is formulated based on market analysis of material costs, prevailing labor wages, and standard productivity norms for specific tasks. Government departments revise these schedules periodically to account for inflation, technological changes, and fluctuations in commodity prices, ensuring that public works estimates remain realistic and legally defensible during the tendering process.
SOR provides the rate per unit for various items of work.
It is legally binding for government contracts to prevent cost manipulation.
Revision cycles usually occur annually or biennially depending on department policy.
It includes provisions for taxes, contractor profit, and site overheads.
Ensures uniformity in project cost estimation across different regions.
Provides a transparent basis for evaluating tenders and avoiding corruption.
May lag behind real-time market price fluctuations during high volatility.
Requires significant administrative effort to update and maintain.
Public works tenders and contract management.
Preparation of Detailed Project Reports (DPR) for government infrastructure.
The SOR is often specific to a geographical region or district to account for local transportation costs.
Option A (Manufacturing Companies) usually define MRP, not government rates. Option C (Suppliers) provide quotations which are compared against SOR. Option D (Transporter) is a logistics entity unrelated to standardizing government rates.
B is correct тАФ Government bodies (such as PWD or state utilities) are responsible for publishing and updating the Schedule of Rates (SOR) to standardize project costs.
Always verify if a question asks about 'SOR' (Government standard) versus 'Market Rate' (Private sector estimation), as they utilize different valuation methodologies.