| Component | % of Price 3 | Source | | :--- | :--- | :--- | | | 55% | Quoted from district-level dealers (Price 1) | | Labour & Shuttering | 25% | PWD standard labour schedules | | Plant & Machinery (Mixer, Vibrator) | 10% | Depreciation + fuel (linked to diesel price index) | | Overheads (Site office, security, water) | 5% | Fixed | | Contractor’s Profit | 5% | This is the key number. In Price 3, profit is legally capped at 5%. |
The rates are not static; they are periodically updated by the government to reflect market fluctuations.
Unlike fixed-price contracts, Price 3 includes a dynamic element. When diesel prices spike (a weekly occurrence in Kerala), the PWD’s formula automatically adjusts the Price 3 rate for earthmoving and transportation. Contractors don’t have to beg for relief; it is baked into the code. kerala pwd price 3
"The LMR file received in Chief Engineer's Office may have abnormal rates in it, sometimes, under such cases, the file will be returned to the Executive Engineer for correction and clarification..."
Note: Rates vary significantly by district. For example, M-sand is typically more expensive in Thiruvananthapuram (₹2,650) compared to Palakkad (₹1,731). | Component | % of Price 3 |
Kerala PWD Schedule of Rates: Understanding the New Pricing Standards
: This is a percentage added to the base DSR to account for Kerala's higher labor wages and material transportation costs. For instance, recent indices for various districts range from approximately 37% to 66% over the base rates. Key Building Material Prices (2024–2025 Estimates) Unlike fixed-price contracts, Price 3 includes a dynamic
The exact percentage difference between Price 1, Price 2, and Price 3 is defined in the manuals and updated through periodic Government Orders (GOs) and circulars issued by the Kerala Government Superintending Engineers.
Now utilized by other engineering wings like the Kerala Water Authority (KWA) for water supply projects 3.2.3 . Key Features and Components of PRICE 3.0
For contractors, understanding the latest "price 3" data is essential for accurate bidding.