Schedule of Rates (SoR), State PWD

The Schedule of Rates (SoR) published by each state's Public Works Department (PWD) is the official rate book that defines standard unit rates for all common construction items, earthwork, concrete, masonry, finishing, and services, for that state's geographic and market conditions. The SoR is updated periodically (typically annually or biennially) and is the benchmark against which all state government works contracts are priced.

What is a State PWD Schedule of Rates in government procurement?

Every state in India has its own PWD (or equivalent department by a different name, MES, R&B, WRD, etc.) and each publishes a state SoR applicable to works within that state. Maharashtra's PWD publishes the Maharashtra DSR, Tamil Nadu's PWD publishes the TNPWD SoR, Karnataka's PWD publishes the Karnataka PWD SoR, and so on. These rates reflect local wage rates, material prices, transport distances, and climatic conditions specific to each state.

The state SoR is organised by item category (civil, electrical, plumbing, roads, bridges) and then by item number. Each item entry includes: the item description, the unit of measurement, the analysis of rates (a breakdown of materials, labour, plant, and overhead components), and the total rate. The rate analysis is the government's estimate of what it should cost to execute that item, contractors use this to understand the assumptions behind the rate.

In percentage rate tenders (which are common in many states for standard building and road works below a defined value), contractors bid a single percentage premium or discount on the total value of the SoR-priced BOQ. A bid of "+3%" means the contractor will be paid 103% of the SoR rate for each item. A bid of "-2%" means they accept 98% of the SoR rate. The percentage determines who is L1.

State SoRs are periodically revised, and the revision date matters: a project estimated on last year's SoR but tendered this year uses the current year's SoR for bid pricing. If material prices have risen sharply since the estimate was prepared, contractors in percentage rate tenders may need to bid significantly above the SoR to recover real costs.

Why it matters for bidders

For any contractor working in state government procurement, deep familiarity with the relevant state SoR is foundational. Understanding which items in the SoR are priced generously (where the rate is above actual market cost, creating margin opportunity) and which are priced below market cost (where the contractor will lose money if awarded at that rate) is the core skill of works bid pricing.

Contractors should also monitor SoR revision cycles. A SoR revision that increases rates by 12% across the board changes the economics of all pending bids, percentage rate bids submitted before the revision are priced against the old SoR, while the market has moved.

Example

A Maharashtra PWD issues a percentage rate tender for a school building renovation estimated at Rs 45 lakh based on the current year's Maharashtra DSR rates. Three contractors bid: +8%, +4.5%, and -2%. The -2% bidder is L1. The contract is awarded at 98% of the DSR rates for all items. When the contractor executes the work and bills for plaster of Paris ceiling (a DSR item), payment is made at 98% of the DSR rate for that item, regardless of the contractor's actual cost.