Estimate & Costing
Estimate & Costing
P.W.D C.P.W.D
PWD - PUBLIC WORKS DEPRTMENT CPWD - CENTRAL PUBLIC WORKS DEPRTMENT
# LUMP SUM ITEMS: A lump sum contract is a construction agreement in which the
contractor agrees to complete the project for a predetermined, set price. Under a lump
sum agreement, also known as a stipulated-sum, the contractor submits a total project price
instead of bidding on each individual item.
In lump sum estimating, contractors deliver a single price for the project, rather than a unit
price. The lump sum may be only one total amount for the entire project or it may be a price
for each bid category.
# OVERHEADS:
The overhead costs comes to about 6-8% of the project cost and include the indirect
expenses incurred during the execution of a project
# ADMINISTRATIVE APPROVAL AND TECHNICAL SANCTION: Administrative
approval means the formal acceptance by an administrative department of a proposal that
the Public Works Department should incur a specified amount of expenditure on a specified
work required by, or in connection with that administrative department.
Technical Sanction means the order of a competent authority sanctioning a properly
detailed estimate of the cost of a work of construction or repair to be carried out by the
Public Works Department.
❖ What is analysis of rates? What are the governing factors of rate of any
item?
In order to determine the rate of a particular item, the factors affecting the rate of that
item are studied carefully and then finally a rate is decided for that item. This process of
determining the rates of an item is termed as analysis of rates or rate analysis.
The cost of materials in rate analysis is calculated as combination of cost of material at
origin, its transportation costs, taxes.
PURPOSE OF RATE ANALYSIS
▪ To work out the actual cost of per unit of the items.
▪ To work out the economical use of materials and processes in completing the
particulars item.
▪ To work out the cost of extra items which are not provided in the contract bond,
but are to be done as per the directions of the client.
Thus, the various types of estimates prepared according to their requirements may be
classified as follows:
1. Preliminary or Approximate or Rough Cost Estimate
2. Plinth Area Estimate.
3. Cubic Contents Method
4. Approximate Quantity Method
5. Detailed Estimate (or Item Rate Estimate)
6. Revised Estimate
7. Supplementary Estimate
8. Supplementary and Revised Estimate
9. Annual Repair (A.R) or Annual Maintenance (A.M.)
Estimate Of the above estimates, the first four belong to approximate estimates and the
remaining five are detailed estimates.
(i) PRELIMINARY OR APPROXIMATE OR ROUGH COST ESTIMATE:
▪ This approximate estimate is prepared for preliminary studies of the various
aspects of the work and also to decide the financial position and policy for
administrative approval by competent sanctioning authority.
▪ In case of commercial projects such as residential buildings, irrigation and power
projects that earn revenue, the probable income is also mentioned and the
investment in the project is justified.
▪ This estimate is prepared on the basis of practical experience of carrying out
similar works in the past and their rates.
▪ In this estimate, the approximate cost of all important works such as cost of land,
roads, buildings, water supply, sanitary works, electrification etc. are mentioned
separately.
▪ A brief report of the project indicating its necessity, utility and method of arriving
at the cost of each item and the site or layout plan is also enclosed with the
estimate.
(ii) PLINTH AREA ESTIMATE:
▪ The plinth area of the proposed building is calculated for the covered i.e., roofed
portion by measuring the outer dimensions at the plinth level.
▪ The area of courtyards, and other open areas are not to be included while
calculating the plinth area.
▪ The plinth-area method of preparing estimate gives the approximate cost of the
building to be constructed.
▪ Even if the plan of the proposed building is not ready, the floor areas of different
units (i.e., rooms) are worked out from the user’s requirements and about 35% of
it is added for thickness of walls, circulation and waste to obtain the approximate
total plinth area.
▪ This plinth area is then multiplied by the current plinth area rate in the locality to
obtain the approximate cost of the proposed building.
▪ The method is simple and is usually adopted in practice.
(iii) CUBIC CONTENT METHOD:
▪ The cubic content method is an approximate method of preparing an estimate of
a proposed building and differs from the method (ii) described above in that, in
addition to the total plinth area of the proposed building, it also takes into
consideration its height.
▪ The total cubic contents of the building are obtained by multiplying its total plinth
area by the height.
▪ Knowing the cubic content rate of recently constructed building having similar
specifications in the locality, the approximate cost of the proposed building is
worked out by multiplying the total cubic contents by its cubic content rate.
▪ For multi storeyed building, the height is measured between floor level of one
storey to the top of next floor above it.
▪ As per I.S. 3861, the foundation and plinth and the parapet above the roof are not
taken into consideration in calculating the cubic contents.
▪ The cubic content method is more accurate as compared to plinth area method
as it accounts for the height of the building.
▪ In practice, however, this method is not used.
The length of the room is 5m and breadth is 4.5; the thickness of the wall on all sides is 0.30 mm.
Initially, you have to find the centre to centre length of long wall and then centre to centre span of
short wall. After that, calculate the total length of the room.
The length of the long wall is taken as 15.90 meter and as there are 2 long walls, the total length
will be = 15.90 x 2 = 31.9m
The length of short wall is taken as 4.80 meter and as there are 4 short walls, the total length will
be = 4.80 x 4 = 19.20
Therefore, the entire length of long wall & short wall = 31.9 + 19.2 = 51.1m
The height of damp proof course or DPC = 0.0381m
The length will be same for building estimation process i.e., 51.1m
The earthwork quantity will be calculated as follow: -
The number of earthworks = 1
Length of earthwork = 51.1m
Breadth of earthwork = 1.05
Height of earthwork = 1.2m
The quantity of earthwork = Length x Breadth x Height = 51.1 x 1.05 x 1.2 = 64.38 cubic meter.
SHORT WALL-LONG WALL METHOD
For the calculating quantity of various construction item, long wall and short wall method
is used. For measuring the long wall and short wall the external out-to-out length of walls
running in the longitudinal direction generally is considered as “long wall” while the in-to
in internal length of walls running in the transverse direction is called as “short wall” or
“cross wall”. For calculating quantity multiply the length into the breadth and height of the
wall. For finding out the length of long wall, simply add centre length of wall to the two
times half breadth on one side of the wall which gives the out-to-out length of long wall.
Length of Long Wall = Center to Center Length of wall + Half Breadth on One Side +
Half Breadth on the Other side
Length of Long Wall = Center to Center Length of wall + Half Breadth on One Side +
Half Breadth on the Other Side = Center to Center Length of wall + One Breadth
For finding out length of short wall or cross wall subtract from the centre length, so the one
breadth of the wall, which gives the length of the short wall (in-to-in) (instead of adding).
IMPORTANCE: The prime purpose of the Bill of Quantities (BQ) is to enable all
contractors tendering for a contract to price on exactly the same information. Subsequent
to this, it is widely used for post-tender work such as: material scheduling; construction
planning; cost analysis; and cost planning.
A Bill of Quantities or BOQ is a document used for tendering in the construction
industry. It contains a list of materials or supplies in which the cost for all parts or rates
for combined materials and labour and their costs are itemized.
❖ CARPET AREA
Carpet area of building is the useful area or liveable area or lettable area. This is the
total floor area minus Circulation Area (Veranda, Corridor, Passage, Staircase, Lifts,
Entrance Hall etc) and minus other non-usable area as sanitary accommodations
(Bath and W.C area). For office building carpet area is lettable area or usable area
and for residential building carpet area is liveable area and should exclude the
kitchen pantry store and similar other room which are not used for living purposes.
c) 230mm THICK BRICK WORK IN SUPER STUCTURE IN 1:6 CEMENT AND SAND
MORTAR
d) RCC in column and footing
e) PCC FLOORING
SPECIFICATIONS
❖ A) CONTRACT DOCUMENTS: For a CONTRACT to be valid, there must be an offer
from the owner in the form of tender notice to get some specified work to be executed
and there must be an acceptance from the contractor to execute the work, both the offer
and the acceptance must be definite and legal.
CONTRACT DOCUMENTS When the tender of a contractor is accepted, an agreement
between the contractor and the owner takes place and the documents defining the rights
and obligations of the owner and the contractor are attached to the agreement bond and
this is called a contract document. Each page of the contract document bears the
signature of the contractor and the accepting authority and any correction in it is initialed.
❖ BUDGETARY FORECAST:
Budgeting quantifies the expectation of revenues that a business wants to achieve for a
future period, whereas financial forecasting estimates the amount of revenue or
income that will be achieved in a future period.
Budgeting and forecasting help you formulate strategies, plan for the future and align
your goals across the entire organization. Both processes are crucial components of
every company's growth journey, especially during periods of change.
❖ BID DOCUMENT:
The bid is the document illustrating project quantities and activities of the materials
necessary for each project, with the cost of all activities for each project. Bid
documents include the plans, specifications and estimates (PS&E) developed to
describe all of the elements of a construction project and become the contract
between the local government and the selected contractor.
❖ QUOTATION NOTICE:
A quotation and an estimate is that: a quotation is an agreed fixed price.
A quotation is a fixed price offer that can't be changed once accepted by the customer.
You must adhere to the quotation price even if you carry out more work than you
expected. If you think this is likely to happen, it makes more sense to give an estimate.
You can also specify in the quotation precisely what it covers, and situations that will lead
to additional charges.
The quotation may be understood as a formal document of promise, given by the
prospective supplier, to supply the stated goods or services needed by the buyer at the
stated price under specific conditions. It comprises of terms of sale, payment and
warranty, which includes the price decided to charge for the product or service, date, time
and place of delivery, validity period of quotation.
Quotation helps the buyer in knowing the cost of goods or services, before making a
purchase. In order to obtain the quotations (i.e., price for the required material),
generally, tenders are floated by the government enterprises.
❖ EARNEST MONEY:
• It is the amount of money to be deposited along with the tender document to the
department by the contractors quoting a tender. This money is a guarantee against
the refusal of any contractor to take up the work after the acceptance of his tender. In
case of refusal, this amount is forfeited.
• EMD of contractors whose tenders are not accepted will be refunded.
• 1% - 2% of the estimated cost of work is the Earnest Money Deposit.
❖ SINKING FUND
The fund which is gradually accumulated by way of periodic on annual deposit for the
replacement of the building or structure at the end of its useful life, it is termed as sinking
fund.
I = _ Si____
(1+i) n -1
❖ DETAILED SPECIFICATIONS
These give the detailed description of the various item of work laying down the quantities
and qualities of materials, the proportions, the method of preparation, workmanship and
execution of work. Detailed specification describes every item of work separately, in
detail and are helpful for the execution, of the different items of work.
❖ DETAIL SPECIFICATION OF
a) PLASTERING IN 1:6 CEMENT AND SAND MORTAR
The proportion of cement and sand be as specified 1:6. Cement shall be Portland
cement of standard specifications. Send shall be clean and free from dust, dirt and
organic matters and cell not contain more than 4% silt. Find local sand may be used
which shall pass through screen having 9 meshes under per sq. cm (64 meshes per
sq. in). Fineness modulus of sand shall not be less than 10.
The mixing shall be done first day on a pukka platform and then with water. cement
and sand shall be measured with boxes to have the required proportion, sand spread
out on the platform and the required quantity of cement spread on top of sand and
the whole mixed dry. The dry mixture cell can be found roughly into a hollow concept
and water added slowly and gradually bi a a can and the whole mixed to have a
uniform colour and consistency. Quantity of water should not exceed 30 litres (6gls)
per bag of cement. 1 bag of cement (50kg) shall be taken at 1/30 cu m (12cu ft) and
sand shall be measured with box to have required proportion.
Mixing may also be done by means of mechanical mixer. In this process first about 5
to 10% of water shall be put in mixer and then sand and cement in the required
person shall be added. Mixing will be continued until the mix become uniform in
colour and consistency.
Only such quantity of motor as can be used before setting begin, shall be mixed with
water at one time. No motor which has begun to set shall be used even after
remixing, such set motor shall be immediately removed from the site of Work.
The storage of materials that shall be used in concrete production should fulfill the
following conditions:
• The cement and its ingredients should be stored in order to be divided from the other
materials, which are not suitable for concrete production and damaged its quality.
• The cement should be stored in dried spaces which keep it away from water rain
moistening.
d) CENTERING OF ARCHES
h) COARSE AGGREGATE
1. The coarse aggregate is clean, hard, non-porous, free from lumps of clay and
vegetable matter.
2. Water absorption of aggregate is not more than 10 % of its weight after 24 hours
immersion in water.
3. Angular and roughly cubicle particles are ideal. River gravels make the best
coarse aggregate.
4. Aggregate is chemically inert material.
5. Brick aggregate is not used in RCC work.
Coarse Aggregate should not contain any of the following deleterious materials.
• Pyrites
• Coal
• Lignite
• Mica
• Clay
• Alkali
• Soft fragments
• Sea shells
• Shale or similar laminated material
NOTE: The maximum quantity of deleterious materials should not be more than 5%
of the weight of the aggregate