# KNS 3333 CONSTRUCTION TECHNOLOGY

COSTING FOR CIVIL ENGINEERING PROJECTS

Faculty Of Engineering UNIVERSITI MALAYSIA SARAWAK

COSTING FOR CIVIL ENGINEERING PROJECTS

Cost

Quantity

Rate

Cost Estimating Methods

Cost

What is Cost ?

An estimate how much money will be needed or price to be charged for something.
(Oxford Advanced Learner’s Dictionary)

Why Cost (Control) Is Important?
Pre-contract Stage Post contract Stage

Inception
Preliminary cost estimate

Design
Comparative cost estimate

Tender

Construction
Planned profits achieved ? Feedback for future cost estimating available ? What corrective action to be taken ?

Alternative materials

Form of construction

Within economic limit of expenditure ?

How Costing Is Done?

Quantity

X

Rate

=

Amount

Quantity?

What is Quantity ?

The measurement of something by stating how much of it there is.
(Oxford Advanced Learner’s Dictionary)

How quantity is read? Quantity Unit of measurement

800 M
Quantity is shown as a figure and a unit of measurement behind it.

Unit of measurement Area (M2) Length (M) Volume (M3)

Quantity
Hours or Day Others Weight (Kg or Ton)

Rate

What is Rate?

A fixed charge, payment or value.
(Oxford Advanced Learner’s Dictionary)

What is Rate?

Price per unit of measurement.

How rate is read? Price of item Per unit of measurement

RM 250.00/M3
Currency

Rate Build Up

Material Cost Wastages Plant Cost Labour Cost Profit & Overheads

Example Of Market Rate
Description Excavation (pit) Concrete Grade 15 Concrete Grade 20 Concrete Grade 25 Formwork Reinforcement Unit M3 M3 M3 M3 M2 Kg Rate (RM) 10.00 240.00 255.00 270.00 28.00 3.20

Rate will differ from one project to another due to various factors such as size, nature of work, location, market conditions, etc.

Cost Estimating Methods

Notes On Costing For Civil Engineering Projects Involve large amount of uncertainty owing to nature of ground conditions, temporary works, etc.

Notes On Costing For Civil Engineering Projects Different method of measurement is used for civil engineering works (CESMM). Bill of quantities comprise large quantities of comparatively few items. Quantities usually approximate and remeasurement required when work is actually carried out.

Notes On Costing For Civil Engineering Projects

Costing can be carried out by breaking down works into smaller cost items and price the quantities against a rate.

Notes On Costing For Civil Engineering Projects Costing similar to building works but more towards method of construction rather than material cost.

Cost Estimating Methods Unit Method
Low Mid High

Estimated Cost

=

Standard Unit Of Accommodation

Appropriate X Cost Per Unit

Cost Estimating Methods Superficial Method
Low Mid High

Estimated Cost

=

Area Of Floors

X

Cost Per Square Metre

Cost Estimating Methods Approximate Quantities
Low Mid High

Estimated Cost

=

Items Of Major Cost Importance Measured Only

X

Unit Rate

Build up on basis from cost database price book or priced BQ from previous project

Cost Estimating Methods Bill Of Quantities
Low Mid High

Estimated Cost

=

Measured Quantities

X

Unit Rate

Pre-Tender Estimate to include other items like Preliminaries, Provisional Sums, Prime Cost Sums, Contingency, etc.

Build up on basis from cost database price book or priced BQ from previous project

Cost Estimating Methods
Skills

Quality of relevant available pricing information

Degree Of Accuracy

Experience Type of information provided

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