ESTIMATING

BY
ASSOC. PROF. SETI MARIAM AYOP
UNIVERSITI TEKNOLOGI MARA
MALAYSIA
 INTRODUCTION
In construction activities, estimating
is defined as forecasting the total
cost of a construction project.

The total cost of the construction

project is made up of the cost of
various individual work elements
that involve in the project.
 INTRODUCTION
Estimating the cost of these individual
work elements of the construction
project requires knowledge on:

Characteristics of the work

How the work is done
At what phases of the construction
that particular work appear
Experience in doing or attending the
work
 INTRODUCTION
Good and accurate estimates are
produced from the combination of
experience and availability of
recorded cost data of the work
element.

For the purpose of estimating, this

cost data are recorded as HOUR
CONSTANTS either for labour or
plant used.
 INTRODUCTION

These HOUR CONSTANTS are the

labour or plant hours taken to
produce one unit of work element.

These HOUR CONSTANTS are not /

should not be affected by the any
fluctuation in the labour pay rates
or plant hire rates per hour.
 INTRODUCTION
But these rates per hour must be:

Kept up to date

Suitable to the productivity level

of the labour and plant used or
available

Suitable for the volume of work

 INTRODUCTION
To ensure a good and sound estimate
is achieved, it is vital for the
estimator to:
Go through the contract
documents drawings,
specifications and bills of quantities

Visit the site and take note the

conditions of the site that may
affect the estimate of the work
 INTRODUCTION
Bills of quantities are normally
prepared in accordance to the
Standard Method of Measurement
to ensure:
The right units for work elements
such as m, m, m linear or kg are
used; and
The right content of the work
element is considered and priced
for
 INTRODUCTION

Therefore, it is appropriate that if

the estimating work is done in
accordance to the Standard Method
of Measurement.

The output from the estimating work

is called the UNIT RATE of the
individual work element.
INDIVIDUAL ELEMENTS OF COST
Some of the major elements of cost
are:
1. Material cost
2. Labour cost
3. Plant cost
4. Establishment Charges
5. Water for the work
6. Power supply
7. Small plants and tools
ESTIMATING THE TOTAL COST
The total cost of the work is made up
of the cost of various individual
work elements.

For estimating and tendering the

construction project, these two
elements must be included:

1. Establishment charges
2. Profit
 THE MATERIAL COST
In estimating the cost of the material
involved in a unit rate of work, the
cost to be considered are:
1. The material cost itself
2. Percentages for wastage
3. Transportation and delivery cost
4. Storing cost
5. Cost of hauling the material from
store to the work place
 THE LABOUR COST
There are 2 types of labour cost to be
included:
1. The cost of labour supervision and
administration which considered in
Establishment Charges

2. The cost of direct labour, hands-on

to work being estimated which is
given in labour hour constants and to
be included directly to the unit rate
of the work
 THE PLANT COST
There are 2 types of plant cost
involved in:
1. Small plant and tools such as
shovels, pails, wheelbarrows and any
other non-mechanised tools.

They are allowed for in a percentage

addition to the estimated cost of
the work OR priced in the
PRELIMINARY SECTION of the BQ
 THE PLANT COST
Mechanical plants such as concrete
mixers, dumpers, excavators, lorries and
etc.
There are 3 ways these mechanical plants
can be obtained:

1. Purchased cash
2. Hire purchase
3. Rental
 THE PLANT COST
The working cost of plant per hour
comprises the following:
1. The hiring rate of the plant per hour
and allowing for:
- The capital cost of the plant
- The depreciation of the plant

Or
The rental rate of the plant per hour
 THE PLANT COST
2. The cost of maintenance:

- The cost of repairs and renewals

- The cost of insurance and licences
- The cost of fuel, lubricating and
greasing
- The operators wages

For rental equipment, the wages of the

operators and cost of maintenance are
paid by the suppliers