Quantity Surveying and Estimation - I UNIT I

Unit I. 1.1 Introduction to Quantity Surveying and Estimating,

IN Building construction estimating is the determination of probable construction costs of any

given project. Many items influence and contribute to the cost of a project; each item must be
analyzed, quantified, and priced. Because the estimate is prepared before the actual construction,
much study and thought must be put into the construction documents.
The quantities determined for the estimate will ultimately be used to order and purchase the
needed materials. The estimated quantities and their associated projected costs will become the
basis of project controls in the field.
Estimating the ultimate cost of a project requires the integration of many variables. These
variables fall into either direct field costs or indirect field costs. The indirect field costs are also
referred to as general conditions or project overhead costs in building construction. The direct field
costs are the material, labor, equipment, or subcontracted items that are permanently and
physically integrated into the building. For example, the labor and materials for the foundation of
the building would be a direct field cost. The indirect field costs are the cost for the items that are
required to support the field construction efforts. For example, the project site office would be a
general conditions cost. In addition, factors such as weather, transportation, soil conditions, labor
strikes, material availability, and subcontractor availability need to be integrated into the estimate.
At the conceptual stage of the project, the contractor prepares a cost estimate based on the project’s
concept. This is known as a conceptual estimate. When performing a conceptual estimate, typically,
drawings are not available, or they are very limited. What exists is often a vague verbal or written
description of the project scope, which may be accompanied by a few sketches. When preparing this type
of estimate, the contractor makes assumptions about virtually every aspect of the project. The conceptual
estimate is used early in the design process to check to see if the owner’s wants are in line with their
budget and is often used as a starting point to begin contract negotiations.
During the design process, the contractor prepares and maintains a cost estimate based on the current,
but incomplete, design. This is often referred to as a preliminary estimate. In addition, the contractor may
prepare estimates that are used to select between building materials and to determine whether the cost to
upgrade the materials is justified. What all these estimates have in common is that the design is
incomplete. Once the design is complete, the contractor can prepare a detailed estimated for the project.

Different types of estimates used in construction

A cost estimate is predicted expenditure of a project which is generally prepared before the project
is taken up. It is prepared in different types based on the requirement of the project. It can be
prepared in a detailed manner by taking all items of works into consideration and sometimes it can
also be prepared approximately without going into many details.
Types of Cost Estimates Used in Construction
1. Preliminary Cost Estimate
The preliminary cost estimate is also called an abstract cost estimate or approximate cost estimate
or budget estimate. This estimate is generally prepared in initial stages to know the approximate
cost of the project. By this estimate, the competent sanctioning authority can decide the financial
position and policy for the administration section.
Preliminary estimates are prepared with reference to the cost of similar type projects in a practical
manner. This estimate, the approximate cost of each important item of work is displayed
individually to know the necessity and utility of each item of work. The items of work include the
cost of lands, cost of roads, electrification, water supply costs, cost of each building etc.
2. Plinth Area Cost Estimate
Plinth area cost estimate is prepared on the basis of plinth area of the building which is the area
covered by external dimensions of building at the floor level and plinth area rate of the building
which is the cost of similar building with specifications in that locality.
Plinth area estimate is obtained by multiplying plinth area of building with plinth area rate. For
example, if we require plinth area estimate of 100 sq.m in a particular locality and plinth area rate
of a building in the same locality is 2000 per sq.m then plinth area estimate is 100 X 2000 =
200000.
Open areas, courtyards etc. are should not be included in the plinth area. If the building is multi-
storied, plinth area estimate is prepared separately for each floor level.
3. Cube Rate Cost Estimate
Cube rate cost estimate of a building is obtained by multiplying plinth area with the height of the
building. The height of the building should be considered from floor level to the top of the roof
level. It is more suitable for multi-storied buildings.
This method of estimation is accurate than the plinth area method. The rate per cubic meter is
taken into consideration based on the costs of a similar type of buildings situated in that location.
Foundation, plinth, and parapet above the roof level are not considered in this type of estimate.
4. Approximate Quantity Method Cost Estimate
In approximate quantity method cost estimate, Total wall length of the structure is measured and
this length is multiplied by the rate per running meter which gives the cost of the building. Rate per
running meter is calculated separately for foundation and superstructure.
In case of foundation, the rate per running meter is decided by considering quantities such as
excavation cost, brickwork cost up to plinth. While in case of superstructure quantities like
brickwork for the wall, wood works, floor finishing etc. are considered for deciding rate per running
meter.
5. Detailed Cost Estimate
A detailed cost estimate is prepared when competent administrative authority approved the
preliminary estimates. This is a very accurate type of estimate. Quantities of items of work are
measured and the cost of each item of work is calculated separately.
The rates of different items are provided according to the current workable rates and the total
estimated cost is calculated. 3 to 5 % of the estimated cost is added to this for contingencies as
miscellaneous expenditure.
The detailed Estimated should consist of following details and documents.
Report
General Specifications
Detailed Specifications
Drawings/plans – layout plans, elevation, sectional views, detailed drawings etc.
Designs and calculations – In the case of buildings design of foundations, beams, slab etc.
6. Revised Cost Estimate
The revised cost estimate is a detailed estimate and it is prepared when the original sanctioned
estimate value is exceeded by 5% or more.
The increase may be due to the sudden increase in the cost of materials, cost of transportation
etc. The reason behind the revision of estimate should be mentioned on the last page of the
revised estimate.
7. Supplementary Cost Estimate
The supplementary cost estimate is a detailed estimate and it is prepared freshly when there is a
requirement of additional works during the progress of original work. The estimate sheet should
consist of the cost of the original estimate as well as the total cost of work including the
supplementary cost of work for which sanction is required.
8. Annual Repair Cost Estimate
The annual repair cost estimate is also called as annual maintenance estimate which is prepared
to know the maintenance costs of the building which will keep the structure in a safe condition.
Whitewashing, painting, minor repairs etc. are taken into consideration while preparing annual
repair estimate for a building.
Unit I. 1.2 -Data for Estimate.
Data Required for Preparing an Estimate:

In order to prepare a detailed estimate, the estimator must have with him the following data:
1. Plans, sections and other relevant details of the work.
2. Specifications indicating the exact nature and class of materials to be used.
3. The rates at which the different items of work are carried out.
To enable an estimator to take out the quantities accurately, the drawings must themselves be
clear, true to the fact and scale, complete, and fully dimensioned. The estimator has also to bear
in mind certain principles of taking out quantities.

Unit I. 1.3 - Purpose of Estimating,

Purpose of Estimating:

To give a reasonably accurate idea of the cost

An estimate is necessary to give the owner a reasonably accurate idea of the cost to help him
decide whether the works can be undertaken as proposed or needs to be curtailed or abandoned,
depending upon the availability of funds and prospective direct and indirect benefits. For
government works proper sanction has to be obtained for allocating the required amount. Works
are often let on a lump sum basis; in which case the Estimator must be in a position to know
exactly how much expenditure he is going to incur on them

Unit I. 1.4 Accompaniments of an Estimate,

CONTRACT DOCUMENTS
The bid submitted for any construction project is based on the contract documents. If an estimator is to
prepare a complete and accurate estimate, he or she must become familiar with all of the documents. The
documents are listed and briefly described in this section. Further explanations of the portions and how to
bid them are contained in later chapters.
For design-bid-build projects, the contract documents consist of the owner-contractor agreement, the
general conditions of the contract, the supplementary general conditions, the working drawings, and
specifications, including all addenda incorporated in the documents before their execution. All of these
documents become part of the contract.

Agreement. The agreement is the document that formalizes the construction contract, and it is the basic
contract. It incorporates by reference all of the other documents and makes them part of the contract. It
also states the contract sum and time allowed to construct the project.
General Conditions. The general conditions define the rights, responsibilities, and relations of all parties
to the construction contract.

Supplementary General Conditions (Special

Conditions). Because conditions vary by locality and project, the supplementary general conditions are
used to amend or supplement portions of the general conditions.

Working Drawings. The actual plans (drawings, illustrations) from which the project is to be built are the
working drawings. They contain the dimensions and locations of building elements and materials required,
and delineate how they fit together.

Specifications. Specifications are written instructions concerning project requirements that describe the
quality of materials to be used and their performance.

Addenda. The addenda statement is a drawing or information that modifies the basic contract documents
after they have been issued to the bidder, but prior to the taking of bids. They may provide clarification,
correction, or changes in the other documents.
For projects built with the design-build and construction manager deliver systems, the contract
documents are more limited than for project built with the design-bid-build delivery system because the
contractor is involved in the design and selection of the specifications for the project. These documents can
be as simple as an agreement with a conceptual description of the project.

Unit I. 1.5 Qualities of an Estimator

A list of the abilities most important to the success of an estimator follows, but it should be more than
simply read through. Any weaknesses affect the estimator’s ability to produce complete and accurate
estimates. If individuals lack any of these abilities, they must (1) be able to admit it and (2) begin to acquire
the abilities they lack. Those with construction experience, who are subsequently trained as estimators, are
often most successful in this field.
To be able to do quantity takeoffs, the estimator must
1. Be able to read and quantify plans.
2. Have knowledge of mathematics and a keen understanding of geometry. Most measurements and
computations are made in linear feet, square feet, square yards, cubic feet, and cubic yards. The
quantities are usually multiplied by a unit price to calculate material costs.
3. Have the patience and ability to do careful, thorough work.
4. Be computer literate and use computer takeoff programs such as On-Screen Takeoff or Paydirt.
5. To be an estimator, an individual needs to go a step further. He or she must
6. Be able, from looking at the drawings, to visualize the project through its various phases of
construction. In addition, an estimator must be able to foresee problems, such as the placement of
equipment or material storage, then develop a solution and determine its estimated cost.
7. Have enough construction experience to possess a good knowledge of job conditions, including
methods of handling materials on the job, the most economical methods of construction, and labor
productivity. With this experience, the estimator will be able to visualize the construction of the project
and thus get the most accurate estimate on paper.
8. Have sufficient knowledge of labor operations and productivity to thus convert them into costs on a
project. The estimator must understand how much work can be accomplished under given conditions
by given crafts. Experience in construction and a study of projects that have been completed are
required to develop this ability.
9. Be able to keep a database of information on costs of all kinds, including those of labor, material,
project overhead, and equipment, as well as knowledge of the availability of all the required items.
10. Be computer literate and know how to manipulate and build various databases and use spreadsheet
programs and other estimating software.
 11. Be able to meet bid deadlines and still remain calm. Even in the rush of last-minute phone calls and
the competitive feeling that seems to electrify the atmosphere just before the bids are due, estimators
must “keep their cool.”
12. Have good writing and presentation skills. With more bids being awarded to the best bid, rather than
the lowest bid, being able to communicate what your company has to offer, what is included in the
bid, and selling your services is very important. It is also important to communicate to the project
superintendent what is included in the bid, how the estimator planned to construct the project, and
any potential pitfalls.
People cannot be taught experience and judgment, but they can be taught an acceptable method of
preparing an estimate, items to include in the estimate, calculations required, and how to make them. They
can also be warned against possible errors and alerted to certain problems and dangers, but the practical
experience and use of good judgment required cannot be taught and must be obtained over time.
How closely the estimated cost will agree with the actual cost depends, to a large extent, on the
estimators’ skill and judgment. Their skill enables them to use accurate estimating methods, while their
judgment enables them to visualize the construction of the project throughout the stages of construction.

Unit I. Introduction to Quantity Surveying and Estimating, Data for Estimate, Purpose of
Estimating, Accompaniments of an Estimate, Qualities of an Estimator, Spot Items,
Contingencies, ,

Unit I. 1.6 - Spot Items,

Spot items
The term ‘spot items’ refers to items of existing buildings that require alteration and repair. In order
for quantity surveyors to be able to price spot items, they need to be inspected on site to gain an
understanding of the extent of work that will be involved.

A good working knowledge of the construction technology and methodology is required to be able to
write spot items, making it easy to visualise and price accurately.

In a bill of quantities, the measurement unit will be stated as ‘Item’, although quantities may be given if they
are considered more appropriate. Items that have quantities are generally much easier for
an estimator to price. Typically, spot items will be set out in progression from locationto location in
the building, as this makes monitoring and estimating easier and clearer.

Unit I. 1.7 - Contingencies,

Contingencies in construction

Contingencies are downside risk estimates that make allowance for the unknown risksassociated
with a project.
Typically, contingencies refer to costs, and are amounts that are held in reserve to deal with
unforeseen circumstances. However, they may also refer to other aspects of the project, for
example, the programme may include a contingency where it is important that a
specific completion date is achieved.
A contingency may also refer to part of a contingency plan, which is a plan that can be enacted
to mitigate project risks, such as adverse weather, an industrial dispute, supplier failure, and so
on.
 Monetary contingencies are typically referred to in relation to the overall client for a project.
However, other parties in the supply chain are also likely to include contingencies in their cost
planning.
While it is advisable for clients to hold a contingency, they might no wish to share this information
with the rest of the project team, who may see a contingency as a license to exceed the budget in
the knowledge that the client has a reserve that can be spent.
Contingencies are often expressed in terms of percentages. The percentage contingenciesapplied
are at their greatest in the early stages of the project when there are the greatest number of
possible risks. But they can then be reduced as better particulars about the projectbecome
available and some risks have passed or been overcome.
An example of how a contingency might be reduced during a project is set out below:
▪ At the preliminary business plan stage, total cost estimates might include a 15% contingency.
▪ In the elemental cost plan this might reduce to 10% of fees and construction costs.
▪ On awarding the contract, 5% of the contract value might be included as contingency in the cost
plan.
In addition to a contingency, the client is likely to hold retention. Retention is a percentage (often
5%) of the amount certified as due to the contractor on an interim certificate, that is deducted from
the amount due and retained by the client. The purpose of retention is to ensure that
the contractor properly completes the activities required of them under the contract. Retention can
also be applied to nominated sub-contractors, and the main contractor may also
apply retention to domestic sub-contractors.
Typically, Contingency refer to a cost, and is a percentage of a contract value set aside for
unforeseen circumstances or unpredictable changes in the scope of the work. The cost
contingency which is included in a cost estimate, bid, or budget may be classified as to its general
purpose, which is what it is intended to provide for. For a class 1 construction cost estimate,
usually needed for a bid estimate, the contingency may be classified as an estimating and
contracting contingency. This is intended to provide compensation for "estimating accuracy based
on quantities assumed or measured, unanticipated market conditions, scheduling delays and
acceleration issues, lack of bidding competition, subcontractor defaults, and interfacing omissions
between various work categories".

Unit I. 1.8 - Prime Cost & Provisional Sums,

The difference between a prime cost sum and a provisional sum

Confusion can arise regarding two items that may appear in standard forms of building
contract– prime cost sums (PC or PC sums) and provisional sums (PS). They both relate
to estimates made for certain costs in the absence of exact figures.
A prime cost sum is an allowance, usually calculated by the cost consultant, for
the supply of work or materials to be provided by a sub-contractor or supplier that will be
nominated by the client - that is, a supplier that is selected by the client to carry out an element of
the works and imposed on the main contractor after the main contractor has been appointed.
The main contractor is entitled to add mark up and attendance costs to the allowance. If the main
contractor's actual costs then turn out to be higher, the contract sum is increased, and if the main
contractor's actual cost is lower, the contract sum is reduced.
A provisional sum is an allowance, usually estimated by a cost consultant, for a specific element of
the works that is not yet defined in enough detail for tenderers to accurately price.
Depending on the degree to which the works that the provisional sum relates to can be described
at the tender stage, prime cost sums may be referred to as 'defined' or 'undefined'.
Prime Cost (PC) items and provisional sums (PS) are two items in a standard building contract
which cause great confusion among homebuyers. Most building contracts are called “fixed price
contracts”, but the final contract sum can vary due to fluctuations in PC and PS items.
A PC item is an amount of money included in a contract sum to purchase a specified item such as
tiles, taps, doors or bathroom fittings. An agreed estimated amount is included at contract signing
but the specific products are not selected until a later stage. Under the Home Building Contracts
Act (1991) a builder must estimate the cost of such items at or above the lowest amount these
items could reasonably cost, which must not be understated.
For example, if a client selects a more expensive door than allowed by the PC item, say a door
compared with a PC amount, a variation will be required to cover the additional If the PC item
varies, so will the final contract sum.
A provisional sum is an amount of money included in the contract sum to cover work or materials,
or both, the extent of which cannot be specifically detailed when entering a contract. Typically,
builders will include a PS for sitework costs. The builder is legally required to take reasonable
steps to ensure an accurate site works cost estimate. However, in some circumstances,
unforeseen events mean that the provisional sum is exceeded, sometimes by a significant
amount. This can be added to the contract sum.
For example, a building site may seem sandy and clean with minimal siteworks
required. However, there may be large limestone rocks or tree trunks concealed below the
surface which only emerge once siteworks commence, causing a considerable cost overrun.
Buyers need to plan for these contingencies. Careful upfront thinking about tile and door selection
or other PC items can ensure that an accurate PC amount is included in the contract. Moreover
having a “buffer” amount in your financial budget to cover any unexpected provisional sum
overruns is desirable.
Prime Cost
A prime cost is defined as ‘an item that has not been selected, or whose value is not known, at the
time a domestic building contract is entered into and for the cost of supply and delivery of which
the builder must make a reasonable allowance in the contract’
What this essentially means is that these are items that may not be selected yet – usually fixtures
and fittings such as handles, stovetops and tapware – as it’s too early in the process. In order to
ensure a consistent cost, the builder will make allowances for these items without knowing the
specific cost. This allowance will include any mark-up or profit from the builder, as well as sourcing
and installation costs.
Provisional Sums
A provisional sum is defined as ‘an estimate of the cost of carrying out particular work (including
the cost of supplying any materials needed for the work) under a domestic building contract for
which a builder, after making all reasonable enquiries, cannot give a definite amount at the time
the contract is entered into.’
This translates to works that the builder cannot accurately price at the time of contract signing, like
landscaping. It still includes both the provision of materials and the labour costs.
Most simply, prime cost applies to items themselves, provisional sums refers to complete works.
Unit I. 1.8 - Provisional Quantities,
Provisional quantity

Where work can be described and given in items in accordance with the tabulated rules
of measurement but the quantity of work cannot be accurately determined, an estimate of
the quantity shall be given and identified as a ‘provisional quantity’.
Work items identified as a ‘provisional quantity’ shall be subject to remeasurement when they have
been completed. The ‘approximate quantity’ shall be substituted by the ‘firm quantity’ measured,
and the total price for that item adjusted to reflect the change in quantity. Where the variance
between the ‘provisional quantity’ and the ‘firm quantity’ measured is less than 20 per cent, the
rate tendered by the contractor shall not be subject to review. Where the variance is significant
(i.e. 20 per cent or more), the rate can be reviewed to ensure that the rate is fair and reasonable to
both the employer and contractor.

Unit I. 1.9 - Extra Items of work.

Extra work is understood to fall outside the scope of the contract, i.e. work that wasn't
contemplated and requires an extra payment on the side of the client. Additional work, on the
other hand, is generally understood to include work which is necessary to perform the contract.
Extra Work [Construction Law] Law and Legal Definition. Extra work in construction law refers to
"that work which is not required under the contract. ... A contractor is generally, entitled to charge
for extra work that consists of labor and materials not contemplated by or subsumed within the
original contract.

Extra work is work falling outside the scope of the agreed upon services, often referred to as
‘scope creeping’. It is also work that should be paid for separately and is usually charged
afterwards. Extra work and additional work are often used interchangeably but are in fact two
different things.

Extra work is understood to fall outside the scope of the contract, i.e. work that wasn’t
contemplated and requires an extra payment on the side of the client. Additional work, on the
other hand, is generally understood to include work which is necessary to perform the contract.
Such work doesn’t entitle the supplier to an additional payment, since the scope of the contract
hasn’t been changed.

Extra work may arise in the situation that a client asks to do something else as well, or to look into
more detail into that other thing too. All these questions add up and may ultimately result in
significant costs afterwards. As a supplier, it is wise to lay down a clear extra work procedure prior
to the execution of the agreement. This prevents dreadful invoices afterwards and discussions
about what does and what doesn’t amount to extra work. Also make it clear against what rates
extra work is performed, which usually is the hourly rate but may be a discounted rate too. In all
cases, be upfront about it!

The obligation to pay extra work generally arises when the client asks for it or gives permission to
its execution. At that time, the client must be aware that more work incurs more costs. This
awareness may be evident from the circumstances of the case, but still it’s wise to make this as
unquestionable as possible