Unit 2: Types of Estimates

By
Er. Mukesh Kafle
 2.1 Approximate estimate

 Preliminary or approximate estimate is required for studies

of various aspects of work of project and for its
administrative approval.
 It can decide, incase of commercial projects, whether the
net income earned justifies the amount invested or not.
 The approximate estimate is prepared from the practical
knowledge and cost of similar works.
 The estimate is accompanied by a report duly explaining
necessity and utility of the project and with a site or layout
plan.
 A percentage 5 to 10% is allowed for contingencies.
The following are the methods used for
preparation of approximate estimates.
a) Plinth area method
b) Cubical contents methods
c) Unit base method
 a) Plinth area method
 The cost of construction is determined by multiplying
plinth area with plinth area rate.
 The area is obtained by multiplying length and breadth
(outer dimensions of building).
 In fixing the plinth area rate, careful observation and
necessary enquiries are made in respect of quality and
quantity aspect of materials and labor, type of
foundation, height of building, roof, wood work,
fixtures, number of storey’s etc.
 Cost of building= Plinth area of building x Rate per
plinth area
 b) Cubical contents methods
 This method is generally used for multistoried buildings. It is more
accurate that the other two methods viz., plinth area method and unit
base method.
 The cost of a structure is calculated approximately as the total
cubical contents (Volume of buildings) multiplied by Local Cubic
Rate.
 The volume of building is obtained by Length x breadth x depth or
height.
 The length and breadth are measured out to out of walls excluding
the plinth off set.
 The cost of string course, cornice, corbelling etc., is neglected.
 The cost of building= volume of buildings x rate/ unit volume.
 c) Unit base method
 This technique is used for preparing preliminary estimates
(i.e. order-of- magnitude type estimate).
 This estimate is generally prepared during the conceptual
planning phase of a project, with less information available
with the estimator.
 In this method, the total estimate of cost is limited to a
single factor.
 The examples of some of the ‘per unit factor' used in
construction projects are construction cost per square meter,
housing cost per boarder of a hostel,construction cost per
bed for a hospital, maintenance cost per hour, fuel cost per
kilometer, construction cost per kilometer for a highway etc.
 Unit base method…….
 The total cost is calculated by multiplying the cost per unit
factor with the number of units of the corresponding factor.
 For example, a preliminary estimate is required to estimate
the cost of constructing a new house with floor area of 170
square meter.
 If the cost per square meter is Rs.26, 900 (assumed), then
the cost of constructing the house will be Rs.45, 73,000 (Rs.
26,900x170).
 Similarly the preliminary cost estimate of constructing a
given length of highway can be calculated by multiplying
the unit cost i.e. construction cost per kilometer by the
length of highway (in km)
 2.2 Detailed estimate

 After obtaining the administrative approval of the

concerned department against the rough cost estimate, the
detailed estimate is prepared by P.W.D. department.
 As this estimate is based on the plans and sections of the
building so it is the most accurateestimate.
 The quantities of items under various sub heads of work are
calculated from the drawings and cost of each item is
worked out separately according to the prevalentmarket
rates and is totaled.
 After doing the total of all items a percentage of 3 to 5 is
added for unforeseen items, change of design and provision
of petty-establishment.
 Grand total so obtained gives the estimated cost of building.
 Detailed estimate…..
 This estimate is then submitted to the competent
authority for according technical sanction.
 The competent authority may be Chief Engineer or
Superintending Engineer of the P.W.D. department.
 The detailed estimate is accompanied by report, design
and scope, detailed drawings, detailed specifications,
justification of the rates provided and the limit for
execution of the work.
 The work we executed according to the detailed
estimate.
 2.3 Revised estimate

When the cost of the estimate exceeds or likely

to increase by 10% or more, a revised estimate
is required to be prepared.
It is accompanied by the comparative
statement showing the variations of each item
of work and giving the reasons of excess.
The excess may be due to change of design
and scope of variation in rates etc.
 2.4 Supplementary estimate

When some addition to the original work is

made a fresh detailed estimate for the
additional work is prepared to supplement the
original estimate and thus called
supplementary estimate.
 This estimate is in addition to the original
estimate.
2.5 Annual repair and maintenance estimate

This estimate is prepared to carry out annual

repairs or maintenance.
The amount of annual repair estimate should
not exceed more than 1 - 1/2% of the capital
cost of the building.
Annual repair are much common in road work
for which annual repair estimates are prepared
to carry out the work.
 2.6 Extension and improvement estimate

When some changes and extensions are

required to be made in the old work, the
cost of which cannot be met by the annual
repair/maintenance estimate, a detailed
estimate is prepared for such work which is
called as Extension and Improvement
estimate.
2.7 Complete estimate of work/project

• It should include following items;

1. The cost of land.
2. The cost of preliminary works such as
feasibility study, investigation and surveying.
3. The cost of preparing preliminary design,
drawings and estimates.
4. The cost for preparing detail design,
drawing, estimate, specification and contract
documents.
 Complete estimates….
5. The cost of buildings including electrical
installation, water supply and sanitation
works.
6. The cost of providing temporary
accommodation for constructional staff.
7. The cost of design and supervision charges.
8. The cost of external services.
9. The cost of maintenance and other repairs
during the progress of works.
2.8 Split up of cost of building works
………..Thank you………..