CVL 245

IIT DELHI
CIVIL ENGINEERING MATERIALS.

( Lecture 2)
Introduction to
Cost Estimation

B. Bhattacharjee
CIVIL ENGINEERING DEPARTMENT
IIT DELHI

B. Bhattacharjee
DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI
 General Outline
 Purpose of cost estimates
Estimation at different stages
Method
Bill of quantities
Quantity take off

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

2
 Cost Estimation
– Cost Estimation is the iterative process of
developing an approximation of the
monetary resources needed to complete
project activities.
– Project teams should estimate costs for all
resources that will be charged to the
project.
– Labour, Materials, Equipment, Services,
– Software, Hardware, Facilities
– Contingency Costs

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

3
 Cost Estimation
– “One time project” and owners/financer/public
body would like to know the overall cost in the
beginning.
– Owner would also like to know what are the
possible alternative schemes to create the
facility, hence the cost of alternatives.
– Selected alternative is the looked in detail, and
designed and cost is estimated for tendering a
contract, asking for bid.
– Selected contractor then execute the project.
– Thus estimates are required at different stages

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

4
Cost estimation at different stages
1.Project
Identification 3. Design
2.Feasibility
Stages @
Estimation is
needed
4 Commitments & 6.Operation &
5. Implementation evaluation

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

5
Purpose of estimation at stages
Stage 1. design
capacity/size 3. & 4. Conceptual
2. Preliminary alt design
designs
Estimation
outcome

6. Completed
5. Tender doc contract (cost as
built)

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

6
 Chronological sequence
– Preliminary estimates:
– The quick estimate needed at the project
identification stage, with no design available, and
only the barest statement of capacity or size.
– For example: Plinth area rate for building;
Rs.50000/sq.m for some residential building
excluding land cost.
– Cost /km for a road given the number of lanes in the
road and geographical locations.
– Metro tunnelling with ATBM/km OR, Cut and Cover
construction/km where land is available.
ATBM : automatic tunnel boring machine

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

7
 Chronological sequence
– Alternatives at feasibility stage:
– Estimates or alternative schemes under
consideration in the feasibility study stage of the
project.
– Estimate shall be directly comparable for
alternatives.
– Data and information used must be same for all
alternatives.
– Not very accurate hence relative difference is
obtained and values may not be absolute.
– Say e.g., Concrete pavement vs bituminous
pavement for a highway considering Life Cycle Cost

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

8
 Chronological sequence
– Alternatives at feasibility stage:
– Life Cycle Cost (LCC) includes cost in the beginning
i.e., initial cost, maintenance and operation cost,
demolition cost, salvage value (scrap value) etc.
– Selection of type bridge for given bridge location.
– Cost of individual component and number of the
components, e.g. No of piers, span etc. estimate cost
of piers, cost of superstructure for each alternatives.
Total cost for comparison would include everything.
– A detailed estimate is not necessary, but estimate
may be based on past information

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

9
 Estimation at design stage
– The cost estimate for the selected scheme using the
conceptual design and specifications resulting from
the design study and forming part of the project
definition report.
– This estimate would provide the figures for capital
cost, CASH FLOW and money requirements which
would then be used in viability calculations for the
project and in the submission for owners aid. It
must be a cash estimate with time during the project
duration
– Cost control during project is also based on this
estimate ( by comparison with actual cost with time)

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

10
Tender and contract executation
stage
– The tender document is prepared on the basis of the
detailed estimate after any modification and
approval. Detailed fit for construction drawing
however may yet to be prepared and issued only
after award of contract
– Notice is floated for bids by contractor
– The chosen contractor is awarded the contract.
– Estimates are then also required during execution
phase for cost control

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

11
 Some Common methods
Parametric
Expert : Past knowledge
Analogous: Previous
Analogous similar project
Bottom up estimating
Parametric: statistical
Estimation projection from historic
data
Bottom-up: Individual
Software
Expert
work package with
and bid
analysis
Judgment maximum details.
Vendors bid: analysis of
bids to arrive at estimate

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

12
 Common information needed
• The latest description of the intended project
including all available drawings, specifications,
job descriptions and the site location.
• The intended/required start and completion
dates
• Latest ideas on method of construction.
• Any cost/productivity data relating to the project
or current construction projects
• For cash flow source and time of funding
information may be needed

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

13
 Information
• Preliminary estimate e.g. cost of 1 sq.m of
bridge super structure, relies on historical data
and inflation indices
• Detailed estimate is based on bill of quantities
and rate analysis (man hour cost/ machine
hour costs); Item rate/unit for labour and
machine plus material cost
• Data banks like Delhi Schedule of rates provide
information

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

14
 Bill of quantities
• Bill of quantities: A document used in
tendering in which materials, parts, and labour
(and their costs) are itemized.
• It also (ideally) details the terms and conditions
of the construction or repair contract and
itemizes all work to enable a contractor to price
the work for which he or she is bidding.
• The quantities may be measured in number,
area, volume, weight or time. Preparing a bill of
quantities requires that the design is complete
and a specification has been prepared.
DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI
15
 Bill of quantities
• The bill of quantities is issued to tenderers for
them to prepare a price for carrying out the
construction work.
• The bill of quantities assists tenderers in the
calculation of construction costs for their
tender,
• It means all tendering contractors will be
pricing the same quantities (rather than taking-
off quantities from the drawings and
specifications themselves).

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

16
 Bill of quantities
• It also provides a fair and accurate system for
tendering.
• Quantity surveying is a related term
• Contingency sum to take care unforeseen cost,
e.g., "additional alterations to services when
installing “
• OR "additional work to be undertaken by the
contractor, at the request of the contract
administrator”

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

17
 Bill of quantities

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

18
 Bill of quantities

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

19
Bill of quantities (Bridge)

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

20
Bill of quantities (Bridge)

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

21
 Bill of quantities
• In case of tender rates are to be provided by
the bidder for tendering.
• Accuracy of quantity estimate is important as
the contractor is paid on the basis of actual
executed quantity in item rate contract.
• Accuracy of estimate may vary from item to
item (+10% maximum over payment is
acceptable)
• Rate can be determined from Schedule of rates
if available or else through rate analysis.

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

22
 Bill of quantities
• CPWD or similar agencies publish schedule
rates., e.g., Delhi Schedule of Rates 2019.
• Rate analysis is done based on material and
labour required.
• Quantity take off is from drawings prepared by
client of the contractor
–These days mostly soft
ware generated drawing,
AutoCAD, Revit, BIM etc.
–Estimation is also
through software
DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI
23
 Quantity take off for a wall
• Wall thickness is same
(40mm).
• Length shown.
• Foundation depth 1m

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

24
 Simple example of wall
• Wall thickness is same (40mm).
• Two methods .
• Long wall Short wall method
• Centerline method
–Long wall Short wall
method
First, find out the lengthy
wall (they are the long
wall and wall
perpendicular to that is
short wall).
DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI
25
 Simple example of wall
Next find the measurements of
external length of lengthy wall (that
is out-to-out) and internal length of
short wall (in-to-in) and height of
the wall. –Finally multiply them to
find out the necessary
quantity, long wall (out-
to-out) OR short wall (in-
to-in) X breadth of wall X
height.

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

26
Long wall short wall method

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

27
 Centerline method

“ T “ Junction: Half
(1/2) breadth wall
measurement
should be deducted
for a T junction.

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

28
 Centerline method

For cross “ + “ walls :

cross walls – Wall
breadth measurement
should be deducted to
the total length of
centreline.

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

29
 Centerline method

“ L “ Junction:
There is no need to
deduct from total
centreline length.

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

30
 Centerline method

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

31
THANK YOU
FOR HEARING

DEPARTMENT OF CIVIL ENGINEERING, IIT DELHI

32