DCC2073: CONTRACT & ESTIMATING

CHAPTER 5: THE PRELIMINARY ESTIMATING METHOD

RUKINAH SAMUING
JAB. KEJ. AWAM
POLITEKNIK KOTA KINABALU
TEL NO: 012-8439725
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COURSELEARNING OUTCOMES (CLO)

CLO 2:
Solve problems systematically for
preliminary estimating method and
quantity measurement in relation to
project estimation
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DEFINITION:-
Estimating:
• An activity of pricing work in preparation for making an

offer to carry out work for a sum of money.

Preliminary Estimating:
• To determine the probable construction costs of any

given project, which involves the calculation based on

the drawings and technical information to be analysed
together.
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TYPES OF COST ESTIMATE

• Detailed Estimate

• Preliminary Estimates

• Conceptual Estimates
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FACTORS INFLUENCE COST ESTIMATE

• Markets Conditions • Professional fees

• Design Economics • Estimator’s experience

• Quality and Type of Building • Types of contracts used in

• Building Services every project

• External works

• Safety

• Government policies

• Project location
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PURPOSE OF COST ESTIMATE

• the contractor makes detailed estimates that are used
to determine what the company will charge to do the
work required so that he can make a competitive bid.

• estimate of costs of work to be done by

subcontractors (and prepared by them for bids to the
contractor).

• an effort by the designer to anticipate and predict the

contract amount for which the work will be done by the
contractor (the contractor’s bids).

• The owner wants to know how much he should spend

on the building, and what returns he can expect.
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PURPOSE OF COST ESTIMATE

• As a guideline to the financial institution to know the
potential of the project. Usually they only provided
financial to the potential project.

• As a guideline to the designer to make sure the design

and financial/budget is equivalent.

• To know the percentage and cost break down of building

works by building element. ( piling, floor, wall etc)

• The design and cost analysis can be guideline for the

similar project in the future.
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METHODS OF COST ESTIMATING

Single Rate Calculation: Multiple Rate Calculation

1. Unit Valuation Method 1. Approximate Quantities

2. Floor Area Method/ 2. Elemental Cost Analysis

Square Meter Method

3. Cubic Content Method

4. Storey Enclosure Method

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PRELIMINARY ESTIMATES METHODS

Unit Valuation Method

Floor Area Method

Cubic Content Method

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UNIT VALUATION METHOD

Criteria:-
The building cost is expressed in
terms of the accommodation it provides. for example:

• Schools - cost per student

• Hospitals - cost per bed
• Theatres - cost per seat
• Hostels - cost per residential
• Car Parks - cost per car space
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applicable for the project are known its contents and

referring the cost per unit of complete building.

initial assessment, simple, easy and rough.

Least accurate compared with other methods.

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Example 1:-

Cost of completed school building = RM 100,000.00

Number of student = 100
Cost for student = RM 100,000.00
100
= 1,000.00
Cost for new school building
*expected to accommodate student 200 student
= 200 x RM1, 000.00
= RM 200,000.00
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Example 2:
Cost per student for completed building:-
Types of Building Number of Student Building Cost (RM)
Building A 350 300,000.00
Building B 300 250,000.00

Building A = RM 300,000.00 ÷ 350 Student

= RM 857.14
Building B = RM 250,000.00 ÷ 300 Student
= RM 833.33

Building cost = RM 857.14 + RM 833.33

2
= RM 845.24

New Building cost:-

Expected to accommodate student 200 students
= RM 845.24 x 200 students
= RM 169,048.00
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Advantages:-

The calculation technique is simple and efficient.

The employers gets ides of building cost by

number of facilities such as number of students,
beds and etc.

Suitable for project known its content.

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Disadvantages:-

Calculation is not accurate

The least accurate method compared to the

volume of floor area and building methods
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Exercise:-
Based on given information. Calculate the cost of new Polytechnic building. The new
building is expected to accommodate 250 students.

Building No. of student Building cost (RM)

Core A 200 150,000.00
Core B 250 200,000.00
Core C 300 250,000.00
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FLOOR AREA METHOD

Criteria:-

Floor plan is required to get the length

and width of the proposed building

Floor area can be obtained by multiplying the length by the

width of the building.

simple, rough and does not require much information

The construction method and design of exiting building must

be similar to the building to be assessed.
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The cost dose not includes the external works such as

fences, road, and drain.

The actual length and width of the building shall be

measured from the outer surface of wall to the outer surface
of the second wall
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Based on the above diagram the building length is 15.00 metre and
the width of the building is 6:00 m

Building Floor Area = Length x Width

= 15.00m x 6.00m
= 90.00 meter square.

Assumption, the rate per meter square for exiting building is RM

200.00. The cost for proposed building is:-

Proposed building cost: = Floor area x rate per meter square

= 90.00 x RM 200.00
= RM 18,000.00
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• External work must measure separately and added

to the cost obtained for the actual cost of the
building. For buildings that do not have a wall or
half wall as the car park and terrace, floor area
shall be calculated half.
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Example:-

8200

Room 2 3200

Room 1
Garage
4500

5200
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Garage area = 1/2 x length x width

= 1/2 x 4.50 x 3.00

= 1/2 x 13.5

= 6.75 meter per square

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Advantages:-

Simple technique for calculating

Employers to get an overview of the floor area to

be built.

More accurate compared to the Unit Valuation

Method.
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Disadvantages:-

Building height is not considered.

Less accurate because the calculation is roughly

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Example

5000

Room 1 Living Room 3000

Room 2 Garage
800

1200
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* based on exiting building cost per meter square RM 350.00. Calculate

the cost of proposed building.
Building floor area = length x width
= 5.0 x 3.80
= 19.00 m2
Garage area = 1.20 x 0.8
= 0.96
Actual building area = 19.00 – 0.96
= 18.04 m2
Cost for proposed building
= RM 350.00 x 18.04 m2 + [RM 350.00 (1/2 x 0.96)]
= RM 6,314.00 + RM 168.00
= RM 6,482.00
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Exercise:-

4000
Toilet

Hall

Terrace
5000

10000 1500

Rate per meter square is RM 350.00. Based on above drawing, calculate

the cost of proposed hall building.
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CUBIC CONTENT METHOD

Criteria:-
This method is requires the measurement of the length,
width and height of the building.

These measurements can be obtained from the floor plan

and view drawing of the building

Measurement of building height is referring to the type of

roof. There are two types of roof.
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Pitch roof is a roof with angle exceeding 15 degrees. Divided

into two, namely fully pitch roof and half pitch roof.

Half roof
height = T/2 Roof height = T

Building height = H

Grd Level

Diagram A: Fully Pitch Roof

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Half roof
height = T/2 Roof height = T

Building height = H

Grd Level

Diagram B: Half Pitch Roof

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for both types of roof, the height of building are measured

from the top surface of building foundation to the ceiling level

and added with half of the roof height.
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Flat Roof
Flat roofs are defined as roofs with angles of less than 15
degrees. Divided into two, namely the fully flat roofs and flat
roofs with parapet walls.

Fully Flat Roof

building height is measure from the top surface of building

foundation to roof level and added with 0.6 meter
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C.L + 0.6m

G.L
Building height = H

Fully Flat Roof

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Flat Roofs with parapet walls

if the height of parapet wall less than 600 mm, building height is measured from top
surface of building foundation to roof level and added with 0.6 m.

Building height: H + 0.6m

if the height of parapet wall is over than 600mm, building height is measured from the
top surface of building foundation to roof level and added with height of parapet wall

Building height: H + T (actual height of parapet wall)

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H= building
height

Grd Level

Flat Roof with Parapet Wall

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After getting the length, width and height of building the building volume can be
obtained by multiplying the three measurements. Assume that

Building length = 45.00 meter

Building width = 15.00 meter
Building height = 20.00 meter

Building volume = length x width x height

= 45 x 15 x 20
= 33, 750 m3

Assume that, based on exiting building cost per meter cubic is RM 100.00
Cost of proposed building = RM 100.00 x 33,750 meter cubic
= RM 3,375,000.00
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Advantages:-
1. This method is more accurate compared with the previous method because considering
the height of building.
2. Suitable for all types of buildings.
3. Calculations are easy and faster

Disadvantages:-
1. Requires a complete drawing.
2. Estimates do not reflect the floor area
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Example 2:-

700

3000
4500

3000
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Data:
Rate per meter cubic = RM 250.00
Based on given drawing and information. Calculate the cost of proposed building.

building height = 4.50 +( 0.70/2)

= 4.85
building volume = 3.0 x 3.0 x 4.85
= 43.65 m3
building cost = RM 250.00 x 43.65 m3
= RM 1,091.25
CC301/CHP: 1 41

Exercise:-

700

5000

6500

8000

Assume that rate per meter cubic is RM 450.00. Based on given drawing calculate the
cost of proposed building.
CC301/CHP: 1 42

Exercise:-

1000

6000

6500

8500

Assume that rate per meter cubic is RM 400.00. Based on given drawing calculate the
cost of proposed building.
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THANK YOU
AND
GOOD LUCK