TM322 – Cost Estimation

Example 1
o In order to construct a square metre of the blockwall, the following are required:
o Materials: [Blocks-13 Nos; Mortar (1:3) head pans-3 Nos; Water – 1 bucket]
o Labour: [Mason-1No; labourer – 1 No]
o Equipment: [None]
o Overhead [site expenses 20%; head office expenses 10%]
o Markups [risk 5%; profit 10%]
o The table below summarizes the calculation for the price for construction of a square metre of
blockwall.

  Requirements Qty Price per Unit (Tshs) Amount

Materials Blocks 13 1000 13000

Mortar 3 600 1800
Water 1 200 200
Labour Masons charge per 13 150 1950
blocks
  Labourer charge per 13 90 1170
blocks
Machine -   - -
Total direct costs 18,120
Site overheads (20%) 3,624
Main office overheads (10%) 1,812
Total costs 23,556
Risk 5% 1,177.8
Profit 10% 2,355.60
Rate per m2 27,089.40

Example 2

The following information is available to an estimator who is required to build up a unit rate for 1:2:4
concrete for foundation using volume batching. This information is then used to illustrate how this unit
rate is built up and adjusted to be entered in the bills of quantities as a balanced bid unit rate estimate.

A Costs of Resources

Cement
o Cost per tone ex-factory (loaded free) …. Tshs 200,000/=
o Delivery to site by hired 7 ton lorry km …. Tshs 200/= per ton-km
o Distance – factory to site …. 20km
o Unload and site and store …. 7 men @ 1 hour @ Tshs.1350/- per
Hour per lorry load
o Wastage due to breakage …. 2.5%

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 TM322 – Cost Estimation

o Density of cement …. 1442kg/m3

Aggregates
o Cost per m3 ex-quarry (loaded free) …. Tshs 13,500/=
o Delivery to site by 7 ton (5 m3) lorry …. Tshs 200/= per ton-km
o Distance-quarry to site …. 18km
o Labour banking at site …. 3 men @ 1hour @Tshs 1350 per
Hour per lorry load
Sand
o Cost per m3 ex-quarry (loaded free) …. Tshs 11000/=
o Delivery to site by 7 ton (4 m3) lorry …. Tshs 200/= per ton- km
o Distance quarry to site …. 25 km
o Labour banking at site …. 2 men @ 1 hour @ Tshs 1350/= per
Hour per lorry load

B Mixing (Using mixer with output 3m3/hour)

Mixer
o Hire rate Tshs 8,350/= per hour, including fuel
o Efficiency 75%

Vibrator
o Hire rate Tshs 4,300/ per hour, including fuel

Skilled labour
o 1 mixer operator @ Tshs 1700/- per hour
o 1 skip attendant @ Tshs 1200/- per hour

General labour

o Cement 1
o Sand 2
o Aggregate 3
6 @ Tshs 1350/- per hour
Allowing for 30% shrinkage of concrete in place, a 20% overhead and a 10% profit, what would
be your balanced bid unit rate estimate per m 3, assuming that water is priced in the
preliminaries.

C Unit rate build up

Cement
o Cost per 7 – ton lorry, ex factory, 7 ton @ 200,000/ = 1,400,000/=
o Cost of delivery to site per load, 7 ton @ 200/= x 20 km = 28,000/=
o Cost of unloading and sorting, 7 @ 1 hour x 1350/= = 9,450/=
Sub total = 1,437,450/=
o Cost of waste due to breakage at 2.5% = 35,936.25
Total = 1,473,386.25
o Cost per m3 = (1442kg x 1,473,386.25)/7000 = 303,517.57

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 TM322 – Cost Estimation

Aggregates

o Costs per lorry load, ex quarry, 5m3 @ 13,500/= = 67,500/=

o Cost of delivery to site per load, 7 ton @ 200/- x 18 km = 25,200/=
o Cost of Banking at site, 3@ 1 hour x 1350/= = 4,050/=
Total = 96,750/=
o Cost per m3 = 96,750/5 = 19,350/=

Sand

o Cost per lorry load-ex-quarry, 4m3 @ 11,000/= = 44,000/=

o Cost of delivery to site per load, 7 ton @ 200 x 25km = 35,000/=
o Cost of banking at site, 2 @ 1 hour x 1350/= = 2,700/=
Total = 81,700/=
3
Cost per m = 81,700/4 = 20,425/=

Mixing
Mixer
o Hire rate Tshs 8,350/- per hour = 8,350/=
o Efficiency 75%
o Production per hour 3 x 75% = 2.25 m3 (productivity)
Cost per m3 = 8350/2.25 = 3,711.11

Labour
o 1 mixer operator @ 1,700/- per hour = 1,700/=
o 1 skip attendant @ 1200/- per hour = 1,200/=
o 6 general labour @ 1350/= per hour = 8,100/=
Total = 11,000/=
Cost per m3 = 11,000/2.25 = 4,888.89

Vibrator
o Hire rate Tshs 4,300/- per hour = 4,300/-
Cost per m3 = 4,300//2.25 = 1,911.11

D Summary

1 m3 of cement @ 303,517.57 = 303,517.57

2 m3 of sand @ 19,350.00 = 40,850.00
4 m3 of aggregate @ 20,425.00 = 77,4 00.00
7 m3 (of concrete) Sub total = 421,767.57
Add 30% for shrinkage = 126,530.27
= 548,297.84
Cost per m3 = 551,092.84/7 = 78,328.26
Add: Mixer 3,711.11
Vibrator 1,911.11
Labour 4,888.89
Sub total = 88,839.37

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 TM322 – Cost Estimation

Allow for 20% overhead 17,767.87

106,607.25
o Add: 10% profit 10,660.72
o Cost per m3 117,267.97 Say 117,268

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