ESTIMATING

SESSION
XII

Engr. Michael Jay Autor

Resource Person
 TOPIC OUTLINE

● Definition of Estimate
2018 CMGP
● Purpose of Estimating
● Types of Estimates
● Uses of Estimates
● Requirement for a Good Estimate
● Steps in Preparing Estimates
 Preparation of Program of Works (POW) and
Approved Budget for the Contract (ABC)
 Definition of Estimate

Is an expression of opinion2018or the prediction of the probable

CMGP

future cost of certain construction activities, usually based

on some data having an acceptable degree of reliability.

A preliminary statement of the approximate cost for certain

works.
 Purpose of Estimating

2018 CMGP

To determine the forecast cost required to complete a

project in accordance with the approved plans,
specifications and construction methods
 Purpose of Estimating

Two Distinct Task in Estimating

2018 CMGP

1. To determine the probable real cost of the project.

1. To determine the probable time to complete the

project.
 Types of Estimate

A. Approximate Estimate 2018 CMGP

are sufficiently accurate for the evaluation of design

alternatives, or the presentation of preliminary
construction estimates to the owner, but are not
sufficiently accurate for bid purposes.
 Types of Estimate

B. Detailed Estimate 2018 CMGP

The objective is usually to determine the smallest

quantity and the keenest price for the various items of
work in the project. Usually prepared by the owner,
contractor, sub-contractors and suppliers prior to bidding
on or negotiating to do the work.
 Uses of Estimates
DESIGNER
2018 CMGP

OWNER Aid in site selection

Aid in choosing alternative design
To determine Economic Feasibility Aid in determining design scheme
To determine Capital Investment
To Assist in Financial Arrangement CONTRACTOR
Planning and Scheduling
Basis for ABC Basis of Bid Price
Progress Billings
Planning and Scheduling
 Requirements of Good Estimate
Organization
Plans Site Inspection

Financial Schedule GOOD Methodology

ESTIMATE
Materials Quantity Labor Productivity
and Market Price and Rates
Equipment
Work Schedule Productivity and Specifications
Rates
Steps for Preparing Detailed Estimates

Review the scope of

2018 CMGP
work

Review of the materials specifications

Review of the construction methodology

Determine the quantities

Steps for Preparing Detailed Estimates

Pricing of the Material

2018 CMGP

Pricing of Labor

Pricing of Equipment

Calculate Mark-up
Steps for Preparing Detailed Estimates

Calculate Profit
2018 CMGP

Calculate VAT

Summarize
Preparation of Program of
2018 CMGP

Works (POW) and

Approved Budget for the
Contract (ABC)
 TOPIC OUTLINE
● Purpose
● Preparation/Review References
2018 CMGP
● Documentary Requirements
● Cost Component
● Basis Of Pricing/Costing
>Direct Cost
>Indirect Cost
● Factors to be Considered
● Methods of Estimating Work Output
● Preparation of the DUPA
● Format For ABC & POW
 Purpose
Program of Works (POW)
2018 CMGP
To determine the total estimated cost of the projects that covers
the civil works construction, Engineering Supervision and
Administrative Overhead, Road Right of Way Acquisition Cost,
Construction Contingency, etc.

Shall include the information on the quantity and unit cost for
each item of work, construction duration, funding source,
equipment requirements, etc.
 Purpose

Approved Budget for the Contract (ABC)

2018 CMGP

Basis for the bidding of

infrastructure projects. It shall be
the upper limit or ceiling for
acceptable bid prices.
 Preparation/Review References
IRR of RA 9184
In no case shall construction
2018funds
CMGP be remitted to field offices or
construction work be started before the POW is approved. ABC
shall be prepared as the ceiling for acceptable bid prices.

D.O. No. 197, Series of 2016

Amendment to D.O. 197, Series of 2016 Re: Revised Guidelines in
the Preparation of Approved Budget for the Contract (ABC)
 Preparation/Review References
Standard Labor Rates
Computed based on the minimum
2018 CMGP labor wage from NWPC, DOLE

ACEL Guidebook 2014 (25th Edition)

As approved for use by DPWH per Memorandum Circular No. 13,
Series of 2015
D.O. No. 56, Series of 2005
Guidelines for the Implementation of DOLE D.O. No. 13, Series of
1998, On Occupational Safety and Health in Construction Industry
 Preparation/Review References
D.O. No. 143, Series of 2017
Revised Standard Pay Item2018
ListCMGP
for Infrastructure Projects

D.O. No. 44, Series of 2012

Standardization of Construction Duration of DPWH Projects

D.O. No. 71, Series of 2013

Amendment to D.O. No. 44, Series of 2012, Re: Shortened
Standardized Construction Duration of DPWH Flood Control
Projects
 Documentary Requirements

● Executive Summary 2018 CMGP

● Detailed Unit Price Analysis (DUPA)
● Approved Plans including Quantity Take-off
● Computation of the Estimated Project Duration
● Project Justification
● Status of Road-Right-of-Way
 Additional Documentary Requirements

● Location Map 2018showing

CMGP the road network,
PEO/CEO/MEO, Project Site and Quarry
Source/Source of Materials.
 Additional Documentary Requirements
● Location Map and site diagram showing the disposal site of
surplus common/soft2018 CMGP rock/hard rock/unclassified
excavation, etc. which indicate the nearest possible hauling
distance together with the certification from your office to
the effect that value engineering was applied in the
determination of this disposal site.
 Guidelines in Preparing ABC

D.O. No. 197, Series of 2016

2018 CMGP

Revised Guidelines in the Preparation of Approved Budget for

the Contract (ABC).
 Cost Component of ABC

● Cost of Materials
DIRECT COST ● Cost of Labor
● Equipment Expenses

● Overhead Expenses
● Contingencies
INDIRECT COST ● Miscellaneous Expenses
● Contractor’s Profit
● VAT
 Basis of Pricing/Costing: DIRECT COST

Cost at Source:
processing, crushing, stockpiling, loading, royalties, local
2018 CMGP
taxes, construction and/or maintenance of haul roads, etc.

Expenses for hauling to project site MATERIALS

Handling Expenses
COMPONENT COST
CONSIDERATION
Storage Expenses

Allowance for waste and/or losses

(not to exceed 5% of materials requirement)
 Basis of Pricing/Costing: DIRECT COST

Canvassed price of construction materials

2018 CMGP
from various suppliers
Unit Price from the previously approved
POW and ABC
UNIT PRICE OF
MATERIALS Time motion analysis and computation for
processed materials such as quarrying,
screening and hauling. This includes
hauling cycle, Free Haul Distance, etc.
 Basis of Pricing/Costing: DIRECT COST
Standard Specifications for Highways,
Bridges and Airports, revised 2013,
2018 CMGP
Standard Specifications for Public Works,
1995
Approved Special Specifications for the MATERIALS
project APPLICATION RATE
Manufacturer’s Specifications
Established quality requirements to satisfy
the specifications of civil works items of
work
 Basis of Pricing/Costing: DIRECT COST

Minimum Wage Rates – basic wage plus cost of

living allowance based on a normal 8-hour work
2018 CMGP

per day as determined by NWPC, DOLE. The

Minimum Wage Rates for each Region, Provinces,
or Cities are based from the latest minimum
wage rates as approved by NWPC.
LABOR RATES
Fringe benefits, such as vacation and sick leaves,
benefits under the
Workmen's Compensation Act, GSIS and/or SSS
contributions, allowances,
13th month pay, bonuses, etc.
 Basis of Pricing/Costing: DIRECT COST

2018 CMGP

Acceptable output in the Department and

the construction industry based on
historical data and other references.
LABOR OUTPUT

Submitted construction methodology.

 Basis of Pricing/Costing: DIRECT COST

The2018
prevailing
CMGP
“Associated Construction
Equipment Lessors, Inc.” (ACEL) rental
rates approved for use by the DPWH.
EQUIPMENT
RENTAL RATES
Rental rates from previously approved ABC
and other source from private companies.
 Basis of Pricing/Costing: DIRECT COST

2018 CMGP

Acceptable output in the Department and

the construction industry based on
historical data and other references. EQUIPMENT
OUTPUT
Submitted construction methodology.
 Basis of Pricing/Costing: DIRECT COST

It shall be treated as a separate pay

item, and shall be computed based on
2018 CMGP

the equipment requirements of the

EQUIPMENT project as stipulated in the proposal and
MOBILIZATION AND contract booklet.
DEMOBILIZATION
In no case should mobilization and
demobilization exceed 1% of the
Estimated Direct Cost (EDC) of the civil
works items.
 Basis of Pricing/Costing: INDIRECT COST

CONTRACTOR’S PROFIT

INDIRECT COST
OCM VAT

● Overhead Expenses Computed at 5% of the sum of the

● Contingencies Estimated Direct Cost (EDC), Overhead,
● Miscellaneous Expenses Contingencies & Miscellaneous
Expenses (OCM) and Profit.
 INDIRECT COST MARK-UP

INDIRECT COST
% FOR
2018 CMGP
TOTAL
ESTIMATED OCM AND PROFIT INDIRECT COST
DIRECT COST (EDC) % FOR
OCM PROFIT OCM AND PROFIT
(% OF EDC) (% OF EDC)

Up to P5Million 15 10 25

Above P5M up to P50M 12 8 20

Above P50M up to P150M 10 8 18

Above P150M 8 8 16
 INDIRECT COST

Engineering and Administrative Supervision

2018 CMGP

Transportation allowances OVERHEAD

EXPENSES
Office Expenses, e.g., for office equipment and
supplies, power and water consumption, (Ranges from 7
communication and maintenance. - 11% of the
EDC)
Premium on Contractor's All Risk Insurance (CARl).
 INDIRECT COST

2018 CMGP

Financing Cost OVERHEAD

EXPENSES
● Premium on Bid Security (Ranges from 7
● Premium on Performance Security - 11% of the
● Premium on Surety for Advance Payment
● Premium on Warranty Bond (one year) EDC)
 INDIRECT COST

These include expenses for

meetings, coordination with other
stakeholders, billboards (excluding
CONTINGENCIES Project
(Ranges from 0.5 - Billboard which is a pay item under the
3% of the EDC) General Requirements), stages during
ground breaking & inauguration
ceremonies, and other unforeseen
events
 INDIRECT COST

MISCELLANEOUS
These include laboratory tests for EXPENSES (Ranges
quality control and plan from 0.5 - 1% of the
preparation. EDC)
 INDIRECT COST

Shall be 8% of the EDC for projects above

CONTRACTOR’S
P5 Million and
PROFIT MARGIN 10% for projects P5 Million and below.

Shall be 5% of the sum of the EDC, OCM

VAT COMPONENT and Profit.
 INDIRECT COST

The following
items shall not ● Mobilization and demobilization
be subjected to ● Provision of Service Vehicle
OCM and Profit
mark-up: ● Permits and Clearances
 INDIRECT COST

● Field/Laboratory Office & Living

The following Quarters (Rental Basis)
non-civil works
● Furnishing of Furniture,
items shall not
be subjected to Laboratory Equipment, Survey
OCM mark-up: Equipment and
● Consumables
 INDIRECT COST

● Assistance to the Engineers

The following ● Photographs
non-civil works
● Health and Safety
items shall not
be subjected to ● Traffic Management
OCM mark-up: ● Environmental Compliance
● Communication Equipment, etc.
 Methods of Estimating Work Output
Factors to be Considered in the Estimate
2018 CMGP
Fluctuation of
Materials Cost
Weather Condition Wastage Factor

Swell/Shrinkage
FACTORS Traffic Condition
Factor

Peace and Order

Terrain Condition
Condition
 Methods of Estimating Work Output

Estimating the work output2018

is determined
CMGP
in 2 ways:

1. Using work output formula based on the cycle of operation

and other factors which controlled production.

1. Using tables based on past experiences of average work

output under varying conditions for different operations.
 Methods of Estimating Work Output

Work Output Formula for Earthmoving Equipment

2018 CMGP

Q x f x 60 x E
Work Output =
Cm
Where:
Q = bowl capacity in loose cubic meters
f = soil conversion factor
60 = minutes per hour
E = efficiency factor
Cm = total cycle time in minutes
 Methods of Estimating Work Output
To calculate earthmoving equipment consider the volume changes
in earth caused by handling. These volume changes have the
2018 CMGP
following terms, to wit:

1. In-place yards – volume of earth in its natural location

before handling.
2. Loose yards – volume of earth after it has been removed
from its natural location and swell has taken place.
3. Compacted yards – volume of earth that has been properly
compacted in embankment on fill.
Methods of Estimating Work Output

2018 CMGP
 Methods of Estimating Work Output
Soil Conversion Factor Table
Present 2018 CMGP
Converted to
Soil Type
Condition In-place Loose Compacted

In-place 1.00 1.11 0.95

Sand Loose 0.90 1.00 0.86

Compacted 1.05 1.17 1.00

In-place 1.00 1.25 0.90

Common Earth Loose 0.80 1.00 0.72

Compacted 1.11 1.39 1.00

In-place 1.00 1.43 0.93

Clay Loose 0.70 1.00 0.63

Compacted 1.11 1.59 1.00

 Methods of Estimating Work Output
Hauling Cycle Time Analysis
2018 CMGP
a. ESTIMATED TRAVEL SPEED, LOADING/
UNLOADING & ALLOWANCE FOR DELAY

TERRAIN ROAD DUMP TRUCK TRAVEL

CONDITION CONDITI SPEED (km./hr.) LOADING TIME (min.) 3 min.
ON
LOADED EMPTY UNLOADING TIME (min.) 2 min.

FLAT PAVED 35 55 ALLOWANCE FOR DELAY 10% of Cycle Time

(min.)
UNPAVED 30 45

ROLLING PAVED 30 40

UNPAVED 25 35

MOUNTAINOUS PAVED 20 30

UNPAVED 15 25
 Methods of Estimating Work Output
Hauling Cycle Time Analysis
2018 CMGP
b. FORMULA FOR THE CALCULATION OF DUMP TRUCK TRAVEL TIME

FORMULA : T = D÷R
T = Time, Time of Travel (hr.)
Where :

D = Distance, Hauling Distance (km.)

R = Rate, Travel Speed (km./hr.)

 Methods of Estimating Work Output
Hauling Cycle Time Analysis
2018 CMGP
c. COMPUTATION OF CYCLE TIME, T

Example: Average Hauling Distance = 2.00 kilometer

Flat

Average Haul Distance = 2.00 kilometer

Loading Time = 3.00 min.

Loaded Travel Time

First 200 m @ 20 kph = 0.60 min.

Succeeding 1600 m @ 30 kph = 3.20 min.

Next 200 m @ 20 kph = 0.60 min.

 Methods of Estimating Work Output
Hauling Cycle Time Analysis
2018 CMGP
c. COMPUTATION OF CYCLE TIME, T

Unload and Maneuver = 2.00 min.

Return Empty

First 200 m @ 30 kph = 0.40 min.

Succeeding 1600 m @ 45 kph = 2.13 min.

Next 200 m @ 30 kph = 0.40 min.

Cycle Time, T = 12.33 min.

Allowance for Delay = 1.23 min.

Total Cycle Time, T = 13.56 minutes

 Preparation of Detailed Unit Price Analysis (DUPA)

Sample DUPA
2018 CMGP
 Preparation of Detailed Unit Price Analysis (DUPA)

Computation for Labor Rates

2018 CMGP
Minimum Wage Rate = Set by NWPC
Minimum Wage multiplied by the Labor Cost
Basic Daily Compensation =
Index of each category
Basic Daily Wage x 25 Days per month x
Leaves =
12/300 days

Bunos, 13th Month Pay = Basic Monthly Wage/12

Graduated Amount Representing Employee’s
SSS Contribution =
Contribution
 Preparation of Detailed Unit Price Analysis (DUPA)

Computation for Labor Rates

2018 CMGP
Graduated Amount Representing
Philhealth =
Employee’s Contribution

2% Basic Monthly Compensation below Php

Pag-ibig = 5,000.00 and Php 100.00 above Php 5,000.00

Employee’s Compensation
= Php 10.00
Contribution
 Preparation of Detailed Unit Price Analysis (DUPA)

Computation for Labor Rates

2018 CMGP

Basic Monthly Wage + Leaves + 13th Month

Monthly Rate =
Pay + Social Benefits

Daily Rate = Monthly Rate / 25 days per month

Hourly Rate = Daily Rate / 8 hour per day

 Preparation of Detailed Unit Price Analysis (DUPA)

Sample Tabulation of Labor Rates

BASIC WAGE 2018 CMGP SOCIAL BENEFITS
LABOR 13TH
RESOURCE RATE PER RATE RATE PER
DESCRIPTION COST LEAVES MONTH
CODE NO. PHIL- MONTH PER DAY HOUR
FACTOR DAILY MONTHLY PAY SSS PAG-IBIG
HEALTH

1 Foreman 1.8 610.2 15,255.00 610.2 1,271.25 1,347.50 266.965 100 18,850.92 754.04 94.25

2 Leadman 1.65 559.35 13,983.75 559.35 1,165.31 1,200.00 244.715 100 17,253.13 690.13 86.27

Heavy Equipment
3 1.5 508.5 12,712.50 508.5 1,059.38 1,072.50 222.47 100 15,675.35 627.01 78.38
Operator

Light Equipment
4 1.4 474.6 11,865.00 474.6 988.75 1,030.00 207.64 100 14,665.99 586.64 73.33
Operator

5 Driver 1.3 440.7 11,017.50 440.7 918.13 945.00 192.805 100 13,614.13 544.57 68.07

6 Skilled Laborer 1.3 440.7 11,017.50 440.7 918.13 945.00 192.805 100 13,614.13 544.57 68.07

7 Unskilled Laborer 1 339 8,475.00 339 706.25 732.50 148.315 100 10,501.07 420.04 52.51
New SSS Contribution Schedule

2018 CMGP
 New SSS Contribution Schedule

2018 CMGP

Image Source: https://www.pinoymoneytalk.com/wp-content/uploads/2021/01/SSS-Contribution-Table-2021-Employer-Employee.png

Philhealth Contribution Table
Premium
Year Monthly Basic Salary Monthly Premium
Rate

10,000 2018 CMGP 275

2019 10,000.01 to 49,999.99 2.75% 275 to 1,375

50,000 1,375
10,000 300

2020 10,000.01 to 59,999.99 3.00% 300 to 1,800

60,000 1,800

10,000 350
2021 10,000.01 to 69,999.99 3.50% 350 to 2,450

70,000 2,450
Philhealth Contribution Table
Premium
Year Monthly Basic Salary Monthly Premium
Rate
10,000 2018 CMGP 400

2022 10,000.01 to 79,999.99 4.00% 400 to 3,200

80,000 3,200

10,000 450

2023 10,000.01 to 89,999.99 4.50% 450 to 4,050

90,000 4,050

10,000 500
2024 to
10,000.01 to 99,999.99 5.00% 500 to 5,000
2025
90,000 5,000
 Preparation of Detailed Unit Price Analysis (DUPA)

Equipment Rental Rates

2018 CMGP
Types of Rental Rates for Equipment
1. Bare Rental Rates
- to rent an equipment without an operator
2. Operated Rental Rates
- to rent an equipment that includes the
operational costs such as operator’s wages,
fringe benefits, fuel, oil, lubricants and
equipment maintenance
 Preparation of Detailed Unit Price Analysis (DUPA)

Analysis for Bare Rental Rates

2018 CMGP

Basic Calculation

•  Bare Month Rental – Bare monthly rate ÷ 200h/mo.

•  Repair & Miscellaneous

Repair - 6.3% of Bare Rental

Spare Parts – 5.1% of Bare Rental
Miscellaneous – 0.6% of Bare Rental
 Preparation of Detailed Unit Price Analysis (DUPA)

Analysis for Bare Rental Rates

2018 CMGP

•  Fuel

Fuel – Price/lit. x HP x 0.1514

Oil & Lubricant – Price/lit. x HP x 0.003

•  Labor

Operator or driver – Labor rate/hr

ACEL Rates

2018 CMGP
 Preparation of Detailed Unit Price Analysis (DUPA)

Analysis for Materials Cost

2018 CMGP
A. Hauling of Materials
- Stockpiling and loading
- Hauling Cost
- Excise Tax
- Royalty Access Road Prov’l & Brgy. Tax

B. Processing of Materials
- Screening
- Washing
- Blending
 Preparation of Detailed Unit Price Analysis (DUPA)

Analysis for Materials Cost

2018 CMGP
Swell/Shrinkage Factor
 Preparation of Detailed Unit Price Analysis (DUPA)

Sample DUPA
2018 CMGP
 Preparation of Detailed Unit Price Analysis (DUPA)

Sample Computation
2018 CMGP CUT AND FILL COMPUTATION

CASE 1: VOL CUT > VOL FILL

1. Surplus Excavation
2. Embankment from Roadway
Excavation

CASE 2: VOL FILL > VOL CUT

1. Embankment from Borrow

2. Embankment from Roadway
Excavation
 Preparation of Detailed Unit Price Analysis (DUPA)

Sample Workforce Schedule

2018 CMGP
 Preparation of Detailed Unit Price Analysis (DUPA)

Sample Equipment Schedule

2018 CMGP
Thank you.