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Engineering Cost Estimation: Chapter Four
Engineering Cost Estimation: Chapter Four
Purposes of Estimation
The main purposes of costing or estimating are to:
- know the volume of work in reference to the fund available
- determine actual cost per unit of item
- identifying engineering estimate of the work for bidding
purpose
- work out economical use of materials , labor and equipment
- in cases of variations to determine the extra cost to be incurred
- when changes in cost due to legislation happens, to work out the
escalation in cost
Factors affecting cost estimation
1) Type and documentation of the project
2) Construction scheduling
3) Bidding environment
4) Quality and availability of material and labor (given in
specification)
5) Strength or grade required. Eg. C15, C20, C25 concrete
6) Construction facilities /tools and method of construction
7) Location of the site
8) Transportation charges
9) Proper management
10) Land charges (lease)
11) Nature of subsurface condition (and the foundation that is
being used)
3. Revised Estimate
A detailed estimate prepared afresh when the original detailed estimate
is beyond an acceptable range. It should be accompanied by all the
papers as in the case of the detailed estimate and also should include the
comparative statements of variations in each item of works.
4. Supplementary Estimate
When additional works are there, a fresh detailed estimate is prepared to
supplement the original work.
5. Rate Analysis
Rate Analysis is the process of fixing cost per unit of measurement for
the different item of works. Cost due to construction (contractor’s cost)
is given special attention here.
Total cost per unit of work (TC) may be grouped into two components;
direct cost and indirect cost. The direct cost (DC) includes cost due to
material, cost due to labor, cost due to equipment, whereas the
indirect(IC) cost covers overhead costs, and contractor’s profit.
Overhead costs are expenses for general office facility, rents, taxes,
electrical light, water, and other miscellaneous items.
In order to facilitate estimation of cost due to material, it is important to
know the quantities of various materials involved in construction of
various parts of the building or construction work i.e. material break
down is essential.
Material Breakdown
1. Quantity of materials required for brick masonry laid in 1:4
cement mortar
Qty of brick masonry =1m3 (4m2 for 25cm thick brick wall)
Size of one brick =24x12x6 cm (common in Ethiopia)
Size of one mortared brick= 25x13x7 cm;
Volume of each mortared brick = 0.25x0.13x.07 = 2.275x10-3m3
Number of bricks required =1/ 2.275x10-3m3 = 440 mortared bricks per
m3
Add 2% for breakage =9
Take 450 bricks per m3 or 450/4 = 112.5 bricks/ m2; take 115 bricks/ m2
Volume of one nominal (unmortared) brick = 0.24x0.12x0.06 =
1.728x10-3m3
Volume of 440 unmortared bricks = 440x1.728x10-3m3 = 0.76032m3
Volume of wet mortar in 1m3 of wet masonry = 1 - 0.76032 =
0.23968m3
Percentage of wet masonry in 1m3 masonry work = (0.23968/1)*100 =
23.96%
(can be taken as 25%)
Factor of conversion of wet mortar into dry mortar (quantity for dry
base analysis)
Volume of wet mortar in 1m3 of wet masonry = 0.23968m3
Add 10% for wastage = 0.023968m3
Sum Total = 0.263648 m3
Assume 20% voids in sand (Note that cement fills the voids b/n sand
particles)
Volume of dry base analysis = wet mortar volume + increment because
of voids in sand
= 0.263648 m3 + 20/100* 0.263648 m3
= 0.31638m3 ; nearly 30% of the volume
of construction
Factor of conversion = volume of material required on dry base/ volume
of wet mortar
= 0.31638m3 / 0.263648 m3 =1.2
Cement mortar of 1:4 mix by volume (1+4 =5)
Qty of cement required = 1/5 * 0.316 = 0.0632m3/m3 of construction
Number of bags of cement = 0.0632m3/ 0.035 m3per bag =1.81 bags per
m3 of construction; 1.81/4 = 0.45 bags per m2
Qty of sand required = 4/5 * 0.316 = 0.253m3 per m3 of construction =
0.063m3/m2
Exercise: define qty of materials required to construct 1m2 HCB wall
laid in 1: 4 cement mortar; Take nominal size of blocks as 40x20x20 cm,
40x20x15cm, or 40x20x10 cm.
II. Unit price for C -25 concrete per m3 of work (formwork and
reinforcement m/s)
Material cost
Cement = 7.1bags/m3* 50Br/bag = 355Br
Sand = 0.5m3*120Br/m3 = 60 Br
Coarse Aggregate = 0.75m3*120Br/m3 = 90 Br
MC = 505 Br/m3
Labour cost
The crew consists of a mason, two assistants, and four daily laborers at
the wage rates given above for brick masonry work.
Site Engineer/Manager 4000Br/month = 4000Br/(22days*8hrs/day) =
22.70Br/hr
For a utilization factor of 1/10 (for 10 formen under him)
= 22.70*1/10 = 2.27Br/hr
Forman daily wage = 40Br/day = 40/8*(1/4) = 1.25 Br/hr, for 4 crews
Mason daily wage = 30Br/day = 3.75Br/hr , UF = 1
Assistant mason daily wage = 20Br/day = 2.5 Br/hr, UF = 1
Daily laborers, daily wage = 10Br/day =1.25Br/hr, UF = 1
Labor out put (productivity) for the work = 2m3/day = 0.25m3/hr
Labor cost (LC) = Cost per unit time/ productivity
= [2.27 + 1.25 + 3.75 + 2*2.5 +4*1.25] Br per hr / [0.25
m3per hr]
= 69.08Br/m3
DC = MC + LC +EC; take EC = 0.05TC
DC = 505+ 69.08 +0.05TC; but TC = DC + IC, take IC = 0.25DC; thus
TC = (574.08 + 0.05TC) + 0.25DC
TC = (574.08 + 0.05TC) + 0.25(574.08 + 0.05TC)
TC = 717.6+ 0.063TC
TC = 765.8Br per m3
Exercise: Revise the above unit price making use of the most recent
market condition for all factors affecting the cost.