Pricing or costing

- Comes after taking off and making a BQ

- Getting unit cost of an item
- Unit cost i.e. per / m³, m², m, N-º, kg.
- Pricing process of arriving to the unit cost

Elements of a unit late

Description quantity unit unit

rate

Prepare & apply 3 oil paint 25 m² 66

- Element of a unit rate is the cost of:

i) Material
ii) Plant prime cost all in unit rate
iii) Labour
iv) Profit & overhead %
What constitutes the cost :

1. Material
- Haulage cost; transport 15
- Storage 5
- Waste (12% max) 5
- Basic cost 350
All in unit rate 400
2. Plant
 i. Mechanized
ii. Non-mechanized
There two ways of costing plant in a BQ
a. Unit rate
b. Lump sum
a. Unit rate cost
Consider - operating (running) cost
- - standing cost

Operating cost- fuel, oil, operator, maintenance,

Statutory cost, (insure lance, license)

All in plant cost

Standing cost- initial cost, loss of interest in capital,

Depreciation, minor repair/maintenance

3. Labor
i. Skilled
ii. Unskilled
What constitutes the cost of a labour

a. Direct cost
– Wages
– Statutory cost (NHIF, NSSF)
– Incentives
b. Indirect cost
- Cost to person not directly included in production
4. Profit and overheads
Usually a percentage 20 – 30%

Labour constants
Output related to particular time e.g. masonry can lay 200 blocks in one day, assimilated with/by
time

Net pricing

Adding all and get percentage then add finally. Advantage is that you round off once

Gross pricing

Take each item and price separately. Disadvantage is that there is much era due to many
rounding off.

Quantity Unit Rate

A 240 m² 20 gross pay
B 340 m² 40
C 124 m³ 30
xxx xxx net pricing

Factors that may course difference between estimate and actual cost

- Estimate is what is in the BQ

- Actual cost is what in books after completion
a. Variation
b. Fluctuation
c. Unforeseen items
d. Construction method
Example 1

Calculate the unit cost of 1m² of solid concrete block wall bedded and jointed in 1:3 c/s mortar
Using information below;

- Cost of block Kshs 50 size 150 x 225 x 450 mm

- Cost of cement Kshs 400 per 50kg
- Cost of sand Kshs 700 per tone
- Density of sand – 1400 kg/m³
- Density of cement – 1600 kg/m³
- Skilled labor – Kshs 30/hr.
- Unskilled labor – Kshs 15/hr.
- Assume any other relevant information

Solution

1m² SCB wall

MPLO

1. Materials

a. Block
- area covered by one block : assume 20mm joint
- L = 450 + 2 / ½ / 20 = 470
- H = 225 + 2 / ½ / 20 = 245
Nº = 1m² = 8.50
 0.47 × 0.25
Add 5% waste = 0.425
8.925 say 9 blocks

Cost in 1m²: 9 @ Kshs 50 = Kshs 450

b. Mortar 1 : 3

10mm

Volume of mortar per block

= (0.47 × 0.25) – (0.23 × 0.45) × 0. 15 × 9 = 0.019 m³

Add 33½% waste & shrinkage = 0.006 m³

0. 025 m³
Cement
Cost of cement per ton = 1000 = Kshs 20
50

20 × 400 = Kshs 8000 per ton

1m³ cement = 1.6 tones

There for cost of 1.6 tones = 1.6 × 8000 = Kshs 12800

Sand
1m³sand = 1.4 tones @ Kshs 700 per tone
3m³ cost = 1.4 × 700 × 3 = Kshs 2940
There for 4m³mortar cost 2940 (sand) + 12800 (cement) = Kshs 15740
1m³ mortar cost 15740 = 3935
4
There for cost of 0.025 m³ = 3935 × 0.025 = Kshs 98.38
2. Labor
Assume gang of 2 + 1
1 mason can do 1.5 m² per hr.
 1.5m² = 1 hr
1 m² = 1 = 0.66 hrs.
1.5
Cost of skilled labour
Kshs 30 x 0.66 hr = Kshs 19.80
Unskilled labor
Kshs 15 × 0.66 hr = Kshs 9.90
Kshs 29.70
Grand total
Block-----------------------------------Kshs 450
Mortar ---------------------------------Kshs 98.38
Labor-----------------------------------Kshs 29.70
Assume plastisear---------------------Kshs 1.92
Kshs 580.00
Assume curing --------------------------Kshs 5.00
Kshs 585.00 net cost
Add 25% profit & overhead-----------Kshs 146.25
Kshs 731.25 Gross total
Unit rate 1m² SCB wall Kshs 731.25