IV B.

Tech I Semester Supplementary Examinations, July-2022

ESTIMATION, COSTING AND VALUATION
17ACE50
R17 Regulation
Scheme of Evaluation
(Max Marks=60)
PART A
Answer all questions and all questions carry equal marks (5x 2 Marks=10 Marks)
Q.N S. Content Marks Total
o Q Marks
1 Four types of specification 2
1. Performance specifications.
2. Prescriptive specifications.
3. Proprietary specifications.
4. General specifications. 10
5. Detailed specifications.
2 This is generally a layer of 1:2:4 cement concrete mixture mixed with a water- 2
proofing compound laid between the plinth and superstructure walls to prevent the
seepage of water rising from the ground through capillary action. It is measured in
terms of square meter.
The concrete in foundations, grade slab, plinth beams, floor beams, lintel beams,
columns, and slabs are all included in the quantities of RCC. This item also
includes the concrete in Chajja. No need to deduct the volume of reinforcement
from the total volume of concrete. As a separate item, the reinforcement quantity
will be determined.

Shuttering of formwork is recommended to be calculated separately. If

reinforcement or shuttering are included and considered as a consolidated item
with RCC, this should be properly described in the item description. Its unit is
cubic meters.
3 2

4  Rent. Rent is the cost that a business pays for using its business premises. ... 2
 Administrative costs. ...
 Utilities. ...
 Insurance. ...
 Sales and marketing. ...
 Repair and maintenance of motor vehicles and machinery.
5 Basically, a tender is an offer or invitation to bid for a project or to accept a formal 2
offer such as a takeover bid. This term usually refers to the process through which
the government and financial institutions put forward invitation bids for large
projects. These bids are to be submitted within a given deadline.
The 4 main types of tenders are:
 Open tender.
 Selective tender.
 Negotiated tender.
 Single-stage and two-stage tender.
PART B
Answer all questions and all questions carry equal marks (5x 10 Marks=50 Marks)

6 a) A cost estimate is predicted expenditure of a project which is generally prepared 4 10

before the project is taken up. It is prepared in different types based on the marks
requirement of project.
The construction cost estimates can be prepared either in a detailed manner by
taking into consideration item by item or can be calculated approximately without
going much into the details. Based on these criterias, there are mainly 8 cost
estimates followed in construction:
1. Preliminary Cost Estimate
2. Plinth Area Cost Estimate
3. Cube Rate Cost Estimate
 4. Approximate Quantity Method Cost Estimate
5. Detailed Cost Estimate
6. Revised Cost Estimate
7. Supplementary Cost Estimate
8. Annual Repair Cost Estimate
1. Preliminary Cost Estimate
The preliminary cost estimate is also called an abstract cost estimate or
approximate cost estimate or budget estimate. This estimate is generally
prepared in initial stages to know the approximate cost of the project. By this
estimate, the competent sanctioning authority can decide the financial position and
policy for the administration section.
Preliminary estimates are prepared with reference to the cost of similar type projects
in a practical manner. In this estimate, the approximate cost of each important item
of work is displayed individually to know the necessity and utility of each item of
work. The items of work include the cost of lands, cost of roads, electrification,
water supply costs, cost of each building, etc.
2. Plinth Area Cost Estimate
Plinth area cost estimate is prepared on the basis of plinth area of building which is
the area covered by external dimensions of building at the floor level and plinth
area rate of building which is the cost of similar building with specifications in that 4
locality.
Plinth area estimate is obtained by multiplying plinth area of building with plinth
area rate. For example if we require plinth area estimate of 100 sq.m in a particular
locality and plinth area rate of a building in same locality is 2000 per sq.m then
plinth area estimate is 100 X 2000 = 200000.
Open areas, courtyards, etc. are not included in the plinth area. If the building is
multi-storied, the plinth area estimate is prepared separately for each floor level.
3. Cube Rate Cost Estimate
Cube rate cost estimate of a building is obtained by multiplying plinth area with the
height of building. Height of building should be considered from floor level to the
top of the roof level. It is more suitable for multi storied buildings.
This method of estimation is accurate than plinth area method. The rate per cubic
meter is taken into consideration based on the costs of similar type of buildings
situated in that location. Foundation, plinth and parapet above the roof level are not
considered in this type of estimate.
4. Approximate Quantity Method Cost Estimate
In approximate quantity method cost estimate, the total wall length of the structure
is measured and this length is multiplied by the rate per running meter which gives
the cost of the building. The rate per running meter is calculated separately for the
foundation and superstructure.
In case of foundation, rate per running meter is decided by considering quantities
such as excavation cost, brick work cost up to plinth. While in case of superstructure
quantities like brickwork for wall, wood works, floor finishing etc. are considered
for deciding rate per running meter.
 5. Detailed Cost Estimate
Detailed cost estimate is prepared when competent administrative authority
approved the preliminary estimates. This is very accurate type of estimate. 2
Quantities of items of work are measured and the cost of each item of work is
calculated separately.
The rates of different items are provided according to the current workable rates and
total estimated cost is calculated. 3 to 5 % of estimated cost is added to this for
contingencies as miscellaneous expenditure.
The detailed Estimated should consist following details and documents.
 Report
 General Specifications
 Detailed Specifications
 Drawings/plans – layout plans, elevation, sectional views, detailed drawings
etc.
 Designs and calculations – In case of buildings design of foundations,
beams, slab etc.
 Schedule of rates
6. Revised Cost Estimate
Revised cost estimate is a detailed estimate and it is prepared when 5% or more
exceed the original sanctioned estimate value.
The increase may be due to sudden increase in cost of materials, cost of
transportation etc. The reason behind the revision of estimate should be mentioned
on the last page of revised estimate.
7. Supplementary Cost Estimate
Supplementary cost estimate is a detailed estimate and it is prepared freshly when
there is a requirement of additional works during the progress of original work. The
estimate sheet should consists of cost of original estimate as well as the total cost of
work including supplementary cost of work for which sanction is required.
8. Annual Repair Cost Estimate
The annual repair cost estimate is also called as annual maintenance
estimate which is prepared to know the maintenance costs of the building which
will keep the structure in safe condition. Whitewashing, painting, minor repairs, etc.
are taken into consideration while preparing annual repair estimate for a building.
b) First Class Brickwork Detailed Specifications 4
1- Bricks
In the first class brickwork, all the bricks should have a regular shape and size and
the edge of the bricks should be sharp.
The Standard of bricks in the first-class brickwork must be 1st class standard brick,
not the second or third class bricks.
The bricks should not absorb more than 20% water when the bricks are put into
water for 24 hours and brick should possess a minimum of 105 kg/cm2 strength.
Brick should release a ringing sound when the two bricks are striking at each other.
2- Cement Mortar
The cement for the first-class brickwork shall be fresh portland cement which
conforming the I.S. code 269. 4
 The sand which is going to be used in the mortar must be medium coarse, clean,
sharp, and must be free from dust and other organic materials.
The ratio of cement and mortar shall be 1:3 to 1:6 and the quantity of cement mortar
is prepared only for 30 minutes that is the prepared mortar is good for only 30 2
minutes after it is prepared for use.
The materials of mortar are thoroughly mixed and after some time the required
quantity of water is poured on the mixed materials and again the material is
thoroughly mixed by turning the material’s minimum of three times.
7 a) To calculate the earthwork estimate requires multiplying the area by the 3 10
difference between the average of two sets of levels. Formula: Volume = Area *
Difference between the average of two sets of levels.

Suppose we have project of making concrete pavement of area 100m2 and slab
thickness of PCC is 150 mm. Now we have to calculate dry volume calculating dry 3
volume we should multiply a cofactor 1.54 in wet volume. Mix ratio in M15 grade
= 1:2:4 one part cement two part is sand and 4 part is aggregate.

Suppose we have project of making concrete pavement of area 100m2 and slab
thickness of PCC is 150 mm. Now we have to calculate dry volume calculating dry 2
volume we should multiply a cofactor 1.54 in wet volume. Mix ratio in M15 grade
= 1:2:4 one part cement two part is sand and 4 part is aggregate.

Area of Plastering = Length × Width. Amount of Cement = [(Dry Volume × 2

Cement Ratio) ÷ Sum of Ratio] ÷ Volume of Cement. Amount of Sand = [(Dry
Volume × Cement Ratio) ÷ Sum of Ratio] × Density of Sand.
b) Step 1: Given data 1
Step 2: The volume of the tank 1
Step 3: Excavation 1
Step 4: Rubble soling 1
Step 5: Bed PCC 1
Step 6: Brick masonry 1
Step 7: Plastering 1
Step 8: Top surface & internal base plastering 1
Step 9: External Plastering 1
Step 10: Calculate the water tank cost 1
8 a) Step 1: Given data 1 10
Step 2: The volume of the tank 1
Step 3: Excavation 1
Step 4: Rubble soling 1
Step 5: Bed PCC 1
Step 6: Brick masonry 1
Step 7: Plastering 1
Step 8: Top surface & internal base plastering 1
Step 9: External Plastering 1
Step 10: Calculate the water tank cost 1
 b)1. Observations. 2
2. Step 1 – Find cutting length of top bar. 2
3. Step 2 – Find cutting length of bottom bar. 2
4. Step 3 – Find out Number of Stirrups. 1
5. Step 4 – Find out cutting length of Each Stirrup. 1
6. Observations.
7. Step 1 – Find cutting length of top bar. 1
8. Step 2 – Find cutting length of bottom bar. 1
9 a)1. Observations. 2 10
2. Step 1 – Embankment Section 2
3. Step 2 – Cutting section (Soil or Rock) 2
4. Step 3 – Cutting Section Soil and Rock cut) 2
5. Step 4 – Canal section Partial cut and fill 2
6. Step 5 – Canal section Partial cut and fill
b) ● step 1 :- first we should add The size of brick and mortar thickness, by adding we 2
get brick size with mortar is 200mm × 100mm × 100mm, calculate the volume of
brick size with mortar we get = 0.2 × 0.1 × 0.1 = 0.002m3, total volume of brickwork
is 1m3 is given, so number of bricks in 1m3 brick work is = 1m3/0.002m3 = 500
nos.
Hance total number of bricks required for 1m3 brickwork = 500 nos, if market rate
of brick = INR 7000/1000 bricks, then total cost of bricks = (7000/1000) ×500 =
INR 3500.
● step 2 :- as we size of brick 190mm × 90mm × 90mm and we have 500 brick, so 2
calculate volume of 500 Brick = 500 × 0.19 × 0.09 × 0.09 = 0.7695m3, now
calculate volume of cement mortar by subtracting volume of 500 brick from total
volume of brickwork,
Volume of mortar = brickwork volume _ 500 brick volume
Volume of mortar = 1m3 _ 0.7695m3 = 0.2305m3,consider 5% wastage = 5% of
0.7695 = 0.011525 m3,add both = 0.7695 + 0.011525 = 0.2420m3, so we volume
of mortar = 0.2420m3.
We have to convert wet volume to dry volume, we will multiply 1.33 into wet
volume,so 2
dry volume = 1.33 × wet volume
Dry volume of mortar = 1.33 × 0.2420 = 0.3220 m3.
READ MORE:- RATE ANALYSIS FOR AAC BLOCK MASONRY WORK
● step 3 :- now we have to calculate cement required for 1m3 brickwork, we have
density of cement = 1440 Kg/m3 and cement sand ratio is 1:6 ( one part is cement
and 6 part is sand), so total proportion = 1+6=7 in which part of cement = 1/7 &
part of sand = 6/7.
Cement quantity in kg = 1/7×0.3220 m3 × 1440 kg/m3 = 66.24 Kg, we know 1 bag
cement = 50 kg, so no of bag cement = 66.24/50 = 1.32, hance 1.32 bags cement
required for 1m3 of brickwork.
If market rate of cement = INR 400/bag, then cost of 1.32 bags cement = 400 × 1.32
= INR 528.
● step 4 :- sand quantity is calculated in cubic feet, so we have to convert dry 2
volume of mortar into CFT and 1m3 = 35.3147 cft
 Sand quantity = 6/7 ×0.3220 ×35.3147 = 9.75 cft, so 9.75 cft sand quantity required
for 1 cubic metre of brickwork.
Price of sand varying according to availability,location, government tax, local body
but in this calculation we take rate of sand = INR 60/cft, then cost of sand = 60
×9.75 = INR 585.
● step 5 :- material cost for 1m3 brickwork include cost of cement, sand and brick.
We have cost of brick = INR 3500, cost of cement = INR 528, consider 1 tanker
water cost = INR 500 and cost of sand = INR 585, so total material cost for 1m3 2
brickwork = INR 5113.
● step 6 :- 1m3 brickwork generally require 1 mason and 2 Helper for completing
their work in 8 hour and their mason rate = INR 800 & helper rate = INR 400, then
total labour cost for 1m3 brickwork = 800 +(2×400) = INR 1600.
● step 7:- Rate analysis for 1m3 of brickwork masonry is sum of material cost and
labour cost,we have material cost = INR 5113 & labour cost = INR 1600.
Cost of 1m3 brickwork = material cost + labour cost
Cost of 1m3 brickwork = 5113 + 1600 = INR 6713.
● step 8 :- consider 10% contractor profit including other extra charges food
transportation, so 10% of 6713 = INR 671, so total cost of 1m3 brickwork = 6713
+ 671 = INR 7384.
Rate analysis and total cost for 1m3 of brickwork masonry summary conclude INR
7384 ( material cost = INR 5113, labour cost = INR 1600 and others cost = INR
671).
Rate analysis for 1m2 of brickwork masonry
For calculation rate per sq m of brickwork, We have brickwork volume = 1m3 and
width of brick with mortar = 0.1m, then area of brickwork = 1/0.1 = 10m2.
10m2 brickwork cost = INR 7384, so rate and cost per sq meter of brickwork =
7384/10= 738.4 = INR 740
Rate per square metre for brickwork is INR 740.
10 a) Valuation models that fall into this category include the dividend discount model, 2 10
discounted cash flow model, residual income model, and asset-based model.
Relative valuation models, in contrast, operate by comparing the company in
question to other similar companies.
There are several types of depreciation expense and different formulas for
determining the book value of an asset. The most common depreciation methods 3
include:
1. Straight-line
2. Double declining balance 3
3. Units of production
4. Sum of years digits
Depreciation expense is used in accounting to allocate the cost of a tangible
asset over its useful life. In other words, it is the reduction in the value of an asset 2
that occurs over time due to usage, wear and tear, or obsolescence.

b) Contracts can be of different types, including unilateral, bilateral, contingent, 2

voidable, express, implied, executed, and executory contracts. It can be broadly
classified based on quasi-contract. On the other hand, contracts can be either
unilateral, bilateral, executed, or executory based on their performance and
executions. When it comes to contract validity, it can be void, voidable, valid,
unenforceable, or even illegal.

Different Types of Contracts Based on Performance

A contract specifies all the terms on which both the parties had mutually agreed
while agreeing. Until the expiry or termination of that contract, neither party 2
contracts are allowed to defy the terms. They are bound to perform and abide by the
contract provisions.

Here are the different types of contracts classified on a performance basis:

Executed Contracts
This is a type of contract where both the parties involved in the contract have
fulfilled their respective obligations as specified in the agreement. Executed
contract meaning is when an agreement has been carried out exactly how it was
supposed to be carried out. In such contracts, the parties have fulfilled their promises
and also performed their duties soon after entering the contract.

Buying and selling of goods or services usually fall under the category of executed
contracts. Here, there is hardly any trouble regarding the date of execution because
these contractual duties are fulfilled instantly.

Executory Contracts
This is a kind of contract where both the parties in a contract are yet to perform their
respective obligations and duties. Executory meaning is the contractual promises 2
and agreements made between the people are to be carried out sometime in future.
Thus, it also has time agreements or deadlines mentioned in the contract.

A lease can be cited as an example of an executed contract. In a lease, the specified

conditions cannot be fulfilled immediately. They are performed and fulfilled over a
stipulated time. Both executed and executory contracts are performance-oriented
classifications of a contract. However, one requires immediate fulfillment of duties
while the other has eventual fulfillment of duties.

There is also something called ‘partly executed and partly executory contract’. In
such contracts, one party has already fulfilled his share of duties while the party will
have to perform his obligation after a certain period.

Executory contracts can again be divided into types based on the presence and
performance of the parties included. These are unilateral and bilateral contracts. 2

Difference Between Bilateral and Unilateral Contract

Bilateral and unilateral contracts can be said to be two different types of contracts
based on execution.
 Unilateral Contracts
 As the name itself denotes, these are one-sided contracts. In such contracts,
only one party vows to perform a duty. The agreement is then open to
anyone who wishes to vow the same and enter into the contract. A unilateral
agreement is, however, complete only when one of the parties fulfills the
promise.
A unilateral contract is a one-sided agreement in which one party promises
to do something while the other does not follow through immediately. The
opposing party, on the other hand, will act in the future. Contests are one
example of unilateral contracts.
Furthermore, after the acting party fulfills the agreement's promise, the other
party is obligated to follow suit because the promise is now enforceable. The
unilateral contract will be breached if the side does not behave as promised.
Suppose, a person has announced a reward of Rs.1000 for anyone who finds
him his lost puppy. Here, a unilateral offer is formed where only this person
is in the contract initially. When someone finds the puppy and hands it over
to that person, he is bound to pay him the reward. Once this is done, the
unilateral contract is fulfilled.
 Bilateral Contracts
These are two-sided or mutual contracts. Unlike a unilateral one, the
bilateral contract definition is a dull subject. In these contracts, the promises
made by both parties are yet to be fulfilled. One promise is exchanged for
another promise in this agreement. Owing to its mutuality of obligation,
bilateral contracts are also called reciprocal contracts.
To put it in easy language, this is the most common and simple type of
contract. Many personal and business contracts can be categorized under
bilateral contracts. As the name suggests itself, a bilateral contract is a two-
way contract resulting from the exchange of reciprocal promises. A counter- 2
promise accepts an offer in the form of a promise.
Any contract of sale where a certain seller sells a product and the buyer pays
the purchase price is an example of a bilateral agreement. Such agreements
are often a source of legal complications known as bilateral mistakes. It
happens when both the parties involved in a contract misunderstand the
terms and operate on incorrect information.

Prepared By

Dr. P. NARASIMHA REDDY

Assistant Professor,

Department of Civil Engineering, SVCET,

Chittoor.