TENDERING AND ESTIMATING II

COURSE CODE: QUS 210

YEAR 2- SE MESTER 2
: PRICING OF PRELIMINARIES I (1.0)

1.1 What are Preliminary Items?

Preliminary items are items of cost which do not relate to any particular work section and usually listed in the first
bill of quantities. Many estimators prefers to inserts a lump sum for all the preliminaries usually worked out as a
percentage of the total of the measured works. It is good practice however to put a price to each of the item. The
price quoted should read at after careful consideration of each item as it applies to the particular job at hand e.g
water for the works. It will be pipe bone water readily available on site or water has to be transported to site on
trucks.

1.2 Estimating for Typical Preliminary Items

(1) Site Supervision: These include the salaries and allowances paid to the site agent or engineer and the
administrative staff on the site such as cashiers, clerks, time keepers, material checkers, store controllers etc. when
this staff are sent aways from the area in which they normally work and this necessitate them having to leave away
from their usual place of residence for a period of time a subsistence allowance may have to be added to cover the
additional expenses they will incure e.g site agent
salary / month = 10,000
Housing allowance = 8,000
Transport allowance = 2,500
20,500 = 20,500
Cashier
Salary / month = 5,000
Housing allowance = 4,000
Transport = 2,000
11,000 = 11,000
Clerk
Salary / month = 3,500
Housing = 1,600
Transport = 1,500
6,600 6,600
Store controller
Salary / month = 3,500

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 Housing = 1,600
Transport = 1,500
6,600 = 6,600
Messenger
Salary / month
Salary / month = 1,000
Housing = 800
Transport = 500
2300 = 2,300
47,000/month
Contract duration 12 month
Add 1 month before project and
Add 3 months for defect liability period
Total month 16
16 months x 47,000 = 752,000
Add 10% for insurance and I.T.F = 75,200
827,200
Add 25% for profit and overhead = 206,800
1,034,000
(2) Site Accommodation
The contractor is usually expected to provide and maintain temporary site accommodation for
(i) Supervising consultant on site
(ii) Site agent and site staff
(iii) Hut for workmen
(iv) Storage, shed for materials, tools etc.

Pricing for these must cover the cost of:

(a) Initial construction of accommodation
(b) Removal on completion and making good ground disturbed
(c) Maintenance of accommodation throughout duration of the project
(d) Furniture including ventilation and air conditioning
(e) Overhead and profit from these estimator must remove the resale value of items are still useable at the end
of the projects e.g
Site office
Initial construction cost
Architect office 7.5m2

Engineer office 7.5m2

Quantity Surveying 7.5m2

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 Site agent 7.5m2

General office 10m2

Contractor’s room 12m2

Rest room 2.5m2

54.5m2 55m2
Circulation space 10% 5.5m2
60.5m2
61m2
61m2 at 9,000 = 549,000
Less resale value of items (about 27%) 149,000
N400,000
Demolish and cart away from site including making good @ 500/m x 61m2 2

= 30,500

(3) Mechanical Plant

This include all mechanical plant not allocated to unit rate such as cranes, lift, dumpers, hoist, tractor, generating
set, drills, forklift etc. the contractor is expected to allow for this items whether they are purchased specifically for
the project or they are already owned by the firm or they are to be hired for the period they are required on the
project. The usual thing is to allow for (a) cost of transporting plant to site
(b) Hire rate for the period plant is on site
(c) Cost of maintenance on site
(d) Profit and overhead

(3) Tools
This include items such as shovels, portable drills, wheel barrows, batch boxes, guage etc. smaller tools such as
hammer, trowel, plumb level, plumb lines, paint brushes etc. that are associated with a particular trade are not aloe
for, here. They are usually taken care of in the tool allowance included in the all in-labour rate for such fields. If
the project is large enough to used up small tools such as paint brushes, sand papers etc. then the cost of such are
included in the unit rate for the items that required their use in pricing consideration is given to the cost of
purchasing of the tools less their resale value.
(4) Scaffolding
The total height and the type of construction determined the amount and type of scaffolding required for a project,
the contractor may purchase scaffolding for use in the work. Whatever they may be, in pricing consideration is
usually given to the following.
(a) Hire rate for the duration of the project
(b) Labour cost for erecting scaffolding on site
(c) Labour cost for adopting scaffolding for special uses

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(d) Labour cost for dismantling scaffolding at the end of the project
(e) Transportation cost for bringing to site and removing from site all scaffolding (f) Profit and overhead

PRICING OF PRELIMINARIES II

(6) Water For The Work

Water required for the project is provided in either of the two ways supply by water tankers if the site is far from a
source or pipe bone water. In pricing consideration is given the following:
If the site is far from the source: Cost of water supply by water tanker. It may be necessary to write out an
approximate estimate of the quantity of water required for the project from previous project, certain allowance can
be made for concrete work 480 liters/m3
For Block work 350 liters/m2
Rendering 30 liters/m2
Workman hut 2000/day
Site accommodation 20,000/day
Based on these allowances total quantity of water can be estimated for the whole project and priced at prevailing
water tanker rate for that areas.
Cost of Temporary Storage:
This include
(a) Cost of labour and materials in constructing surface tank, overhead tank, pipe work and its pumps.
(b) Cost of cleaning and maintaining tanks, water pipes and water pumps.
(c) Cost of removal of water storage and temporary pipe work and making good ground disturbed
(d) Overheads and profits

(a) Pipe Bone Water:

Pricing will include
(i) Cost of water connection by water board
(ii) Cost of labour and material for laying pipes
(iii)Cost of temporary storage
(iv) Water rate are usually charged as flat rate per plot. Therefore no need to estimate approximately
(v) Cost of disconnection, removal of pipe and making good defect
(vi) Overhead and profit

(7) Lighting and Power for Work

As in the case of water, provision of power is effected in either of two ways
(a) Power generating set: If site is far from existing mains, pricing will include (i) cost of hiring
generating set for the duration of the project.
(ii) Cost of cables, wiring and light fittings
(iii) Cost of running and maintaining generating set for duration of project

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(iv) Cost of labour and materials for constructing temporary sheds for generators
(v) Cost of dismantling shed, removal and making good
(vi) Cost of transporting generating set to site and removal on completion of project.
(vii) Overhead and profit
(b) Electrical supply from electrical authority mains, pricing will include
(i) Cost of connection to the electrical authority
(ii) Cost of cables, wiring and light fittings
(iii) Cost of electricity bills
(iv) Cost of disconnection on completion of project
(v) Cost of hiring a standby generator in case of electricity failure
(vi) Overhead and profit
(8) Temporary Road
In certain building and civil engineering construction, temporary road have to be constructed from the existing
road to the site in order to get access to and make possible the distribution of materials to various part of the site.
Temporary road may also be required is first worked and priced with the following considerations
(a) Cost of labour during clearing the road
(b) Cost of excavation either by hand or by mechanical plant
(c) Cost of labour and materials in laying laterite, blinding, gravel
(d) Cost of maintaining the road for the duration of the project
(e) Cost of removal of temporary road if not required at completion of all works on site and making good
ground disturbed
(f) Overhead and profits
(9) Temporary Telephone
If the project requires the telephone, the constructor must arrange for telephone communication to be installed on
site for easy communication for the duration of the contract, pricing will include
(a) Cost of telephone installation by telephone organization in this case NITEL
(b) Cost of telephone bills
(c) Cost of maintenance
(d) Cost of disconnection\
(e) Overhead and profit
(10) Control of Traffic and the Additional Cost
Reconstruction and repairing of existing road, lying sewers, water mains etc. in existing roads and construction
works in congested areas may create the necessity for closing part of some road temporarily to traffic. In such
cases the provision of one way traffic control, diversions and access to adjoining houses, shops etc. may become
necessary. The following should be given consideration
(a) control of traffic which involves
(i) Cost of speed breakers
(ii) Cost of constructing barriers
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(iii) Cost of red flags
(iv) Cost of labour flagging traffic
(v) Cost of providing diversion
(vi) Cost of removal of sign board to adjoining house, shops, garage etc.
(b) The provision of access road to adjoining houses, shops, garages etc
(i) Cost of labour and materials to provide pedestrian and vehicular access to shops, houses, cars and park etc.
(c) Additional cost of work on existing road where traffic is involved (i) Cost of delays to
progress of work due to traffic and congestion
(ii) The presence of existing water mains, cable sewers, culverts etc.
(iii) Watching and lighting the work
(iv) Overhead and profit
(11) Welfare and Safety of Work People
This will comprise the cost of
(a) First aid box
(b) Drugs, antiseptics, bandages etc.
(c) Providing a nurse or medical attendant
(d) Maintaining first aid box
(e) Removal
(f) Protective clothing such as overall, element, nose mask, face mask, ear plug, boot eye shield (industrial
goggle)
(g) Safety equipment such as hose, fire fighting equipment
(h) Overhead and profit
(12) Temporary Fencing, Hoardings, Screeds, Fans Gantries and Similar Items.
Each will comprise the cost of
(a) Labour and materials
(b) Maintenance
(c) Removal and making good
(d) Overhead and profit

(13) SITE SECURITY:

This will comprise
(a) Cost of labour and materials to construct temporary security shed post
(b) Labour and materials to installed security lighting, intruder alarms (c) Furniture, stationeries, tags, I.D card
etc.
(d) Wages for workmen
(e) Hiring of watch dogs
(f) Removal of sheds and lightening on completion of project and making good ground disturbed
(g) Overhead and profit

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(14) Removing Rubbish and Site Clearance on Completion of Project.
This involves the cost of
(a) Labour and materials clearing off such rubbish.
(b) Plant, lorry and labour loading such lorry transporting the rubbish from site (c) Labour and materials
cleaning up door, windows etc.
(d) Overhead and profit

(15) Site Meeting: this will Comprise the Cost of:

(a) Provision of stationeries at each meeting
(b) Provision of refreshment at each meeting
(c) Wages of attendant
(d) Overhead and profit

(16) Setting out of the Work:

this will comprise the cost of
(a) Pegs, templates and ropes or line
(b) Hiring of theodolite, precise level and other survey equipment
(c) Bringing to site and removing from site all the above name equipment
(d) Fees for engineer and the assign team
(e) Overhead and profit

PRELIMINARIES ANALYSIS WORKSHOP (3.0)

3.1 Preliminary Bill

The preliminaries bill gives the contractors the opportunity to price overheads which is described in the Code of
Estimating Practice as “the cost of administering a project and providing general plant, site staff, facilities and site
based services and other items not included in bill rates.
Preliminaries costs vary from contract to contract depending on complexity of work, size of contract, specialist
plant and equipment required, conditions imposed by the employer etc. On relatively simple contracts preliminary
costs may be in the order of 10 – 15% of the contract sum whereas on complex contracts this figure could be much
higher.
A contractor must calculate the cost of the preliminary items separately for each contract, no two contracts are the
same.
SMM7 recommends that fixed and time-related charges should be identified separately in a bill of quantities.
A fixed charge is defined as “the cost of work which can be considered as being independent of duration”
A time-related charge is defined as “the cost of work which is to be considered as dependant on duration”.

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3.2 Class Workshop
The appendix below is a summary of the bill for the case study project. Students will be expected to appreciate
and be able to work out how preliminary items in the bill are priced and distributed between time or cost related
and fixed charges for the purpose of monthly valuations.

Procedures:
The work book will be made available to students at the beginning of the lecture. Time will be allowed for
students to read and comprehend the notes. Students will then be asked to sit in groups of between 3 and 4 to
discuss their understanding and set up query list on the project.
After about 30 minutes, each group will be required to use the preliminaries breakdown form to identify
percentage allocation of each preliminary item across the table and to provide justification for the allocation on
each item.

Appendix 1 attached shows the tender submission details and actual progress achieved on site for monthly
valuation purposes on a typical construction project.

(a) Allocate the preliminaries to ‘time related” and “lump sums” sections (Use form
Appendix 2).

APPENDIX 1 TENDER SUBMISSION DETAILS Bill No. Preliminaries

A Supervision £ 14,000.00
B Plant 1,200.00
C Scaffolding 1,200.00
D Welfare Facilities 2,100.00
E Site Huts 1,000.00
F Site Telephones 400.00
G Temporary Lighting & Power 400.00
H Programme 200.00
J Watching 1,250.00
K Site Hoarding 1,800.00
L Temporary Roads 950.00
M Setting Out 400.00
N Drying the Works 500.00
O Cleaning Away Rubbish 500.00
P Water for the Works 727.00
Q Insurance Against Injury to Person and Property 3,401.00

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 Total Bill No. 1 £30,028.00

Bill No. 3 External Works

A Soiling and Seeding £ 4,082.16

B Paths and Pavings 6,111.27
C Retaining and Screen Walls 2,017.33
D Drainage 9,127.16
E Fencing 1,812.19

Total Bill No. 3 £ 23,150.11

Bill No. 2 Measured Work

A Demolition £ 1,200.00
B Excavation and Earthwork 11,526.16
C Concrete Work 29,526.41
D Brickwork and Blockwork 31,416.12
E Roofing 14,112.16
F Woodwork 35,516.44
G Plumbing and Mechanical Installations 18,642.12
H Electrical Installations 9,216.14
J Floor, Wall and Ceiling Finishings 17,316.18
K Glazing 4,127.13
L Painting and Decorating 12,011.14

£184,610.00
Bill No. 4 Prime Cost Sums
Nominated Sub-Contractor

A Piling £ 8,500.00
B Profit 5% 425.00
C General Attendance Item 170.00

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D Specialist Landscaping 27,000.00
E Profit 5% 1,350.00
F General attendance Item 600.00

Nominated Suppliers

G Kitchen Equipment 18,000.00

H Profit 5% 900.00

J Sanitary Fittings 12,000.00

K Profit 5% 600.00

L Ironmongery 5,000.00
M Profit 5% 250.00

Statutory Undertakings

N Water Main Connection 1,200.00

O Profit 5% 60.00

P Gas Main Connection 500.00

Q Profit 5% 25.00

R Electrical Main Connection 5% 500.00

S Profit 5% 25.00

T Sewer Connection 1,400.00

U Profit 5% 70.00

Total Bill No. 4 £78,575.00

Tender Summary

Bill No. 1 Preliminaries 30,028.00

Bill No. 2 Measured Work 184,610.00
Bill No. 3 External Work 23,150.11
Bill No. 4 Prime Cost and Provisional Sums 78,575.00
Bill No. 5 Daywork 9,050.00

TOTAL TENDER SUM £325,413.11

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Bill No. 2
Item A complete
Item B complete
Item C complete
Item D complete
Item E complete
Item F 50% complete
Item G 40% complete
Item H 40% complete
Item J 20% complete
Item L 10% complete

Bill No. 3
Item A 20% complete
Item B 20% complete
Item C 40% complete
Item D 40% complete

Bill No. 4
Item A complete
Item D £8,600
Item G £8,000
Item J £6,000
Item L £2,000
Item N complete
Item P complete
Item R complete

Bill No. 5
Variations £9,000.00 agreed.
Materials on Site £6,237 agreed.

The following AI’s were received from the Architect in respect of the following Prime Cost and Provisional
Sums:
1. Accept a quotation of £10122.50 from Keane & Bonney Piling Ltd.

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It was observed that the Piling nominated sub-contractor had erroneously left out the main contractor’s discount in
their quotation for the works. Effect the necessary corrections before valuation.

2. Accept a quotation of £27500.00 from Landson Landscape plc.

3. Accept a quoation of £19012.00 from Kitchen & Sons for the supply of kitchen fittings.
4. Accept a quoation of £13176.00 from Loo Ltd for the supply of sanitary fittings.

5. Accept a quoation of £8820.00 from Smith & Smith for the supply of ironmongery.

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 APPENDIX 2

JCT 80 Breakdown of Preliminary Items

Cost Time Lump Sums Total

Related Related
Start Finish
Supervisor

Plant

Welfare

Site Huts

Telephones

Temporary
Lighting
power and

Programme

Watching

Site Hoarding
Temp Roads
Setting Out
Drying the works
Cleaning Rubbish
Water
Insurance
TOTALS

Questions:
(1) Define prelimiaries and give three examples of a “prelimiary item”
(2) How do contractors price these items?
(3) Define fixed costs and provide five examples of an item you think would be priced as a fixed cost item
(4) Define time related costs and give five examples of preliminary items you think a contractor would price
as a time-related cost.

GENERAL OBJECTIVE FOR WEEK 4:

Know the tendering procedures.
PREPARATION OF TENDER (4.0)

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Reference: CIOB (1997) Code of Estimating Practice, 6th Edition. Ascot: CIOB
The preparation of a tender can be divided into six stages.

4.1 Decision to Tender

The tender documents arrive and the estimator records all relevant information such as:
• The time allowed for preparing the tender
• Drawings available
• The approximate value and extent of the project
• The client, Architect, Q.S and other consultant
• Value of main contractors own work
• Project Details eg phased work, conditions of contract, access to site, working conditions.
• Firm price or fluctuating price tender required
• Current workload and timetable for project
After reviewing the above information, management must decide whether to tender for the project or decline the
invitation. If it is decided not to submit a price, the tender documents should be returned immediately to the
architect/supervising officer. If it is decided that a tender should be submitted, the contractor move to the next
stage.

4.2 Collection of Information

The time allowed for preparing a tender is always limited; the estimator must plan the programme very carefully.
The work which has to be undertaken in a typical 4 week tender period comprises:
• Despatching enquires
• Visit consultants offices
• Visit the site
• Receipt of quotations and examinations
• The ‘mechanical’ process of pricing the tender documentation
• Meetings with plant manager, contracts manager etc to determine a preliminary programme, construction
methods and likely plant requirements.

4.3 Enquiries and Quotations

Suppliers
Enquires should state:
• The specification of the material
• The quantity required
• The anticipated delivery dates
• The terms upon which the price is required
• The date by which the quotation is required
• The address of the site and access details

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• Period for which the quotation is open for acceptance

Sub-contractors
Photocopies of the relevant parts of the bill of quantities, specifications and if possible copies of drawings, should
be sent out to perspective sub-contractors. Enquires should state clearly:
• The items to be priced
• The terms of the main contract
• The period for which the quotation is open for acceptance
• The plant, materials, attendance etc to be provided by the main contractor
• Anticipated commencement and completion dates
• The form of contract and details from the appendix
• The terms of payment
• Date by which the quotation is to be submitted
• Address and details of the site

4.4 Visit to Site

The visit to site can be made after all enquires have been despatched and before prices begin to come back. The
visit to the site will enable the estimator to produce a report giving the following information:
• The position of the site in relation to roads etc
• Names of local and statutory authorities
• Details of site/ground conditions, spot items etc
• Site access, egress and possible site layouts
• Facilities for disposal of surplus excavated materials etc

4.5 Visit to Consultants Offices

It may be that only drawings showing plans and elevations will be sent out with the tender documents and that
further details and working drawings can be examined at the consultants’ offices e.g. the estimator may require
further details of manufactured joinery, steelwork joinery fittings etc, before these sections can be priced
accurately.

4.6 Receipt of quotations

Prices received from sub-contractors and suppliers are examined for sufficiency, terms etc

4.7 Planning and Mid Tender Review

The project is discussed with other managers to determine a preliminary programme, construction methods,
sequence of work, site layouts and what other plant, services, labour and site staff are required.

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It must be decided whether:
• All labour can be obtained locally or will it be necessary to recruit for the project.
• Sufficient plant is already owned or is it necessary to purchase/hire additional items.
• It would be desirable to sub-let any further work.
The preliminary programme should also be prepared containing the following information:
• Contract starting and completion dates
• Any work to be done in stages
• Work to be sub-let by main contractor
• Work to be done by nominated sub-contactors (if JCT 98 form)

4.8 Preparation Of The Estimate

It can be divided into 4 stages:
1. The establishment of all-in rates for key items i.e. labour, gang costs, plant costs etc.
2. The selection of domestic sub-contractors and suppliers
3. The use of these ‘all-in’ rates together with costs per unit for materials to calculate unit rates for each item
in the bill
4. The pricing of the preliminaries and project overheads

4.9 Final Review

The consideration of the estimate to produce a tender is the responsibility of management. The estimator and other
senior staff will prepare reports for consideration by management who will consider the following items before
determining the tender figure;
• Project reports
• Conditions of contract
• Contractual and construction risks
• Terms of the quotations from sub-contractors
• Capital required for the project
• Technical and management staff required
• Current workload
• Market Conditions
• Competition
• Reputations of client, consultants and area.

Following evaluation of the alternatives, risk and scope for profitability the ‘mark up’ is determined and the actual
tender figures calculated. The decision being made within the framework of company policy.
A record of all tenders should be kept together will the results (if known) for future reference.

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4.10 Action after Submitting a Tender
4.10.1 Action with a successful tender
Check contract documents to ensure that:
• The dates, penalties etc are the same as those contained in the tender documents
• The bills have been copied correctly from the original
• The drawings are those which were circulated with the tender documents
Disseminate information
Information should be made available to those responsible for purchasing, construction planning and plant.
Feedback information
Feedback from site on labour and plant outputs etc, to be kept for future pricing
Cost/Value Reconciliation
At regular intervals during the construction period, the costs at that time should be compared with a meaningful
valuation of work done in order to check that the job is ‘on target’

4.10.2 Action with an Unsuccessful Tender

It the tender has been unsuccessful the contractor must assess why this is the case. Records of tenders submitted
must be kept and estimators must evaluate their performance. Suppliers and sub-contractors should be notified of
results as soon as possible.

Factors in Pricing General and Special Attendance on Subcontractors

Each site has its own peculiar characteristics which can have considerable influence on the total cost of
development. Some of the more important factors are:
(1) Location of site: - Due to higher wastages, materials and other cost, it is expensive to erect a similar
building in an urban area than in a provincial setting. Some parts of the areas are subject to higher rainfall than
others and this can lead to a greater loss of working time even within the same region, the cost of operating on
different sites can vary widely. A project on a remote country site may involve long length of temporary access
road and temporary power cable for electricity supplies and increase cost of transporting operatives and materials
and components, protection of adjoining buildings and the public and restrictions on the use of mechanical plant.
Taking these problems will incure additional cost. Furthermore, a very expose site may make working conditions
more difficult and costly. Some locations may be more vulnerable to vandalism and theft and so require more
costly protective measures.
(2) Demolition site clearance: A site may contain buildings which requires demolition, paved areas which
requires breaking up and trees which requires felling, grubbing up and disposal of their roots, another site may be
cleaned of all obstruction.
(3) Contours: Few sites are entirely level. The most steeply slopping, the more greater will be the cost of
foundation and earthwork, the steeping of strip foundation increase their cost. Most buildings requires constant
floor levels and this will involve considerable excavation and fill on its slopping site.
(4) Ground conditions: Where the strata is low load bearing capacity. It may be necessary to introduce pile or
other more expensive types of foundation. Raft foundations on made up ground or in areas liable to mining

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subsidence may be three trust as expensive as normal strip foundations where as pile foundation used to convey
loads to a deeper load bearing strata could be as much as five times as expensive. The cost of excavation in rock
could be five to eight times as expensive as working in normal ground, the provably length of haul in the disposal
of surplus soil also needs consideration. Where ground water is close to the surface of the site, costly pumping
operations may be needed. A wet site may also involve raising temporary sheds and offices on brick bases and
more costly temporary roads. The types of strata will also influence the form and extent of timbering or other
means of supporting that will be needed to the sides of excavations.

GENERAL OBJECTIVE FOR WEEK 5:

Know factors affecting tender figures.

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MAJOR FACTORS AFFECTING TENDER PRICE (5.0)

“Construction cost” is a broad phrase or term and can be interpreted to mean cost of any sort to anyone associated
with construction work. It depends on the point of view let us say you are a contractor, your costs are your
expenditure on labour, materials and plant. The client’s cost of land, consultant fees and so on.
The base cost of construction therefore comprises of expenditure on materials, labour and plant, the quantities of
materials, labour and plant required for a job are determined & attaching prices to these defines the basic
construction cost, but to these are also a variety of factors that affect this basic cost: -

5.1 Factors Affecting Tender Price

(1) Market Condition:
The volume of work in progress in the area at a given point in time affect construction cost. When the market is
burying with many project, tender price list are generally high. Most consultants are busy and competition is not
keen. However during ausle times when there are few projects, contractors are anxious to out bid themselves so as
to stay in business, so construction cost tends to be lower.

(2) Availability of Materials:

When required materials are readily available in an area where a project is to be executed, materials will be
cheaper than where they are not so available. Generally, materials are cheaper where they are produced e.g if you
can buy cement directly from Ashaka, the price will be a lot cheaper than in Kaduna because of transportation and
profit margins of middlemen and so on. Imported materials for similar reasons are more expensive than locally
produced materials.

(3) Availability Of Labour:

Where a certain type of labour is not readily available in the area where a project is to be constructed, it may be
necessary to import from an area where such labour is available. Some inducement may have to be offered before
such labour will move from its base such as transportation, accommodation, inconveniences allowances etc. these
add to the cost of construction.

(4) Transportation:
The farther a site is from town, the more expensive will be the construction cost e.g the same building to be
constructed in Barnawa and also near Kaduna Airport will cost differently, the additional cost of transporting
materials, labour and plants to the airport site will increase the cost of construction.

(5) Location:
The standard of living in an area affects the cost of construction. People are willing to pay higher prices for
construction in places like Lagos and Abuja than are to pay in other places like Benin, Kaduna or Enugu.

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(6) Location of Site: -
The particular location of the site can have significant effect on cost. Remote site may require additional cost for
the provision or access roads and temporary services or the provision of additional security measures. Also, a site
in a congested or restricted area also gives rise to major problems such as delivery & storage of materials and
components, protection of adjoining buildings and the public, restriction on the use of mechanical plants and so on,
all these will increase the cost of construction.

(7) Time Consideration: -

For certain reasons, a project may need to be completed in a very short time, this tends to push up construction
cost. Labourers may be required to work overtime and overtime rates are usually higher than normal rates.
Incentives scheme may have to be introduced to increase labour productivity. Closure supervision is necessary as
mistake must be avoided, there may be time to apply remedial action.
(8) Site Condition:
May affect the construction cost of a particular building. The nature of ground may necessitate more complex form
of foundation. The ground water level when close to surface will involve costly water pumping operation. A wet
site may involve rising temporary sheds and offices above ground level and they involve more costly temporary
roads. Steeply sloping site may involve major cost in cutting and filling requirements, existence of buried pipes
and cables may involve major cost to re-root such.
(9) Total Height of Building:
The higher a building is, the longer it takes and more difficult it is to get the point of execution of works. It is also
more difficult to work at such height. Labour charges for working at great height are higher than abnormal height,
there is also the cost of providing additional safety measures and insurance. Also, the need for special scaffolding,
hoist, tower crane, elevators etc. will tend to increase the cost of very tall building over the cost of building
requiring the same quantities at ground level.
(10) Legislation:
Has a way of affecting construction cost in dramatics manner as we have seen in Nigeria over the years e.g
minimum wage, import restrictions and duties, labour policies, fiscal policies such as exchange rates, interest rates
etc. in for costing construction cost, an estimator need to keep an eye on legislation, to decide which are likely to
affect construction cost and how.

(11) Class of Contractors:

There are various types of contractors in the market. These gives rise to different classification.
- Small contractors comprises of one man board of directors. They usually carry little general overhead and
keep very few permanent staff
- Medium contractors usually have a board of at least two but not more than five directors they employ a
few more permanent staff, have a reasonable office and possess some equipment and official cars.

20
- Large contractors have a lot of times publicly owned with many share holders having at least six members
on their board of directors, fleet of cars and equipments, large office space and a lot of staffs of various discipline.
Generally, the larger the firm, the higher their cost. Also, the level of profit expected by the share holder of larger
firms is a lot more than that required by the smaller contractors. The rates for the small contractors therefore tends
to be much lower than for large contractors (e.g AG Ferrero and small firms)

(12) Type of Client:

the type of client or developer can affect the cost of construction.
Some clients are willing to and are capable of paying more for construction than others. Also, some clients have
methods to be taken into consideration while estimating construction cost (e.g U.N.T.L will pay on time than
N.N.P.C when a contract is carried out)
(13) Types of Consultants:
- Architect: - Some architects are very difficult to work with, their initial designs are not detailed and they
rely a lot on instructions on site. Many variations occur and delays are frequent. These will add to the cost of
construction. The same applies to Engineers and other designers. Contractors are therefore known to increase their
prices by a certain percentage when it is known that they would be working with particular consultant.

(14) Types of Tendering:

Open tendering generally brings lower prices than selective tendering, and this in turn result in lower price than
negotiated tendering which brings the highest price of fall.
GENERAL OBJECTIVE FOR WEEK 6:

Use rate analysis to price items in the bill of quantities.

21
 PRICIPLES OF ANALYTICAL ESTIMATING (6.0)

6.1 Elements of a Unit Rate

To analyse something is to break it down into its constituent parts and study each part in detail. Therefore
analytical estimating involves the analysis and costing of construction resources to produce an estimate.
The production of an estimate normally involves the calculation of unit rates i.e. the cost of an individual measured
item for example a square metre of brickwork, a cubic metre of concrete or a metre of skirting. As found in a Bill
of Quantities.
Analytical estimating is therefore the most accurate form of estimating as each resource and unit rate is analysed
and costed individually. This form of estimating is used for pricing contracts with bills of quantities,
specifications and drawings or where the contractor has measured and prepared their own quantities of work.

Labour Materials Plant

Unit Rate

Overheads Profit

6.2 Calculation of Unit Rates

Unit Rates maybe calculated in one of two ways:

• Net Rate – (Excludes Overheads and Profit)
• Gross Rate – (Includes Overheads and Profit)
In our industry most estimators will calculate costs based on net rates these will then be enhanced later to include
overheads and profit. Gross rates are sometimes referred to as allin rates.
The Resources which compromise a unit rate are labour, materials and plant.
In the construction industry labour is often employed in two main ways, these are:
1. Direct –
Often referred to as ‘cards in’, the employer pays all the costs of employment including for example national
insurance and sick pay amongst others.

22
2. In-Direct –
These workers are self employed or referred to in industry as ‘on the lump’ these are often labour only sub-
contractors without the normal costs of employment along with the other legal protections such as redundancy,
sick pay and minimum notice periods.
Labour may be paid for on an hourly, daily, weekly or piecework basis. Directly employed operatives are usually
paid in accordance with a working rule agreement which will specify the rates and allowances to be paid.
However, some contractors are trying to move away from the national wage bargaining and introduce local wage
rates. Ultimately the actual rates paid for labour will depend on market forces.

6.2.1 Materials
Several factors affect the cost contractors pay for materials.
In the box below highlight the factors you think impact on the price a contractor pays. In the material element of a
unit rate, in addition to the actual cost of the material the estimator must also consider:

• Transportation costs
• Unloading and Stacking costs
• Materials movement on site
• Extra Materials to compensate for:
o Wastage

o Allowance for materials being measured net in B o Q o Loss in consolidation, shrinkage etc

Note: Where prices of materials are described by suppliers as ‘ex works’ this means the price at the factory and
delivery costs will have to be added.

6.2.2 Plant
Plant may be divided into two main categories, the costs of which can be allocated to contracts in differing ways.

Non-Mechanical Plant
Basic items of plant including – barrows, hosepipes, spades, trestles, scaffolding, small powered hand tools etc
With the exception of scaffolding and one or two other items it is virtually impossible to allocate the cost of non-
mechanical plant items to a contract, let alone to a specific unit rate
e.g. a wheelbarrow may be used on several contracts in its lifetime.
The cost may be included in overhead charges as a percentage, as a lump sum in the preliminaries bill or, more
accurately, on longer contracts a list of non-mechanical plant items is prepared, costed and included in the contract
sum.

Mechanical Plant
Mechanical plant such as excavators, lorries, dumpers, mixers etc require a more complex approach. Mechanical
plant can be very expensive. Contractors may buy, hire or lease plant. The purchase of plant must be viewed as an

23
investment on which a return is required. Only detailed analysis will show whether it is in the contractor’s interest
to buy, hire or lease mechanical plant.

6.2.3 Overheads
Overheads may be defined as the cost of maintaining (running) the contractors organisation.
There are two types of overheads:
(1) Head Office
Annual cost of staff salaries, expenses, rents, rates, gas, water, electricity, telephones, office equipment, postage,
insurance, maintenance of buildings and equipment etc. The cost of these items is expressed as a percentage of a
company’s turnover and included in the tender.

(2) Project or Site

Project site costs including non – productive (manual) site staff, site office costs, storage facilities and other
preliminary / site organisation costs. Items are priced as individual items and may be fixed or time related costs or
a mix of fixed and time related costs. The costs of these items are included in the tender.

6.2.4 Profit
The amount of profit that a contractor can make is determined by a number of factors largely outside the remit of
an estimator. However, in larger companies the senior or managing estimator may be a member of the
management team and in smaller companies / firms the estimator may be a director or the managing director. In
both cases they may be party to, or may have to make commercial decisions regarding profit margins.
Factors affecting profit levels are:
• Market forces of supply and demand
• Amount of competition
• Who the competitor are
• Size / Value of contract • Risk involved in contract
• Interest rates.

Student Questions
1. Define analytical estimating
2. Explain the difference between net and gross unit rates
3. List the elements of a unit rate
4. Identify the organisations, which produce working rule agreements
5. Define non-productive time and holiday credits.

24
BUILD-UP HOURLY RATE FOR PLANT & EQUIPMENT (7.0)

7.1 Calculation of Unit Rates

The following sections cover the calculation of unit rates. The process of calculating unit rates could be described
as “mechanical” because you must consider each of the unit rate elements in turn. Some rates may include all
elements, others only one, but you must think carefully about each element and calculation before commencing.

You may use the Wessex Price Book, or other similar price book, for information on the output/productivity of
labour and plant. Materials and plant prices can be obtained from builders' merchants and plant hire firms.

In practice estimators must always use productivity outputs analysed from site feedback and the current cost o f
other resourcs.

In the following unit rate calculations the hourly labour rates used are £9.50 for craft operatives and £7.00 for
labour operatives.

7.2 Groundworks
SAQ 2
Explain how the following factors may affect unit rates for groundworks?
• Type of excavation e.g. trenches, pits, basements
• Ground conditions e.g. clay, sand, soil, rock
• Depth of excavation
• Ground water
• Time of year when excavating
• Mechanical or hand excavation
• Distance and availability of tips
• Estimated bulking of materials
7.2.1 Hand Excavation
Excavation work is usually measured in cubic metres (m3)
Typical labour outputs for excavating in firm earth ;
Reduce levels maximum depth 0.25m 3.15 hours/m3 Trenches max. depth 1.00m
3.25 hours/m3 Basements max. depth 2.00m 3.94
hours/m3 ADD the following factors for other ground conditions ;

Dry or wet clay 20% Compact gravel

50%
Rock not requiring a compressor 75%
Running silt or sand 100%

25
Example
Excavate trench maximum depth 1.00m in firm earth, unit of measurement m3.
Labour;
£ - p
3.25 hours for a labourer @ 7.00/hour 22 - 75
---------
Net Rate per m3 22 - 75
If you want a Gross Rate add for
overheads and profit, say 10% 2 - 28
----------
Gross Unit Rate per m3 25 - 03
======

TQs 1 - 3
Calculate net unit rates for the following ;
1. Excavate to reduce levels max. depth 0.25m in firm earth,
unit of measure m3

2. Ditto basements max. depth 2.00m in dry clay unit of measure m3

3. Ditto to reduce levels depth 0.25m in compact gravel unit of measure m2

(square metres)

7.2.2 Mechanical Excavation

Rates for different types of mechanical plant vary enormously between contractors depending on the method used
to calculate the costs.

When calculating “all-in” hourly rates for mechanical plant the following items should be considered ;

• Capital cost
• Depreciation
• Interest on capital
• Expected life of plant
• Number of hours worked per annum
• Maintenance • Insurance

26
• Road licence
• Operators wage
• Fuel
• Lubricants

Think about how the above factors will affect the hourly cost of mechanical plant.

Example
The following is one method of calculating the all-in hourly cost of a mechanical excavator. This method is neither
the simplest nor most complex method which can be used but it does produce realistic costs.

Capital cost (purchase price) £37,000

Residual Value (resale/scrap value) £6,000
Interest on capital 6% compound
Expected Life 5 years
Hours worked per annum 1600
Maintenance costs 10% of capital cost per annum
Insurance included in company overheads
Road Licence £200 per annum
Operative's rate £7-50 per hour
Fuel 5 litres/ hour @ 40p/litre
Lubricants allow 10% of fuel costs

Standing Charge £ p

Capital Cost 37,000-00 Less Residual value

6,000-00
-------------
Depreciation 31,000-00
Interest 6% compound on £37,000 over 5 years 12,506-00 Maintenance 10% of capital
cost per annum 18,500-00
Road licence £200 per annum for 5 years 1,000-00
-------------
Total for 5 years 63,006-00
-------------

Therefore cost per hour is;

27
Total cost for 5 years divided by total hours worked in five years
£63006 / (1600 hours x 5 years) £7-88
Running Charge
Drivers wages 1856 hours @ £7.50 13,920-00
Fuel 1600 hours x 5 litres/hour x 40p/litre 3,200-00
Lubricants 10% of fuel costs 320-00
-------------
Total for 1600 hours 17,440-00
-------------

Therefore cost per hour is £17440 / 1600hours £10-90

Therefore total cost per hour is:

Standing Charge £ 7-88

Running Charge £10-90
---------
Total Hourly Cost £18-78
======
TQ 4
Using the following information calculate the "all- in" hourly cost for a 16 ton tipper lorry ;
Capital cost £68,000
Residual Value £5,000
Interest on capital 6% compound
Expected Life 10 years
Hours worked per annum 2160
Maintenance costs 10% of capital cost per annum
Insurance £3000 per annum
Road Licence £1,200 per annum
Operatives rate £7-50 per hour
Fuel 10 litres per hour@ 80p/litre
Lubricants allow 10% of fuel costs

7.3 Excavation using Mechanical Plant

Excavate trenches maximum depth 2.00m in clay.
Calculate the net rate per m3 using an excavator with an output of 5m3/hour for excavating and loading into
lorries.

Hourly cost of excavator / output in m3 per hour

£18-78 / 5m3 per hour £3 - 76

28
SAQ 3
The output of the excavator may also be expressed in hours per m3 , what is the output in hours per m3 ?

Recalculate the rate using your output in hours per m3.

7.4 Banksmen
Banksmen are usually employed to supervise excavator/s. They check the excavation for obstacles i.e.
underground services, make sure the excavator operator is working to the correct line and level and trim the sides
and bottoms of excavations when necessary.

TQ 5
Recalculate the last rate and include for one banksman supervising two excavators, banksman’s rate £7.00 per
hour.

7.5 Disposal of Excavated Material SAQ 4

Explain how the following factors may affect the cost of disposing of excavated material
• Bulking of material
• Availability of tips/landfill sites
• Distance to tip
• Average speed of lorry
• Loading time
• Tipping time
• Tipping charges/costs
• Consider alternatives

TQ6
Using the excavator and lorry from the previous example and the following information, calculate the cost per m3
for disposing of excavated material off site

Note ; The following items are all variables (will vary on every contract) therefore a new rate must be
calculated for each contract

Assume ;
16 ton lorry will carry approx. 6.5m3 of bulked clay
Output of excavator 5m3 per hour
Distance to tip 5 miles round trip
Average speed 20 miles per hour
Tipping time 15 minutes

29
Tipping charge £20 per load

7.6 Earthwork Support

Defined in the Standard Method of Measurement as ;
“Whatever is necessary to support the faces of excavations other than steel sheet piles”. It is measured to the faces
of all excavations over 250mm deep.

The contractor has to decide what is necessary and cost it accordingly. This is referred to as a contractor’s risk
item
The following factors affect the cost of earthwork support ;
• Ground conditions
• Depth of excavation
• Distance between opposing faces of excavation
• Method of support used

Contractors should also consider alternative methods of construction, which may be less expensive e.g. over
excavate and backfill.

Timber used for earthwork support (EWS) can be re-used up to say 6 times therefore the cost of providing the
timber should be divided by the number of uses to obtain a “cost per use”.

Operatives fixing EWS are usually paid an additional allowance for skill and responsibility.

Materials
100 x 100 costs £1-92/m
150 x 100 costs £2-88/m
150 x 150 costs £4-32/m
200 x 50 costs £1-92/m

Labour
Fixing EWS in moderately firm earth to faces of excavation up to 2.00m apart and up to 2.00m deep (see sketch) -
0.77 hours per m2

Ditto in loose ground or running sand (as sketch) -

1.65 hours / m2

Hourly rate £7.50 / hour

BUILD-UP UNIT RATE FOR SURFACE EXCAVATION (8.0)

30
8.1 Surface Excavation
In building up rate for excavation, the following should be considered.
(a) Types of excavation i.e surface or trench excavation
(b) Means of excavation i.e manual or mechanical
(c) Nature of excavation
(d) Volume of excavation (bulking)
(e) Distance of tipping (haulage)

Bulking
Sand 12.5%
Gravel 10%
Clay 133 1/3%
Rock 50%

Multiplier Medium labour constant multiplier

Sand and gravel 0.75 Natural soil
1.00 Stiff clay 1.50
Soft rock 3.00 Hard rock
8.00

OUTPUT
Excavation 2.5m3 / labour /day
Spreading and leveling 4.5m3 / labour / day
Wheeling / haulage 8.0m3 / labour / day
Placing of concrete 4m3 / labour / day

Task I:
Surface excavation n.e 300mm deep and average 150mm, considered a gang of 12 labour and the supervisor.
Calculate the cost/m3 given that the supervisor is N1500/day and the labourer
N700/day
Solution Labour cost
1 supervisor @ 1500/day N1500
12 labourer @ 700/day N8,400
Add 5% for tools N495
N10,395
Output of gangs / day = 2.5m3 x 12 = 30m3

Labour cost/m3 = 10,395 x 1/30 = 346.50

31
 Add profit and overhead 20% 69.30
Cost/m3 = 415.80
Task II
Cost of spreading and leveling excavated materials n.e 50m from excavation. Consider a gang of 12 labourers and
1 supervisor
Solution
1 Supervisor @ 1500 = N1500
12 labouers @ 700 = N8,400
5% Tools = 495__
10,395
Output gang / day = 4.5 x 12 = 54m3
Loabour cost / m3 = 10,395/54 = 192.50
Add overhead and profit 20% = 38.50
97.33

8.2 Removal of Excavated Materials

Use wheel barrows when the distinction is less than or equal to 50m .Used lories/tipper.
When the distance is greater than 50m.

Task III
Removal of excavated materials using the same distance of cart away is less than or equal to 50m using the same
information used for excavation of surface

Solution
1 Supervisor, 12 labourers and 5% for tools = 10,395
Out out of gang/day 8.0 x 12 = 96m3
Labour cost / m3 = 10,395/96 = 108.28
Add 20% profit and overhead = 21.66
225.94
355.88
When lories / tipper are used the following should be considered
(b) Cost of hire or cost of owning
(c) The capacity of the lorry
(d) Total distance to and fro the hill
(e) Speed of lorry
(f) Tipping time
(g) Labour loading the lorry
(h) Bulking of materials

32
TASK IV
(a) For the cost of hiring plant is 600/hr
(b) Capacity of lorry 6m3
(c) Total distance to and fro is 3km
(d) Speed of lorry 30km/hr
(e) Tipping time 9 minutes
(f) Output of labourer loading the lorry is 2hrs / labour /m 3
(g) Bulking of materials 133 ⅓%

SOLUTION
Volume of excavated material = 6/133 ⅓ x 100 = 4.5m 3 (assume 4 labour) loading time = 4.5m3 x 2hrs
= 2.25hrs
4
Traveling time = 3km x 60m = 6mins
30km/hr
Total time for loading + traveling + tipping
2.25 + 6m + 9
2.25 = 2.15hr + 6m + 9m
Cost of hiring lorry/hr
= 2.5hrs x N600/hr
= N1500/hr
Therefore, cost/m3 = N1500 = 333.33/m3

Labour loading
Cost for 1 labour /m3 = 150/8 x 2.5hr x 4 labour = 187.50
Add 5% for tools = 9.38
196.88
333.33/m3
530.21
Add 20% overhead and profit 106.04
636.25

33
BUILD-UP UNIT RATE FOR CONCRETE WORK I (9.0)

9.1 Concrete Work

Explain how the following factors may affect unit rates for concrete work ;
• Whether ready mixed or site mixed concrete is used
• Whether concrete is reinforced
• Surcharges for part loads
• Location of mixing plant on site
• Type and size of mixing plant
• Method of transporting, hoisting, placing and compacting mixed concrete
• Cost of protecting and curing unset concrete
Operatives working with concrete receive additional payments for skill and responsibility.
Items of plant should be priced separately.
Concrete is usually measured in m3
Site Mixed Concrete

TQ 7
Calculate the cost of mixing a m3 of Grade 15 concrete on site using the following information ;
To produce 1m3 of mixed Grade 15 concrete requires ;
250Kg of cement at £80 per tonne
600Kg of sand at £10 per tonne
1200Kg of aggregate at £9 per tonne
Waste say 5%
Concrete mixer all-in rate £2-50 per hour, output 2m3 per hour
Labour rate £7.20 per hour
Labour out put 0.5m3 per hour
Ready-Mixed Concrete

TQ 8
Calculate the cost per m3 for laying plain concrete 20N/mm2 in foundations over 300mm thick laid against faces
of excavation.
Ready mixed concrete costs £49.00/m3
Waste say 5%
Labour output 1.00 hours/m3
Labour rate £7.20 per hour

SAQ 4

34
What will happen to the labour output if the concrete is laid in foundations 150mm thick? Reinforcement is
measured separately in bills of quantities. Would you expect the unit rate for laying reinforced concrete (excluding
the cost of reinforcement) to differ from the unit rate for plain (unreinforced) concrete for similar items of work
and if so why?

9.2 Reinforcement
Reinforcement may be bar type or mesh/fabric
Waste
Bars are usually delivered to site already cut and bent, if this is the case then allow 1% for loss and damage.

If straight bars are to be cut and bent on site allow 5% for waste.
On complex reinforced concrete work steel fixers are usually paid a craft operatives rate.
When laying straight bars or mesh an enhanced labourers rate is usually paid.
Mesh reinforcement is sheet material therefore allowances have to made for general waste say 2.5% plus an
additional allowance for laps. The percentage to allow for laps will depend on the lap specified e.g. 150mm side
and end laps.

TQs 9-10
Sheets of mesh are approximately 4.80m x 2.40m if they are to be laid with 150mm side and end laps what % must
be allowed for loss in cover due to the laps ?
Mesh reinforcement Ref. A193 in beds laid with 200mm side and end laps.
Calculate the rate per m2.
Mesh costs £14-00 per sheet
Labour 0.05 hours / m2 at £7.20 / hour
Allow say 20p / m2 for spacers and tying wire

9.3 Guide to Using this Student Learning Pack

Throughout this and the series of learning packs you will find, extensive notes on the various aspects of work you
will be measuring followed by a series of three tasks, These tasks are designed to increasingly develop your skills
in the aspect of measurement covered by the learning pack, and will include, one basic task, which requires you to
copy down a worked example, using the correct measurement layouts. The second task and third tasks form the
second section of the class, where the class develops into a tutorial based

9.4 Concrete Works

As with groundwork, before looking at the calculation of unit rates we must understand that our final unit rate will
be influenced by several variables.

35
Task One
In the box below, describe how you think the following factors would impact on cost.

1. Ready mixed or site mixed concrete

2. Whether the concrete is reinforced or un-reinforced

3. Surcharges for part-loads

4. Location of site in reference to mixing plant

5. Type and size of mixing plant

6. Method of transportation, hoisting, placing and compacting

mixed concrete

When considering concrete there are two main methods of producing concrete:
7. Protection of un-set and curing concrete 1. Site mixed
concrete
2. Ready mixed concrete
In addition to the method of concrete production when costing concrete work we must also consider concrete
accessories including:
1. Formwork
2. Reinforcement
3. Operatives working with concrete usually receive additional payments for skill and responsibility
4. Items of plant concerned with concrete mixing and placing are usually measured separately.

9.4.1 Site Mixed Concrete

Calculate the cost of mixing one m3 of grade 15 concrete on site using the following information:
The production of 1m3 of grade 15 concrete requires:
• 250kg of cement at £92.70 / tonne
• 600Kg of sand at £17.25 / tonne
• 1200kg of aggregate at £18.02 / Tonne
• Waste allowance say 7.5% In addition allow for:
• concrete mixer @ all – in rate of £3.00 / hr
• Labour rate @ £8.68 / hr

9.4.2 Ready Mixed Concrete

Calculate the cost per m3 for laying plain concrete 20N/mm2 in foundations over 300mm thick laid on or against
earth or unbinded hardcore.

36
• Ready mixed concrete say £80.59 / m3
• Waste say 5%
• Labour output = 1.00hrs / m3
• Labour rate £8.68 / hr Questions:
1. How would the labour output be affected if the concrete is laid in foundations 150mm thick?
2. What would be the financial impact? (If any)

9.5 Concrete Reinforcement

Reinforcement is measured separately in bill of quantities. Would you expect the unit rate for laying reinforced
concrete (excluding the cost of reinforcement) to differ from the unit rate for plain (unreinforced) concrete for
similar items of work, if so why
Reinforcement maybe either bar reinforcement or mesh / fabric reinforcement.
Waste
Bars are usually delivered to site already cut and bent, if this is the case then allow 1% for loss and damage.
If straight bars are to be cut and bent on site allow 5% waste
On complex reinforced concrete work steel fixers are usually paid a craft operatives rate.
When laying straight bars or mesh an enhanced rate is usually paid.
Mesh reinforcement is sheet material therefore allowances have to be made for general waste, say 2.5% plus an
additional allowance for laps. The percentage to allow for laps will depend on the lap specified e.g. 150mm side
and end laps.

Qu 1.
Sheets of mesh are approximately 4.80m x 2.40m if they are to be laid with 150mm side and end laps what
percentage must be allowed for loss in cover due to the laps?

Qu 2
Calculate the rate per m2 for laying mesh reinforcement Ref A193 in beds, laid with 200mm side and end laps.
Additional information
• Mesh costs £15.08 per sheet
• Labour 0.05hrs / m2 @ £8.68 / hour
• Allow say 20p / m2 for spacers and tying wire
• Waste on mesh 5%

37
• BUILD-UP UNIT RATE FOR CONCRETE WORK II

9.6 Concrete Work

Explain how the following factors may affect unit rates for concrete work;
• Whether ready mixed or site mixed concrete is used
• Whether concrete is reinforced
• Surcharges for part loads
• Location of mixing plant on site
• Type and size of mixing plant
• Method of transporting, hoisting, placing and compacting mixed concrete
• Cost of protecting and curing unset concrete
Operatives working with concrete receive additional payments for skill and responsibility.
Items of plant should be priced separately.
Concrete is usually measured in m3

9.6.1 Site Mixed Concrete TQ 7

Calculate the cost of mixing a m3 of Grade 15 concrete on site using the following information ;
To produce 1m3 of mixed Grade 15 concrete requires ;
250Kg of cement at £80 per tonne
600Kg of sand at £10 per tonne
1200Kg of aggregate at £9 per tonne
Waste say 5%
Concrete mixer all-in rate £2-50 per hour, output 2m3 per hour
Labour rate £7.20 per hour

9.6.2 Ready-Mixed Concrete

TQ 8
Calculate the cost per m3 for laying plain concrete 20N/mm2 in foundations over 300mm thick laid against faces
of excavation.

Ready mixed concrete costs £49.00/m3

Waste say 5%
Labour output 1.00 hours/m3
Labour rate £7.20 per hour SAQ 4
What will happen to the labour output if the concrete is laid in foundations 150mm thick? Reinforcement is
measured separately in bills of quantities. Would you expect the unit rate for laying reinforced concrete (excluding

38
the cost of reinforcement) to differ from the unit rate for plain (unreinforced) concrete for similar items of work
and if so why?

9.7 Reinforcement
Reinforcement may be bar type or mesh/fabric
Waste
Bars are usually delivered to site already cut and bent, if this is the case then allow 1% for loss and damage.
If straight bars are to be cut and bent on site allow 5% for waste.
On complex reinforced concrete work steel fixers are usually paid a craft operatives rate.
When laying straight bars or mesh an enhanced labourers rate is usually paid.
Mesh reinforcement is sheet material therefore allowances have to made for general waste say 2.5% plus an
additional allowance for laps. The percentage to allow for laps will depend on the lap specified e.g. 150mm side
and end laps.

TQs 9-10
Sheets of mesh are approximately 4.80m x 2.40m if they are to be laid with 150mm side and end laps what % must
be allowed for loss in cover due to the laps ?
Mesh reinforcement Ref. A193 in beds laid with 200mm side and end laps.
Calculate the rate per m2.
Mesh costs £14-00 per sheet
Labour 0.05 hours / m2 at £7.20 / hour
Allow say 20p / m2 for spacers and tying wire

9.8 Concrete Work

Concrete
Material
- cement
- sand
- aggregate plant – concrete mixer, poker, vibrator
1m3 of ………….. weight 1440

TASK
Example a tonne of cement cost N14,000, sand cost 560/m 3, coarse aggregate cost 900/m3 for a mix of 1:2:4.
Calculate the cost/m3

Solution
1m3 cet will cost 1.44 @ 14,000 = 20,160
2m3 of sand will cost 2 x 560/m3 = 11,120

39
4m3 of aggregate will cost 4 x 900/m3 = 3,600
24,880
7m3 = 24,880
1m3 will cost 24,880 = N3,554.29
7
Add 50% of void and compaction 1,777.14
5,331.44
Add 20% overhead and profit 1066.29
6,397.73
Mix shrinkage broken stone
cement sand agg cement sand agg
tonnes m3 m3 tonnes m3 m3
1:1:2 0.524 0.36 0.72 0.552 0.38 0.76
1:2:4 0.304 0.42 0.84 0.32 0.44 0.88
1:3:6 0.440 0.44 0.88 0.23 0.46 0.92
(void and compaction here have been taken care of)
Plant
Cost of mixer/hr
The cost of owning and operating a 10/7 concrete mixer. Assume initial cost of N150,000, a scrap value of
N10,000
Life span of 6yrs @ 2000 hrs/year
Compute the cost/hr

Capital cost/hr = initial cost – scrap value

Life span (hr)
Therefore, Capital cost/hr = 150,000 – 10,000 = N11.66/hr
6 x 2000
Running cost
Repairs and maintenance 10% of capital cost
= N1.17/hr
Fueling 1.8 liters @ N22 = 39.60/hr
Oil and grease 20% of capital cost = 2.34__
43.71/hr
Cost of concrete mixer
Cost of mixer / day = 54.77/hr x 8hrs = 438.16
Cost of labourer / day – 8 labour @ N400 = 3,200
Add 5% for tools = 160_____
Cost of labour and mixer 3,798.16
Assume output of mixer / day = 20m3

40
 Therefore, cost /m3 = 3,798.16 = N189.91
20m3

Cost of placing concrete in foundation

6 labourers need @ an output of 4m3/day
Cost of 6 labourers = 6 x 400 = 2,400
Add 5% for tools 120
Cost/m3 = 2,520 = 630
4

Cost of concrete in foundation

Cost of conc /m3 = N6,397.73
Add 5% of waste 319.88
Cost of mixing / m3 189.91
Cost of placing 630
Add 20% for overhead and profit 7,537.52
1,507.51
N9,045.04
BUILD UP UNIT RATES FOR REINFORCEMENT (11.0)

11.1 Bar Reinforcement

Most bar reinforcement is bought in straight length of about 16ft. It is usually priced in tonne (1000kg)
reinforcement supplied to site in which cost of transportation is not included in the calculation for unit
rate, labour cost for unloading and stacking, cutting, bending and fixing are calculated. Some times bar
reinforcement can be purchased already and bend to shape e.g links and stirrups and labour cost
calculated will then only include the cost of fixing on site. Allowance for bending wire at intersections has
to be made. The labour output should be taken as follows
Cutting and bending
Diameter 6 8 10 12 16 20 25 32 40 50
Hours 63 45 35 27.2 22.5 15 12.5 10 8 6

Fixing/tonne
Diameter 6 8 10 12 16 20 25 32 40 50
Hours 63 45 35 27.2 22.5 15 12.5 10 8 6

NOTE:
1. Assume 3hrs for unloading 1 tonne of reinforcement
2. Allow 5% waste for cutting form straight length
3. Allow 1% waste reinforcement already cut to shape

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4. for bars in short length e.g links and stirrups, allow 33% for extra labour

Tying wire/tonne
Diameter 6 8 10 12 16 20 25 32 50
Hours 15 15 12 10 8 8 6 5 4

Allow say N1000/tonne for spacers (biscuit)

TASK I
16mmø mild steel bars reinforcement in straight and bent bars in suspended slab – kg
Solution

A Material Labour
A1 16mmø
A2 Tying wire B1 Cutting and bending
A3 Spacers B2 Fixing

A1 Materials/tonne (1000kg)
Assume cost of 16mmø @ 34,000/tonne = 34,000
Unloading and stacking 3hrs@400 = 1,200_
35,200
Allow 5% for waste 1760_
36,960
A2 Tying wire
Assume 8kg @ 60/kg = 480
Allow 5% for waste 24__
504_
A3 Spacers = N1000
Allow 3% waste 30
1030
Material collection
A1 36,960/tonne
A2 504/tonne
A3 1030/tonne)_
38494/tonne
Labour
B1 Cutting and bending
22.5hrs @ 50/hr = 1,125

B2 fixing: 22.5hrs @50/hr = 1,125

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Labour collection
B1 = 1,125
B2 = 1,125
2,250
Summary

Material = 38,494 Labour = 2,250_

40,744
Add 25% O/P = 10,186_
50,930/tonne
Cost/kg = 50,930 = 50.93
= N51/kg

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BUILD-UP UNIT RATE FOR FORMWORK (12.0)

12.1 Formwork

Formwork measures the actual faces of work covered or to be supplied. The following must be taken

into consideration in determining the size of the formwork

1. The amount of material required

2. The kind of finishes required i.e sawn faced or smooth finish, ground finish, biscuit etc. This

determine the types of materials to be used as formwork and the surface from finish required is

removed.

3. the height to be supported. This determine the height of props and types of props.

4. Normal labour for fabricating, erecting and striking of formwork.

5. the number of uses required of the formwork this is usually a matter of experience.

In small contract it may be possible to reuse the same formwork twice depending on the repetitive

nature of the work.

Materials
Materials Unit Rate

1 x 12 x 12 sawn Length 130

1 x 12 x 12 wrought Length 230

2 x 4 x 12 Length 120

4 x 4 x 12 Length 180

5” nails Kg 135

4” nails Kg 135

3” nails Kg 135

2” nails Kg 150

Labour output are mostly conveniently calculated/m3 of timber

Labour output for suspended slab

Description Output

44
 Unloading and stacking 2.5m3/lbour/day = 250

Cutting, fabricating and erecting 0.80m3/gang/day (2carpenters +

labour
Striking 12m2/gang/day

Allowance for waste

Cutting and fixing of timber 10%

Nails 20%

TASK I

Sawn formwork to horizontal soffit of suspended slab – m2

Assume 3m height above floot level

Solution

Materials
A1 1 x 12 x 12 softwoods planks

A2 2 x 4 hardwood battens

A3 4 x 4 hardwood props

A4 4” nails
Labour
B1 Unloading and stacking

B2 Cutting, fabricating and erecting

B3 Striking

NOTE:

3.6 x 1.2 for the calculation and divide by 4.32m2 after all to arrive at cost/m2. This convenient size

allow for more length of timber piece to be used and there by simplifies the calculation

A1 4nr sawn softwood planks @ 180 720.00

Add 10% waste 72.00

792.00

A2 2 x 4 x 12 battens 2 x 3.6 = 7.2

4 x 12 = 4.8

45
 12.00
480.00
12.00m = 3 ⅓ length or 3.33 + 1 = 4 x
3.6m

Allow 10% waste 48.00_

528.00

A3 props @ 1.00m c/c

4” x 4” x 12 props 8nr x 3 = 24m

24 7 lengths @ 180 1,260

36 add 10% for waste 126_

1,386

A4 1kg of nail 4” @ 135 135.00

Allow 20% waste 27.00

162.00

Material for collection

A1 792.00
A2 582.00
A3 1,386.00
A4 162.00
N2,868.00

Assume 3 uses
Cost/use = 2,868 = 956
3
Cost/m2 = 956 = 239
4.32
Labour
Volume of timber
25 x 300 x 3600 x 4nr = 0.108
50 x 100 x 3600 x 2nr = 0.0136
50 x 100 x 1200 x 4nr = 0.24__
0.408
Allow 10% for waste 0.041___
0.449m3

46
Unloading and stacking

2.50m3 = 1 labour / day = N250.00

Therefore, 0.45m3 = 700 x 0.45 = N126 = 126

2.5

Cutting, fixing and erecting (gang)

2 carpenters @ 1500 = 3000

1 labour @ 700 = 700_

3,700
0.8m3 = 1 gang/day = N3,700

0.45m3 = 3,700 x 0.45 = 2,081.25 = 2,081.25

0.8
Striking
12m2 = 1 gang/day = 3,700
4.32m2 = 3,700 x 4.32 = 1,332 = 1,332__
12m 3,539.25

Labour cost collection

Cost of labour = 3,539.25 = N819.27

4.32

47
Summary
Materials = 221.30

Labour = 819.27
1,040.57

Add 25% P/O 260.14_

N1,300.71

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BUILD-UP UNIT RATE FOR ROOFING (13.0)

13.1 Roofing
Corrugated roofing sheet, operation output /gang / day
Aluminium of galvanized iron unloading + fixing 40m2

Fixing ridge cap 35m

Raking and cutting 30m

Straight cutting 30m

Asbestors unloading + fixing 30m2

Fixing ridge cap 20m

Raking + cutting 25m

Straight + cutting 25m

Felt roofing unloading + laying of layer 120m2

Spreading bitumen primer 80m2
Spreading bitumen 80m2
Spreading chips 100m2
Laying gutters < 1m girth 20m
Raking cutting 90m

49
ASSIGNMENT

50