ESTIMATING & COSTING

Building Element
This is part or component of a building structure that performs specific objective irrespective
of construction detail or specification.

Terminologies used
1. COST STUDY
This is a breakdown of elemental cost of a building the distribution of cost in various so as
to:
i. Show the distribution of cost in various element.
ii. Relate any elemental cost to its importance in a structure.
iii. Compare elemental cost from different bdgs.
iv. Show whether distribution of cost was official i.e. whether there was overspending or
under spending.
v. Obtain data for future use.

2. COST PLAN
- This is a statement of elemental costs for a proposed bdg before it is designed .
- Information is gathered from analysis of previous work.

3. COST CHECK
- These are periodical revisions of cost plans as design progresses.
- This is necessary to accommodate
i. Site factors
ii. Current revised briefs
iii. Market conditions

4. COST PLANNING
- This is the controlling of the cost of the project to a pre-determined sum during design
stage,
- It involves: preparation of costs plans and carrying out of cost checks.

5. Cost control
This involves all the methods used in controlling the costs of a project to within the limit of
a pre-determined sum throughout design and construction stages.

Design Variables that affect the cost of a project

i. Plain Shape
- Simple plan shapes cost less than more complex ones. This is dues to the fact that there
is more walling in more complex drawing increased surface or excavation works, roof
works etc. However the design criteria should take into consideration the function of the
bdg, aesthetic factor, internal layout and natural lighting.

ii. Size of the Building

An increase in size of a bdg does not translate proportionally to an increase in cost. Usually
the increase in size results in a decrease unit cost.
The size of a bdg is considered either vertically for horizontally.
The reduction in unit cost is normally due to:
a) Cost do not increase proportionally with size.

1
 b) Preliminary costs and cost of other facilities and services may not vary with increase
in cost.

iii. Store Heights

Overall costs increases with increase in heights. This is due to the increase in the vertical
components of:-
a) Walling
b) Stair cases
c) Columns
d) Lifts
e) Heavy foundations
f) Plumbing and other services
g) Lifting plant
- Low storey heights gives an increased number of stores in any given overall height.

iv. Circulation areas

- Circulation areas should be kept to a minimum in an economical design.
- However their sizes are dictated by their function.
- These involve corridors and passengers, balconies, stair cases, lifts, etc.
- Other variables which affect the cost of a project depending on their specification
include:
1. Services
2. Finishes
Others which generally affect the costs of projects include:
a) Construction methods
b) External works
c) Tendering procedures
d) Site and market conditions.

ESTIMATOR
Estimator is a cost expert in the contractor’s team.

Role of an Estimator.
 Building up of rates for the purpose of tendering on the contractors side.
 Works re- measurement (measure again) for and claim arising during the works.
 He prepares claims

APPROXIMATE ESTIMATING
This is an attempt to forecast the cost of a project before the bills of quantities are prepared or
tenders obtained.
There are various methods used in approximate estimating which includes:
i. Functional unit valuation method
ii. Cubic capacity/cubing/cube method
iii. Superficial Areas method
iv. Storey enclosure method
v. Approximate quantities

1. Functional units valuation method

- In this method a std unit like a school desk, Prison cell, Hospital bed, is used to project
the cost of a proposed project.

2
- This is achieved by dividing the cost of an existing similar project by the number of
functional units in it.
- The unit cost obtained from this is then multiplied by the number of functional units in
the proposed project to give the approximate costs.
Eg.
200 beds Hotel costed = Ksh. 30,000m20
Cost/bed = 30,000,000 = ksh. 150,000/bed
200

Any other proposed hotel will cost

Ksh. 150,000 x No of beds in it.

ADVANTAGES
- Gives the results quickly.
- Gives the results cheaply.

DISADVANTAGES
- Does not consider other facilities
- Does not consider specification of materials and workmanship.
- Does not consider site and market conditions.

2. Cubic – Capacity Method (Cubing/Cube)

- This method uses the volume contained in an enclosing wall of building to project the
cost of proposed structure.
- It involves taking the external length and width of a building with heights being taken
from top of a fdn concrete to a point 600 mm above a flat of roof of ½ way the slope in a
pitched roof.
- Extra allowances may be made for projections such as parches, bags domes, chimacy
stocks, etc.
- The unit cost in obtained by dividing the total cost of an exerting project by its volume.
- These unit cost is then multiplied by the volume of the proposed project to give its
approximate cost.
- The volume of the proposed project must be obtained using the same rules stated above.

H/2

H H
W

3
ADVANTAGES
- Gives results quickly
- Gives the results cheaply
- Almost accurate for single storey bdgs with few partitions.

DISADVANTAGES
- Does not consider specification of materials and workmanship
- Does not consider the plan shape
- Does not allow for the number of floors or partitions.

3. SUPER FICIAL AREA METHOD.

- This method uses usable floor areas, to project the cost of a proposed project.
- It involves calculation of the usable floor area of an existing project and then dividing
the area into the total cost of the project to obtain the unit cost.
- The approximate costs of a proposed similar project is obtained by multiplying this
unit cost by the usable floor area in it.
- Allowance can be made for site condition locality and services

ADVANTAGES
- Provides quick results
- Gives results cheaply

DISADVANTAGES
- Does not consider specification of materials and workmanship.
- Does not consider the storey height and roof work.
- Does not consider the partitions.

4. STOREY ENCLOSURE METHOD

- This involve measuring the areas of various floors, roof and containing walls.
- Each is then multiplied by a factor and increased by a given percentage.
- These are then summed up to give total storey enclosure area.
- It uses the following rules.
a) Basements
i. 1st Basement
Floor area x 2 ……..m2
Wail area x 2……….m2
ii. 2nd basement
- Floor area x 2 + 15 % ………………..m2
- Wall area x 2 + 15% …………………..m2

b) Ground floor area x 2………………………………m2

c) Area of roof measured on plan ……………………m2
d) Twice the areas of upper floors + 15% for 1 st floor 30% for 2nd floor, 45 % for
3rd floor etc…………………….. m2
e) Area of enclosure walls………………………… m2

4
EX 1
A proposed storey bdg has 2 basement floors and 9 upper floors. The basement is 16m x 12
m x 3.5 m which the main building is 14 x 10 x 3m.

Determine the approximate cost using the storey enclose method if the unit cost is 34,000/=
per m2.
Soln:
Given: 2 basements (16 m x 12m x 3.5)
9 upperfloors (14 m x 10 m x 3 m)
Unit cost 3400 per m2
a) Basement
i. First Basement 384m2
 Floor area x 2 (16 x 12 x 2)
 Wall area x 2: (16 x 3.5 x 2 x 2 392 m2
12 X 3.5 2 X 2)
ii. 2 basement
nd
41280 m2
 Floor Area x 2 + (15 % floor area)
(16 x 12 x 2) + 0.15 x 16 x 3.5 x 2)
 Wall area x 2 + (15 % wall areas) 240m2
(16 x 12 x 2) + 0.15 x 16 x 3.5 x 2) 180 m2
(12 x 3.5 x 2 x 2) + (0.15 x 12 x 3.5 x 2)
b) Ground floor area x 2 (14 x 10 x 2) 280 m2
c) Area of roof measured on plan = 14 x 10 140 m2
d) Upper floors
1st (14 x 10 x 2) + (14 x 10 x 0.15) 301 m2
2 (14 x 10 x 2) + (14 x 10 x 0.3)
nd 322 m2
3rd (14 x 10 x 2) + (14 x 10 x 0.45) 343 m2
4th (14 x 10 x 2) + (14 x 10 x 0.6) 364 m2
5th (14 x 10 x 2) + (14 x 10 x 0.75) 385 m2
6th (14 x 10 x 2) + (14 x 10 x 0.9) 406 m2
7th (14 x 10 x 2) + (14 x 10 x 1.05) 427 m2
8th (14 x 10 x 2) + (14 x 10 x 1.2) 448 m2
9 (14 x 10 x 2) + (14 x 10 x 1.35)
th 469 m2
Area of enclosure walls (ground floor - 9th floor) 1,440 m2
(14 x 3 x 2 x 10) + 10 x 3 x 2 x 10)
TOTAL 6,935.2 m2
But unit cots + 34000 per m2: 6935.2 x 34000 27,740,800 m2

ADVANTAGES
- Considers the enclosing wall areas
- Gives results quickly
- Gives results cheaply
- Allows ro increase in cost in height/depth

DISADVANTAGES
- Does not consider market conditions.
- Does not consider specification for materials and workmanship.
- Does not consider partition.

5
APPROXIMATE QUANTITY METHOD
- This method involves measuring all the items from sketches of the proposed project
on breast terms or by their overall dimensions.
- They’re the priced accordingly and the summed up to give the approximate cost of the
proposed project.
- Eg.

6000

1000

QTY UNIT RATE KSH CTS

Exe. Top soil av 150 mm dp
10m2 S deposit 100 m away 60 SM 9.75 585 00
60m2 60
Exn 0.3 hrs @ Ksh. 25=75
Allow 30% profit 2.75
9.75

ADVANTAGES
- Most accurate of all methods
- Considers ketches of the proposed projects
- Considers market and site conditions
- Considers specifications of materials workmanship.

DISADVANTAGES
- Takes a long time since it involves measuring all the items in the bdg.
- Its very expensive since it involves preparation of BQ for the purpose of advising the
client which is not useful for the actual project.

SOURCE OF SOCIAL INFORMATION

1. PUBLISHED MATERIALS
Journals circulars and magazines usually used as a source of information for pricing
construction work. Although they may not give the cost information for all the
construction items they will give information for cost of selected item periodically. This
added together is used in building up for the construction item.
The cost in such journals are normally prepared by considering preparing site factors,
working conditions, std of workmanship, labours and materials availability etc.

6
2. PRICE BOOKS
These are usually in form of manufactures catalog which shows the item produced by a given
manufacture, their sizes colour and their unit prices.
In case of units which had to be laid together eg. Tiles they even show the method of laying
and the No. per unit area.
Sometimes they also show a comparison between different forms of construction e.g steel
work concrete, timber, stones, etc.

3. PRICE BUILD UP
This involves build up of unit rates by getting the market valve of materials, labour and
site conditions.

4. QUOTATIONS FROM MARCHANTS AND SPECIALISTS

- This involves asking for quotation form merchants and specialists.
- When this information is brought together by calculation then the cost of work can be
obtained.
5. ANALYSIS OF BILLS OF QUANTITIES RATES.
A priced B.Q can be used as a source of cost information. However this document is
confidential and therefore difficult to obtain unless with written consent of the concerned
contractor.

DISCREPANCIES IN BILL RATES

Where bill of quantities rates are to be used as a source of cost information care should be
taken since these rates have discrepancies/disparities which should be analyzed carefully
before using these rates.
These includes:

a) Distribution of preliminaries overheads & profit

Preliminary items may be prices as a limpsum or individually or added to the
measured items as a percentage.
It’s therefore difficult for a surveyor or to know what items are priced for or their
extent or the percentage used.

b) Difference in facilities
Firms which can manufacture certain items may lower the rates of those items e.g
firms with fabrication workshops, block making workshops etc.

c) Difference in quotations
Some contractors may receive low or high quotations from some suppliers and sub
contractors.
These, when calculated into unit rate may translate to high or low pricing such rate if
used in pricing other work will therefore result to under pricing or overpricing.

d) Lack of accurate cost information

Labours constants are usually assumed since its difficult to determine productivity of
a worker over a given period.
These timings usually vary from one source to another or one estimator to another.
e) Mistakes

7
 Sometimes the estimator may make mistakes in calculation or booking eg. 400 instead
of 4000.

f) Deliberate distortion of prices

Estimators may sometimes distort the prices by quoting high prices at the stage where
more money is required and quoting lowly at the other stages. The contract sum still
remains the same and therefore its difficult for the surveyor for to realize that there
was this kind of distortion.

g) Difference in standard of workmanship

Well established firms may quote highly than less established firms due to high
standard of workmanship.

h) Site and working conditions

Nature and locality of the site affects the unit rates due to the effects of labour
transport costs.
Similar work carried out at different sites will have different rates though they have
the same description in the bills of quantities.

i) Difference in standards
Standards of work varies from one class of building to another e.g. ceramic floor tiles
in a bank and those in a school though they have the same description in the B.Q will
vary in cost due to the varying standards of the building.

j) Architect/Engineer
Contractors may quote highly if its architect/engineer is known to make work difficult
and vice vasa.

k) Tendering procedures
Rates for one form of tendering will not be suitable for the other forms of tendering.
The rates as given in the B.Q do not indicate the form of tendering used.

l) Financial conditions
Binders offer low quotations when there is lack of work i.e to keep their work force
and machinery engaged.
Such quotations when used in a more prosperous condition will be inaccurate.

EX
1. Briefly describe 7 aspects of a site that affect the cost of a project.
2. Briefly explain 5 reasons why two contractors tendering for the same work will
get different contract sums.

ANALYSIS OF PRICES
The price of any itme is made up of two or more of the components shown below:
a) Materials
b) Labour
c) Machinery
d) Overheads
e) Profit

8
 Unit rate:
This is the total overall cost of a specific item of description for a quantity of one unit
measured with accordance with the S.M.M.
Unit rates must include two or more of the following.
a) Materials
b) Labour
c) Machinery
d) Overheads
e) Profit

All – labour Rates

This is a rate paid by employer to casual labour engaged over and above the basic union
agreed rate.
This rates should allow for the following:
i. Basic union agreed rate/wage
ii. House allowance
iii. Allowance for increment weather
iv. Non productive over time
v. Sick pay, leave paym holiday pay and absenteeism.
vi. Trained supervision
vii. Working rule agreement allowances
viii. N.S.S.F
ix. N.H.F
x. Redundancy payment
xi. Insurance
xii. Apprentices
xiii. Bonuses

All – in machine rate

This is all the cost incurred by the plant owner to acquire and operate a plant i.e. owning and
running cost.

Labour constants
This is the time taken by on average worker working under average conditions to complete a
unit of work.
The act out various from place to place, time to time depending on the skill of operative
environment time site organization etc.
The labour constant are arrived at by measuring the output (by work study officer) taking into
consideration the varying conditions i.e. time, operative, environmental conditions, etc.
The mean of all those times is calculated thus giving the labour constant.
Labour constant must allow for the following:
i. Break time
ii. Effects of increment weather
iii. Difficult site considerations
iv. Time spent receiving instructions, obtaining drawings and discussing procedures.
v. Delay awaiting key labour materials and plant.
vi. Intermittent working
vii. Effects of long period of boring repetitive operations/work.

9
 PRICING PRELIMINARY ITEMS
The following are the preliminary items considered for pricing in a building and civil
engineering contract.
i. Site supervision
ii. Temporary offices, parks, storage sheds etc.
iii. Small plant and tools
iv. Mechanical plant
v. Scaffolding
vi. Safety measures
vii. Welfare facilities
viii. Temporary telephone on site
ix. Temporary access road
x. Fencing, hoarding, screens and gantries.
xi. Setting out
xii. Attendance on clerk of work
xiii. Watching and lighting
xiv. Temporary power on site
xv. Travelling times and fares
xvi. Additional overtime
xvii. Notices and fees to L.A. and public undertakings
xviii. Maintenance of public and private road.
xix. Weather protection and precaution
xx. Completion of the work.
- Defects liability
- Drying out
- Tiding site and clearing rubbish
- Clearing out the building.
xxi. Testing materials
xxii. Temporary water on site
xxiii. Insurance
xxiv. Training levy
xxv. Performance bond
xxvi. Sign writing

10