ESTIMATION

AND COSTING

UNIT 1
INTRODUCTION TO ESTIMATION
Construction
Project FEASIBILITY DESIGN
PLANNING
DEVELOPMENT CLOSEOUT OPERATIONS

Management
Phase Fin.&Eval. Organization
Risk
Estimating

Planning
 Conceptual Detailed
Feasibility Pre-bid Construction
Design & design design

Estimating
Process
Conceptual & Preliminary Definitive
Detailed Estimates
Estimates Estimates
WHAT IS
Estimation is the scientific way of working out the
ESTIMATION ? approximate cost of an engineering project before
execution of the work.

It is totally different from calculation of the exact cost after

completion of the project.
Estimation requires a thorough Knowledge of the
construction procedures and cost of materials & labor in
addition to the skill , experience, foresight and good
judgment.
WHAT IS
ESTIMATION ?
An estimate of the cost of a construction job is the probable
cost of that job as computed from plans and specifications.

 Fora good estimate the, actual cost of the proposed work

after completion should not differ by more then 5 to 10 %
from its approximate cost estimate, provided there are no
unusual, unforeseen circumstances.
  Ithelp to work out the approximate cost of the project in
NEED FOR order to decide its feasibility with respect to the cost and to
ensure the financial resources, if the proposal is approved.
ESTIMATE
 Requirements of controlled materials, such as cement and
steel can be estimated for making applications to the
controlling authorities.

 Itis used for framing the tenders for the works and to check
contractor’s work during and after the its execution for the
purpose of making payments to the contractor.

 From quantities of different items of work calculated in

detailed estimation, resources are allocated to different
activities of the project and ultimately their durations and
whole planning and scheduling of the project is carried out.
PURPOSE OF
ESTIMATE &
COSTING
 There are numbers of the purpose of estimate & costing. However, the major
include as below:
 (a) Administration Approval/For Taking in Principle Decision to go Ahead:
PURPOSE OF  To take “In principle decision”

ESTIMATE & to go ahead with house construction /project,

COSTING which is commonly known as “Administration approval”

in government departments.
 (b) Selection of Construction Materials/Technology:
 One in principle decision is taken, the owner prepare design including planning &
deciding right construction materials, to decide right technology, as well as the
size and area of the project and, will finally decide whether to go ahead or not or
what to change in the project?
 (c) Required Quantity of Materials:
 Once designs are ready one can work out detailed estimates and based on the
same one can work out the quantity, cost of materials, required to complete the
work.
 (d) Labor Requirement:
 To know the detailed cost of different categories of labor needed like masonry,
excavation, rcc (reinforced cement concrete) work, plaster, painting etc..
PURPOSE OF  (e) Equipment, Tools and Plants Requirement:
ESTIMATE &  To know the detailed cost of equipment's, tools,
COSTING plants and machinery to be used in construction.
 (f) To Plan Time:
 To plan the time schedule of construction depending upon
the cash flow i.e. availability of funds.

 (g) Final Decision:

 At this stage, one finally need to decide whether to go ahead with the
construction plan or not.
 (h) Project Sanction:
 To give the sanction for the project with the

PURPOSE OF modification in the plan if any, keeping

ESTIMATE & budget & time in view.

COSTING  (i) Cost Control:

 Cost control is the main objective of estimating and costing.
 (j) To Invite Tender/ Quotations:
 To invite Tender/Quotations from contractors
and compare rates with estimates and finalize
the contractor based on quantity/rates and work
items.
 (k) Valuation:
 Valuation of existing property.
PURPOSE OF
ESTIMATE &
COSTING
SITE
CONDITIONS
AFFECTING
THE OVERALL
COST

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 1 = Each type of work requires a different method of construction.
Construction may be of an ordinary house or office and it may also be
of a Dam, Tunnel, Multistory building, Airport, Bridge, or a Road,
already in operation. Each of these works requires totally different
construction techniques, type of machinery, and formwork.
SITE
CONDITIONS 2 = Quality of labor and labor output varies in different localities.
AFFECTING THE
OVERALL COST 3 = Weather conditions greatly affect the output and, hence, the overall
cost.
 4. Ground conditions vary and change the method of construction.
For example, excavation may be dry, wet, hard, soft, shallow or
deep requiring different efforts.

SITE 5. The work may be in open ground such as fields or it may be in

congested areas such as near or on the public roads, necessitating
CONDITIONS extensive watching, lightening, and controlling efforts, etc..

AFFECTING THE
OVERALL COST
 6. The source of availability of a sufficient supply of materials of
good quality is also a factor.

SITE 7. The availability of construction machinery also affects the

CONDITIONS method of construction.

AFFECTING THE
OVERALL COST 8. Access to the site must be reasonable. If the access is poor,
temporary roads may be constructed.
GOOD
ESTIMATOR

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 • In preparing an estimate, the Estimator must have good
knowledge regarding the important rules of quantity
surveying.

ESSENTIAL
QUALITIES • He must thoroughly understand the drawings of the
structure, for which he is going to prepare an estimate.
OF A GOOD
ESTIMATOR • He must also be clearly informed about the
specifications showing nature and classes of works and
the materials to be used because the rates at which
various types of works can be executed depend upon its
specifications.
 A good estimator of construction costs should possess the
following capabilities, also:-

1 = A knowledge of the details of construction work.

2 = Experience in construction work.

ESSENTIAL 3 = Having information regarding the materials required, machinery

QUALITIES needed, overhead problems, and costs of all kinds.

OF A GOOD 4 = Good judgment with regard to different localities, different jobs and
different workmen.
ESTIMATOR 5 = Selection of a good method for preparing an estimate.

6 = Ability to be careful, thorough, hard working and accurate.

7 = Ability to collect, classify and evaluate data relating to estimation.

8 = Ability to visualize all the steps during the process of construction.

 Before preparing the estimate, the estimator should visit
the site and make a study of conditions, there. For
example, if the construction of a large building is planned,
the estimator or his representative should visit the site and:

ESSENTIAL  Note the location of the proposed building.

QUALITIES  Get all data available regarding the soil.
OF A GOOD  Make a sketch of the site showing all important details.
ESTIMATOR  Obtain information concerning light, power, and water.
 Secure information concerning banking facilities.
 Note conditions of streets leading to railway yards and to
material dealers, and
 Investigate general efficiency of local workman.
PROCEDURE OF
ESTIMATING
OR METHOD OF
ESTIMATING.

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 Estimating involves the following operations
PROCEDURE OF
ESTIMATING OR  1. Preparing detailed Estimate.
METHOD OF  2. Calculating the rate of each unit of work
ESTIMATING.
 3. Preparing abstract of estimate
DATA
REQUIRED TO
PREPARE AN
ESTIMATE

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DATA  Drawings i.e. plans, élévations, sections etc.
REQUIRED TO Specifications.
PREPARE AN
ESTIMATE Rates.
  If the drawings are not clear and without complete
dimensions the preparation of estimation become
very difficult.
 So, It is very essential before preparing an estimate.

DRAWINGS
 A. General Specifications: This gives the nature,
quality, class and work and materials in
general terms to be used in various parts of
work. It helps to form a general idea of
building.
SPECIFICATIONS
B. Detailed Specifications: These gives the
detailed description of the various items of
work laying down the Quantities and qualities
of materials, their proportions, the method of
preparation workmanship and execution of
work.
RATES For preparing the estimate the unit rates of each
item of work are required.
 1. For arriving at the unit rates of each item.
 2. The rates of various materials to be used in
the construction.
 3. The cost of transport materials.
 4. The wages of labor, skilled or unskilled of
masons, carpenters, Mazdoor, etc..,
COMPLETE
ESTIMATE:
 Most of people think that the
estimate of a structure includes cost
of land, cost of materials and labor,
But many other direct and indirect
costs included and is shown.
 While preparing an estimate, it is not possible to workout in
detail in case of petty items. Items other than civil engineering
LUMPSUM such items are called lump sum items or simply L.S.Items.
The following are some of L.S. Items in the estimate.
 1. Water supply .(4 to 5%) and sanitary arrangements.(4 to 5%)
 2. Electrical installations like meter, motor, etc..,(9%of the
estimated cost of building works and electric Fans, Lights= 3% of
the estimated cost of building works
 3. Architectural features.
 4. Contingencies and unforeseen items.
In general, certain percentage on the cost of estimation is
allotted for the above L.S.Items
Even if sub estimates prepared or at the end of execution of
work, the actual cost should not exceed the L.S.amounts
provided in the main estimate.
WORK  During the construction of a project
CHARGED considerable number of skilled supervisors,
ESTABLISHME work assistance, watch men etc.., are employed
on temporary basis.
NT
 The salaries of these persons are drawn from
the L.S. amount allotted towards the work
charged establishment. that is, establishment
which is charged directly to work. an
L.S.amount of 1½ to 2% of the estimated cost is
provided towards the work charged
establishment.
  Short Answer Questions
 1. State the requirements of an estimate?
 2. Briefly Explain need for estimation?
 3. What is work charged establishment?
EXERCISE
UNITS OF
MEASUREMENTS

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