Annex 1

Institution Based Research (IBR) Research Proposal Template/Format

Principal Researcher/Investigator

Name: ONOJA VALENS IDOKO

Institution: FEDERAL POLYTECHNIC OF OIL AND GAS
Department: MATHEMATICS/STATISTICS
Telephone no: 07055274567
E-mail Address: valensonoja292@gmail.com

Co-Researchers (s) (if any)

1. Name: AKPUH, ESTHER CHIMERUCHIA
2. Name: USMAN ISAH
Project Title:

BILL OF ENGINEERING MEASUREMENT AND EVALUATION

(A CASE STUDY OF CONSTRUCTION COMPANIES IN BONNY ISLAND)

Executive Summary:

This research examines the Bill of Engineering Measurement and Evaluation (BEME) of various
local and international construction companies in Bonny Island, Rivers State. The major objective
of this study is to find out how various companies arrive at the cost they tender for a projects to be
executed. Also, to analyze, build-up unit price and rates for engineering works. Four companies
will be used for this research of which two will be local companies and the other two international
companies. Relevant staff of these companies will be interviewed including managers, engineers
and quantity surveyors. Their BEME will be obtained and critically analyzed using percentage
and statistical methods.

Introduction

An engineer is not just supposed to only work with forces of nature, design and analyze forces

acting on structures, machines and construction members, but is also to specify what type of

material will be sufficient and what quality or quantity will be provided. Also to cost the project

and manage the cost, man power and machinery to bring this project to reality. He is not supposed

to rely on the competence of the quantity surveyors who cannot justify the use of a particular

material in engineering construction since he may not be knowledgeable enough of the

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 requirements for engineering quantities based on the properties and behavior of such engineering

materials. The quantity surveyor have just knowledge of civil engineering works but not general

engineering such as aeronautics engineering, major mechanical fabrication and electrical projects

to mention but a few (Stenmdz, 1975).

Any prospective client naturally wants to have an idea of what his project (roads, engines,

machines, bridges, buildings etc) will cost him in cash. While drawings and specification which

define exactly what is wanted are prepared, the builder cannot quote a price simply by looking at

these documents. The engineering manager is faced with the task of working out the probable cost

for him in detail based on the characteristics of different conditions of the project (Todd, 1975).

Older engineers are probably more familiar with the Standard Method of Measurement (SMM) for

civil engineering quantities prepared by the institution of civil engineers than the Bills for

Engineering Measurement and Evaluation (BEME) which was never in operation then (Byars,

1985).

BEME is very new in operation to quantifying engineering materials and thus require good

knowledge by all engineers. This has posed a challenge to engineers in most construction

companies as only a handful of engineers are more at home with it, thus leaving the larger society

to meet up with the challenge.

Billing in engineering projects is very important and cannot be over emphasized (Smith, 2005). It

keeps companies in business. It is concerned with the following:

Material specification which involves specifying the type of material that is best suitable for the

job based on certain criteria and conditions as availability and ability of material to bear the load

and weather condition without any distortion or failure.

Material quantification which involves extracting quantities of materials needed for any project

from drawing and prevailing market price of each item then multiply the quantity with rate to have

total cost.

i. Billing which involves writing out the cost of each of the materials and everything that has to

do with the project, thereby attaching money column to the quantities and thus completely

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 invoicing the project.

In engineering projects, numbers (i) and (ii) being engineering materials specification and

quantification can best be done by the engineer who is involved in the design of the project. If the

engineer is not involved in the preparation of the bill, the quantifying of the project is left with lots

of lump sum (Paul, 2009). Thus one may not be able to arrive easily at the actual cost of the entire

project. This may lead to under costing or over bidding which may in turn lead to project

abandonment.

BEME provides the engineer the opportunity to participate in the preparation of all the three

aspects of billing in engineering projects. The resultant therefore is that engineering projects can be

easily quantified and the issue of variation, which may lead to abandonment of projects, is

drastically reduced. The adoption of BEME by engineers has brought about “the engineering

managers reclaiming engineering” (Kossen, 1977).

Problem Statement/Justificatiomosr

The rate at which non-professionals handle engineering works recently, especially in construction

is alarming. There are series of failures, substandard constructed projects and abandoned projects.

These when investigated, findings where made that it was as a result of poor and ineffective

costing of the project. The total costs of these projects were not systematically and critically

worked out. Quantity surveyors, architects, traders, artisans who knows little or nothing about the

behavior and quality of construction materials are the ones costing project for engineers and

clients. They do not know the best equipment/material to be used for a specific job. Hence there is

need for engineering managers to handle the costing and billing of these projects. Bills of

engineering measurement and evaluation (BEME), gives a detailed step by step method of arriving

at actual cost of a project (Rue, 1965). This should be used in various construction companies in

Nigeria.

Objective(s) of the Study

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The objectives of this study are:

- To evaluate the effectiveness of BEME in international and local construction companies in

Nigeria.

- To ascertain the main purpose of BEME

- To understand the general principles and rules to be followed in taking-off of engineering

measurement and evaluation.

- To analyze and build-up unit prices and rates for civil engineering works including pricing of

preliminary items

- To recommend BEME as a basis for tendering, cost analyze and planning

- To know the process of preparing BEME

Literature Review

BILLING

Billing is the English system of taking out quantities. It is theoretically copying out the quantities

and description from the abstract in the form of a schedule or list on a specially ruled paper with

money column for pricing (Thomas, 1981). In construction, it is the process used to make

payments of subcontractors, workers, materials etc. in the right time to keep the process of work in

required manner. It involves the biller writing full and proper descriptions for the item(s) briefly

described by the taker-off. A biller must understand what he is writing about and see different

descriptions so closely as to mean the same thing (Dutta, 2001). As in case of abstract, the bill is

usually divided up into sections. Besides the items actually on the dimension and abstract, the

normal bill has a series of preliminary items and each trade has a preamble describing the materials

and workmanship. The bill of each section and sometimes separate subsections will be preceded by

clauses applying to the section or subsection. These are usually the nature of a specification of

materials and workmanship which when put at the head of the section reduces description in the

body of the bill. For example, brick work bill will have clauses as to type and quality of bricks,

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composition and mixing of mortar or concrete in the body of the bill will be fully understood

without further description.

Types of Bills

There are three major types of bills namely:

a. Intermediate or running payment as Running Account-1 shortly known as R-A-1, R-A-2, R-A-

3, etc. this bill is prepared when a constructing work is in progress and intermediate or running

payment is made to a contractor in other to give him some relief at the different stages of

progress

b. Running and final payment: After giving some running account payments when a contractor

completes the work, the last payment known as final payment stage arises

c. First and final Payment: there are some types of works where running payment cannot be

provided or a contractor does require intermediate payments. Usually, for a small work or

supply of materials or for lump-sum contracts this type of bills is prepared for payment after

completion of a work (Charkraborti, 1991).

Evaluation

This is the systematic determination of a subject’s significance using criteria governed by a set rule

acceptable by a given professional body (Abbet, 1978). It is an appraisal of the value of something

or act of ascertaining the value or worth of rating. Project evaluation is not an exact science but it is

possible to apply standard techniques of engineering economics in assessing costs and benefits

(Bhaskar, 1954). Most large scaled projects have inherent evaluation complexity with significant

cost and benefits that are either difficult to predict and convert to monetary terms or controversial

at least to a subset of relevant stakeholder.

Measurement

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This is the act or process of assigning numbers to phenomena according to a role. It is the act or

process of finding the size, quantity or degree of something. In measuring contracts, the total cost

is based on the estimate quantities mentioned in the schedule. As those quantities are approximated

and likely to vary, the total amount tendered is not to be taken as the criterion for the award of the

contract (Anil, 2003).

Importance of Measurement

Payment of contractors, suppliers and others people involved in the project for their work done or

materials supplied are made on the basis of measurement recorded in a measurement book.

Measurement book is the basis of all accounts of quantities and rates whether of work done or by

contractors or by labourers employed departmentally or materials received (Ettu, 2003). It is so

written that the transactions are readily traceable in the accounts of the various works. The book is

considered as very important account records and maintained very carefully and accurately as these

may have to be produced as evidence in a court of law if and when required. All level Engineers

and sectional officers should have a thorough knowledge regarding the procedure of recording

measurement and preparation of bills from the measurement. The measurement of works may be

recorded and maintained by the Executive Engineer. In most foreign companies operational in

Nigeria, measurement book can be recorded also by Assistant engineer or Sub-Sectional Engineer.

When the person in charge of the book is transferred, he hands it over to his successor who will re-

issue it to the relieving officer. Measurement of works holds a very important place in the planning

and execution of any civil engineering work from the time of preparation of the estimate up to final

completion and settlement of payments for a project (Shomolu, 2001). Although there may be

some differences regarding the method of measurement among different countries yet the method

of measurements introduced by international standard is authentic legal and a basic document. This

eliminates ambiguities and misunderstanding of various systems followed.

Instructions in Recording Measurements

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The following instructions are usually followed while recording measurements:

1. Each set of measurement should be recorded with the following entries

a. In case of bills for work

b. In the case of bills for supplying materials

2. Entries are made in ink. No eraser is allowed

3. Measurements are recorded neatly and directly

4. When any measurement is cancelled or disallowed, it is usually supported by initials and

signature of the authorizing officer

5. Entries are necessarily recorded continuously and no blank space or page is left or torn out

6. After the cash abstract is completed, the measurement book shall be submitted to the engineer

for his final checking

7. Each measurement book is provided with an index and kept up to date

For the purpose of recording measurements and preparing running account bills, the

abbreviated nomenclatures indicating the bill of quantities are adopted (Young, 1988).

Bill of Quantity

A bill of quantity (BOQ) is a document used in tendering in the construction industry in which

materials, parts and labour (and their cost) are itemized. It also details the terms and condition of

the construction or repair contract and itemizes all work to enable a contractor to price the work for

which he or she is bidding (Nwankwo 2002). BOQ is also known as Schedule of Quantities. It is a

complete list of all items of work involved in connection with the estimate for a project with the

description, quantity and unit of rate against each item of work. These are filled up in a tabular

form similar to the abstract of estimate cost but the rate and amount column remain blank. It is also

7
a list of constructional items necessary for completing the work. The engineer has to be very

careful in his choice of items for inclusion in the BOQ. Those items which are definite, readily

measurable, of customary type and of sufficient scope, to cover the greatest practicable portion of

entire work are normally included in the bill. Each item is fully described in the description column

and the approximated quantity of each piece of work is mentioned in the quantity column. The

BOQ when multiplied by the corresponding rates of the items and totaled gives the estimated cost

of the project in a tender. Such a BOQ is provided in a tender form for items rate tenders.

Contractors put up their own competitive rates and calculate the total to offer their estimated

amount to complete the whole work. The bill of quantity is also required to calculate the quantities

of different materials required for the project (Donham, 1998).

Bill of Engineering Measurement and Evaluation (BEME)

This can be defined as the engineering alternative to the traditional BOQ which has been found to

be rather simplistic in some cases and to have serious shortcomings in adequately pricing a project.

The issue of BEME has been of a serious interest not only to the engineer but anyone who has

anything to do with the construction industry. Quantifying various aspects of the project does not

only affect the quality of the resultant product, it does also affect the cost effectiveness of the

construction project (Bryars, 2004).

BEME as Part of Contract Document

A contract is an agreement enforceable by law. It usually follows a proposal from one party and it

is acceptable to the other party. It is a written undertaking for execution of works or supply of

materials for the performance of any service, connected therewith, duly accepted and registered by

the competent authority on behalf of the union or government (Nagarka 1988). Engineering

contracts are enforceable agreement between two or more parties. So the bill represents what one

agrees to do and what the other agrees to pay. In going into contract agreement, engineers must

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make sure that the following four basic elements are incorporated.

i. The parties must give mutual assents to the bound. In some cases, the owner decides to the

quantities’ specification; thus, he must accept to be bound by it whereas the engineer only

takes charge of the labour cost. Any miscalculation or underestimation is born by the owner.

ii. Parties must possess legal capacity to contract

iii. The contract must be supported by valuable consideration: consideration here is of three

types. They are good, valuable and fair consideration. Only valuable consideration is required

to make an enforceable contract. In other words, the benefits and detriments must have been

bargained for.

ii. The objective must be legal and legally attainable: a contract may be illegal if it has as its

objective, the violation of an express status or the violation of public policy (good morals).

The effect of an illegal contract is that the courts will not enforce it and will generally leave

the parties where it finds them with respect to performance (Oduwole 2002).

Essentials of Contracts

Essentials of contracts are the following particulars by which all agreements must be made in order

to constitute a valid contract:

i. That the contract shall be done by parties competent for the contract: this means that person

involved must be of sound mind, within the age limit and he is not disqualified from

contracting by any law to which he is a subject (Grantt, 2011).

ii. That the contract shall be done by free consent of the parties: two or more persons are said to

consent when they agree upon the same sense. Consent is said to be free when it is not caused

under influence, fraud, misrepresentation or mistake.

iii. There shall be a definite proposal and its acceptance: terms of contract must be precise,

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 definite and there must not be room for ambiguity or misconstruction therein. Proposal is

made when one person signifies to another his willingness to do anything (here contract).

Acceptance is made by performing conditions or receiving conditions.

iv. Considerations and objects must be lawful: the consideration or object of an agreement is

said to be unlawful if forbidden by law or fraudulent or of such nature. If permitted, it would

defeat the provisions of any law or imply injury to the person or property of another or

opposed to public policy and even regarded a s immoral by the court.

v. That the meaning shall be certain: the meaning of the contract must be made certain or

capable of being made certain.

BEME Based on Contract Types

Most construction companies operational in Nigeria enter various types of contracts. This type

of contract determines how they are being billed, measured and evaluated. The various types of

contracts with its advantages and disadvantages are described below.

i. Item Rate Contract

This type of contract is also known as unit rate contract or schedule. Here, contractors are

required to quote rates for individual items of work on the basis of schedule of quantities

furnished by the department. This schedule indicates full nomenclature of the items as per

sanctioned estimate, estimated quantities and unit therein. While filling up the rates, the

contractors are required to express the amount in figures, words and also to work out the cost

against each item. The final total of the amount tendered for the work is also known as Drawn

Up by them. This form of contract ensures a more detailed analysis of cost by the contractors

and as such is more scientific. The basis of this type of contract is the item wise rate offered by

a contractor. The quantities may be increased or decreased. A contract of this nature requires

careful consideration by the Engineer before it is entered into. Comparative statement of item

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 rate tenders is more elaborate and comprehensive. An intelligent scrutiny is required. A

mistake in it may lead to the work being awarded to a contractor who is not the lowest tenderer

(Patil, 1992).

ii. Percentage Rate Contract:

In this type of contract, schedule of items according to the description of items sanctioned in

the estimate with quantities, rates, units and amounts shown therein. This type of contract is

convenient in so far as the lowest rate and comparative position amongst the contractors are

readily known just on the opening of the tender. As there is no provision to quote contractor’s

own rate for an individual item, benefit due to increased quantity with a beneficial rate cannot

be availed of by a contractor. Thus, there is no possibility of unbalanced tender. Comparative

statement can be prepared quickly and there is no possibility of tampering with the rate by a

contractor in order to be the lowest tenderer. If the work is distributed due to two or more

contractors quoting the same bill, more effort is required to make entry of measurements, to

issue materials, to prepare and check the bills of the contractors individually (Nduka, 2002).

iii. Lump-Sum Contract:

In this form of contract, contractors are required to quote a fixed sum for execution of a work

complete in all respect i.e., according to the drawing, design and specifications supplied to

them with the tender within the specified time. Schedule of rates for various items of work are

also provided. This regulates payment of the contractor in respect of the items of work involved

for any additions and alterations not covered by the original work. Its advantage is the owner

knows beforehand exactly what the work will cost. Detailed measurements of the work done

are no required to be recorded except in respect of addition and alterations. Under such a

contract, it is essential that the work be accurately and completely shown on the drawing and

described in the specifications. Full information as to site conditions should be available

otherwise, dispute can easily arise. Its disadvantage is that difficulties arise from making

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 payment. Although often used in conjunction with a schedule of prices, it is not a suitable form

of contract where considerable addition or variations are expected or contemplated (Creshwell,

1977).

iv. Labour Contract: this is a contract where the contractor quotes rates for item work exclusive of the

element of materials which are supplied by the client’s free of cost. Increase in the cost of the

work is checked in spite of any rise in the prices of such materials in the market. A large

storage area is required to store different kinds of materials and constant guarding. There may

be delay in obtaining materials and consequently, the contractor is required to keep himself in

touch with the day to day position regarding the supply of materials. There is possibility of

material theft from store, shortage of materials and difficulty during handling over storage

charge (Allen, 2013).

v. Materials Supply Contract or Contracts for the Supply of Materials: in this form the contractors

have to offer their rates for supply of required quantity materials, inclusive of all local taxes,

carriage and delivery charges to the required destination within the time fixed in the tender. It

is generally used by most construction companies when purchasing materials like bricks, stone,

chips, furniture, pipes etc. here the client does not worry about loss of materials, breakage and

demurrage charges during transit etc (Mark, 2001).

vi. Piece Work Agreement: this involves the payment for the work done at the stipulated rate only

without reference to the total quantity or time. In this type of agreement, detailed specifications

and total cost of the whole work to be done are mentioned. It is terminable from either side at

any time and cannot be called a contract in any sense. Urgent small work may be taken up for

execution without inviting tender and considerable time is saved.

vii. Cost plus Percentage Rate Contract: in tendering for work on a cost plus basis, the contractor is

paid the actual cost of work, plus an agreed percentage in addition to allow for profit. This type

of contract is generally adopted when conditions are such that labour and materials rate are

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 liable to fluctuate. In adopting this system of tendering, no BEME, BOQ or Schedule of Rates

has to be framed but the client usually defines the actual cost and records exactly what is

permissible in the cost of the work. This type of contract is suitable when work cannot be

executed by other types of contracts at a competitive rate due to uncertainty and fluctuation in

the market rates of labour and materials. It is to the contractor’s advantage to make the cost as

high as possible by wasting material and employing inefficient workmen as the contractor takes

little risk and his profit is assured. This type of billing is not usually practiced in Nigeria for it

tends to spoil the dashing qualities of those carrying out the work (Hackman, 1978).

viii. Measured Contract or Schedule Contract: in this case, the total cost of a work is worked out by

detailed measurement of different items of work after its completion. A bill is the prepared by

multiplying the measured quantities by their respective rates.

ix. Negotiated Contract: this is when a contract is awarded based on mutual negotiation between the

parties without call of tenders. In special cases, contract are negotiated to obtain reasonable

rates and meet the situation arising out of emergency like construction of shelter for displaced

persons or strengthening runway for natural defense at short notice.

x. Combined Engineering and Construction: it sometimes happens that the owner contemplating a

construction project desires to deal with only one party for all services both engineering and

construction in connection with the work. Offers are invited from specialized contractors for all

planning, design, specification, preparation of estimates and construction services under one

contract on competitive basis. Under a combined engineering and construction contract, the

engineer is automatically placed in partnership with the contractor and an objective

professional viewpoint towards the client’s interest is impracticable (Ajibe 1992). But the

Engineer should have it clearly understood that this will be guarded by the principle of

engineering practice and professional ethics in carrying out his duties under the contract.

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Special Conditions and Specification of A Contract

Large projects require many specifications. There are some conditions that apply to all parties

involved in a construction contract. These are called general conditions. However, each

construction project has its own unique condition. This condition should be stated in concise

definite language in numbered and titled paragraph, below is a list of suggested subjects to be

considered in preparing special conditions of the contract

i. Location of the work

ii. Description and requirement of the work

iii. Specific time to start and finish the work

iv. Order in which the parts of the work is to be finished

v. List of drawings by title and number of specification

vi. Title of material found on the site retained by owner e.g. water, oil, stone, trees etc.

Divisions of Quantities and Specification

The traditional preparation of BEME divides itself into three distinct stages:

1. The measurement of the dimensions from the drawings by the take off

2. The working out of the volumes, area etc (known as squaring the dimensions) the casting up

of their totals and the entering of all the results on the abstract which collects and classifies

them in a recognized order in preparation to the writing of the bill.

3. The casting up of the abstract which involves reducing totals to a recognized unit and transfer

of the results to a schedule or bill having money columns ready for pricing out

Stages 2 and 3 are known as ‘working-up’. All calculations in these stages and every entry

transferred should be checked by a second person to ensure error free calculation and

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 reproduction/copying (Griffith, 1978).

Specification

A specification is a specific description of a particular subject (Patil, 2006). An engineering

specification contains detailed description of all workmanship and materials which are required to

complete an engineering project in accordance with its drawings and details.

Necessities of Specification

The necessities of a specification are as follows:

i. The cost of a unit of quantity of work is governed by its specification

ii. They are required to describe the quality and quantity of different materials required for a

construction work and its one of the essential contract documents.

iii. It also specifies the workmanship and method of doing the work. Thus it serves as a guide to

the supervising staff of the contractor as well as to the owner to execute the work to their

satisfaction

iv. Workers are paid according to specification. Any change in the specification changes the

tender rate. The tender document without specification of work is baseless, incomplete and

invalid (Cook, 2003).

How to Write a Specification

The following principles are adopted when writing a specification;

a. Description of Materials

According to Oduwole 2002, the quality and sizes of materials required to do an item of work

shall be fully described for checking up at site according to the bindings provided in the

specification. The proportion of mixing or treatment of materials if required before use shall be

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clearly described.

b. Workmanship

Complete description of workmanship, the method of mixing to the proportion, the method of

laying, preparation of the base or surface, compaction, finishing and curing etc. specifically

applicable to the item of work shall be clearly stated in different clauses(Abbet, 1978).

c. Tools and Plants:

The tools and plants to be engaged to carry out a work shall be described. The method of

operation and by whom to be supplied shall be stated.

d. Expression

While writing a specification endeavor shall be made to express the requirements of the

specification clearly and in concise form avoiding repetition and unusual words. Sentences are

short, simple and concise. The style of tense is the same throughout.

Specification depends upon the site conditions, the nature and purpose for which the work is

carried out (Patil. 2001).

Types of Specification

a. General Specification: here, nature and class of works, names of material and proportion that

should be used in the various items of works are described. It is useful for estimating the

project. They do not form part of the contract document (Dutta, 1999)

b. Detailed specification: they form the part of a contract document. It specifies the quantity,

quality and proportions of materials and the method of preparation and execution for that

particular item of work in the project. Detailed specifications of the different items of works

are prepared separately. Physical, chemical, electrical tests, type of equipment, tool, and

machinery and how they are used in the project to achieve desired strength or quality are

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 specified.

Parts of a Specification

General Conditions and Special Requirements of the Contract

General conditions are those conditions that apply to all the parties involved in the job but special

requirements are those that apply only to a particular aspect of the project. This should be clearly

stated as it will affect the costing of such an aspect of the project. For instance, concreting in cold

weather and hot weather may definitely not attract same cost. And though concrete of same mix

and design may be used for gully control at the gulley bed and other concreting work like slabing

of solid ground floor, the unit cost (cost of a unit m3) differs because one entails more risk than the

other (Young, 1988).

Technical Requirement:

This deal with the technicalities involved in arriving at a particular solution matters in costing. The

job may look simple but may require expertise required to finish the job to the required taste. This

should be specified and understood by both the engineer and client and its cost implication agreed

upon (Nwachukwu, 1980).

Types of Technical Specification

There are three basic types of technical specification namely

a. Material and Methods Specification

The engineer describes the materials and the various methods to be used to get the end product.

This may include listing out the type of metal reinforcement (including sizes), specific concrete

mixes required at different levels of the job and the method to be used. These must be agreed upon

and shall form part of the contract document.

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b. Performance Specification

Here the engineer describes the important characteristics of the end product. This will also be

agreed upon by both parties and clearly spelt out in the contract document and will also affect the

costing of the project. This specification always keeps the client at bay since he will not be able to

say or do anything until the end product and in any case may be too late for him to make any useful

input.

c. Product or Standard Brand Specification

This compares the end product with an existing standards brand or specifying the particular

standard brand of material to be used. To some people, this conflict with material specification but

really it does not. The major difference is that methods are involved in the later while it is not in

the former. The standard brand specification is about the strictest of all. Contractors tend to run

away from it as it leaves them with very little profit margin from the materials unlike performance

specification where he can manipulate the materials and make some profit.

In writing specification, the engineer should be careful not to combine or mix-up the performance

with the materials and methods specification as the confusion resulting from such combination

may make the contractor liable to any liability resulting from such use.

Taking Off

This refers to the method of starting off with the writing of the bill (Robert, 2003). Once the

drawings are ready, taking-off is the measuring out of the dimensions which the worker-up will use

in arriving at the eventual bill.

Analysis of Rate

This is simply the basis of arriving at a correct and reasonable rate per unit work or supply for a

particular item following its specification and detailed survey of materials, labour, equipment etc.

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as required for the unit work and their prevailing rates (King, 1993).

Purpose of Rate Analysis

The main purpose of rate analysis is as follows;

a. To determine the current rate per unit an item at the locality

b. To examine the viability of rates offered by contractors

c. To calculate quantity of materials and labour strength required for project planning

d. To fix up labour contract rates

Fixing Up Rate

The following fix sub-heads are estimated and a summation of these gives rate per unit of an item

Quantity of Materials and Cost

The estimator takes off the quantities of various materials required per unit quantity of an item

following the detailed specification and calculates costs from local market rates (Sanson 1997).

Labour Cost

This is obtained through the number and wages of the different categories of labourers, skilled,

unskilled namely mason or carpenters, mazdoor, boy etc. required for each unit of work should be

known. It is the multiplied by the respective wage per day (or per hour).

Costs of Equipment or Tools and Plant (T and P)

Those required for general use should be allocated to specific item of rate. For example, the cost of

operating a concrete mixer should be spread over those items of rates for which it is used. For

certain tools and plants, it is difficult to allocate their use to an individual item of rates and it is

therefore suggested to add costs in such cases of expenditure to overhead i.e. establishment

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 charges.

Overhead or Establishment Charges (including incidental)

This includes such item as office rent and depreciation of its equipment salaries of office staff,

postage, lighting, travelling, telephone account, plan and specification, hand tools, personal

protective equipment for staff and contractors.

Factors Affecting the Rate Analysis

The rate of an item of work mainly depends on the following factors:

i. Specification of the item which indicates the quality and proportion of materials, the methods of

construction and protection of work.

ii. The present rate of materials for the item of work up to the worksite

iii. Daily wages of different categories of laborer at the locality with their respective outputs

iv. The range of lead and lift required for deposition of materials to carry out the item or work

v. The percentage charge for overheads which includes insurance and the possibility of theft or loss

etc.

vi. The range of profit and availability of water in connection with the construction work

vii. Site organization and cost control during execution.

Example of how rates are generated.

The following tables below illustrate how rates are generated for various construction

componentTable 2.1 CONCRETE (1:2:4) 20MM AGGREGATE for 1m 3 CONCRETE (1:2:4)

20mm AGGREGATE for 1m3

ITEM QUANTITY UNIT RATE AMOUNT

Cement 6.2 bag 1900 11780

20
 Sand 0.42 m3 2500 1050
Chippings 1.23 ton 10000 12300
25130
Add 2.5% for transportation of material to 629
site
Using concrete mixer m3 1950
Mixing, transportation, placing and 1 Gang 4340
compacting concrete hr/m3
32049
Add profit and overhead 30% 9615
Estimate cost per m3 41664

Table 2.2 REINFORCEMENTS per kg (based on 1 tradesman)

ITEM QUANTITY UNIT RATE AMOUNT

Reinforcement bars 1 ton 126900 126900
Binding wire 8 kg 350 2800
Labour output for bending and fixing 105 Hrs/ton 365 38070
reinforcement bars
Unload and stack 2 Hrs/ton 5000 10000
Concrete spacers 200 No/ton 30 6000
Add for waste, rolling margin and laps 5% 9189
192959
Add profit and overhead 30% 57888
Cost per ton 250847
Cost per kg 250.8
Table 2.3 150MM SANCRETE HOLLOW BLOCK per m2

ITEM QUANTITY UNIT RATE AMOUNT

150mm block 10 m2 180 1800
Mortar: cement 0.162 bag 1900 308
Sand 0.02 m3 2857 58
Mixing of mortar 0.09 Lab 5000 417

21
 hr/m3
Laying of blocks based on 2 tradesmen and 1 0.8 Gang 1250 1000
labour hr/m2
Unload and stack 0.25 Labour 500 125
hr/m2
3708
Add profit and overhead 30% 1113
Estimate cost per m3 4820

Table 2.4 EXCAVATION AND EARTHWORK (Based on 1 labour)

ITEM QUANTITY UNIT RATE AMOUNT

Excavate oversite average 150mm 4 Hr/m3 300 1200

Excavate foundation trench n.e 1.5m 4 Hr/m3 800 3200

Add profit and overheads 30% 960

Cost per m3 5360

Methodology (Should include description of study area/site/subjects, data

collection and data analysis

i. Interview method

ii. Participant observation method

iii. Data presentation and analysis.

EXPECTED OUTCOME
Bills of engineering measurement and evaluation (BEME), gives a detailed step by step method of

arriving at actual cost of a project (Rue, 1965). This should be used in various construction

companies in Nigeria.

22
Work Plan/Time frame (Provide activity by activity in the form of a GANTT Chat)

S/N Descriptive of Activity Year February Marc April May

h

1 Research preparation, pilot 2024 XXXX

study/instrument validation
2 Data collection, Observation 2024 XXXX XXXX
and Measurement and analysis
3 Evaluation of 2024 XXXX
Results/Conclusion and
publication
WORK PLAN

Time Frame: Period duration (4 months)

Commencement Date: February, 2024
Completion Date: May, 2024

Budget (Provide a budget break-down by activity/line item

S/N Activities Quantity Number of Unit cost Total cost

days/months/trip (N) (N)
s

A PERSONAL COST/ALLOWANCE

1 Principal Researcher 1 4 months 120,000 120,000

2 Co-researcher 2 4 months 80,000 160,000
3 2 Technologist/Technicians 2 1 month 60,000 120,000

23
 will be hired and trained to
assist throughout the
collection of data duration
for the study
Sub-Total 400,000
B TRANSPORT COST
1 Hiring of car for data 5 10 trips/month 20,000 400,000
collection in selected
companies and field survey
Sub-Total 400,000
C Supplier
1 Internet subscription 5 4 months 15,000 300,000
(purchase of browsing data
for secondary data
collection)
2 Subscription to digital E- 1 4 months 10,000 40,000
library on construction
Sub-Total 340,000
D Dissemination/Publication
1 Journal Publication 1 120,000 120,000
Sub-Total 120,000
E Presentation (Conference)
1 Presentation of findings in a 1 40,000 80,000
local academic conference.
Transport 1 To and Fro bonny 190,000 380,000
Accommodation 1 3 days @ 20,000 60,000 60,000
Sub-Total 520,000
Total of all Sub-Total 1,780,000
Indirect cost (5% TETfund 94,600
component of direct cost to
institution)
GRAND TOTAL 1,874,600
References

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Publication, Inc.,p 4.

24
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25
 York.
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Signature of Principal Researcher: Signature of Chairman ICR:

Signature of Head of Department: Signature of Head of Institution:

26