ESTIMATING & COSTING (UNIT 01)

Estimating and Costing are closely the same things. The estimate is defined as the process
of calculating or computing the various quantities and the expected expenditure to be
incurred on a particular work or project. The estimate gives the probable cost of the work.

The primary objective of an estimate is to enable one to know the probable cost of the work
before the completion of the project. If the estimate is prepared carefully and correctly there
will not be much difference between estimated and actual cost.

⚫Importance of Estimating and Costing

• The estimate is necessary for fixing the budget for the purposed project.

• It is necessary for calculating the required quantities of materials and laborers for the
project.

• It is necessary to draw up a work schedule.

• It is necessary to fix up the completion period of the proposed project.

• It also helps to check the work done. It is also helpful to check the works done by
contractors during and after the execution.

• It is required for preparing tenders for the project reparing

• It is necessary for the valuation of land and building.

⚫ Purpose of Estimating

• To estimate the probable cost of the work.

• To find the various types and quantities of material required.

• To find the various categories and quantities of labours required.

• To give an idea of the time required for the completion of the work.

• To justify investment from benefit-cost ratio.

• To help in fixation of standard rent and valuation of properties.

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Q. What does an Estimator do?

✓ Finding out what the client wants.

✓ Researching materials, equipment and labour costs.

✓ Gathering quotes from sub contractors and suppliers.

✓ Assessing the levels of risk on a project.

✓ Analysing company data, exchange rates and prices using software packages.

✓ Preparing and submitting quotations for work.

✔ Helping with bids for new contracts and supporting buying activities.

✓ Monitoring the stages of a project to make sure that costs are kept in line with forecasts.

⚫ An estimator's typical responsibilities include:

✔ Analysing plans, bills of quantities and other project documentation in order to estimate
costs.

✔ Researching, sourcing, negotiating and obtaining the best prices and quotes from
suppliers and subcontractors

✔ Analysing data that can affect costs (such as currency exchange rates and the company's
productivity rates)

✓ Assessing the financial, technical and operational risks of the project.

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✔ Visiting project sites to gather information Staying aware of the latest construction
technologies.

✓ Keeping up to date with the latest regulatory and legislative requirements Inputting into
decisions over whether to bid for the project.

✔ Working closely with key members of the project team (such as the bid manager) and
liaising with clients and suppliers.

✓ Keeping detailed records and writing reports.

# Administrative approval
✓ It is the formal acceptance to execute the work.

✓ For any construction work, It is very necessary to obtain formal acceptance to initiate the
work by competent authority.

✓ Proposal report is required for administrative approval and this report is based on cost and
necessity of the work.

# Technical Sanction
✔ It is the next step after administrative approval.

✓ It means the sanction of the detailed drawing,estimate, design calculation, rate and cost of
the work by the competent authority of the Engineering department.

✓ After the technical sanction the work of the construction is started.

# Budget Provision
✓ After the need of the project and appraisal, a project report is prepared in which raw
materials,organisational setup and total cost required for execution of projects are
mentioned.

✔ The method adopted to have a proper and effective control over the expenses and
production cost in an organisation is called budgeting. Budgeting helps in planning,
controlling the various activities.

✔ It also helps in preparing the programmes for development and expansion of the project.

# TYPES OF ESTIMATES

(i) Approximate Estimates

• Before a detailed estimate of the proposed work is to be taken up, it is necessary to

prepare its approximate estimate.

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• Such an estimate is required to obtain administrative approval in case of Government
works.

(ii) Detailed Estimates

• Once the work is administratively approved by the Government, a detailed estimate is

worked out.

• A detailed estimate is prepared after its complete set of drawings are ready.

• The quantities of various items of work are worked out from such drawings and are
multiplied by the present rates of items of works to arrive at the estimated cost of the
work.

# Revised Estimate

• It is also a detailed estimate and is to be prepared when: estimate and is to be prepare

• The original sanctioned amount of estimate exceeds by more than 5%.

• Amount spent on the work exceeds the administratively sanctioned amount more than
10%.

• When there are drastic changes in the original proposal i.e. the original load bearing
structure is now proposed to be converted into a framed structure, even if the cost of the
work does not exceed the sanctioned amount.

• The revised estimate is accompanied by a comparative statement in the prescribed format

indicating the changes in each item of works, its rate and amount as per original and
revised with full justification for such variations and excess etc.

# Supplementary Estimate

• It is a fresh detailed estimate which is to be prepared when additional works are required to
supplement the original proposed work or when further development or extension of the
work is required to be carried during progress of the work.

• The abstract must indicate the original amount of the estimate and the total amount
Including supplementary amount for which fresh sanction is to be obtained.

# Supplementary and Revised Estimate

• This estimate is prepared when a particular work is abandoned and the cost of the work
remaining is less than 95% of the original sanctioned amount of the work

• or where there are material deviations from the original proposed work which may result in

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 substantial saving in the estimate.
• In such cases a fresh supplementary and Revised Estimate is to be prepared and sent for
revised technical sanction.

# Annual Repair (A.R) or Annual Maintenance (A.M.)

• Annual Repair (A.R.) or Annual Maintenance (A.M.) is a detailed estimate prepared to keep
or maintain the building or roads in proper working and safe condition.

• In case of buildings, this includes items such as white washing, painting of doors and
windows, inside and outside plastering and minor repairs etc.

• The amount of such an estimate should be within 1.5 to 2% of the original cost of the
building.

• In case of roads, it includes items such as filling patches, minor repairs to bridges and
culverts, repairs to berms etc.

• In case of damages caused to the works during monsoon, which cannot be repaired within
the annual repair grants a 'Special Repair Estimate' is to be prepared.

# Checklist of items of work in load bearing structure and framed

structure.

Items of Work ;

• Excavation for foundation

• Soling below footing

• PCC below footing

• Stone masonry work in sub structure for foundation up to plinth.

• Backfilling for plinth

• Soling below flooring PCC.

• PCC below flooring.

• DPC above stone masonry.

• Brick masonry in superstructure.

• RCC Work for lintel and chajja.

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• Fixing of door and window proper.

• RCC works for floor beams and slabs.

• External plastering.

• Internal Plastering

• Flooring Work.

• Fixing of Door.

• Fixing of Window.

• Electrification

• Plumbing

• Painting

# Measurement sheet

Item number Description Number length breadth Height Quantity Total

or particulars in (m) in (m) or depth quantity
of items in (m)

1 2 3 4 5 6 7 8

# Abstracting
• Abstract of estimated cost The cost of each item is calculated by multiplying the quantity
computed in the measurement form with a specific rate in a tabular form known as
abstract form as shown below:

Abstract of estimate form

Item No. Descriptions Unit Quantity Rate Amount

01

02

Sr. No. Particulars Amount

01 Estimated cost RS……

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02 Water supply and sanitary RS…….

03 Electrification charges@...% RS……

04 Contingencies@... (3 to 5%) RS……

05 Work charge establishment @ (1 to 2 %) RS……

Total Amount in words

BASIC UNITS OF MEASUREMENT

• The SI System of Measurement has to be followed in all Estimation.

• There are FIVE BASIC UNITS OF MEASUREMENT

1. CUBIC MEASUREMENT: All Mass, Voluminous and thick works has to be taken in terms
of Cubic or Volume Measurement (As a thumb rule, for any item of work whose thickness
is greater than 100mm). Its unit will be CUBIC METER.

2.AREA MEASUREMENT: Shallow, thin and surface works has to be taken in terms of Area
Measurement (As a thumb rule, for any item of work whose thickness is between 20mm to
100mm). Its unit will be SQUARE METER.

3.RUNNING METERS MEASUREMENT: Long, slender and very thin works has to be taken
in terms of Running Meters Measurement (As a thumb rule, for any item of work whose
thickness is very small when compared to its length). Its unit will be METER.

4.NUMBERS MEASUREMENT: Piecework, job work, items of work has to be measured in

Numbers. Its unit will be NUMBER.

5.WEIGHT MEASUREMENT: All Loadings has to be taken in terms of Weight

Measurement. Its unit will be either KILOGRAM or METRIC TONNE.

UNITS OF MEASUREMENTS

Sl. No. Particulars of item Units of measurement Units of payment

1. Earthwork
1. Earthwork in excavation CUM Per CUM

2. Earthwork in filling in
foundation trenches CUM Per CUM

3. Earthwork in filling in plinth CUM Per CUM

NOTE:- SQM= Square meter CUM= Cubic meter RM= Running meter

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2. Concrete
1. Lime concrete in foundation CUM Per CUM

2. Cement concrete in lintels CUM Per CUM

3. RCC is slab CUM Per CUM

4. Cement concrete or
RCC in chujja,sunshade CUM Per CUM

5. Lean concrete in roof

terracing (thickness-specified) CUM PER CUM

6. Cement concrete bed CUM PER CUM

7. Reinforced concrete sunshade

(specified width and height) CUM PER CUM

3. Damp proof course (DPC)

-thickness Mentioned SQM PER SQM

4. Brick work CUM PER CUM

1. Brickwork in foundation CUM PER CUM

2. Brickwork in plinth CUM PER CUM

3. Brickwork in superstructure CUM PER CUM