Version VII Textbook On Contract Specification

This textbook was developed by TVTI faculties through KOICA
project “PMC Service for Capacity Development for TVET

Leaders and Trainers in Ethiopia”
የኢፌዲሪ ቴክኒክና ሙያ ስልጠና ኢንስቲትዩት
FDRE Technical and Vocational Training Institute
Contract, specification and quantity

surveying
Jan 2024
Technical and Vocational Training Institute (TVTI)

Contract, specifications and quantity
surveying
Aklilu Tefera ( M.Sc.)
Road Construction Technology
Jan 2024
i
Contents
Course Profile.................................................................................................................................vi
Detail Course Outline...................................................................................................................viii
Chapter One: Introduction...............................................................................................................1
1.1 Introduction............................................................................................................................1
1.2 Proposal Solicitation..............................................................................................................6
1.3 Types of Contracts..........................................................................................................12
1.4 Contractual Relationships...............................................................................................18
Assessment....................................................................................................................................23
Objective type questions............................................................................................................23
Subjective types of questions.....................................................................................................27
References......................................................................................................................................29
Chapter 2 Specifications................................................................................................................30
2.1 Introduction..........................................................................................................................30
2.2 Function of the Specifications..............................................................................................31
2.3 Types of Specification.........................................................................................................35
2.4 Composition of the Specifications.......................................................................................39
2.5 Arrangement of the Specifications.......................................................................................41
2.6 Specification Writing...........................................................................................................42
2.7 Guidelines for Specification Writing...................................................................................43
2.8 Detailed specifications.........................................................................................................44
2.8.1 Detailed specifications of excavations, filling and back filling....................................44
2.8.2 Reinforced concrete and allied works:.........................................................................52
2.8.3 Formwork.....................................................................................................................59
2.8.4 Steel reinforcement.......................................................................................................61
Assessment....................................................................................................................................65
Objective type questions............................................................................................................65
Subjective type questions...........................................................................................................71
Chapter 3: Quantity surveying.......................................................................................................75
3.1. Introduction.........................................................................................................................75
3.2. Purpose of Quantity Surveying...........................................................................................76
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3.3. Measurement of Civil Works..............................................................................................76
3.4. Methods of Measurement in Construction..........................................................................85
3.5 Computation of Earth work quantity...................................................................................89
3.5.1 End Area Calculations..................................................................................................90
3.5.2 Calculating Earthwork..................................................................................................90
3.5.3 Mass Haul Diagram......................................................................................................95
3.5.4 Balancing Earthwork Using the Mass Haul Diagram...................................................97
3.5.5 Methods of Balancing Earthwork.................................................................................98
3.5.6 Bill of quantities and cost estimation n Road Construction.......................................106
Assessment..................................................................................................................................141
Objective types of questions....................................................................................................141
Subjective type question..........................................................................................................147
Chapter IV Procurement..............................................................................................................151
4.1 – Introduction.....................................................................................................................151
4.2 Independent Advice...........................................................................................................153
4.2.1 Identification of Risk..................................................................................................153
4.3 Traditional Procurement....................................................................................................156

4.3.1 Lump sum...................................................................................................................157
4.3.2 Measurement...............................................................................................................158
4.3.3 Cost reimbursement....................................................................................................158
4.3.4 Key points to consider with traditional procurement.................................................159
4.3.5 Advantages and disadvantages of traditional procurement........................................160
4.3.6 When should traditional procurement be used?..........................................................160
4.4 Design and Construct Procurement....................................................................................161

4.4.1 Key points to consider with design and construct procurement.................................162
4.4.2 Advantages and disadvantages of design and construct procurement........................163
4.4.3 When should design and construct procurement be used?.........................................164
4. 5. Methods of selecting the contractor for Design & construct procurement......................165
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4.5.1. Prequalification..........................................................................................................166
4.5.2 Management Procurement..........................................................................................167
4.5.3 Design and manage.....................................................................................................169
4.5.4 Advantages and disadvantages of management procurement....................................170
4.6.5 Key points to consider with management procurement.............................................171
Assessment..................................................................................................................................173
Objective Type Questions........................................................................................................173
Subjective type questions.........................................................................................................176
References....................................................................................................................................177
CHAPTER V Valuation..............................................................................................................179
5.1 Objects of valuation...........................................................................................................179
5.1.1 Six important Purposes of Valuation:.........................................................................179
5.2 Definitions..........................................................................................................................181
5.2.1 Market Value..............................................................................................................181
5.2.2 Book Value.................................................................................................................181
5.2.3 Capital cost.................................................................................................................181
5.2.4 Sinking Fund Method.................................................................................................182
5.2.5 Direct comparison with the capital Value..................................................................183
5.2.6 Method of Valuation...................................................................................................184
Introduction........................................................................................................................184
Assessment..................................................................................................................................207
Objective type questions..........................................................................................................207
References....................................................................................................................................211
Part II Practical work...................................................................................................................213
Week 1 Prepare a report by collecting information regarding to how the client or the consultant
ask proposal from contractors that includes Request For Proposal (RFP) and a Request for Quote
(RFQ)...........................................................................................................................................213
Session plan 1...........................................................................................................................213
iii
Practical work 1 Prepare a report by collecting information regarding to how the client or the
consultant ask proposal from contractors that includes Request For Proposal (RFP) and a
Request for Quote (RFQ).........................................................................................................215
Evaluation Table..........................................................................................................................217
Week II Exercise how to arrange specification document by referring different written
specification of different projects................................................................................................219
Session plan 2...........................................................................................................................219
Practical work II Exercise how to arrange specification document by referring different written
specification of different projects................................................................................................221
Week III specification writing.....................................................................................................225
Session plan 3...........................................................................................................................225
Practical work III specification writing.......................................................................................227
Week IV Write sample detail specification for a particular Road construction project..............231
Session plan 4...........................................................................................................................231
Practical work IV Write sample detail specification for a particular Road construction project.
.....................................................................................................................................................233
Week V Perform measurements for new road construction project elements (collect profile and
cross-section data) in the field for the purpose of preparation of quantity surveying.................237
Session plan 5...........................................................................................................................237
Practical work V - Perform measurements for new road construction project elements (collect
profile and cross-section data) in the field for the purpose of preparation of quantity surveying
.....................................................................................................................................................239
Week VI Calculate end area of cross section and volume from the cross-section and profile data
.....................................................................................................................................................243
Session plan 6...........................................................................................................................243
Practical work VI - Calculate end area of cross section and volume from the cross-section and
profile data...................................................................................................................................245
Week VII Prepare mass haul diagram and balance the earth work of a particular road section
based on an existing data.............................................................................................................249
Session plan 7...........................................................................................................................249
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Practical work VII -Prepare mass haul diagram and balance the earth work of a particular road
section based on an existing data.................................................................................................251
Week IX Visit project offices for acquiring knowledge and skill on procurement methods......255
Session plan 9...........................................................................................................................255
Practical work IX Visit project offices for acquiring knowledge and skill on procurement
methods........................................................................................................................................257
WEEK X.XI and XII Prepare a procurement plan for a given project........................................261
Session plan 10.........................................................................................................................261
Practical work X Prepare a procurement plan for a given project...............................................263
WEEK XIII.XIV and XV Prepare a document for design and construct procurement...............271
Session plan 11.........................................................................................................................271
Practical work 11 Prepare a document for design and construct procurement............................273
v
Course Profile
Department Road Construction Technology
Course title Contract Specification and Quantity Survey

Contracts, Specifications, & Quantity Surveying will cover three different
but related concepts: contract which deals with the discussion of the
different types of legal agreement between the client and contractor;
Course specification deals with the standard and the specific requirements of road
description construction materials, construction quality and construction methods to be
included in the contract agreement; quantity survey that deals with the
quantification of work which are executed during the construction work.
Project based training and kizen are included in the course.
At the end of the course, students will be able to:
 understand the different types of legal agreement between the client,
Course consultant and contractor;

objective  study the various types of contract agreement
 have an idea about the Standard Specifications
 how to prepare Takeoff sheet and Bill of quantity
Learning Knowledge: - After the completion of this course the student will be
outcomes
able to:
 Understand the concepts of different types of legal agreement
between the client, consultant and contractor;
 Understand the concepts of different types of contract agreement
 Acquire the knowledge of project delivery system
 Should be able to know the concept of Takeoff sheet and Bill of
quantity
 Understand knowledge of preparing bid documents
 About the procedure awarding the project
 Understand the procedure for preparing Contract documents
 Understand about the different types of Standard Specifications
vi
 Understand how to compile specification documents
 Understand about the basic concepts of construction procurement
 Acquire basic knowledge about valuation
2. Practical skills
 Prepare contract document
 Implement different project delivery systems
 Prepare bid documents
 Prepare Standard Specifications documents
 Prepare Takeoff sheet and Bill of quantity
 Select procurement method
 Valuate a given construction asset at a given condition of the
particular asset3.
Attitude
 Develop professional ethics for teaching /Training requirement
Pre-requisite Engineering drawing for Road
Target group 4th year Road Construction Technology
vii
Detail Course Outline
ETHIOPIAN TECHNICAL UNIVERSITY
Faculty of Civil Technology Department of Road Construction Technology
Program Bachelor of Technology in Road Construction technology
1. Instructor/s (teaching team members) Information
Instructor Information Other teaching team member information
Name TBA Role
Office Location Name TBA
Phone Number Office
Location
E-mail Phone no. & Email
Office Hours Office Hours
2. Course Information
Course Name/Title Contract specification and Quantity Survey
Course Code RCTE 4029
Credit hours 3 Cr.Hrs /5 ECTS
Work load Lecture Tutorial Lab.Home Assessment Total
study
16 0 96 17 6 135
Pre-requisite, and/or other Construction drawing for road (RCTE2024)
restrictions
Target group 4th year Road Construction Technology
Semester Semester I
Course of delivery Semester based
Status of the course Core Compulsory/Supportive/ General/ Vocational Pedagogy
3. Course Description and Objectives
Course Description: • Contracts, Specifications, & Quantity Surveying will cover three different but
related concepts: contract which deals with the discussion of the different types of
legal agreement between the client and contractor; specification deals with the
standard and the specific requirements of road construction materials, construction
quality and construction methods to be included in the contract agreement;
quantity survey that deals with the quantification of work which are executed
during the construction work. Project based training and kizen are included in the
course.
Course objective: •At the end of the course, students will be able to:
 understand the different types of legal agreement between the client,
consultant and contractor;
 study the various types of contract agreement
 have an idea about the Standard Specifications
 to prepare Takeoff sheet and Bill of quantity
4. Method of Instruction
viii
Class lectures 2 lecture hours every week
 Active learning (involves the full participation of students)
 Conducting the lecture using deductive and inductive methods according to the
nature of the topic provided.
 Use multi-media, animated models, written materials and physical objects
 Active learning (involves the full participation of students)
 Conducting the lecture using deductive and inductive methods according to the
nature of the topic provided.
 Use multi-media, animated models, written materials and physical objects
Laboratory 3 Office working hours every alternative week.
 Student shall perform the given office works, gathering information from
different road construction projects, make necessary calculations.
 Preparing different documents
Study of lecture notes This is fully the responsibility of the student
Demonstrating how to conduct laboratory tests regarding road construction materials i.e.
Demonstrations
different types of soil test, aggregate test, bitumen’s material test etc.
In every office work Activity different questions shall be given which the students shall
Lab assignments
include in their office work documents.
The student shall include him/herself in a seminar-based projects which will take up with a
Group Assignment
group of 5 students..
Individual assignment The student shall perform the given assignment as per the schedule individually
5. Learning Outcomes
5.1. Knowledge: - After the completion of this course the student will be able to:
5.1.1 Understand the concepts of different types of legal agreement between the client, consultant and
contractor;
5.1.2 Understand the concepts of different types of contract agreement
5.1.3 Acquire the knowledge of project delivery system
5.1.4 Should be able to know the concept of Takeoff sheet and Bill of quantity
5.1.5 Understand knowledge of preparing bid documents
5.1.6 About the procedure awarding the project
5.1.7 Understand the procedure for preparing Contract documents
5.1.8 Understand about the different types of Standard Specifications
5.1.9 Understand how to compile specification documents
5.1.10 Understand about the basic concepts of construction procurement
5.1.11 Acquire basic knowledge about valuation
5.2. Practical skills
5.2.1 Prepare contract document
5.2.2 Implement different project delivery systems
5.2.3 prepare bid documents
5.2.4 prepare Standard Specifications documents
5.2.5 Prepare Takeoff sheet and Bill of quantity
5.2.6 Select procurement method
5.2.7 Valuate a given construction asset at a given condition of the particular asset
ix
5.3. Attitude
5.3.1 Develop professional ethics for teaching /Training requirement
6. Detail Course Outline
Required
Topics to be covered Topics to be covered materials
Week Outcomes
(2 lecture hours) (3 lab hours) /equipment/device
s
Chapter One: Construction Contracts
1.1 Introduction  Visit Road construction projects 5.1.1, None
which are currently functional 5.1.2,
1.2 Proposal Solicitation 5.2.1
and gather information
1.3 Types of Contracts regarding to how to silicate
1
1.4 Contractual proposal.
Relationships
Chapter Two: Specifications

2.1 Introduction  Exercise how to arrange 5.1.8 None
2.2 Function of the Specifications specification by referring 5.2.9,
2 2.3Types of Specification different written specification of 5.2.4
2.4 Composition of the different projects.
Specifications
2.5 Arrangement of the  Exercise specification writing 5.1.8 None
Specifications by referring different 5.2.9,
3 2.6 Specification Writing specification from different 5.2.4
2.7 Guidelines for Specification road construction projects
Writing
2.8 Detailed specifications  Write sample detail 5.1.8 None
2.8.1 Detailed specifications specification for a particular 5.2.9,
of excavations, filling Road construction project. 5.2.4
and back filling
4
2.8.2 Reinforced concrete and
allied works
2.8.3 Formwork
2.8.4 Steel reinforcement
Chapter 3: T Quantity surveying
 Perform measurements for new 5.1.2 None
3.1. Introduction road construction project 5.2.3
3.2. Purpose of Quantity Surveying elements (collect profile and
5
3.3. Measurement of Civil Works cross-section data) in the field
3.4. Methods of Measurement for the purpose of preparation
of quantity surveying
6 3.5 Computation of Earth work  Calculate end area of cross 5.1.2 . None
quantity section and volume from the 5.2.3
3.5.1 End Area Calculations cross-section and profile
3.5.2 Calculating Earthwork drawings (existing finished
3.5.3 Mass Haul Diagram ground profiles ) use your own
cross-section templet .
7 3.5.4 Balancing Earthwork  Prepare mass haul diagram and 5.1.4, None
Using the Mass Haul balance the earth work of a 5,2,5
Diagram particular road section based on
x
3.5.5 Methods of Balancing an existing data.
Earthwork
3.5.6 Bill of quantities and
cost estimation n Road
Construction
8 Mid semester exam period
Chapter Four: Procurement
9 4.1 – Introduction  Visit project offices for 5.1.2 None
4.2 Independent Advice acquiring knowledge and skill 5.2.3
4.2.1 Identification of Risk on procurement methods.
10 4.3 Traditional Procurement  Prepare a procurement plan for 5.1.10, None
4.3.1 Lump sum a given project. 5.2.6
4.3.2 Measurement
4.3.3 Cost reimbursement
4.3.4 Key points to consider
with traditional
procurement
4.3.5 Advantages and
disadvantages of
traditional procurement
4.1.6 When should traditional
procurement be used?
11 4.4 Design and Construct  . 5.1.10, None

Procurement 5.2.6
4.4.1 Key points to consider
with design and construct
procurement
4.4.2 Advantages and
disadvantages of design
and construct
procurement
4.4.3 When should design and
construct procurement be
used?
12 4. 5. Methods of selecting the 5.1.10,
contractor for Design & 5.2.6 None
construct procurement
4.5.1. Prequalification
4.5.2 Management
Procurement
4.5.2.1 Management
contracting
4.5.2.2 Construction
management
13 4.5.3 Design and manage  Prepare a document for design 5.1.10,
4.3.4 Advantages and and construct procurement 5.2.6 None
disadvantages of flakiness of
management aggregate testing
procurement apparatus.
4.3.5 Key points to consider Angeles abrasion
with management test machine
procurement
machine for
xi
measuring
polishing of
aggregate
flakiness of
aggregate testing
apparatus.
Chapter Five : Valuation
14 5.1 Objects of Valuation  Valuate a given road asset 5.1.11, . None
5.1.1 Six important Purposes of based on the available data by 5.2.7
Valuation: using a direct comparison with
5.2 Definitions the capital value
5.2.1 Market Value
5.2.2 Book Value
5.2.3 Capital cost
15 4.5.4 Sinking Fund Method 5.1.11, None
5.2.5 Direct comparison with the 5.2.7
capital Value
5.2.6 Depreciation Method of
Valuation
5.2.6.1 Methods for
calculating
depreciation
16 Final exam period
7. Suggested texts and reference materials
Text Book 1. Quantity Surveying, Simplified Construction Estimates: Max B. Fajardo
Reference Books References:
1. Engineering Contracts and Specifications: Robert William Abbett
2. Civil Engineering Specifications and Contracts: Asabridges Kickbrad
3. Construction Quantity surveying: Donal Towey
4. Specifications and Contracts: Daniel W. Mead
5. Practice and procedure for quantity Surveying: Willey Willis
8. Assessment methods
Type Weight Behavior and Criteria/ Assessment for Learning
Mid Semester Exam 20%
Active Participation 5%
Question paper which includes information such as due date, to whom to
Individual Assignment 5%
submit and place along with questions shall be given.
Different final course projects shall be given earlier immediately after three
Group assignment
10% weeks of mid exam and students will work on and present before final exam
or mini project applicable
and evaluated on group.
Students report shall be evaluated carefully and feedback shall be given on
Lab Practice report, and/or with
20% time. A practical exam shall be organized which the learner shall
Practical Exam
demonstrate individually and assessed accordingly
Final semester Exam 40%
Total 100%
9. Academic Honesty
In all cases i.e. …
10. Submitting Date
xii
All assignments, project works and laboratory reports should be submitted to the instructor or laboratory assistance
according to the timetable and information provided. All assignments, project works and laboratory results will be invalid
if they are not submitted on time and will be reported to the concerned body as miss conduct of the student.
11. Classroom Behavior
Classroom …
12. Approval
Name Signature Date
Instructor:
Section Head:
Department Head:
xiii
Chapter One: Introduction
1.1 Introduction
Before dealing with the discussion of construction contract it is better to have ideas regarding to
the different types of construction industries as well as the two types of stakeholders of the
construction industry.
Construction Industry can be categorized into three major sectors:
i. Transport and Communication Sector - Road, Railway, Airway, and telecommunication related
physical works.
ii. Water and Energy Works – Hydropower development, transmission lines, wind power,
irrigation projects and
iii. Buildings and Other Physical Infrastructures.
What is the difference between Transport and communication?
 Transport is an act of taking or carrying (people or goods) from one place to another by
means of a vehicle, aircraft, or ship
 Communication means the imparting or exchanging of information by speaking, writing,
or using some other medium.
Types of transport
1. Air transport
2. Marine/water transport
3. Land transport
What is Road transport?
Road transport means transportation of goods and personnel from one place to the other on roads
by way of motorized and non-motorized carriages.
1
Characteristics of road transport
a) Less Capital Outlay
b) It involve Door to Door Service
c) Provides Service in Rural Areas
d) It is Flexible
e) It is Suitable for Short Distance
f) There is Lesser Risk of Damage in Transit
Disadvantages of road transport
A. Seasonal in Nature
B. Vulnerable to Accidents and Breakdowns
C. Unsuitable for Long Distance and Bulky Traffic
D. The speed of motor transport is comparatively slow and limited
E. The road transport is comparatively less organized.
F. Driving regulations can cause delays
G. Parking issues challenge
g) It is Feeder to other Modes of Transport
The contribution of transport and communication in economic development
a) It promotes internal and external trade
b) It promotes economic use of natural resources
c) It promotes mobility of skilled labour-force
d) It promotes diversification of markets
2
e) It promotes provision and supply of fuel
f) It promotes reduction in unemployment
g) It promotes increase in agricultural and industrial production
The problem facing transport and communication in economic development
 There is poor transport system link between industries and market

 Corruption (traffic along the road)
 Traffic jam (congestion which cause delay)
 High cost maintenance due to destruction of roads by big vehicle Accident which causes
loss of man power.
Impact of transport and communication development on environment
1. Noise pollution
2. Air pollution through carbon monoxide emissions
3. Water pollution (pipe transport)
4. Destruction of animals’ habitats
5. Land degradation
6. Loss of biodiversity
The construction industries have two types of stakeholders
1. The main stakeholders (contractual stakeholders) and
2. Non contractual stakeholders
The main stakeholders (contractual stakeholders) of the construction industry are:
- Employer/Owners (Client, Promoter, Government agencies) .

- Consultant/Design professionals (Consultant, Engineer, Architect )
- Contractor, Subcontractors
Non contractual stakeholders are the followings:
- Public agencies: Statutory Agencies (i.e. Fire Authority),

3
- Public authorities and Municipalities (i.e. land and building permit)
- Suppliers, technicians
- End users etc.
- Banks and other financing agencies.
- Insurance companies
By keeping in mind the above idea regarding to the construction industry in engineering
construction is supported by written contract between the contractor and the client by which both
get into promise to perform as per the agreement mentioned in the contract document. The
contractor will take responsibility to construct the project according to the plans and
specifications, and also take the responsibility to complete the work as per the deadline clearly
stated in the contract document for the agreed sum of money. The client’s responsibility is to
provide: documents informing the boundary over which the construction will be built, necessary
information and data, and arranging and providing payments to the contractor during the
progress of the Work.
The purpose of a contract is to clearly define the rights and responsibilities of both parties i.e. the
client and the contractor regarding to the business, legal, financial, and technical aspects.
The three main primary objective of the client are to finish his project with: minimum cost , good
quality; and completion of the project on time. Although the minimum cost of the project may
conflict with specified quality and completion time ; the client should therefore have to
compromise among his three goals to achieve that which is most important to him. The most
important factor influencing the performance of the contractor is profit that he gain from the
project. Such a motivation for the contractor may not have any problem to the client if and only
if the contract documents have been carefully prepared and administered, and no unexpected
happenings develop occurs during the Work.
There are different types of construction contracts, and their comparison is presented in this text
book. As it has been mentioned above construction contract is an agreement between two or
more parties to execute the construction works as per certain terms and conditions.
4
A construction contract contains general and special conditions of agreement, details of
construction project work, their specifications, time limits, payments and penalties for delivery
delays, etc. and ensures every party's rights and obligations.
A construction contract document is a valid document that can be enforced under a certain
authority or law.
Types of Construction Contract Documents

At the early stages of any construction project, the owner with his engineer or consultant
prepares necessary documents for the tender process, which will be included in the contract.
These documents are called contract documents.
The different types of documents in a construction contract are as follows-
1. General conditions
2. Special conditions
3. Drawings and specifications
4. B.O.Q (bill of quantity)
5. Letter of acceptance
6. Contractor bid
Conditions of Construction Contract

The conditions of contract are terms that rule the relationships between the owner and the
contractor, define each party's rights and obligations, specify the method of payment and
determine actions required when existing any disputes between the owner and the contractor.
1. General conditions of contract

2. Special conditions of contract
1. General Conditions of Contract
They are standard terms that suit the majority of projects; they include:
1. Definition of the project

2. Contract components
3. Rights and responsibilities for the owner and the contractor
5
4. Project schedule
5. Payment method
6. Warranty and delay penalty
2. Special Conditions of Contract
They are the modifications required to suit the uniqueness of the project, make the contract
flexible for the nature of the project, and achieve project objectives.
Selection of Type of Construction Contracts

One of the characteristics of construction projects is uniqueness. Every project has its particular
circumstances, so it's crucial to select the contract type which suits the project. The owner
develops the process of selecting the type of contract.
Factors affecting the selection of construction contract

1. Project objectives
The type of contract should meet with the project objectives.
2. Project constraints
There isn't any construction project without constraints. Thus, project constraints should be
considered while selecting the type of construction contracts.
3. Project delivery method

The project delivery method determines the relationships between parties getting involved in the
project and how they interact with each other, from project initiation to project closure.
1.2 Proposal Solicitation
Proposals for construction contracts are gathered from any interested contractors through
competitive bidding or by negotiation.
Owner organizations can be broken into two major categories, public and private.
6
A public agency exists for the ultimate benefit of the citizens, the general public. Examples of
public projects: a highway, or a University.
A private organization can be described as any individual, partnership, corporation, or institution

that builds a project for its own use or for resale.
The awarding of public construction works is quite different from the awarding of private
construction works i.e. in the case of awarding of public constructions works the procedure is
governed by law. For this reason, sealed bids are officially prepared and publicized by
advertising in local and official publications or. The contract is awarded to the lowest qualified
bidder. Private projects are not liable to any restrictions in the solicitation of proposals.
Weather the project is privately funded or funded by public organization the proposals may be
obtained by:
A. Open competitive bidding.
B. Competitive bidding by invitation to a group of selected contractors.
C. Direct negotiation with a selected contractor.
D. Serial tendering
Open competitive tendering
With open tendering, anyone is allowed to submit a bid on the project. This is the method most
commonly used on government projects, and it is generally considered to create the most
competition for a job, driving prices down.
Competitive bidding by invitation to a group of selected contractors (Selective tendering)
Selective tendering is the middle ground between open and negotiated tendering: A small set of
predetermined contractors is invited to submit bids on a project. Typically, this method of
tendering offers a balance between competition and simplicity in the bid selection process.
7
Direct Negotiated tendering
With negotiated tendering, the property owner identifies a single contractor to perform the work
and negotiates a contract with them. This method of tendering is generally reserved for highly
specialized projects, and it may be considered anti-competitive in certain cases.
Serial tendering
Serial tendering is used for situations where a property owner is soliciting bids for a series of
similar projects over a period of time. For instance, a housing developer may be building
hundreds of residential homes over a three-year period. Serial tendering can reduce the burden of
repeatedly soliciting bids for similar projects, though it does potentially reduce competition.
Construction bidding process
The construction bidding process is broken down into five key steps:
 Bid solicitation,
 Bid submission,
 Bid selection,
 Contract formation and
 Project delivery.
1. Bid solicitation
During the bid solicitation phase, the property owner or their representative will typically issue
an Invitation for Bid (IFB), a Request for Quote (RFQ), or a Request for Proposal (RFP).
For public project bids, agencies are generally required to issue an open invitation to qualifying
contractors who are registered to work on government construction jobs.
On private projects, bids may be open or sent to a smaller group of contractors in a non-
competitive bidding process. In some cases, bids may be solicited through a bid management
platform.
Regardless of the project type, the bid package contains project details to enable contractors to
produce an accurate bid, including:
8
- Construction specifications
- Project requirements
- Contract type
- Project delivery method
- Bonding & insurance requirements
The solicitation will typically also ask for additional information about the contractors who
apply, including professional qualifications and examples of similar past projects. Project owners
use this information to prequalify the contractors, ensuring that they will be able to complete the
job as promised.
Contractors who meet the requirements and are interested in the job will be able to submit a bid.
Contractor Tip: Pay close attention to the project requirements during the bid solicitation phase.
Submitting a bid takes time, and one way to improve your hit ratio is to focus on the right jobs
for your business—which means skipping some bids entirely.
2. Bid submission
In the bid submission phase, interested contractors submit documentation about the project
timeline and costs, as well as information about their business. During this phase, general
contractors will often solicit their own bids, proposals, or RFIs from subcontractors they need to
hire to complete specialized aspects of the job. The GC will combine the subcontractor proposals
to prepare the bid they submit to the property owner.
In order to create an accurate bid, contractors must create an accurate estimate of project costs,
including:
- Labor
- Materials
- Equipment
- Overhead
- Profit margin
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By reviewing the project specifications and bill of quantities, performing material takeoffs, and
calculating overhead and profit margin, contractors should be able to nail down a competitive
bid. A good bid represents the best quality at the most reasonable price.
If required, the contractor will need to submit a bid bond along with the bid in order to be
considered for the project. The bid bond serves as a guarantee to the owner that the contractor
will be able to complete the project according to their bid.
Contractor Tip: Bids should be as clean and organized as possible. A bid sheet serves as the face
of the contractor. A professional bid with all of the correct documentation submitted on time
serves as the first indication of a bidder's reputation.
3. Bid selection
When it comes to bid selection, property owners will often pick the bid with the lowest or most
competitive price. On public projects, government rules often require that the lowest bid wins.
However, commercial project owners often take into account a variety of factors beyond price,
including:
- Project experience
- Safety record
- Scheduling philosophy
Because contractors submit bids in a variety of different formats and with a wide range of prices,
the bid solicitor will typically go through a process called bid leveling. During bid leveling, the
owner will attempt to standardize the bid formats as much as possible, enabling them to compare
the similarities and differences between them. This process enables the owner to compare
"apples to apples" to make a more informed decision about the right contractor for the job.
Contractor tip: Winning bids require contractors to submit a price that is high enough to earn a
profit but low enough to stay competitive. Losing bids is part of the game; keep track of your
unsuccessful bids to learn for the future.
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4. Contract formation
After the owner selects a bid, they work together with the contractor to form a construction
contract that both parties will eventually sign. While the type of contract (e.g. fixed-price, time
and materials, etc.) is generally predetermined by the owner, contractors still have leeway at this
point to negotiate the terms of the contract, as well as the final pricing structure.
Even if the project owner is using a standard contract form, like AIA or ConsensusDocs contract
documents, the contractor always has an opportunity to negotiate the provisions.
Contractor tip: After your bid is accepted, take time to review the proposed contract and make
suggested changes. Don't allow the owner to pressure you into signing a contract that you haven't
fully read or agree with.
5. Project delivery
Even though it's not technically part of the bid process, project delivery plays a very important
role in bidding.
Before bidding starts, the property owner will determine the project delivery method. Common
delivery methods in construction include:
- Design-Bid-Build
- Design-Build
- Construction Manager at Risk
- Integrated Project Delivery (IPD)
During bidding, the project delivery method determines how bids are solicited and submitted.
For example, Design-Bid-Build solicits bids from general contractors based on designs from a
separate firm, whereas Design-Build employs a single firm for design and construction, so bids
are only received from subcontractors supporting that firm's work.
After bidding, the project delivery method often influences contract negotiations. For example,
with the CMAR method, there is likely a guaranteed maximum price in the contract, which the
construction manager will want to carefully negotiate to ensure project profitability.
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Tip for contractors: Make sure you're clear about the project delivery method and how it affects
the bidding process. Contracting businesses tend to specialize in certain project delivery methods
while avoiding others.
1.3 Types of Contracts
The construction industry uses different kinds of agreements depending on the project’s scope,
delivery, schedule, budget, and the parties involved.
Knowing which contract to use when is critical to ensuring a successful outcome in delivery,
customer satisfaction, and profit. We’ve made things easier by compiling the eight most common
types of construction contracts and detailing the pros and cons of each.
The eight types of construction contracts include:

- cost-plus construction contract
- design and build contract
- guaranteed maximum price contract
- incentive construction contract
- integrated project delivery contract
- lump-sum contract
- time and materials contract
- unit price contract
1. Cost-Plus Contract
Under a cost-plus contract, contractors are paid for all of their construction-related expenses.
That’s the cost part of the name. The costs can include direct costs such as labor, materials,
supplies, etc. They also include overhead costs such as insurance, mileage, a portion of your
office rent. Additionally, they also receive an agreed-upon amount for the profit. That’s the
“plus.”
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Benefits
This type of construction contract is usually looked upon pretty favorably by contractors. There’s
seemingly no risk of losing money on materials. Plus, you know you’ll incur a profit. These
types of contracts are especially useful when you don’t have enough information to provide a
thorough estimate of work or the scope is not well-defined. They also prioritize quality.
Drawbacks
However, there are a few details about these types of contracts to be aware of. First, you’ll need
to keep track of all of your expenses and be prepared to present them. That can require additional
resources and labor costs on your side. You may also be limited on how much you can spend.
Some cost-plus contracts include clauses with “not to exceed” amounts for costs.
2. Design-Build Contract
Traditionally, owners receive completed designs before taking in construction bids. That leads to
two separate contracts and a longer process. But the design-build contract does things differently.
As the name suggests, a design-build contract addresses design and construction costs
simultaneously. Under this type of contract, the construction process actually begins before the
final design is completed. This process saves the owner time and money by combining the design
and construction project delivery into one contract. It also helps to streamline communications
and create repeatable processes.
Benefits
The design-build contract helps to speed up the process and avoid disputes between the designer
and builder. It’s popular with organizations that want to accelerate project delivery, lean into the
benefits of collaboration, and streamline processes. Designers also have more input in the
construction drawing process, reducing the need for changes.
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Drawbacks
Some of the pros of design-build contracts can also lead to cons. Because there’s no competitive
bidding phase, the final costs may be higher for the owner. It’s also more difficult to estimate
costs due to the necessary collaboration between designer and builder.
3. Guaranteed Maximum Price Contract
Under the guaranteed maximum price (GMP) contract, the maximum amount the owner will
have to pay the contractor is capped. The GMP contract limits the amount the owner will have to
pay, and any additional expenses incurred are covered by the contractor. These agreements limit
the cost-risk for the customer. They clearly define the most the owner will have to pay, which
makes budgeting much easier.
Benefits
The GMP includes costs for labor, materials, overhead, and a percentage of those costs to
generate a profit. If the final costs come in under the GMP, the customer may receive all of the
cost savings or share them with the contractor. For contractors, it can also help to expedite the
lending process.
Drawbacks
Similar to the cost-plus contract, this agreement does require careful review and analysis of
expenses. This can be particularly time-consuming on large, multi-phase projects. It also places
the majority of the risks on the contractor. If the original estimate ends up being below the final
costs, the contractor can lose money on the project.
4. Incentive Construction Contracts
Incentive contracts provide the contractor with an agreed-upon payment if the project is
delivered by a certain date and at a specific point. If the project is delivered at a lower cost and/or
by the target deadline, the contractor receives extra payment. The amount they receive is
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specified in the contract and may be based on a sliding scale. In other words, the contractor is
incentivized for controlling costs and staying on schedule.
Benefits
These contracts aren’t just beneficial for controlling costs and timelines. They also help to create
a more collaborative process where the contractor has more ownership. Because of the incentive
phased approach, the contractor and owner often communicate more and look for innovative
ways to get the job done.
Drawbacks
Incentive contracts do require more negotiation to determine the incentives. It’s important for
contractors to ensure that the costs and deadlines are achievable. If the terms and conditions are
not clear, it can leave room for disputes. Contractors need to clearly define what meeting the
incentive looks like so there are no miscommunications when the project is delivered.
5. Integrated Project Delivery Contract
According to Lean IPD, “Integrated Project Delivery (IPD) is a delivery model for delivering
construction projects using a single contract for design and construction with a shared
risk/reward model, guaranteed costs, waivers of liability between team members, an operating
system based on lean principles, and a collaborative culture.”
The IPD contract is a multi-party agreement between the design firm, the builder, and the owner.
It may also include trade partners. Subcontractors typically fall under the contractor’s portion of
the agreement. The contract will tie the subcontractors to the contractor, but they will not serve
as a signatory like the contractor. Like the design-build contract, it brings all of the deliverables
into one single contract.
This type of construction contract spreads the risk and rewards of the project across the designer,
builder, and owner, dependent on the project’s financial results. The IPD contract generally
includes costs for design, construction, and the shared contingency. The risk and reward parties
(i.e., the signatories on the contract) agree to receive payment for their costs and shared savings
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if the project meets the performance requirements outlined in the contract. These parties agree
upon a lump sum profit if the project meets the defined financial outcomes.
Benefits
IPD contracts are popular with teams that want to prioritize innovation and collaboration. They
promote a sense of ownership and teamwork as all parties must work together to achieve the
desired rewards. They also spread the risk and reward fairly across parties and foster greater
accountability for the results of the project.
Drawbacks
However, the IPD contract isn’t a magic wand. Each party needs to remain committed to the IPD
model or risk reverting to traditional project delivery methods. IPD is still relatively new in the
industry, so some design firms and subcontractors may not want to participate. Some contractors
find it difficult to secure financing for these projects as well.
6. Lump-Sum Contract
With a lump-sum contract, the contractor delivers the project at a preset price. The contractor
will deliver a total price for the project rather than bidding on the deliverables. The agreement is
relatively simple and works well for projects with a well-defined scope. They’re popular with
straightforward work that doesn’t require detailed estimates. These types of construction
contracts also make administration and cash flow estimates easy.
Benefits
The lump-sum contract presents a digestible, easy-to-plan-for figure to the owner. These
agreements streamline business analysis and the selection process as well. They give the
contractor the flexibility to focus on quality, materials, and output. Unlike time and materials
contracts, lump-sum contracts don’t dictate as much owner supervision and approval.
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Drawbacks
Lump-sum contracts aren’t usually a good fit for more complicated projects. They don’t factor in
changes in material costs, site conditions, or requests from the owner. For the lump-sum contract
to pay off, you’ll need to be able to estimate the project’s schedule, materials, labor costs,
overhead costs, and profit margins easily.
7. Time and Materials Contract
Under a time and materials (T&M) contract, the owner pays an agreed-upon price based on the
time spent on the project, required materials, and the included profit rate. Like the lump-sum
contract, this agreement is simple and straightforward. However, T&M contracts allow for more
flexibility in the costs of the materials and account for labor rates. They may also include a mark-
up for the materials if they are purchased at wholesale rates.
Benefits
T&M contracts help the owner to budget for the overall costs while reducing the risk on the
contractor’s part in the case of fluctuating material and labor costs. They also help to prevent
cost-cutting methods as the contractor knows they’ll receive a profit.
Drawbacks
There are some potential downsides to this type of agreement. There’s less transparency about
the final cost for owners, which can lead to disputes along the way if prices rise. Inaccurate
estimates can also potentially eat into the contractor’s profit margins.
8. Unit Price Contract
The unit price contract details prices per unit, which may include materials, labor, overhead,
supplies, and profit. The owner pays the contractor based on the units at agreed-upon rates. The
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contract may or may not include the number of units needed to complete the project but will
likely include at least an estimate.
Benefits
These contracts work well with projects that can be easily divided into units. If your project is
largely dependent on the price of the units and involves repetitive tasks, a unit price contract may
be a good choice. Contractors who use unit price contracts find the simple invoicing and shared
risk beneficial.
Drawbacks
They’re not always a good fit for complex projects that require complicated tasks and many
different types of materials. They don’t incentivize contractors and can lead to profit loss if the
initial estimates are off-target.
1.4 Contractual Relationships
There are four broad categories of contractual relationship in construction:
A. Construction by a Single Prime Contractor.
This is the most common and type of contractual relationship of construction contracting. In this
case the client has the responsibility of preparing detailed plans and specifications for the
proposed work, using either his own staff or by inviting the services provider of construction
design.
The contractor has the responsible of the successful completion of the project within the
specified contract time. The contractor can subcontracts work which have special nature that the
contractor is not well-appointed to perform. The contractor has the responsibility of managing
and organizing all the construction operations, including the work of his subcontractors. Under
this arrangement, the client has to deal with only one Contractor.
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The major disadvantage of this type of contractual relationship is the time for the completion of
the project since the construction does not begin until the design has been completed, bids
received, and the contract awarded. This type of contractual relationship may not be the best
arrangement for the client who has a desire for early completion of his project. But this type of
contractual arrangement can result in a lower cost to the client. Contractors are better able to
submit a bid with fewer contingencies for protection against unknown risks, when they are
provided with a completely detailed design.
B. Design-Build Contract.
In the design-build form of contractual relationship, the client participates a single organization
with the responsibility for both design and construction. The responsibility of the client is
providing only basic performance criteria such as heating and cooling requirements, electrical
capacities, and space and layout requirements. The contractor can either be a strong organization
having both the capability to design and construct; a joint venture combining a construction
contractor and a design professional; or a construction contractor who subcontracts the detailed
design (plans and specifications) to a design professional. Contracts may be competitively bid or
negotiated.
In a design-build contract, the contractor takes on the additional responsibility and risk of
preparing an appropriate design. This type of relationship is going to be most successful in
projects funded with private capital, where minimizing the construction cost is secondary to
advancing the date of completion and the start of production. Publicly funded projects require
public competitive bidding on a definite design furnished by the Owner.
A design-build contract is more difficult to price because the Contractor has to include in his bid
a figure for a design that he has not yet prepared. Consequently, he incorporates a contingency in
his bid to allow for these unknowns.
As a result, construction of a project by design-build contract will generally cost more than if it
were constructed under the normal procedure of having a contractor submit a bid on a completed
set of Plans and Specifications. The Contractor can begin construction before final design is
complete. This overlapping of construction and design allows for completion of the project at an
earlier date.
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C. Multiple Prime Contracts.
Many governmental agencies are ruled by statute or regulations to award multiple prime
contracts where the construction of the project exceeds a specified cost. Separate contracts are
established for principal portions of the work, namely general construction (site work, structural,
and architectural); Electrical Work; Plumbing Work; and Heating, Ventilating, and air
conditioning Work.
In the type of contract the client saves the cost of coordination of subcontractors that a general
contractor would include in his bid price, if all the work were to be done under one contract. On
the other hand, coordination of the work of these separate prime contracts now becomes the
responsibility of the Owner.
D. Construction Manager.
Construction management may involve the development of a construction project during any
phase, from its beginning until it is a complete usable facility. It may include feasibility studies,
preliminary design, scheduling, cost control, value engineering, phased construction, contract
award, and technical inspection. The Construction Manager is a professional; he represents the
Owner; and he works for an agreed-upon fee. An owner who does not have the staff or the
capability to develop his project may contract with a construction manager for either the
complete development of his project or just some part of it. A contract for construction
management may be given to a design professional; a construction contractor; a management
firm; or to a combination of these firms. This type of arrangement can be more efficient than
contracting separately for the different steps in the development of the project. A construction
manager can manage and coordinate all activities to control time, cost, and the quality of the
work.
Many times, an owner will engage a construction manager to provide (during the design phase)
advice on design improvements, construction procedures, construction economies, and
schedules. The construction manager can continue on into the construction phase, awarding
contracts for the Owner and coordinating the work of the various prime contractors. At other
times, a construction manager may be retained for the construction phase only. Under this
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arrangement, the construction manager becomes the client’s representative on the site,
coordinating and inspecting the work of the several prime construction contractors.
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Assessment
Objective type questions
1. Which one of the following is not true about road transport ?
a) It is not suitable for Short Distance
b) Seasonal in Nature
B. Vulnerable to Accidents and Breakdowns
C. Unsuitable for Long Distance and Bulky Traffic
D. The speed of motor transport is comparatively slow and limited
2. Which one of the following is not the impact of transport and communication development on
environment?
a). Noise pollution
b) It contribute for the economic development of any country
c). Air pollution through carbon monoxide emissions
d). Water pollution (pipe transport)
e). Destruction of animals habitats
3. Which one of the following is not included in the general condition of contract?
a) Definition of the project
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b) Contract components
c) Rights and responsibilities for the owner and the contractor
d) Project schedule
e) None
4. Which one of the following type of contract saves the owner time and money by combining
the design and construction project delivery into one contract?
a) Design-bid-build contract
b) Cost -plus contract
c) Design-build contract
d) Incentive Construction Contracts
e) Multiple Prime Contracts
5. _____________________________ contract is a multi-party agreement between the design

firm, the builder, and the owner.
a) Lump-Sum
b) Incentive Construction
c) Guaranteed Maximum Price
d) Integrated Part Delivery
e) Time and Materials
6. Which one of the following method is not the method by which proposal solicitation is may be
obtained?
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a). Open competitive bidding.
b). Competitive bidding by invitation to a group of selected contractors.
c). Direct negotiation with a selected contractor.
d). Serial tendering
e) None
7. ________________________________ is contracts help the owner to budget for the overall

costs while reducing the risk on the contractor’s part in the case of fluctuating material and labor
costs.
a) Lump-Sum
b) Incentive Construction
8. __________________solicits bids from general contractors based on designs from a separate

firm.
a) Design-Bid- Build contract
b) Design-Bid-Build contract
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9. The type of contract awarding for more than one prime contracts where the construction of the
project exceeds a specified cost.
a) )Design-Bid- Build contract
b) Design-Bid-Build contract
c) Multiple Prime Contracts.
d) Guaranteed Maximum Price
e) Integrated Part Delivery
10. who is the responsible for preparing detailed plans and specifications for the proposed work
in a single Prime Contractor?
a) The contractor
b) The designer
c) The client
d) a and b
e) a and c
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Subjective types of questions
1. Mention and explain the different characteristics of road transportation
2. Impact of transport and communication development on environment
3. Define briefly the term construction contract
4. Mention and explain the different types of construction contracts
5. Explain the responsibilities of the client, the consultant and the contractor in construction
contract.
6. What are the benefits and disadvantages of Cost-Plus Contract?
7. Explain briefly the bid process in construction contract.
8. Discuss about General conditions of contract and Special conditions of contract.
9. What do we mean by proposal solicitation in construction contract? Discuss briefly
10. Discuss about factors affecting the selection of construction contract.
11. What do we mean by Time and Materials Contract? Discuss about the benefit and drawback
of Time and Materials Contract
12. State the difference between Design build and Design-Build Contract.
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References
[1]. https://theconstructor.org/construction/types-of-construction-contracts- comparison/14268/
[2]. https://uomustansiriyah.edu.iq/media/lectures/5/5_2018_01_09!02_40_28_PM.pdf
[3]. https://www.academia.edu/29394868/Construction_Contracts_and_Its_types
[4]. https://www.researchgate.net/publication/343107480_Construction_Contracts
[5]. Will Hughes, Ronan Champion and John Murdoch (2015) Construction contracts Law and
Management Fifth Edition by Routledge , 2 Park Square, Milton Park, Abingdon, Oxon OX14
4RN
[6]. Edward Whitticks (2005), Construction contracts How to Manage contracts and Control
disputes in a voluntary Industry by Gulf Publishing Company, Houston, Texas.
[7]. Mohamed Darwish (2017) Fundamentals of Construction Contracts Publication the

American University in Cairo
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Chapter 2 Specifications
2.1 Introduction
Plans and specifications are the two primary documents for construction contracts. The
contractor can get all the necessary information from these documents to perform the
construction works and to complete his job with minimum problem. These documents are also
important to the contractor in order to fulfill his contractual obligations.
The plans give graphical information to the contractor which is necessary during the construction
works. And any brief information beyond the plans are described in words in the form of
specification.
“Specifications” is a general term applying to all directions, provisions, and requirements

pertaining to the performance of the work and payment for the work.
The primary purpose of plans is to illustrate the construction. They show existing site conditions;
the limits of Work; and location, shape, dimensions, size, and geometric relationship between the
various construction components. Besides the plans specifications, presented in written form,
transmit information that cannot be shown on the Plans. Specifications present instructions that
will make the contractor to do the work and fulfill the intent of the design. Both plans and
specifications are two complimentary documents each other; each of them transfers its own part
of the information. The information described in plans should not be repeated in the specification
to avoid redundancy.
The term "Specifications" as used in this module applies to the written Contract document, which
includes bidding procedures, legal requirements, insurance requirements, material and
workmanship requirements, inspection and testing procedures, and procedures for measurement
and payment of the Work.
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2.2 Function of the Specifications
In addition to defining the scope of Work, the Specifications establish obligations of the
contracting parties. With respect to the client and his engineer, it is the obligation to clearly
define what is required; to establish a plan for its enforcement to the extent required during the
period of execution; and to indicate how the Work will be measured and paid for. With respect to
the contractor, it is the obligation of complying with the Contract requirements during the
construction period.
The Specifications provide detailed requirements regarding to the work to be performed. The
courts will usually require that the specifications must be fulfilled by the Contractor, if
performance is possible. If the Specifications should not ambiguous and should not be loosely
worded are loosely worded and difficult for judgment; the judges generally will make a decision
based on the following grounds:
A) A fair interpretation of the specifications; and
B) What is required in the specifications must be reasonable.
The role of specifications is not only to comprehensively defining the end product that the client
wants to buy, and to establish the terms of the contractor's compensation, but also to establish a
contractual relationship between the contractor and the client with respect to the consequences of
risks which may materialize. Since risk is inevitable in any construction works both the client
and the contractor should recognize the risks by including the solution for the risks which may
happen during the performance of the project works and also both the client and the contractor
should be ready to shear the risks.
One of the basic principles in the preparation of a proper set of Specifications is to equitably
distribute the risks inherent in the construction process among the client, Contractor, and
Engineer. Depending on the type of construction involved, these risks can include labor strikes,
unanticipated subsurface conditions, unexpected weather conditions, problems with underground
utilities, and the hazards presented by existing structures situated next to deep excavations.
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Once the Contract has been signed, the Specifications become the ruling document that governs
the performance of the Work. It is the instrument that governs the official relations between
Contractor, Owner, and Engineer.
Specifications are instruments to organize the information represented on the drawings and they
are written descriptions of the legal and technical requirements forming the contract document.
The main difference between specification and drawing is that drawings should generally show
the following:
Dimensions, extents, size, shape, and location of component parts
 Location of materials, machineries and fixtures.

 Interaction of furniture, equipment and space.
 Schedules of finish
Specifications generally describe the following:
 Type and quality of materials, equipment, labor or workmanship

 Methods of fabrication, installation and erection
 Standards, codes and costs
 Allowance submittals and substitutions
 Cost included, insurance and bonds
 Project record and site facility
Specifications are written based on the prepared design, drawings, general and scientific trends
of workmanship, quality expected, equipment involved, and materials to be used for the
particular trade of work.
The specifications should clearly specify design and drawing, labor employment, materials to be
used, construction method, equipment used.
Specifications should be clear, concise, and brief description of what is required to execute the
proposed trade of work.
Generally specification is prepared for the following reasons:
i. Guide the bidder at the time of tendering to arrive at a reasonable cost for the work.
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ii. Provide guidance for the execution of the work
iii. Guide contractor for the purchase of materials
iv. Serve as part of contract document to limit and describe the rights and obligations of each
contracting parties.
v. Guide the bidder to identify his capacity to execute the work
vi. Serve as fabrication and installation guide for temporary and permanent works.
vii. Guide the contractor for purchase and/or hiring of equipment.
viii. Serve the owner to know what she/he is intended to receive.
ix. Serve for the manufacturers of construction materials, equipment, tools etc. to grade, classify,
and improve qualities of their products.
x. Indicates method of testing and acceptance of final products.
xi. Guide parameters for rejection of non-conforming works.
xii. Indirectly, the specifications are very much related to the legal considerations, insurance
considerations, bidding requirements, alternates and options, rights, obligations and remedial
measures for the contracting parties.
 Importance and Characteristics of Well-Written Specifications

Well-written specifications are essential to the efficient construction of a successful
project.
Well-written specifications inform the Contractor of the work to be performed, the

conditions and restrictions on performance of the work, the expected quality of the work,
and the manner in which the work will be measured for payment.
With the increased complexity and specialization in modern construction and the need for
the Project Engineer to focus on legal requirements and administration, use of the phrase
“as directed by the Engineer” should be minimized. Work requirements must be clearly
stated in the specifications.
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Well-written specifications:
 Are clear, concise, and technically correct.

 Do not use ambiguous words that could lead to misinterpretation.
 Are written using simple words in short, easy to understand sentences.
 Use technically correct terms, not slang or “field” words.
 Avoid conflicting requirements.
 Do not repeat requirements stated elsewhere in the Contract.
 Do not explain or provide reasons for a requirement.
 State construction requirements sequentially.
 Avoid the use of awkward phrases such as “and/or” and “him/her.” Rewriting
the sentence can eliminate such phrases.
Furthermore, the phrases “approved by the Engineer” or “accepted by the Engineer”
should be avoided. These should be used only when the Engineer will actually accept or
approve the work. In such phrases, “approved” and “accepted” are synonymous; there is
no difference in the responsibility taken by the Engineer.
 Liquidated Damages, Penalties, and Incentives

Do not use specifications that assess penalties to the Contractor. The only deductions that
can be made from duties due the Contractor are:
 Liquidated damages based on additional engineering costs to the Department.

 Incentives/disincentives based on either the quality of the work or incurred road
user costs.
 Price adjustments based on the quality of the work.
In each case, the deduction amount included in the specification must be accurately
calculated and documented in the project file. Remediation specified for non-specification
work should not be harsh or punitive, but should accurately represent the actual loss of
value to the Department or to the road user.
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2.3 Types of Specification
In general, specifications can be broadly classified into four categories:
1. Manufacturer’s specification: Manufactures prepare specification of their product for guidance

of their users, which may include property description and installation guide lines.
2. Guide specification: specification prepared by an individual or group of individuals based on

manufacturer’s specifications, established trends of workmanship, service and laboratory tests
and research findings to be used as guide lines for preparation of contract specification.
3. Standard specification: specifications which are intended to be used as reference standard in

the construction of a project. The guide specification which has been standardized by recognized
authority.
4. Contract (Project) Specification: The specification prepared for a particular project to

accompany the drawings and other contract documents.
The specifications described above can be prepared following the format which has general and
specific parts (General Specification and Specific Specification).
In the general part of the specification the following items are included:
 Administrative and Procedural Requirements

 Scope, definition
 Reference Organization and Standards
 Project Description, site facilities
 Submittals and quality assurance
 Delivery, storage and handling
 Project records, Insurances other general requirements
In the specific part of the standard specification the detailed description of the quality of items to
be used and preparatory actions and methods of incorporating the items are included.
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“Technical Specification and Methods of Measurement for Construction of Buildings”, of March
1991 is the standard specification which has been used as one of the contract document in our
country.
In the general requirement part the following items which may be applied to any project and any
trade of work are described in general terms:
♦ 011 – General
♦ 012 - Site Description
♦ 013 - Quality Assurance
♦ 014 - Project Records
♦ 015 - Site Facilities
♦ 016 - Cleaning Up
In the specific part the different trades of works (excavation and earth works, concrete works
etc.) are described in details and the method of measurement are given.
Specification can also be classified as Material and Workmanship Specification and Performance
Specification.
I. Material and Workmanship Specifications
This form of specification includes,
 The description of the scope of the works,

 The general and specific requirements that are necessary for the execution of the work,
 Material requirements,
 Construction details, and
 Method of measurement and payments for completed works.
A. Material Specifications
For some items may focus on the physical and or chemical properties that can also be cross
checked by tests and for others the performance characteristics may be the governing factors.
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In some cases, a composition of the two types may be also applicable.
These descriptions generally include;
 Physical properties, such as strength, durability, hardness, and electricity.

 Chemical composition
 Electrical and thermal and acoustical properties
 Appearance including color, texture, pattern and finishes.
B. Workmanship Specifications:
Describes the desired results that need to be achieved in the works which include;
 Specify the desired results as to the quality of workmanship

 State any detailed construction methods or procedures necessary for the
accomplishment of particular purposes.
 Stipulate any desired limitations or restrictions to be placed on the contractor's
methods in the interest of coordination of the work.
 Give any precautions necessary for the protection of the work or adjacent
property.
 Specify the methods of inspection and tests to which the work is to be subjected
II. Performance Specifications
Such types of specification, define the performance requirements for machinery and plant
operating equipment. This allows the advance manufacturer and procurement of such equipment,
or of the standard brands. Specification could be written in several ways, with the prime
emphasis given to either the producer company’s brand or the performance capacity of the
material and so on.
Accordingly, there are the following types of technical specifications:
A. Proprietary Specifications
This specifications call for desired materials, producers, systems, and equipment by their trade
names and model numbers.
For detailed descriptions reference should be made on manufacture’s specifications.
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They are of two types; Closed (sole) and Open or equal source.
Example: -
1. Water reducing agent shall be used in all concrete, in strict accordance with the manufacturer's
printed instructions. Total air entrained shall be 5.0% plus or minus 1.0% of volume of concrete
with required strengths maintained.
2. Air – Entraining Agent: “Darex” by W.R. Grace Company, “Aerolith” by Sonneborn Building
Products or equal meeting ASTM C260 as approved by the architect.
B. Performance Specifications
Specifications which define products based on desired end results which are performance
oriented.
Most appropriate when new or unusual products or systems are required or when innovation is
necessary.
Describing the problems or condition under which the products or system must operate, and the
parameters for the acceptable solutions is difficult and challenging.
Testing methods and evaluation procedures for defining the required performance must be
explicitly specified.
Example: Stud shear connectors shall conform to the requirements of Article 4.26 of the
American Welding Society.
C. Reference Specifications
Specifications which refer to levels of quality established by recognized testing authority or

standards set by quality control authority. They are used in conjunction with other types.
Example: C – 25 Concrete.
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D. Descriptive Specifications
Specifications which describe all components of products, their arrangements, and method of
assembly, physical and chemical properties, arrangement relationship of parts of numerous other
details.
Specifies shall take total responsibility for the function and performance of the product.
Example: “Supply and fix 40mm. thick flush wood door with hard wood frames and both sides
covered with best quality 4mm thick ply wood. Price includes approved quality lock, hinges, and
three coats of varnish paint, door stopper and all necessary accessories to comply ES’’.
E. Cash Allowance Specifications
Specifications meant to direct bidders to set aside a specified amount of money to be applied to
the construction work at the direction of the specifies.
Example: “A lump sum of $3,000.00 for purchase of hard ware, as defined by and specified in
Specification sections of Division 8”.
2.4 Composition of the Specifications
The Specifications for a construction contract contains information covering the various phases
of the Contract. It includes three major categories: the Bidding Documents, the General
Conditions, and the Technical Sections. The bidding documents and the general conditions are
sometimes referred to as the "boilerplate", or "up front" documents, because they are located in
the front part of the book.
A. The Bidding Documents.
The bidding documents the documents which are primarily to the future bidder. They contain a
general description of the proposed Work, detailed instructions and requirements under which a
bidder is to prepare and submit his bid, and the conditions under which the Contract will be
awarded and executed. These documents provide information relating to:
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1. The Advertisement for Bids
2. Instructions to Bidders
3. Preparation of Proposal
4. Submittal of Proposal
5. Award of Contract
6. Execution of Contract
B. The General Conditions.
The General Conditions establish the rights and responsibilities of the parties to the contract, the
requirements governing their business and legal relationships, and the authority of the Engineer.
They include several subsections as follows:
1. Definitions and Terms
2. Scope of Work
3. Control of Work
4. Control of Material
5. Legal Relations and Responsibility to the Public
6. Prosecution and Progress
7. Measurement and Payment
C. The Technical Sections.
The Technical Sections sometimes called the Technical Provisions or Technical Requirements,
define the minimum requirements of quality of materials and of workmanship. They also outline
how the Work is to be measured and paid for. Requirements for items of construction like
excavation and embankment, Unlike the Plans, the Technical Sections concentrate the
requirements for specific items of the work, thus eliminating the possibility of overlooking
41
related requirements placed in other sections of the specifications. This arrangement also
facilitates specifying measurement and payment procedures for the items of work.
2.5 Arrangement of the Specifications
 Users of the Specifications.

The initial user of the specification is the future bidder. He should carefully reads the
advertisement for bids which gives him a general description of the proposed work,
including estimated quantities of the major items of construction. If the type and extent of
the proposed work falls within the capabilities of a future bidder's organization, he will
most likely take the next step and obtain a set of the plans and specifications.
The next portion of the Specifications that the prospective bidder will want to review,
would be the Bidding Documents. These contain instructions on how the bid is to be
prepared and submitted. In the course of preparing his bid, the bidder will solicit price
quotations from material suppliers and subcontractors, both of whom also become users
of the Specifications. The material supplier must review the Technical Sections in order
to determine requirements for the material on which he is being requested to quote a
price. The subcontractor must review the General Conditions and those Technical
Sections that present requirements for the item or items of construction on which he will
be submitting his price.
When the Contract is awarded, the successful low bidder becomes the Contractor, and he
is now responsible for complying with all requirements of the Specifications. The
Engineer, who is the Owner's representative on the site, is responsible for assuring that
the Work will conform to the Contract requirements.
By virtue of their complete involvement, both Contractor and Engineer become the major
users of the Specifications, since they have to become familiar with all of its contents.
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 Optimum Arrangement for Users.
The most suitable arrangement in presenting Specifications is that which will best satisfy
the needs of a user. For the benefit of prospective bidders, the Advertisement for Bids is
the first item in the Book of Specifications, following the Table of Contents. The next
major category in the Book of Specifications will be the Bidding Documents, to assist
those prospective bidders who have decided to bid for the Work. The material presented
in the Bidding Documents will guide the bidder through the different stages in the
preparation and submittal of his bid. In the course of preparing his bid, the bidder will
find it necessary to consult the rest of the Specifications, namely the General Conditions
and the Technical Sections. The General Conditions will be presented before the
Technical Sections, since items that concern the Contract as a whole are generally first
considered, before delving into specific construction items.
2.6 Specification Writing
Basically specifications are not to be created; they are prepared based on existing standards,
codes, guidelines, and laws. When planning to write specifications one should start first of all
with:
 An overall analysis of the work to be done, and

 The requirements necessary to achieve the required level of quality,
 Conditions under which it must be done,
 Materials required, and the
 Details of the construction
Hence preparing an outline of the details of the work is the first step in writing a good
specification.
Specification writing embodies certain methods of presenting information and instructions.
When specifications are to be written, the following shall be taken to considerations:
a. Specification writing requires:
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 Visualization (Having clear picture of the system)
 Research (to know the legal impact correctly)
 Clear thinking (understanding things directly without misleading)
 Organizing (organizing what we know to write the specification)
b. Specification writing requires professional ability to read drawings
c. Specification writing requires wide knowledge of the construction materials, various levels of
workmanship, different construction equipment and method of construction to be employed.
d. Specifications use simple and clear language such that it can readily be understood.
e. Specifications shall be brief and short as much as possible (avoid long sentences without
punctuation)
f. Specifications shall include all items affecting the cost of the work.
g. Specifications shall be fair and do not attempt to throw all the risks and responsibilities on one
of the parties signing the contract.
h. Specifications shall avoid repetition of information shown on drawings to avoid mistakes and
duplication between the specification and drawings.
i. Specification shall not include inapplicable text and do not specify the impossible or anything
not intended to be enforced.
2.7 Guidelines for Specification Writing
Below are some specific guidelines that one needs to follow when preparing a specification:
 Be specific and not indefinite

 Be brief, avoid unnecessary words or phrases
 Give all the necessary facts
 Avoid repetition
 Specify in the positive form
 Use correct grammar
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 Direct rather than suggest
 Use short rather than long sentences
 Do not specify both methods and results
 Do not specify requirements in conflict with each other
 Do not justify a requirement
 Avoid sentences that require other than the simplest punctuation.
 Avoid words that are likely to be unknown to the user of the specification ( words
with more than one meaning)
 Arrange the specification in the order of the execution of the work. E.g.
Formwork, concrete mixing, concrete placing, curing, etc..
 Address measurement and payment issue
 Refer only to the principal parties in the contract, Owner, Engineer, and
Contractor.
 Use “these specifications” rather than “this specification”. Use the plural.
 Workmanship should be in accordance with the standards
 Materials should confirm to-A reference specification.
2.8 Detailed specifications
2.8.1 Detailed specifications of excavations, filling and back filling
 Scope of Work
The scope for work covered under this specifications pertain to excavation of foundations,
trenches, pits and over areas, in all sorts of soil, soft and hard rock, correct to dimensions
given in the drawing including shoring, protections of existing underground utilities of
any, such as water lines, electric cables etc. dewatering and shoring if necessary, stacking
the useful materials as directed within the lead specified, refilling around the foundation
and into the plinth with selected useful excavated earth and disposing off the surplus
earth / materials within specified lead and finishing the surface to proper levels, slopes and
camber etc. all complete.
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 Site Clearance:
Before the earth work is started the area coming under cutting and filling shall be cleared
of al removed up to a distance of 150 metres outside the periphery of the area under
clearance.
This work is deemed to be included in the earthwork item rate and no separate payment
will be admissible.
 Roots and Vegetation clearance:

The roots of trees if any shall be removed to a minimum depth of 60 cm below ground
level or a minimum of 30 cm below formation level whichever is lower and the hollows
filled up with earth leveled and rammed. This work is deemed to be included in the
earthwork items and no separate payment will be admissible for the work. Any material
obtained from the site will be the property of the Government of India and the useful
materials as decided by the Engineer-in-charge will be conveyed and properly stacked as
directed within the lead specified.
 Setting out and making profiles:

Masonry or concrete pillars will be erected at suitable points in the area to serve as
benchmarks for the execution of the work. These benchmarks shall be connected with
G.T.S. or any other permanent benchmark approved by the Engineer-in-charge. Necessary
profiles with pegs, bamboos and strings or Burjis shall be made to show the correct
formation levels before the work is started. The contractor shall supply labour and
materials for setting out and making profiles for the work at his own cost and the same
shall be maintained during the excavation work. The Department will show grid co-
ordinate or other reference points. It shall be the responsibility of the contractor to set out
center lines correctly with reference to the drawings and install substantial reference
marks. Checking of such alignment by the Department will not absolve the contractor
from his responsibility to execute the work strictly in accordance with the drawings.
 Excavation:
The contractor shall notify the Engineer-in-charge before starting excavation and before
the ground is disturbed, to enable him to take existing level for the purpose of
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measurements. The ground levels shall be taken at 5 to 15 metres intervals in uniformly
sloping ground and at closer distance where local mounds, pits, or undulations are met
with, as directed by the Engineer-in-charge. The ground levels shall be recorded in field
books and plotted on plans, which shall be signed by the Contractor and the Engineer-in-
charge, before the earthwork is actually started. The labor required for taking levels, shall
be supplied by the Contractor at his own cost. The Contractor shall perform excavation in
all types of soils, murrum, soft and hard rock, boulders etc. in foundation, over areas and
in trenches to widths, lines, levels, grades and curves as shown in the drawing or lesser
widths, lines, levels, grades and levels as directed by the Engineer-in-charge and per
items in the schedule of quantities.
The item in the schedule of quantities shall specify the excavation in trenches or over
areas.
For this purpose, the excavation for any depth in trenches for foundation not exceeding
1.5m in width or 10sqm. on plan shall be described as excavation in foundation trenches.
Excavation exceeding 1.5m in width as well as 10sqm on plan (excluding trenches for
pipes, cables etc.) and exceeding 30cm in depth shall be described as excavation over
areas.
Excavation exceeding 1.5m in width as well as 10sqm on plan but not exceeding 30cm in
depth shall be described as surface Excavation.
 Classification of Earth work:

The earthwork shall be classified under the following main categories and measured
separately for each category. All types of soil, murrum, boulders, Soft rock, Hard rock.
All types of Soils, Murrum, Boulders: This includes earth, murrum, top deposits of
agricultural soil, reclaimed soil, clay, sand or any combination thereof ad soft and hard
murrum, shingle etc. which is loose enough to be removed with spadies, shovel and pick
axes. Boulders should not more than 0.03 cum. In volume found during the course of
excavation shall also fall under this classification.
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 Excavation in Soft Rock:
This shall include all materials which are rock or hard conglomerate, all
decomposed weathered rock, highly fissured rock, old masonry, boulders
bigger than 0.03 cum, in volume but not bigger than 0.5 cum. and other
varieties of soft rock which can be removed only with pick axes, crow bars,
wedges and hammers with some difficulty. The mere fact that the contractor
resorts to blasting and / or wedging and chiseling of reasons of his own,
shall not mean the rock is classifiable as hard rock.
 Excavation in Hard Rock:

This includes all rock other than soft rock mentioned in paragraph above
1.5.1 (b) viz. soft rock, occurring in masses, boulders having approximate
volume more than 0.5 cum. plain or reinforced cement concrete, which can
best be removed by chiseling and wedging where blasting cannot be
permitted owing to any restriction at site.
 Excavation in Hard Rock by Chiseling and Wedging:

Where blasting is not permitted and if the Engineer-in-charge so desires, the
excavation shall be done by chiseling and wedging or any other agreed
method.
Note: All the excavated hard rock obtained shall be stacked properly and
neatly within the specified lead by the contractor as directed by the
Engineer-in-charge Excavation:
The excavation under all classifications in areas in trenches or in pits shall

be carried out systematically. Cutting shall be done from top to bottom and
not under pining or under utting will be allowed. The bottom and sides of
excavation shall be dressed to proper level, slopes, steps, camber etc. by
removing high spots and ramming thoroughly as directed by the Engineer
in-charge. All the excavation shall be carried out strictly to the dimensions
given in th shown in drawing or as directed by the Engineer-in-charge,
according to availability of the desired bearing capacity of soil below. Any
48
excavation if taken below the specified depths and levels, the contractor
shall at his own cost fill up such over cut to the specified level with cement
concrete 1:4:8 in case of excavation in all types of soils an with cement
concrete 1:2:4 in case of excavation soft and hard rock. After the excavation
is completed, the contractor shall notify the Engineer-in-charge to that effect
and no further work shall be taken up until the Engineer-in-charge has
approved the depth and dimensions an also the nature of foundation
materials, levels and measurements shall also be recorded prior to taking up
any further work.
 Shoring:
Unless separately provided for in the schedule of quantities, the quoted rate for
excavation shall include excavation of slopes to prevent falling in soil by providing and /
or fixing, maintaining and removing of shorting, bracing etc. The contractor would be
responsible for the design of shoring for proper retaining of sides of trenches, pits etc.
with due consideration to the traffic, superimposed loads etc. shoring shall be of
sufficient strength to resist the pressure and ensure safety from slips and to prevent
damage to work and property and injury to persons. It shall be removed as directed after
items for which It is required are completed should the slips occur, the slipped materials
shall be removed and slope dressed to a modified stable slope. Removal of the slipped
earth will not be measured for payment.
 Dewatering:
Unless specifically provided for as a separate item in the schedule of quantities, rate shall
also include bailing or pumping out all water which may accumulate in the excavation
during the progress of further works such as mud mat concrete, R.C. footings, shuttering
etc. either due to seepage, springs, rain or any other cause and diverting surface flow by
bunds or other means. Care shall be taken to ensure that the water discharged sufficiently
away from the foundations keep it free from nuisance to other works in the
neighborhood.
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 Disposal of Excavated Materials: Antiquities:
Any finds of archeological interest such as relics of antiquity, coins, fossils or other
articles of value shall be delivered to the Engineer-in-charge and shall be the property of
the Government.
Useful Materials:
Any material obtained from the excavation which in the opinion of the Engineer in charge is
useful, shall be stacked separately in regular stacks as directed by the Engine in charge and shall
be the property of the Government. No material excavated from foundation trenches of whatever
kind they may be are to be placed even temporarily nearer than about 3m from the outer edge of
excavation. Discretion of the Engineer-in-charge in such cases is final. All materials excavated
will remain the property of the Department. Rate for excavation includes sorting out of the useful
materials and stacking them separately as directed within the specific lead. Material suitable and
useful for backfilling or there use shall be stacked in convenient place but not in such a way as to
obstruct free movement of materials, workers and vehicles or encroach on the area required for
constructional purposes.
It shall be used to the extent required to completely backfill the structure to original ground level
or other elevation shown on the plan or as directed by the Engineer-in-charge. Materials not
useful in anyway shall be disposed of, leveled and compacted as directed by the Engineer-in-
charge within a specified lead. The site shall be left clan of all debris and leveled on completion.
 Backfilling in sides of Foundations, Plinth, Under Floor etc.:

The backfilling shall be done after the concrete or masonry has fully set and shall be done
in such a way as not to cause under-thrust on any part of the structure. Where suitable
excavated material is to be used for backfilling, it shall be brought from the place where
it was temporarily deposited and shall be used in backfilling. The scope of work for
backfilling/ filling in foundation, plinth, under floors etc. shall include filling for all the
buildings covered under the contract. Surplus earth available from one building, if
required, shall be used for backfilling filling for other buildings also within the specified
lead mentioned in the item. All timber shoring and form work left in the trenches, pits,
50
floors etc. shall be removed after their necessity ceases and trash of any sort shall be
cleared out from the excavation. All the space between foundation masonry or concrete
and the sides of excavation shall be backfilled to the original surface with approved
materials in layers not exceeding 150mm, in thickness, watered and well consolidated by
means of rammers to at least 90% of the consolidation.
Areas inaccessible to mechanical equipment such as areas adjacent to walls and columns
etc. shall be tamped by hand rammer or by hand held power rammers to the required
density. The backfill shall be uniform in character and free from large lumps, stones.
shingle or boulder not larger than 75mm. in any direction, salt, clods, organic or other
foreign materials which might rot. The backfilling in plinth and under floor shall be well
consolidated by means of mechanical or hand operated rammers as specified to achieve
the required density. Test to establish proper consolidation as required will be carried out
by the Department at rates specified. Two tests per 50 m 2 will be taken to ascertain the
proper consolidation. The cost of tests carried out will be recovered from the contractor’s
bill.
 Filling in Plinth and Under Floors:

After the available suitable excavated materials are exhausted as backfilling, the
contractor shall notify the Engineer-in-charge of the fact and levels taken jointly with
Engineer in- charge. The earth, murrum, sand, gravel etc. or such materials suitable for
filling proposed to be filled under floors and so mentioned in the item of schedule of
quantities shall then be brought to site from approved locations and sources.
 Earth Filling:
The earth, soft murrum etc. so brought shall be filled up in layers of 15 cm depth, each
layer being well watered and consolidated by approved hand or mechanical tampers or
other suitable means to achieve the required density.
 Gravel or sand filling:

Gravel if required to be filled under floors, shall be single washed gravel of approved
quality and of size varying from 12mm t0 20mm. it shall be uniformly blind with
approved type of soil and / or sand to obtain full compaction. Gravel shall be filled in
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specified thickness and shall be If sand is required to be filled under floors, it shall be
clean, medium grained and free from impurities. The filled in sand shall be kept flooded
with water for 24hrs. to ensure maximum consolidation shall be done by the contractor at
his own cost. The surface shall then be well dressed and got approved from Engineer-in-
charge before any other work is taken over the fill.
 Lead and Lift:

Lead: The lead for disposal / deposition of excavated materials shall be as specified in the
respective item of work. For the purpose of measurements of lead, the area to be
excavated or filled or area on which excavated material is to be deposited/ disposed off
shall be divided in suitable blocks and for each of the block, the distance between center
lines shall be taken as the leads which shall be measured by the shortest straight line route
on the plan and not the actual route adopted.
Lift: Lift shall be measured from ground level. Excavation up to 1.5m depth below ground
level and depositing excavated material on the ground shall be included in the item of
earthwork for various kinds of soil. Extra lift shall be measured in unit of 1.5m or part
thereof. Obvious lift shall only be measured that is lifts inherent in the lead due to ground
slope shall not be measured, except for lead up to 250m. All excavation shall be measured
in successive stages of 1.5m stating the commencing level. This shall not apply to cases
where no lift is involved as in hill side cutting.
Mode of Measurements:
All excavation in areas having depth more than 30cm. pits, trenches etc. shall be measured net.
The dimensions for the purpose of payment shall be reckoned on the horizontal area of the
excavations for the purpose of payment shall be reckoned on the horizontal area of the
excavation at the base for foundations of the walls, columns, footings, rafts or other foundations,
multiplied by the mean depth from the surface of ground determined by levels.
Excavation for side slopes will not be paid for. Excavation in areas having depths less than 30
cm shall be measured as surface excavation on square meter basis, mentioning the average depth
of excavation.
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Reasonable working space beyond concrete dimension required for waterproofing and shuttering
where considered necessary in the opinion of Engineer-in-charge will be allowed in execution
and considered for payment for underground water tank, sump septic tank etc.
Where direct measurements of rock excavation are not possible, volume of rock can be
calculated on the basis of length, breadth, and depth of stacks made at site . The net volume shall
be worked out by reducing it by 40% taking the voids into consideration as 40%. Similarly to
arrive at net quantity to be paid in the case of soil reduction at 20% of corresponding stack /
truck measurements shall be made. The rate for excavation shall include carting and disposing
and leveling the excavated materials within the specified lead. The rate shall also be inclusive of
cost of all tools, plants, explosives, shoring, dewatering at various stages, labour, materials etc. to
complete all the operations specified.
The backfilling and consolidation in sides of foundation and in plinth with excavated material
will not be paid for separately. The rate quoted for excavation shall be deemed to have been
included the cost of stacking of excavated materials, conveying within the specified.
2.8.2 REINFORCED CONCRETE AND ALLIED WORKS:
Scope:
This specification covers the general requirements for concrete jobs, using on-site production
facilities including requirements in regard to the quantity, handling, storage of ingredients,
proportioning, batching, mixing and testing of concrete and also requirements in regard to the
quality. This also covers the transportation of concrete from the mixer to the place of final
deposit and the placing, consolidation, curing, protecting, repairing ad finishing of concrete.
After award of the work, if so desired by the contractor, he / they may be allowed by the
Engineer-in-charge till the designed mix is obtained, to carry out the reinforce concrete work In
foundation and plinth as per equivalent nominal mix against the specified design mix concrete as
per IS Codes. However, all other specification for design mix shall govern for nominal mix also
and nothing extra shall be paid for use of extra cement on this account whether the cement is
supplied by the Department or procured by the contractor.
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Cement Concrete (Plain and Reinforced):
The quality of materials and method and control of manufacture and transportation of all
concrete work in respect of mix, where reinforced or otherwise, shall conform to the applicable
portions of these specifications. The Engineer-in-charge shall have the right to inspect the
sources of materials, the layout and operation of procurement and storage of materials, the
concrete batching and mixing equipment and the quality control system. Such an inspection shall
be arranged by the contractor and the Engineer-in-charge's approval shall be obtained prior to
starting the concrete work.
Materials for Standard Concrete:
The ingredients to be used in the manufacture of standard concrete shall consist solely of a
standard type Portland cement, clean sand, natural coarse aggregate, clean water, ice and
admixtures if specially called for as per drawings or schedule of quantities.
 Cement:
Unless otherwise specified or called for by the Engineer-in-charge, cement shall be
ordinary Portland cement in 50 kg bags. The use of bulk cement will be permitted only
with the approval of the Engineer-in-charge. Changing of brands or type of cement within
the same structure will not be permitted. Ordinary Portland cement (OPC) 43 grade
manufactured as per I.S. specifications of reputed brands shall be procured and used on
the work. Joint account of cement consumed at site for every day for items of work
carried shall be maintained by the Contractor for verification to ensure effective control
on quality of cement used in the work.
A certified report attesting to the conformity of the cement to IS specifications by the

cement manufactures chemist shall be furnished to the Engineer-in-charge, if demanded.
In case the cement is required to be arranged by the Contractor, the Contractor will have
to make his own arrangement for the storage of adequate quantity of cement. Cement in
bulk may be stored in bins or silos which will provide complete protection from
dampness, contamination and minimize caking and false set. Cement bags shall be stored
in a dry enclosed shed (storage under tarpaulins will not be permitted), well away from
54
the outer walls and insulated from the floor to avoid contact with moisture from ground
and so arranged as to provide ready access. Damaged or reclaimed or partly set cement
will not be permitted to be used and shall be removed from the site. The storage bins and
storage arrangements shall be such that there is no dead storage. Not more than 12 bags
shall be stacked in any tier. The storage arrangement shall be got approved by the
Engineer-in-charge. Consignments in cement shall be stored as received and shall be
consumed in the order of their delivery. Contractor shall establish cement/concrete/soil
testing laboratories at site of work with qualified person to handle the laboratory. Every
consignment of cement procured shall accompany test certificate from the company
indicating lot No etc. Sample shall be taken for each lot and sent to Standard Approved
Material Testing Laboratory for physical and chemical analysis. The cost of testing shall
be borne by the Contractor.
Cement held in store for a period of 90 (ninety) days or longer shall be retested before
use in work. Should at any time the Engineer-in-charge have reasons to consider that any
cement is defective, then irrespective of its origin and / or manufacturers test certificate,
such cement shall be tested immediately at a National Test Laboratory / Departmental
Laboratory or such approved laboratory, and until the results of such tests are found
satisfactory, it shall not be used in any work.
 Aggregates:
"Aggregate" in general designates both fine and coarse inert materials used in the
manufacture of concrete.
"Fine Aggregate" is aggregate most of which passes through 4.75 mm I.S. sieve.
"Coarse Aggregate" is aggregate most of which is retained on 4.75 mm I.S. sieve. All
fine and coarse aggregates proposed for use in the work shall be subject to the Engineer-
in-charge's approval and after specific materials have been accepted, the source of supply
of such materials shall not be changed without prior approval of the Engineer-in- charge.
Aggregate shall, except as noted above, consists of natural sand, crushed stone and gravel
from a source known to produce satisfactory aggregate for concrete and shall be
chemically inert, strong, hard, curable against weathering, of limited porosity and free
55
from deleterious materials that may cause corrosion to the reinforcement or may impair
the strength and / or durability of concrete. The grading of aggregates shall be such as to
produce a dense concrete of and shall be based on the "mix design" and preliminary test
on concrete specified hereinafter.
Sampling of the aggregates for mix design and determination of suitability shall be taken
under the supervision of the Engineer-in-charge and delivered to the laboratory, well in
advance of the schedule placing of concrete. Record of tests which have been made on
proposed aggregates and on concrete made from this source of aggregates shall be
furnished to the Engineer-in-charge in advance of the work or use, in determining
suitability of the proposed aggregate.
 Storage of aggregates:
All coarse and fine aggregates shall be stacked separately in stock pile in
the material yard near the work site in bins properly constructed to avoid
inter mixing of different aggregates. Contamination with foreign materials
and earth during storage and while heaping the materials shall be avoided.
The aggregate must be of specified quality not only at the time of receiving
at site but also at the time of loading into mixer. Rakers shall be used for
lifting the coarse aggregate from bins or stock piles. Coarse aggregate shall
be piled in layers not exceeding 1.00 meters in height to prevent conning or
segregation. Each layer shall cover the entire area of the stock pile before
succeeding layers are started. Aggregates that have become segregated
shall be rejected. Rejected materials after remixing may be accepted, if
subsequent tests demonstrate conformity with required gradation.
 Specific Gravity:
Aggregates having a specific gravity below 2.6 (saturated surface dry basis)
shall not be used without special permission of the Engineer-in-charge.
o Fine Aggregate:
Fine aggregate except as noted above, and for other than light
weight concrete shall consist of natural or crushed sand
56
conforming to IS 383. The sand shall be clean, sharp, hard, strong
and durable and shall be free from dust, vegetable substances,
adherent coating, clay, loam, alkali, organic matter mica, salt or
other deleterious substances which can be injurious to the setting
qualities / strength / durability of concrete.
- Screening and Washing:

Sand shall be prepared for use by such screening or washing
or both as necessary, to remove all objectionable foreign
matter while separating the sand grains to the required size
fractions. Sand with silt content more than 3 percent will not
be permitted to be used unless same is washed and silt
content is brought within 3% by weight.
- Gradation: Unless otherwise directed or approved, the

grading of sand shall be within the limit indicated
hereunder:-
Where the grading falls outside the limits of any particular
grading zone of sieves, other than 600 micron (IS) sieve by
not more than 5% it shall be regarded as falling within that
grading zone. This tolerance shall not be applied to
percentage passing the 600 micron (IS) sieve or to
percentage passing any other sieve size on the coarser limit
of grading zone I or the finer limit of grading zone IV. Fine
aggregates conforming to Grading zone IV shall not be used
unless mix designs and preliminary tests have shown its
suitability for producing concrete of specified strength and
workability.
- Fineness Modulus:
The sand shall have a fineness modulus of not less than 2.2
or more than 3.2 the fineness modulus is determined by
adding the cumulative. Percentages retained on the
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following IS sieve sizes (4.75 mm, 2.36 mm, 1.18mm, 600
micron, 300 micron and 150 micron) and dividing the sum
by 100.
o Coarse Aggregate:
Coarse aggregate for concrete except as noted above and for other
than light weight concrete shall conform to IS 383. This shall
consist of natural or crushed stone and gravel, and shall be clean
and free from elongated, flaky or laminated pieces, adhering
coatings, clay lumps, coal residue, clinkers, sag, alkali, mica,
organic matter or other deleterious matter.
The coarse aggregate and fine aggregate shall be tested from time
to time as required by the Engineer-in-charge to ascertain its
suitability for use in construction and the charges for testing
aggregate shall be born by the contractor as specified herein after.
- Screening and Washing:

Crushed rock shall be screened and / or washed for the
removal of dirt or dust coating, if so demanded by
Engineer-in-charge.
- Grading:
Coarse aggregates shall be either in single or graded in both
the cases. The grading shall be within the following limits:
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Foreign Material Limitations:
The percentages of deleterious substances in the coarse aggregate delivered to the mixer shall not
exceed the following.
 Water:
Water used for both mixing and curing shall be free from injurious amount of deleterious
materials; potable waters are generally satisfactory for mixing and curing concrete. In
case of doubt, the suitability of water for making concrete shall be ascertained by the
compressive strength and initial setting time test specified in IS 456. The sample of water
taken for testing shall be typical of the water proposed to be used for concreting, due
account being paid to seasonal variation. The samples shall not receive any treatment
before testing other than that envisaged in the regular supply of water proposed for use in
concrete. The sample shall be stored in a clean container previously rinsed out with
similar water. Average 28 days compressive strength of at least three 150mm concrete
cubes prepared with water proposed to be used shall not be less than 90% of the average
59
strength of three similar concrete cubes prepared with distilled water. The initial setting
time of test block made with the appropriate test cement and the water proposed to be
used shall not be less than 30 minutes and shall not differ by more than (+) 30 minutes
form the initial setting time of control test block prepared with the appropriate test
cement and distilled water. The test blocks shall be prepared and tested in accordance it
the requirements of IS 4031. Where water can be shown to contain an excess of acid,
alkali, sugar or salt, Engineer-in-charge may refuse to permit its use. As a guide, the
following concentrations represent the maximum permissible values.
 Limits of acidity:
To neutralize 200ml sample of water, using phenolphthalein as an indicator,
it should not require more than 2ml of 0.1 normal NaOH. The details of test
shall be as given in IS 3025.
 Limits of alkalinity:
To neutralize 200ml sample of water, using methyl orange as an indicator, it
should not
2.8.3 FORMWORK
General:
The form work shall consist of shores, bracings, sides of beams and columns, bottom of slabs
etc, including ties, anchors, hangers, inserts etc. complete which shall be properly designed and
planned for the work. The false work shall be so constructed that up and down vertical
adjustment can be made smoothly. Wedges may be used at the top or bottom of timber shores,
but not at both ends, to facilitate vertical adjustment and dismantling of form work.
Design of Formwork
The design and engineering of form work as well as its construction shall be the responsibility of
Contractor. The drawings and calculations for the design of the form work shall be submitted
well in advance to the Engineer-in-charge for approval before proceeding with work, at no extra
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cost to the Department. Engineer-in-charge's approval shall not however, relieve Contractor of
the full responsibility for the design and construction for the form work. The design shall take
into account all the loads vertical as well as lateral that the forms will be carrying including live
and vibration loadings.
Tolerances:
Tolerances are specified permissible variation from lines, grade or dimensions given in drawings.
No tolerances specified for horizontal or vertical buildings lines or footings. Unless otherwise
specified, the following tolerances will be permitted.
Tolerances for R.C. Buildings: I) Variation from the plumb:
a) In the line ad surfaces of columns, piers, walls and in buttresses: 5 mm per 2.5m, but not more
than 25 mm.
b) For exposed corner columns ad other conspicuous lines
In any bay or 5 m, maximum: (+) 5 mm in 10 m or more: (+) 10mm
ii) Variation from the level or from the grades indicated on the drawings.
a) In slab soffits, ceilings, beam soffits and in arises.
b) In 2.5m (+) 5mm In any bay or 5m maximum (+) 8 mm In 10 or more (+) 15mm
c) For exposed lintels, sills, parapets, horizontal grooves and conspicuous lines
iii) Variation of the linear building lines from established position in plan and related position of
columns, walls and partitions. In any bay or 5m maximum (+) 10 mm In 10 or more (+) 20mm
iv) Variation in the sizes ad locations of sleeves, openings in walls and floors except in the case
of and for anchor bolts : (+) 5mm
v) Variation in cross sectional dimensions of columns and beams and in the thickness of slabs
and walls: (+) 10 mm/(-)5mm.
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2.8.4 STEEL REINFORCEMENT
Steel reinforcement bars, if supplied or arranged by contractor, shall be either plain round mild
steel bars grade as per IS 432 (part-I) or medium tensile steel bars as per IS 452 (part-I) or hot
rolled mild steel ad medium tensile steel deformed bars as per IS 1139 or cold twisted steel bars
and hot weld strength deformed bars as per IS 1786, as shown and specified on the drawings.
Wire mesh or fabric shall be in accordance with IS 1566. Substitution of reinforcement will not
be permitted except upon written approval from Engineer-in-charge.
 Storage:
The reinforcement steel shall not be kept in direct contact with ground but stacked on top
of an arrangement of timber sleepers or the like. Reinforcement steel shall be with
cement wash before stacking to prevent scale and rust. Fabricated reinforcement shall be
stock carefully to prevent damage, distortion, corrosion ad deteriorations.
 Quality:
All steel shall be grade I quality unless specifically permitted by the Engineer-in charge.
No rolled material will be accepted. If demanded by the Engineer-in-charge. Contractor

shall submit the manufacturers test certificate for steel. Random tests on steel supplied by
contractor may be performed by Department as per relevant Indian Standards. All costs
incidental to such tests shall be at contractor’s expense. Steel not conforming to
specifications shall be rejected. All reinforcement shall be clean, free from grease, oil,
paint, dirt loose mill, scale dust, bituminous materials or any other substances that will
destroy or reduce the bond. All rods shall be thoroughly cleaned before being fabricated.
Pitted and defective rods shall not be used. All bars shall be rigidly held in position
before concreting. No welding of rods to obtain continuity shall be allowed unless
approved by the Engineer-in- charge. If welding is approved, the work shall be carried as
per 2751, according to best modern practices ad as directed by the Engineer-in-charge in
all cases of important connections, tests shall be made to prove that the joints are of the
full strength of bars welded. Special specifications, as specified by the Engineer-in-
62
charge, shall be adhered to in the welding of cold worked reinforcing bars and bars other
than mild steel.
 Laps:
Laps ad splices for reinforcement shall be shown in the drawings. Splices, in adjacent
bars shall be staggered ad the locations of all splices, except those specified on the
drawing shall be approved by the Engineer-in-charge. The bars shall not be lapped unless
the length required exceeds the maximum available length of bars at site.
 Bending:
All bars shall be accurately bent according to the sizes ad shapes shown on the detailed
working drawings/ bar being schedules. They shall be bent gradually by machine or other
approved means. Reinforcing bars shall not be straightened and rebent in a manner that
will injure the materials. Bars containing cracks or splits shall be rejected. They shall be
bent cold, except bars of over 25mm in diameter which may be bent hot if specifically
approved by the Engineer in charge.
Bars bent hot shall not be heated beyond cherry red color (not exceeding 645 oC ) and
after bending shall be allowed to cool slowly without quenching. Bars incorrectly bent
shall be used only of ht means used for straightening and rebinding be such as shall not,
in the opinion of the Engineer-in-charge injure the material. NO reinforcement bar shall
be bent when in position in the work without approval, whether or not it is partially
embedded in hardened concrete. Bars having links or bends other than those required by
design shall not be used.
 Bending at Construction Joints:

Where reinforcement bars are bent aide at construction joints and afterwards
bent back into their original position, care should be taken to ensure that no
time the radius of the bend is less than 4 bar diameters for plain mild steel or
6 bar diameters for deformed bars. Care shall also be taken when bending
back bars to ensure that the concrete around the bar is not damaged.
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 Fixing / placing ad Tolerance on Placing:
Reinforcement shall be accurately fixed by ay approved means maintain din the correct
position as shown in the drawings by the use of blocks, spacer and chairs as per IS 2502
to prevent displacement during placing ad compaction of concrete. Bar intended to be in
contact at crossing point shall be securely bound together at all such points with number
16 gauge annealed soft iron wire. The vertical distances required between successive
layers of bars in beams or similar members shall be maintained by the provision of mild
steel spacer bars at such intervals that the main bars do not perceptibly sag between
adjacent spacer bars.
 Tolerance on placing of reinforcement:

Unless otherwise specified by the Engineer-in-charge, reinforcement shall
be placed within the following tolerances:
Tolerance in spacing
a) For effective depth, 200 mm or less + 10 mm
b) For effective depth, more than 200 mm + 15 mm
 Cover to Reinforcement:
The cover shall in no case be reduced by more than one third of specified cover or 5mm
whichever is less. Unless indicated otherwise on the drawings, clear concrete cover for
reinforcement (exclusive of plaster or other decorative finish shall be as follows) :
(a) At each end of reinforcing bar not less than 25 mm, nor less than twice the diameter
of such bar.
(b) For a longitudinal reinforcing bar not less than 25 mm, nor more than 40 mm, nor less
than the diameter of such bar. In the case of column of maximum dimensions of 200mm
or under, whose reinforcing bars do not exceed 12mm, a cover of 25mm may be used.
(c) For longitudinal reinforcing bar in a bar, not less than 25 mm nor less than the
diameter of such bar and.
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(d) For tensile, compressive, shear, or other reinforcement in a slab, not less than 25mm,
nor less than the diameter of such bar and.
(e) For any other reinforcement not less than 15mm, nor less than the diameter of such
bar.
(f) Increased cover thickness may be provided when surfaces of concrete members are
exposed to the action of harmful chemicals (as in the case of concrete in contact with
earth faces contaminated with such chemicals), acid, vapor, saline, railways) etc. and
such increase of cover may be between 15mm and 50 mm.
(g) For reinforced concrete members, totally immersed in sea water the cover shall be
40mm, more than specified ( a to e) above.
(h) For reinforced concrete members, periodically immersed in sea water or subject to sea
spray, the cover of concrete shall be 50 mm more than that specified (a to e) above.
(i) For concrete of grade M25 and above, the additional thickness of cover specified in
(f), (g) and (h) above a my be reduced to half. In all such cases the cover should not
exceed 75mm.
(j) Protection to reinforcement in case of concrete exposed to harmful surroundings may

also be given by providing a dense impermeable concrete with approved protective
coating as specified on the drawings. In such case, the extra cover, mentioned in (h) and
(i) above, may be reduced by the Engineer-in-charge, to those shown on the drawing.
(k) The correct cover shall be maintained by cement mortar briquettes or other approved
means.
Reinforcement for footings, grade beams ad slabs on sub grade shall be supported on
precise concrete blocks as approved by the Engineer-in-charge. The use of pebbles or
stones shall be permitted.
(l)The minimum clear distance between reinforcing bars shall be in accordance with
Standard or as shown in drawings.
65
66
Assessment
1. Which one of the following is the plan in construction?
a) The limits of Work;
b) Location of the work
c) Shape, dimensions, and size of the work
d) Geometric relationship between the various construction components.
E) All
2. Which one of the following is not included in specification?
a) Bidding procedures,
b) Legal requirements, material and workmanship requirements
c) Inspection and testing procedures,
d) Procedures for measurement and payment of the Work.
e) Drawing dimensions
3. Which one of the followings is not described by specification?
a) Type and quality of materials, equipment, labor or workmanship
b) Methods of fabrication, installation and erection
c) Standards, codes and costs
d) Allowance submittals and substitutions
e) None
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4. Which one of the followings is the basis for specification writing?
a) Drawings,
b) General and scientific trends of workmanship,
c) Quality expected,
d) Materials to be used for the particular trade of work.
e) All
5. Which one of the followings is not the purpose of specification?
a) Guide the bidder at the time of tendering to arrive at a reasonable cost for the work.
b) Guide contractor for the purchase of materials
c) To calculate the amount of payment
d) Serve as part of contract document to limit and describe the rights and obligations of each
contracting parties
e) Serve as fabrication and installation guide for temporary and permanent works.
6. Which one of the followings is not the characteristic of well written specification?
a) Do not use ambiguous words that could lead to misinterpretation.
b) Should include information found in the drawing
c) Are written using simple words in short, easy to understand sentences.
d) Use technically correct terms, not slang or “field” words.
e) Avoid conflicting requirements.
7. _______________________________ specification is the specification of product for

guidance of the users, which may include property description and installation guide lines.
a) Manufacturer’s specification
68
b) Guide specification
c) Standard specification
d) Contract (Project) Specification
e) All
8. ______________________________ is the specification prepared for a particular project to

accompany the drawings and other contract documents.
e) All
9. _______________________________ specification prepared by an individual or group of

individuals based on manufacturer’s specifications, established trends of workmanship, service
and laboratory tests and research findings to be used as guide lines for preparation of contract
specification..
e) All
10. _____________________________ specifications which are intended to be used as reference

standard in the construction of a project. The guide specification which has been standardized by
recognized authority.
69
e) All
11. Which one of the followings is not included in this form of specification?
a) The description of the scope of the works,
b) The general and specific requirements those are necessary for the execution of the work,
c) Measurement Dimensions
d) Material requirements and Construction details, and
e) Method of measurement and payments for completed works.
12. The types of specification that describes the desired results those need to be achieved in the
works are _________________________.
a) Workmanship Specifications
b) Material Specifications
c) Performance Specifications
d) Proprietary Specifications
e) All
13. _____________________________ is specifications call for desired materials, producers,

systems, and equipment by their trade names and model numbers.
a) Workmanship Specifications
b) Material Specifications
70
c) Performance Specifications
d) Proprietary Specifications
e) All
14. Specifications which describe all components of products, their arrangements, and method of
assembly, physical and chemical properties, arrangement relationship of parts of numerous other
details is _______________________________.
a) Performance Specifications
b) Proprietary Specifications
c) Reference Specifications
d) Descriptive Specifications
e) None
15. Which one of the followings is not included in the Bidding Documents?
a) The Advertisement for Bids
b) Measurement and Payment
c) Instructions to Bidders
d) Preparation of Proposal
e) Submittal of Proposal
16. Which one of the followings is not included in the General Conditions?
a) Definitions and Terms
b) Scope of Work
c) Preparation of Proposal
d) Legal Relations and Responsibility to the Public
71
e) Measurement and Payment
72
Subjective type questions
1. Define the word specification in construction.
2. Write the primary purposes of plans and specifications.
3. What are the functions of specification? Explain briefly
4. What are the similarity of and the difference of plans and specifications>
5. What are the reasons behind writing specifications?
6. What do we mean by Well-written specifications?
7. Write and explain the different types of specifications.
8. Write the items to be included in general parts of the specification.
9. What are the elements to be included in Material and Workmanship Specifications?
10. State the differences between Workmanship Specifications and Material specifications.
11. Give an explanation about the following types of specification
- Proprietary Specifications
- Performance Specifications
- Reference Specifications
- Descriptive Specifications and
- Cash Allowance Specifications
12. Give brief explanation about the following terms:
- The Bidding Documents.
- The General Conditions.
73
- The Technical Sections.
13. Write those elements to be included during the specification writing.
74
References
[1].http://ndl.ethernet.edu.et/bitstream/123456789/87982/1/CEng%205212%20%20Contract
%2C%20Specification%20and%20Quantity%20Survey.pdf
[2].https://pdfcoffee.com/qdownload/mead-daniel-w-contracts-specifications-and-engineering-
relations-pdf-free.html
[3].http://ndl.ethernet.edu.et/bitstream/123456789/78269/1/Contract%20Specification%20and
%20Quantity%20Survey.pdf
[4] eddeer.ca/media/reddeerca/city-services/engineering/publications/Contract-Specifications.pdf
[5].https://www.pdfdrive.com/standard-construction-and-materials-specifications-
d23354449.html
75
76
Chapter 3: Quantity surveying
3.1. Introduction
Once a construction project is completed or depending on the form of contract upon completion
of certain parts of the work, the contractor must be paid for appropriately completed works. This
would then require that the actual works done be somehow estimated or measured for payment
purposes.
On the other hand to estimate how much a civil engineering project may cost the actual
quantities of materials, labor, equipment etc. that is needed for the construction work must be
calculated at the beginning of the work. Such work of calculating the amount of materials and
other incidentals necessary for the realization of the work is called quantity surveying.
Quantity surveying is a term or processes used in the construction industry to take

measurements of civil works, prepare specifications, and estimate the cost of works either for
each trade of work or for the whole project.
The term “surveying” means to inspect, study, review, investigate, asses, and hence “to
measure” therefore the term “quantity surveying” means “quantity measuring” as applied to civil
engineering projects.
Quantity surveying is the application of standard methods of measurement to quantify the

amount of various items in a construction project, for the undertaking of valuation, and certifying
payments.
The following tasks are covered in quantity surveying.
1. Preparation of Specification
2. Taking measurements of civil works (Taking off quantities and preparing BOQ)
3. Preparation of approximate (preliminary) cost estimate at the very early stage of the project
77
4. Preparation of detail cost estimate at different stages (taking as built measurements and
preparing payment certificates or approval of payment certificates prepared by taking
measurements)
5. Valuation of property
3.2. Purpose of Quantity Surveying
The purpose of quantity surveying hence the preparation of Bill of quantities is:
i. Assist the client to have an accurate estimate of the volume of work as well as the required
budget.
ii. To assist in the accurate preparation of tenders, by providing uniform measurement of

quantities.
iii. To give an accurate checklist of work accomplished
3.3. Measurement of Civil Works
Measurement of civil works includes the billing of each trade of work either from drawings or
the building itself for defining the extent of works under each trade. In order to avoid ambiguity
in measuring quantities, there is now a recommended principle of measurement in construction
activities.
Many professional organizations publish recommendations on units of measurement, degree of

accuracy etc. this assists in setting a common parameters so that dispute is avoided. The standard
book, which is used in Ethiopia, is Standard Technical Specification & Method of Measurement
for Construction of Buildings by BaTCoDA, March 1991. Ethiopian Road Authority Standard
Specification, 2002 is used for Road Construction.
78
The following are list of the basic principles of quantity surveying, applicable to all items of
work.
 Each work section of a bill shall contain a brief description of the nature and location of
work.
 Work shall be measured net as fixed in position.
 Measure the full work area and adjust deductions later.
 Items which are to be measured by area shall state the thickness or such other information
as may be appropriate.
 Items which are to be measured by length or depth shall state the cross-sectional size and
shape, girth or ranges of girths or such other information as may be appropriate.
 Items which are to be measured by weight shall state the material thickness and unit
weight if appropriate ( Ex. Duct work)
Principles of Measurement
 Piece of work shall be taken in numbers.

 For items of pipe work it shall be stated whether the diameter is internal or external.
 Mass voluminous and thick works shall be measured in volume (cubic meter)
 Thin, shallow and surface work shall be measured in area (meter square) specifying the
thickness.
 Long and thin work shall be measured in length (linear measure, running meter)
 Bills are deemed to include labor, materials, goods and plant and all associated costs for
fixing, assembling, etc.
Units of Measurement
Depending on the prevailing system of measurement in any locality, quantities may be measured
in the FPS system or the metric system.
Here in Ethiopia, the most common unit of measurement is the International System of Units, or
the metric system of units in which the various items are measured as follows:
 For the measurement of length Meter (m)
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 For the measurement of mass Kilogram (Kg)
 For the measurement of time Second (s)
 For the measurement of current Ampere (A)
 For the measurement of temperature Degree Kelvin (K)
 For the measurement of luminous intensity Candles (Cd)
Degrees of accuracy in Measurement
 All dimensions measure to the nearest 0.01m

 Thickness of slab measure to the nearest 0.005m
 Wood work measure to the nearest 0.002m
 Steel work measure to the nearest 0.001m
 Reinforcement measure to the nearest 0.005m
 Road work measure to the nearest 0.005m
 Areas measure to the nearest 0.01 meter square
 Steel work areas measure to the nearest 0.001 meter square
 Volume measure to the nearest 0.01 meter cube
 Wood work volume measure to the nearest 0.001 meter cubes
 Weights measure to the nearest 1 kg
The Process of Quantity Surveying
There are four clearly defined steps in preparation of Bill of Quantities:
I. Taking off
II. Squaring
III. Abstracting
IV. Writing the final Bill of Quantity
I. Taking Off
This is a process of measuring or scaling dimensions from drawings and recording all
dimensions in an easily understood format. This is coupled with the descriptions in the drawings
and specification.
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In this task the quantity surveyor “takes off” the quantities from the drawings and determines
the volume of work to be done for the various components.
These quantities are calculated in a specially prepared format, as to aid accurate preparation and
enable checking/rechecking or adjusting of amounts and correcting errors if any.
These special formats are called “Take off sheets” or “Dimension Paper”. The dimension paper
used for taking off is usually double-ruled as shown (A4 size).
Figure 3.1 Taking off sheet
- Column 1 is used for stating the number of times an item occurs and is called the timising
column.
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- Column 2 is called dimension column as it is used to enter the dimensions of the items of
works. The dimensions are entered in the order indicated below: Length, Width, Height
or Thickness.
- Column 3 is called squaring column. The stated dimensions in column 2 are multiplied to
determine the quantity of the work either in ml, m2, m3 or in Pcs. or No.
- Column 4 is called description column and description of the work item is briefly stated.
Figure 3.2 Taking off sheet with calculations
82
Figure 3.3 taking off sheet for Pit Excavation and Formwork for foundation
respectively
A separate sheet (Bar Schedule) is used to prepare reinforcement quantities as shown below
Figure 3.4 Bar schedule for reinforcement bar
83
Figure 3.5 Bar schedule for reinforcement bar with calculation
II. Squaring
The dimensions entered in Column 2 are squared or cubed as the case may be, multiplied by the
timising factor, and the result entered in Column 3. This task is called squaring. All squared
dimensions should be carefully checked by another person before abstracting, and if correct the
item should be ticked with red. Use two decimal places.
III. Abstracting
The squared dimensions are transferred to abstract sheets and all similar dimensions are
collected in the same category to obtain the total quantity of each item.
IV. Writing the final bill
After the abstract sheets have been completed and checked, the final bill of quantity is written.
The dimensions are copied from the abstracts, and as each item is transferred it should be ticked
by a vertical line from the abstract sheets. The description of each item in the final BoQ should
be short, precise and descriptive as per the specification.
84
Figure 3.6 Bill of Quantity
Basic principles of taking Off

The following tasks are part of the Taking Off:
 Describing the item,

 Bracketing (relating the description to the quantity),
 Timising,
 Dotting on (adding to the timising factor),
 The Ampersand (ditto),
 Waste calculations,
 Deduction of items,
 Correction of dimensions (nullifying).
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1. Drawings shall be fully understood and clearly detailed.
2. Works, which cannot be measured accurately, shall be expressed as provisional quantity (PQ)
and will result in provisional sum (PS) and lump sum (LS)
3. There shall be the understanding that measurements are taken to the nearest cm.
4. Built items shall generally include all possible entrants like labor, materials (including
storing, loading, unloading and handling), fixing, use of plant and equipment, wastage of
materials, equipment; which will result in a better process for establishing prices and profit.
5. Prior knowledge of the regulations is necessary (For E.g. roofing is measured in horizontal
projection).
6. Measurements of civil works shall be carried out in such a way that it can be easily checked
and audited.
Types of taking off for building
- Mensuration – the calculation of geometric quantities such as length, area, and volume,
from dimensions and angles that are already known.
- Girth (perimeter) computation –linear measurement. There are various methods of taking
off quantities for computation of girth.
- In- to- in and out- to-out method –some wall lengths are taken out to out and others in to
in (offsets are added to out to out lengths) and same are deducted from in -to-in lengths;
used for any type of measurement irrespective of condition of symmetry.
- Centre line method –suitable only when the cross sections of all walls are symmetrical. In
this method Centre line length is found and same is used for taking off quantities
(therefore only width and depth vary).
- Crossing method –lengths and breadths of walls as shown in plan are taken for working
out various items and this method is useful only if the offsets of footings are symmetrical.
A. Out – to - Out and In – to – In Method
 Long Wall (Out – to - Out ) = Inner Length + 2 Times Thickness of the Wall
 Short Wall (In – to – In ) = Inner Length - 2 Times Thickness of the Wall
B. Center Line Method
 All dimensions are taken center to center
C. Crossing Method
 Long Wall (Out – to - Out ) = Inner Length + 2 Times Thickness of the Wall
 Short Wall (In – to – In ) = Inner Length
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3.4. Methods of Measurement in Construction
1. Site Clearance
Removal of bushes & vegetation
Site clearance shall be measured by area and shall be understood as including trees up to 80mm
in diameter.
 Felling of Trees
 Trees shall be enumerated and identified by diameter.
Removal of termite hills
 Termite hill removal shall be measured by the volume of earth removed and disposed of.
Removal of structures
 Removal of structure shall be measured in lump sum, area or volume if sufficient

description of works is given or using applicable units of work under each item of work
in this Specification where unit rate quotations are required.
2. Excavation & Get Out
Removal of top soil
 "Top soil" shall mean the top 200-300mm depth layer of soil containing more than 5%
organic material by weight.
 The removal of top soil shall be measured by the area occupied by the work to be placed
on the cleared area.
Excavation in ordinary soil
 Excavation in ordinary soil shall be measured by volume as the net void created by the
excavation with deduction made for existing voids.
 Excavation shall be measured in successive stages of 1500mm from starting level.
Limits of Bulk Excavation
The limits of bulk excavation for the measurement shall be as shown on drawings. If not shown,
the limits shall be, the surface area covered by the permanent structure resting on the area of bulk
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excavation plus the working space allowed for trench or pit excavations for the foundations of
the permanent structure. In the instance of no limits being established or no permanent structure,
the working space shall be determined by the Engineer but shall not exceed 500mm on either
side of the limits of the area to be excavated.
Limits of Pit & Trench Excavation
Pit and trench excavation shall be measured by adding 250mm to each side of the dimension
giving the surface area of the volume to be excavated.
Figure 3.7 Volume change of soil during excavation
Rock excavation
The methods of measurement and working space allowance for "Ordinary Soil" shall be equally
applicable to excavation in rock.
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Hard core & stone filler
Hard core shall be measured by the area of the surface on which it is laid if the finished thickness
does not exceed 300mm. Hard core and stone filling exceeding 300mm thickness shall be
measured by the volume of void filled by the hard core or stone chipping.
3. Concrete Work
Cast insitu concrete
Insitu concrete work shall be understood as including gauging, mixing, casting in place,
construction joints tamping of horizontal surfaces and curing. Differentiation shall be made for: -
 Plain & reinforced concrete

 Below and above grade work
 Classes of concrete
 Foundation
 Columns
 Ground & suspended beams & lintels
 Ground & suspended solid & ribbed slabs.
 Walls
Differentiation shall be made for: -
 Steps, staircases and landings

 Mass in-fillings. Grouting & filling to holes.
 Other concrete works.
Methods of measurement
Cast in place concrete shall be measured by volume except for the following: -
 Ribbed slabs measured by area stating thickness.

 Grouting and filling to holes shall be enumerated stating sizes.
 No deduction shall be made for voids up to 0.25m2 in area.
Concrete Formwork
The measurement for formwork shall be understood as including: -
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 Construction and removal of formwork
 Making good of concrete honeycombs.
 Making good of concrete surfaces to attain the standard of finish desired by the specified
type of formwork.
 Angles & returns.
Differential shall be made in formwork for: -
 Below and above grade work.

 Work exposed to view & buried work.
 Work on which further finish is to be applied
 Formwork to produce architectural concrete by specifying desired type of finish.
Differential shall be made in formwork for: -
 Footings
 Columns
 Grade & below grade beam.
 Suspended and on wall resting beams.
 Solid slab
 Ribbed slabs
 Walls
 Staircase, steps and landing.
 Grouting, in filling & block outs.
 Other concrete works.
Methods of Measurement
Formwork shall be measured by area, taken as the net area in contract with the finished face of
concrete with no allowance made for passing at angles, overlaps and intersections.
Deduction
No deduction shall be made for voids in form work up to 0.25m2 in area
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3.5 Computation of Earth work quantity
The topic of geometric design would be incomplete without a chapter devoted to the issue of
earthwork quantities and a mass haul diagram. The careful attentions to limiting earthwork
quantities through the preparation of a mass haul diagram are essential elements in providing the
best-combined horizontal, vertical, and cross-sectional design. This is especially true when the
design includes consideration of the least cost in relation to earthworks.
Key terms associated with this process, as listed in Definitions, include:
- Borrow- material not obtained from roadway excavation but secured by widening cuts,
flattening back slopes, excavating from sources adjacent to the road within the right-of-
way, or from selected borrow pits as may be noted on the plans
- Waste- material excavated from roadway cuts but not required for making the
embankment
- Free Haul- the maximum distance through which excavated material may be transported
without the added cost above the unit bid price
- Overhaul- excavated material transported to a distance beyond the free haul distance
- Economic Limit of Haul- distance through which it is more economical to haul excavated
material than to waste and borrow
The steps involved in the computation of earthwork quantities and the development of the
optimal mass haul diagram are:
 End area calculations

 Earthwork calculations
 Preparation of mass haul diagram
 Balancing earthworks using the mass haul diagram
These steps are presented in the following text. Of note is the fact that most current highway
design computer programs, including MX (MOSS), will produce the mass haul diagram as part
of the output when typical sections and horizontal and vertical alignments are inputs. A final
stage of geometric design is then usually to make adjustments to the alignments in the interests
of balancing or minimizing the earthwork quantities.
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3.5.1 End Area Calculations
End area calculations are usually made by one of the following methods:
1. Planimeter Method - The original ground line and template section (cross section) must be
plotted on grid paper. Centerline profile grade must first be calculated for each cross section
station to determine the centerline reference of each template plot.
Areas of cut and fill quantities are calculated using a planimeter, converted to square meters, and
tabulated for each section.
2. Electronic Computer Method - This method is widely used due to its versatility and speed of
calculations. The end area calculation on modern computer programs is an integral part of the
alignment design program and shown on output listings along with the geometric of each section.
3.5.2 Calculating Earthwork
There are several ways of calculating earthwork but the most common is the "average end area"
method. This method consists of averaging the cut and fill quantities of adjacent stations and
multiplying by the distance between stations to produce cubic meters of excavation and
embankment between the two stations. This procedure is followed when manual methods are
used. Projects designed by computer will be tabulated on the mass plot listing and these
calculations are integral parts of the alignment design program.
Compaction factors of excavated material must be determined or estimated in order to determine

earthwork quantities of excavation and embankment. When common material is excavated from
natural ground and compacted in an embankment, it loses volume. When solid rock is broken up
and compacted in an embankment, it usually swells. Although adjustment factors can be applied
to either embankment or excavation quantities, it is general practice to apply the compaction
factor to the excavation so that a compaction factor of –25 percent would result in 100 cubic
meters of excavation required for an embankment of 75 cubic meters. Likewise, a 10 percent
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swell factor would result in 100 cubic meters of rock excavation required for an embankment of
110 cubic meters.
Compaction factors should be determined or estimated for each project taking into consideration
the various types of soils and depth of proposed cuts and fills.
The designer should avoid using one factor for the entire project as these results in incorrect
distribution of earthwork quantities. Cuts through rock should be classified using parameters,
such as swell, associated with the particular rock, and not as a common value for all types of
excavation.
Sometimes the use of stripping factors or pre-rolling factors of the natural ground prior to
placing embankments is employed. This is done by assuming that the natural ground will be
stripped or compacted to certain depth, such as 75 – 100 millimeters, thus increasing the volume
of the required embankment to be placed on the natural ground. This assumption may prove
satisfactory on projects following virgin country having fairly uniform type of soil, however,
problems develop on projects that follow an existing road as only those areas beyond the toe of
slopes of the existing roadway will compact the estimated depth. This manual does not
recommend the use of natural ground or stripping factors on ERA projects.
Instead it is recommended that if the designer considers this volume to be significant, it is

recommended to increase the compaction factors from say –20 percent to –25 percent.
Accumulation totals of cut and fill can now be calculated as follows:
- Total accumulated cut is the total of adjusted cuts (excavation volume x adjustment
factor) added from station to station.
- Total accumulated fill is the sum of the embankments from station to station (no
adjustment).
The mass ordinate can now be calculated by taking the algebraic sum of adjusted excavation and
unadjusted embankment from station to station, using "+" for excavation
Worked Out Problem
A 1 km road is to be constructed in existing ground level having reduced levels 54.1, 53.8, 53.5,
53.5, 54.3, 54.6, 54.9, 54.5, 54.7 and 54.3 meters at 100 m intervals. A required reduced level at
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station 1 is 55 meter and the downward gradient is 1 in 1000. The width of the road at formation
level is 8 meter. Slopes to be maintained at cutting and filling are 1:2 (V: H) and 1:3 (V: H)
respectively. Calculate the volume of Earthwork.
Figure 3.8 plotting of existing and finished ground profile
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Figure 3.9 Interpolation intermediate reduced level
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Table 3.1 Earthwork Computation Table (Mid-section / average height
method)
Volume of total cutting = 1688.18 m3 Volume of total filling = 4824.56 m3
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3.5.3 Mass Haul Diagram
The mass haul diagram is a curve in which the abscissas represent the stations of the survey and
the ordinates represent the algebraic sum of excavation and embankment quantities from some
point of beginning on the profile. The plot can be to any scale, depending on the quantities
involved. Project designed by computer will list, tabulate, and plot all of the data shown above
including a mass haul diagram and balance points.
The mass haul diagram shows excavation (adjusted) and embankment quantities from some point
of beginning on the profile, considering cut volumes positive and fill volumes negative. At the
beginning of the curve the ordinate is zero, and ordinates are calculated continuously from the
initial station to the end of the project.
The mass haul diagram can be used to determine:
 Proper distribution of excavated material

 Amount and location of waste
 Amount and location of borrow
 Amount of overhaul in kilometer-cubic meters
 Direction of haul.
Figure below shows a mass haul diagram curve with an accompanying profile of existing ground
line and grade line.
The double line in the profile and the mass haul diagram indicate areas of excavation. Arrows
indicate direction of haul. Note in the mass haul diagram that the material moves from the rising
line to the falling line.
Note that properties of mass haul diagrams are as follows:
a) An upward slope on the mass curve indicates excavation, and conversely, a downward slope
indicates embankment. The steeper the slope of the mass curve, the greater the cubic meters of
excavation or embankment "-" for embankment.
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Figure 3.10: Relationship of Profile Grade and Haul to Mass Haul Diagram
b) The maximum ordinate of the mass curve occurs at the point where excavation ends and
embankment starts. Similarly, the minimum ordinate occurs at the point where embankment ends
and excavation starts.
c) Cut and fill quantities between the points at which any horizontal line cuts off a loop of the
mass curve will exactly balance. Such horizontal lines are called balance lines and the points at
which these lines intersect the mass curve are called balance points.
d) Areas below the balance line indicate that hauling of excavation to embankment is from right
to left, whereas areas above the balance line indicate that the haul is from left to right.
e) The area between a balance line and its corresponding loop of the mass curve is a measure of
haul (product of the volume and distance in station-meters).
f) The ordinate at any station represents the accumulated amount of surplus or deficit of material
at the station. It does not indicate the amount of cut or fill volume at that station.
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3.5.4 Balancing Earthwork Using the Mass Haul Diagram
The designer should carefully assess the project before start of design and set certain guidelines
for balancing the earthwork. A determination should be made as to the maximum haul distance
or distance between balance points, whether tight balances will be used or whether it will be
more economical to excavate to spoil in some areas and obtain borrow material in others.
Listed below are a few considerations in determining the best earthwork design:
a) Right-of-way restrictions may necessitate importing borrow material for the required
embankments.
b) Where large quantities of inferior or deleterious material are encountered in the excavation, it
will be necessary to waste this material, which is unsuitable for use as embankment.
c) Special conditions through deep cuts, such as sloughing, sight distance requirements, or sand
drift conditions may require very flat back slopes resulting in large amounts of excavation and no
large embankments within a reasonable haul distance. This situation will require that some
excavated material will be wasted.
d) The need to carry the road level considerably above the existing ground for extended distances
through flood plain areas will generally require borrow excavation.
After the designer has analyzed all of the above factors and determined how he proposes to
balance the earthwork, he is ready to start calculations as previously outlined.
The designer can make some quick estimates to determine whether to use long haul distances, to
borrow or waste, or whether a redesign to shorten balance distances is required.
Overhaul is the product of volume times distance and is represented on the mass haul diagram as
the area between the zero balance line and the curve of the mass after eliminating all free haul.
When the mass is computed using adjusted cut (adjusted for swell), it is necessary to correct
overhaul volume to unadjusted excavation by applying the proper correction factor.
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3.5.5 Methods of Balancing Earthwork
As stated in the previous discussion, after the mass haul diagram is plotted using the trial profile
grade, a determination is made whether to borrow, waste, or adjust the grade to achieve tight
balances.
The following three examples with accompanying mass haul diagrams illustrate different
methods of balancing earthwork:
a) The first example, Figure shown below, assumes that grades have been adjusted as
much as the terrain will permit and the required balances have not been obtained,
therefore, it will be necessary to borrow and waste to balance the earthwork.
Figure 3.11: Overhaul in the Mass Haul Diagram
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For the following figure the mass haul diagram shows that the balance line is dropped 10,000
cubic meters at the beginning of the job due to excess embankment requiring 10,000 cubic
meters of borrow between stations 0+00 and 3+50. This will result in new balance points at
stations 3+50, 11+00, 20+50 and 27+00.
Due to excess of excavation ahead of station 27+00, the balance line is adjusted upwards
23,000 cubic meters with balance points at 32+50, 41+00 and 50+00. Excess excavation
between stations 27+00 and 32+50 must be wasted.
Example on calculation of earthwork mass haul calculation.
Example Computing Fill and Cut Volumes Using the Average End-Area Method
A roadway section is 2000 ft. long (20 stations). The cut and fill volumes are to be
computed between each station. Table below lists the station numbers (column 1) and lists
the end area values (ft2) between each station that are in cut (column 2) and that are in fill
(column 3). Material in a fill section will consolidate (known as shrinkage), and for this road
section, is 10 percent. (For example, if 100 yd3 of net fill is required, the total amount of fill
material that is supplied by a cut section is 100 (0.10 x 100) = 100 + 10 = 110 ft3.)
Determine the net volume of cut and fill that is required between station 0 and station 1.
A common method of determining the volume is that of average end areas. This procedure is
based on the assumption that the volume between two consecutive cross sections is the
average of their areas multiplied by the distance between them, computed as follows. For
British Unit
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Table 3.2 Calculation of volume
102
Net volume between stations 0-1= total cut x total fill - 9 = 139
=-130 yd3 (column 8)
Note: Net fill volumes are negative (-) (column 8) and net cut volumes are positive (+)
(column 9).
Similar calculations are performed between all other stations, from station
1 + 00 to 20 + 00, to obtain the remaining cut or fill values shown in columns 2 through 9.
Computing Ordinates of the Mass Diagram
The mass diagram is a series of connected lines that depicts the net accumulation of cut or fill
between any two stations. The ordinate of the mass diagram is the net accumulation in cubic
yards (yd3) from an arbitrary starting point. Thus, the difference in ordinates between any
two stations represents the net accumulation of cut or fills between these stations. If the first
station of the roadway is considered to be the starting point, then the net accumulation at this
station is zero.
Example Computing Mass Diagram Ordinates
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Continue the calculation process for the remaining 13 stations to obtain the values shown in
column 10 of the Table.
Figure 3.12 Mass Diagrams for Computation Shown in Table above
Interpretation of the Mass Diagram
The inspection of the above table and figure shows that
1. When the mass diagram slopes downward (negative), the preceding section is in fill, and
when the slope is upward (positive), the preceding section is in cut.
2. The difference in mass diagram ordinates between any two stations represents the net
accumulation between the two stations (cut or fill). For example, the net accumulation
between station 6 + 00 and 12 + 00 is 1302 + 904 = 2206 yd3.
3. A horizontal line on the mass diagram defines the locations where the net accumulation
between these two points is zero. These are referred to as “balance points,” because there is a
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balance in cut and fill volumes between these points. In Figure 14.15, the “x” axis represents
a balance between points A’ and D’ and a balance between points D’ and E’. Beyond point
E’, the mass diagram indicates a fill condition for which there is no compensating cut. The
maximum value is the ordinate at station 20 + 00 of =478 yd3. For this section, imported
material (called borrow) will have to be purchased and transported from an off-site location.
4. Other horizontal lines can be drawn connecting portions of the mass diagram. For example
lines J-K and S-T, which are each five stations long, depict a balance of cut and fill between
stations at points J and K and S and T.
Example 14.6 Computing Balance Point Stations
Compute the value of balance point stations for the mass diagram in Figure above for the
following situations:
(a) The x-axis
(b) The horizontal distance S-T, this measures 500 ft
Solution:
(a) Balance points are computed by interpolation using the even stations where the ordinates
change from cut to fill (or vice versa).
Balance point D occurs between Station 9 + 00 and 10 + 00 (since ordinate
values are -299 and +201).
Assuming that the mass diagram ordinate changes linearly between stations, by similar
triangles, we can write
Station of the Balance Point D’ = (9 + 00) + [(299/(299 + 201) ] x(100) = 9 60
Similarly,
Station of the Balance Point E’ =(17 + 00) + [303/(303 + 179) ] (100) = 17 63
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(b) To determine the balance point stations for line ST, it is necessary to draw the mass
diagram to a larger scale than depicted in the textbook, and to read the station for one of the
points directly from the diagram. Using this technique, station 11 + 20 was measured for
point S and from this value the station for point T is computed as
(11 + 20) + (5 + 00) = Station 16+ 20
Computing Overhaul Payments
Contractors are compensated for the cost of earthmoving in the following manner. Typically,
the contract price will include a stipulated maximum distance that earth will be moved
without the client incurring additional charges. If this distance is exceeded, then the contract
stipulates a unit price add-on quoted in additional station-yd3 of material moved. The
maximum distance for which there is no charge is called free haul. The extra distance is
called overhaul.
Example Computing Overhaul Payment
The free-haul distance in a highway construction contract is 500 ft and the overhaul price is
$11/yd3 station. For the mass diagram shown in Figure above, determine the extra
compensation that must be paid to a contractor to balance the cut and fill between station 9 +
60 (D) and station 17+ 63 (E).
Step 1. Determine the number of cubic yards of overhaul. The overhaul volume will occur
between stations 9 60 and 11 20, and between stations 16 20 and 17 63. The overhaul
value is obtained by interpolation between stations 11 + 00 and 12 + 00 or by reading the
value from the mass diagram.
By interpolation, the value is
Overhaul Ordinate at station 1+ (difference in ordinates at 12 and 11) (20/100)
= 638 + (904 – 638)(0.2) = 638 +53 = 691 yd3
This overhaul value should equal the value at station 16 +20. By interpolation, the value is
732 – (732 – 303)(0.2) = 646 yd3
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Since the values are not equal, use the average (669 yd3) or measure the overhaul from a
larger scale diagram to obtain a value of 675 yd3. This value is selected for the calculation of
contractor compensation.
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3.5.6 Bill of quantities and cost estimation n Road Construction
Estimating of earthworks
Introduction
A number of factors characterize calculation processes involved when pricing earthwork

construction projects, which may cover anything from smaller, preliminary earthworks for larger
construction projects to earthworks for large-scale projects in the infrastructure construction
sector.
The following section gives insight into how earthwork items are calculated from the perspective
of a traffic route engineer and include the main aspects of a large-scale project. Contract
documents for large infrastructure projects provide a number of variants to execute earthworks
construction. In this context, it is possible to integrate excavation, transport and installation in a
single item. The following procedure shows the creation and pricing of an earthworks concept on
the basis of the project’s specifications and the particular construction schedule provided by the
contractor.
Alternatively, the possibility exists to create contracts based on partial activities divided into
construction-site excavation and filling areas, quantity division according to a specific timeline,
or several other variations within this spectrum. For integrated earthworks projects, the
calculation effort is much higher since the mass distribution plan, together with related transport
distances, has to be created by the contractor while bearing in mind both the construction
timeline and geological suitability.
The advantage of this approach is the possibility of implementing in-house expertise and
workflow optimization from a top-down view of the contractor. However, potential for work-
flow optimization as well as synergy effects between single items of a detailed contract should
not be neglected. An important aspect during the calculation process is the involvement of
construction site conditions, but this topic will only be briefly touched upon. The main focus of
this section is the handling of calculation procedures.
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Construction site conditions
In most cases, subsoil risks are borne by the contractor. Hence, most ensure the inclusion of a
subsoil study in the contract. The resulting data has an influence on the calculation process with
respect to the qualitative suitability / usability of materials, necessity for additional action, such
as soil conditioning or material preparation, and the different performance parameters of
excavating and soil-moving equipment depending on the worked material. In particular, the
required equipment has a major influence on the calculation process. Short descriptions of
subsoil classifications are outlined below.
The basis for differentiation:
 Soil types (divided into grain sizes, grain shapes, information on dry strength and
plasticity)
 Soil classes (soil types classified with respect to construction qualities and divided into
main classes and classes with approximately equal substantial structure and material
behavior)
 Division into cohesive / non-cohesive attributes, water content
 Geotechnical suitability according to attributes such as compressibility, shear strength,
compatibility, permeability, susceptibility to water, erosion and frost
 Classification of rock according to:
- Model behavior of rock mechanics (e. g. single-body / multi-body systems)
- Specification according to DIN EN ISO 14689-1 (identification and classification
of rock)
- Parting lines and weathering attributes (rock-mechanics properties)

- Resistance and deformation (breaking strength, tensile strength, flexural strength,
shear strength, and so on)
- Trapped water in rock formation
- Geotechnical suitability
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Classification of soil and rock
Soil and rock are classified according to their condition when being worked on. Because it needs
to be treated in a particular manner, topsoil is listed as an extra class regardless of its condition
during excavation.
Class 1: Topsoil
Top layer which contains besides inorganic substances like mixtures of gravel, sand, silt, and
clay – humus and soil organisms.
Class 2: Liquid soil
Soil types of liquid to pasty consistencies that barely release water.
Class 3: Easy to excavate
Sands, gravels and sand-gravel mixtures consisting to a maximum of 15 % of silt and clay with
particle sizes of less than 0.063 mm and to a maximum of 30 % of pebbles with particle sizes
ranging from 63 mm to 200 mm. Organic soil types, which do not possess a liquid to pasty
consistency, and peat.
Class 4: Moderately difficult to excavate
Mixtures of sand, gravel, silt, and clay with respective minimum mass fractions of 15 % and a
particle size smaller than 0.063 mm. Soil types with low to medium plasticity which possess,
depending on water content, a soft to semisolid consistency and contain a maximum mass
fraction of 30 % rock.
Class 5: Hard to excavate
Soil types of the classes 3 and 4 with a rock mass fraction above 30 %. Soil types with a
maximum mass fraction of 30 % blocks with a particle size ranging from 200 mm to 630 mm.
Highly plastic clays which possess a soft to semisolid consistency, depending on the water
content.
Class 6: Easy to excavate rock and similar soils
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Rock types which possess a minerally bound cohesion but are strongly fragmented, brittle,
friable, slate, or weathered. Similar solid or solidified soil types created through dehydration,
freezing or chemical bonding. Soil types with a block mass fraction above 30 %.
Class 7: Hard to excavate rock
Rock types which possess a minimally bound cohesion and a high solidity, and which are
slightly fragmented or weathered. Non-weathered argillaceous schist, conglomerate layers,
solidified slags etc. Heavily packed / compacted great blocks with a particle size greater than 630
mm
This concludes the remarks on geological questions. As shown, there are numerous material
properties that may affect the calculation process. As a consequence, a definite weighting of
these factors with the aid of expert literature is useful when handling individual cases.
Bases of calculation
Direct-cost calculations for partial activities are listed as separate contract items. In addition to
these, percentage values of surcharges for site overhead, general overheads, as well as surcharges
for risk and profit are added.
The direct costs can be broken down into the following cost types:
 Labor costs
 Equipment costs (incl. operating materials)
 Material costs
 Third-party / transport services
 Other general costs / costs for construction site facilities
Today, calculative modules are frequently employed in the construction engineering sector.
These may be comprised of elements of single cost types, but hybrids of several cost types are
also possible. These include maintenance and operating materials, expected idle periods such as
setup times, maintenance, or technological downtimes etc.
When preparing the specific modules, an analysis of the single cost types together with affecting
criteria is necessary. Regarding the preparation of the actual calculation of the items stated in the
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bill of quantities, these aspects are described below and later enter modules in the calculation
examples that follow.
Calculation of labor costs
The calculation of personnel expenses involves labor costs for work performance in the form of
average wage or several average wages according to profession groups or trades. In the
following procedure, assessment is done in a company-specific way with the basic average wage
as basis. The wage elements listed below have to be taken into account when calculating the
average:
- Basic wage
- Additional payments (such as overtime, hazard pay, night shift etc.)
- Ancillary wage costs (such as accommodation allowance, fares, accommodation etc.)
- Social costs (such as social insurance, employer’s liability insurance association etc.)
- Imputed costs (such as holiday pay, work safety etc.)
These wage elements result partially from legal regulations or from experiences / statistics of the
particular company.
Possible wage increases also need to be considered for calculations of long-term projects. The
example in the following section uses an average wage, which is calculated as shown in Table
below.
Table 3.3 Calculation of the average wage
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Calculation of equipment costs
Calculation bases for equipment costs differ according to the specifications of every machine
type. The provision costs of equipment can be subdivided into the costs for depreciation and
interest (e. g. rental services) as well as repair costs (maintenance / upgrade) plus costs for
service and upkeep. To calculate the abovementioned cost elements, the average value (average
value when new) of the equipment serves as a basis according to the given (consecutive)
operating life and the calculative rate of interest. Depreciation values listed in the register of
construction equipment are applied using the linear method, and the repair costs are calculated as
an average value over the span of operating life. In this context, it is assumed that the monthly
usage of all equipment amounts to 170 hours. Values for equipment that are missing in the
register can be determined through interpolation of adjacent values. The stated repair costs in the
register are given on a percentage basis and are the result of experience values.
For practical purposes, the values for depreciation and interest, as well as repair costs are usually
reduced to the market-based value of the particular country where the project is completed.
Reductions are company-specific and can therefore not be generalized. A reduction on 60 % is
assumed for the example in the following subsection. This value is often used for settlements in
joint ventures where equipment costs are concerned.
Manufacturer information, which considers load, engine speed, operating condition and attrition,
is used to assess consumption of operating materials. The register of construction equipment
specifies a value of 80 to 170 [g / kWh] for fuel consumption, and 10 to 12 % of the fuel costs50)
for consumption of lubricants. For the following example, the average consumption of this span
is assumed.
Table below shows the calculation process of operating costs for a hydraulic excavator of 35 tons
operating weight. The cumulative equipment costs are calculated under inclusion of a
devaluation factor of 40 % and of all equipment modules and required additional equipment. The
operating costs are comprised of the average wage for the machine operator and a surcharge of
10 % for maintenance and care as these are not included in the equipment costs.
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Table 3.4 Calculation of operating costs for a hydraulic excavator of 30 tons
Based on this formula, it is possible to calculate any number of machine components and include
them in the respective performance listings. Table below contains a number of equipment
components that play a role in the following example calculation. The indicated average values
are estimates taking into account ancillary equipment and any equipment elements as well as
interpolations related to the performance variable.
114
Equipment summary earthworks
115
Material costs
Material costs are priced according to actual delivery costs. Suppliers provide quotations, which
are priced in the actual contract. Any additional costs such as costs for freight, loading and
unloading, intermediate storage or pre-financing have to be surcharged in the supplier quotations.
In the calculation example, material costs play a minor role. It is assumed that no material
shortages may occur. Possible conversion factors have to be taken into account in case delivery
materials are required in the calculation. Particularly, specific weight units play a major role
since measurements are usually recorded in tons, whereas monetary compensation is based on
volume.
External services / transports
Parallel to material costs, external services are calculated on the basis of actual delivery costs.
The calculation involves costs for partial activities delivered by third-party companies. As a
result, particular attention should be paid to the consistency of contractual conditions to avoid
cost variance caused by different calculation bases.
Potential additional expenses for provision, supervision, and intersecting issues need to be
imputed. Particular attention is therefore paid to transport services as they are frequently listed as
ancillary services in the earthworks calculation. In general, transport costs have to be calculated
according to particular cost types with due regard to technical parameters such as equipment
modules. Alternatively, they can enter the calculation as external services. In this case, the
different types of contract procedures must be taken into account. When a service rate that
corresponds to the specifications of the service item is agreed on, the subcontractor price can be
applied in the calculation.
Prices for transport services that are offered as unfixed prices (i. e. an agreed amount, which may
or may not increase due to difficulties that emerge during construction) occupy the same item
positions as costs for equipment modules. On this basis, required transport capacities and
corresponding transport costs per unit can be calculated.
In the following subsection, an example calculation for transport costs is given, which will be
included in the earthwork calculation. Starting values for the calculation are the average transport
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distance, the average transport speed, the loading volume together with loading cycles, and work
fees of transport vehicles. It is assumed that the average transport distance amounts to 5,000 m
(one-way distance). This average is dependent on the quality of the road network on-site, ratio of
inclination (slope), and the stated maximum speed on the site (as per site regulations). In the
calculation example, a paved road network, negligible slopes, and a maximum speed of 30 km /
h are assumed. An empirical value of 70 % maximum speed for transport vehicles can be used as
the average speed.
The parameters mentioned above are summarized in the following example. Based on this, the
calculation of transport costs is illustrated. First, the length of the circulation (loading /
unloading) period per transport vehicle is determined. The transport volume per vehicle and hour
is the result of the average loading volume (keeping the loosening factor in mind). In order to
ensure the scheduled loading capacity of the excavator, the required number of transport vehicles
is determined. In a last step, the transport costs per quantity unit are calculated by dividing
transport vehicle costs by the quantity transported per hour.
Example calculation of transport costs
Assumptions:
- Average one-way transport distance within the construction site: 5,000 m

- Road network = side roads of unbound base course, maximum permissible speed of 30
km / h on the site, 70 % = 21 km / h transport speed
- Loading capacity Cat 365 = 250 m³ / h, loading volume of four-axle truck: 8 m³ solid
mass, loosening factor: 0.25 → 10 m³ loose mass, loading time including transition time
3 min., unloading time 2 min.
- Offered hourly rate four-axle truck = 3000.00 Birr / h
Calculation:
Circulation time:
3 min loading + 2 min unloading + 28.57 min driving (2 x 5,000 m / 350 m / min) = 33.57 min.
Quantity per truck and hour: 60 min / 33.57 min = 1.79 loads / h x 8 m³ / load = 14.32 m³ / h
Number of trucks: 250 m³ / h loading capacity / 14.32 m³ / h transport capacity per truck = 17.46
= 18 trucks
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Transport costs per quantity unit: (18 trucks x 3,000.00 Birr / h) / 250 m³ / h loading capacity =
216 Birr / m³
Other expenses / costs for construction site facilities
Overheads are costs that do not fit any category of the abovementioned cost types. In
construction projects, these are miscellaneous costs that are not related to a particular service
item directly and are, as a consequence, spread among several items.
The costs for construction site facilities, capacity costs (cost of capacity that may be used), and
post-construction site-cleaning operations are therefore calculated in an additional bill of
quantity. Costs such as the expenses for delivery and return of equipment are included in these
items.
Additional expenses are added in the calculation on a percentage basis. These include general
overheads, which are not directly related to the construction site like costs for administration /
management, as well as site overheads, which are relevant for the whole project, as well as labor
costs of the site management. Cost planning for general overhead provides estimates for major
cost items in relation to the contractor’s turnover (overhead expenses) and project turnover (site
overheads). Further calculated percentage surcharges for risk and profit are also included in the
calculation.
In the calculation example, the following hypothetical general expenses are used: General
overheads 8 %, site overheads 6 %, risk 3 %, and profit 3 %; the sum of the surcharges amounts
to 20 %.
Calculation examples
A fictitious bill of quantity for the examples in the next part of the chapter is shown in Table
below. The calculation is schematically developed.
118
Table 3.5 Bill of quantities earthworks
The calculation is done in three steps:
119
1. Determining the scope of construction works
2. Selection of technology
3. Calculation of direct costs
Item 01.01.10: Topsoil removal and storage
The Item 01.01.10 covers the following services:
- Material removal and storage

- Material transportation
- Material separation
- Making material heaps and creating profiles
For the choice of technology, the assumption is made that topsoil is uniformly distributed in the
construction field, and storage along the marked-out route is possible. The chosen technology
and the cost elements are as follows:
 Removal + transport with caterpillar dozer (140 kW), material such as soil distributed in
heaps along route.
 Compacting storage heaps with excavator (35 t).
 Separation (sorting out rocks and roots) is counted as synergy in item 01.01.20 because it
is possible to perform simultaneously with loading process.
 The determined sliding length is 50 m, heap height is 2 m.
 Compacting of storage heaps is calculated via capacity approach in m² and allocated
according to the item’s unit of measurement. The quantity in m² results from the cross-
section of the heaps.
 (Height / width 2 m, 1 / 1 sloped; 8 m³ each running meter with approx. 7.7 m² each
running meter; 10,000 m³ / 8 m³ x 7.7 m² = approx. 9,625 m²).
 Capacity approach (value derived from experience or manufacturer information with
regard to local conditions) for caterpillar 100 m³ / h, for excavators 150 m² / h, cost of
equipment module caterpillar 173.62 € / h, excavators 148.59 € / h.
 .Fixed costs of transport equipment delivery and return are included in site facilities /
post-construction cleaning
 General overheads, including risks and profit, of 20 %.
Under the mentioned conditions, the direct costs are determined as follows:
 Portion of caterpillar (load + transport + setup): 173.62 € / h / 100 m³ / h 1.74 € / m³

 Portion of excavator (Heap compacting): 148.59 € / h / 150 m² / h
= 0.99 € / m² x (9,625 m² / 10,000 m³) 0.95 € / m³
120
The direct costs for the item hence amount to: 2.69 € / m³ Following the same pattern, the
following additional items are calculated, partially, with deviating assumptions, to illustrate a
wide range of calculations.
Item 01.01.20 covering topsoil of client
Scope of services:
 Separating material (from item 01.01.10)

 Loading material
 Transporting material to the site
 Piling and compacting material according to stated profile
Technology and considered cost components:
 It is assumed that the loading into separating equipment with feeder onto transporting
vehicle as external service of 300.00 Birr / m³, at the same time assuming that the density
of the stored material = density of covered material due to compensation according to
added-quantity profile, otherwise consideration of special compensation agreement with
third-party service and conversion factor have to be taken into account
 Transport to site likewise as external service, assumed 120.00 Birr / m³
 Piling with excavator 35 t and a capacity of 50 m³ / h
 Surveying material (to adapt slopes) for covering according to profile is calculated as
expected fixed cost of site preparation. The surveying performance is part of surcharges
for site overheads
Determination of direct costs:
- Portion of third-party load. + separating service 300.00 Birr / m³

- Portion of third-party transport service 120.00 Birr / m³
- Portion of excavator for compacting: 8,915.4 Birr / h / 50 m³ / h 178.2 Birr / m³
Total direct costs: 598.2 Birr / m³
Item 01.02.10 Excavation and reintegration of soil and rock
Scope of services:
 Excavation and loading of material according to profile

 Transporting material to designated reintegration site
 Reintegration and compacting of material according to profile
 Creation of planum layer
121
 Loading with excavator 300 kW and assumed capacity of 250 m³ / h, surveying material
for excavation according to profile in construction-site facilities, include surveyor in site
overhead calculations
 Transport to site similar to calculated previous example 216 Birr / m³
 Reintegration with dozer 140 kW, 250 m³ / h, and two rollers 19 t for compacting
 Preparing planum layer with grader + controller and roller 13 t for compacting, assumed
capacity of 200 m² / h and assuming that 20.000 m² planum layer accumulate for this
capacity; this means that this capacity with a factor 20,000 m² / 100,000 m³ = 0.2 is
included in the item
- Rate of excavator for exc. + load. 13101.6Birr / h / 250 m³ / h 52.20 Birr / m³

- Rate of transport 216.00 Birr / m³
- Rate of reintegration (10417.2 Birr / h +2 x 6762 Birr / h) / 250 m³ / h 96.00 Birr / m³
- Rate of planum layer creation
(8,100 + 1011 + 6225.6) Birr / h / 200 m² / h x 0.2 m² / m³ 15.60 Birr / m³
Total direct costs 379.80 Birr / m³
Item 01.02.15 Bonus for excavating soil and rock
Scope of services:
 Bonus position means that the price of the basic position (here 01.02.10) will be
compensated and the excavation of deviating soil types is compensated additionally e. g.
allowance for the loosening of soil class 7, by blowing or mechanical processing
 Allowance for the filling material for the creation of the planum layer
 Provide suitable frost resistant material, external supply is not required, the material must
be separated from the ablation areas, temporarily stored and transported to the site
 Additional expenses for the preparation of the planum layer
 It is assumed that the material can be demolished, explosive grid is chosen that an extra
mechanical treatment is not necessary It is assumed that the material is calculated as
external service of 180.00 Birr / t at a conversion factor 2.0 t / m³ = 360.00 Birr / m³, as it
is assumed to be cheaper than separation and temporary storage of material from the site
122
 Allowance planum preparation with graders + controlling and roller 13t for compacting.
It is assumed that there is an allowance for halving the capacity to 100 m² / h because of
material transfers and the assumption that 5,000 m² planum arise for this item; this means
that this service goes into this item with a factor of 5,000 m² / 25,000 m³ = 0.2
- Rate of external blowing service 360.00 Birr / m³

- Rate of material delivery 5,000 m² x 0.10 m str x 6.00 € / m³ / 25,000 m³ 7.20 Birr / m³
- Rate of planum allowance (135.00 + 16.85 + 103.76) € / h / 100 m² / h x 0.2 m² / m³ –
0.26 € / m³ (from main position) = 15.00 Birr / m³
Total direct costs 382.20 Birr / m³
Conclusion
After all the positions are calculated, the overprinted bill of quantities with the total price can be
prepared. Table 3.6 shows the resulting bill of quantities with short texts.
Table 3.6 Bill of quantities with prices
The calculation has primarily been shown in economic terms. Cost types, cost elements and
calculation methods have been declared and can schematically serve as an example for
earthworks calculations. Technical influencing factors were nominated. Empirical values of the
contractor have been used for the calculation. Due to the influence of many variables, a fixed
123
method of calculation is not reasonable. Rather, possible variable factors were nominated and
interdependencies identified. It was outlined that soil conditions, as well as spatial and temporal
characteristics of the site can theoretically change the performance approaches greatly. For
further reading, advice provided by the device manufacturer is recommended. The importance of
equal rank for the calculation of earthwork services is the consideration of the overall project,
along with extensive preparatory work, even in the calculation phase. Only then can appropriate
technologies for the overall success be found and synergies between various service positions
used. For this purpose, various factors have to be considered.
Estimating in road construction

The bid preparation in road construction is conducted on the basis of a public or private client
bid. In the following section, the key components of a request for proposal are initially
explained. In upcoming sections, the fundamentals of calculation are illustrated with the aid of an
exemplary road construction project.
Most commonly, bid documents include, but are not limited to, the following parts:)
- An invitation to bid
- Terms and conditions for the application and execution of construction services in road
and bridge construction
- Bid letter
- Special contract conditions
- Additional contractual terms and conditions for the execution of construction services in
road and bridge construction
- Specifications for bids
According to the above mentioned framework, the invitation to tender or call for bids includes,
but is not limited to, the following important basic information for the contractor:
- Contracting authority
- Type of bid (e. g. public invitation to tender, restricted invitation to tender)
- Notation of the construction services
- Information on the bidding process (e. g. submission conditions)
- Admission of variant solutions
- Criteria for the bid valuation
The additional terms and conditions primarily comprise deadlines, possible contractual penalties
and payments for acceleration measures as well as limitation periods for claims on defects.
124
Direct costs of the partial activities
In consideration of the overall construction project, the construction methods for the calculation
of an item should be specified to comply with the item description. If, for example, a frost
protection layer needs to be created in the area of a driveway, the installation is usually done
with an excavator and the compaction with a surface vibrator.
However, when a large quantity of frost protection material is to be installed on along route with
an adequate width, the utilization of a grader with a drum compactor becomes more
economically advantageous, because this equipment combination can reach a much higher
performance. After the definition of the relevant construction method, the direct costs of the
partial activities per item, which can be composed of the following cost types, are calculated.
Labor costs
Construction companies calculate actual average wages per professional group (road worker,
machine operator, etc.) from their basic wages, overtime bonuses, ancillary wage costs, and
social costs. In the following calculation example a consistent average wage of 35 € / h is
assumed.
Material costs
This refers to the costs for material that is delivered to the construction site (e. g. tarmac, bulk
material, sewer material). It is assumed that the material price already includes the transport costs
to the construction site. These prices need to be requested from the suppliers prior to calculation.
Equipment costs
Construction firms determine the capacity costs for their equipment based on the register of
construction equipment. Capacity costs together with the costs of operating supplies result in the
overall plant cost.
125
External services
These services could involve: subcontractor services, disposal or recycling costs, transport costs
including costs of operating supplies, and operation. These prices also need to be requested from
external firms prior to calculation.
In the calculation of road construction, labor and equipment costs are based on performance
approaches per quantity unit. The performance approaches are usually dependent on given
amounts of experience.
Overheads and other surcharges
The direct costs of the partial activities are finally surcharged with additions for general
overheads, site overheads and for risk and profit.
In this calculation example the following apportionments are assumed: 12 % general overheads +
5 % site overheads + 1.5 % risk + 1.5 % profit = 20 %
Calculation example
Construction specifications
A. General description of the construction project
Because of the high congestion on the federal road B 999 in Sample City, a bypass is created.
The lane of traffic corresponds to the load class 3, 2 It has a length of 2,000 m and is built with a
regular width of 7.50 m in accordance with standard cross-section.
The earthworks, as well as the connections to the existing B 999, have already been completed.
The initial surface is raw subgrade (+ / - 5 cm) executed in the scope of the preliminary work. A
fine subgrade should initially be created. Subsequently, the superstructure has to be fabricated:
- 4 cm asphalt surface AC 11 D S 25 / 55–55

- 6 cm asphalt binder layer AC 16 B S 25 / 55–55
- 12 cm asphalt base layer AC 32 T S 50 / 70
- 43 cm frost protection layer 0 / 32
- 65 cm superstructure
126
Additionally, the road shoulders need to be created. On the already constructed connections to
the B 999, the existing asphalt surface needs to be stripped down by 4.0 m in each case. The road
equipment and traffic safety measures are not part of this measurement.
Figure 3.13 standard cross-section
Table 3.7 Bill of quantities without prices
127
128
Calculation of the partial services
Selection of technology
A. Asphalt milling and upload
The milling and uploading of the asphalt is done with a milling machine (12000birr/ h).
The milling performance is estimated at only 30 m² / h due to the small size of the milled area.
The complete service of 60 m² is therefore performed in 2 h. Costs for the machine operator are
included in the labor costs.
B. Material recycling
The milling material is loaded on a truck with a loading capacity of 12 tons (3000 birr / h
including operator) and can, for example, be recycled in a mixing plant (recycling costs = third-
party costs of 120 Birr/ t). First, the transport costs need to be ascertained. In the calculation of
the loading time, the time of 2 hours = 120 minutes required for the milling of the surfaces, has
been taken into account.
Calculation of the transport costs:
+ loading time on site 120 min
+ transport time to the recycling plant 20 km: 40 km / h 30 min
+ Unloading time 20 min
Sum = cycle 170 min
Hours 2.83 h
Hours 2.83 h
129
The surface area of 60 m² results in a mass of 60 m² x 0.04 m x 2.5 t / m³ = 6 t which has to be
recycled. This has to be taken into account in the calculation.
C. Surface cleaning
The cleaning of the surface should be done by a wheel loader with an attached suction sweeper
(1200 birr/ h). This process occurs directly after the milling procedure and is therefore estimated
to have the same performance (30 m² / h). As in the previous process, the machine operator is
considered in the labor costs.
Calculation
Labor
2 x 2100 Birr / h / 30 m² / h 140 Birr / m²
Material
Equipment
(1200 Birr / h + 2400 Birr/ h) / 30 m² / h 120.00 Birr / m²
External services
Transport: 0.100 t / m² x 2.83 h / circulation x 500 birr / h /6 t / circulation

14.15 Birr / m²
Recycling: 0.100 t / m² x 120 birr / t 12.00 Birr / m²
Sum of direct costs 286.15 Birr/ m²
Overheads (20 %) 57.23 Birr / m²
Unit price 343.38 Birr/ m2
130
The split cut is carried out by a craftsman with a joint cutter (450 Birr/ h). A performance of 10
m / h is assumed.
Labor
6x 35 Birr / h / 10 m / h 21 Birr / m
Material
Equipment
450 Birr / h / 10 m / h 45 Birr / m
External services
Sum of direct costs 66 Birr / m
Surcharges (20 %) 13.2 Birr / m
Unit price 79.2 Birr/ m
131
In this case, the application of a grader (3600 Birr / h) is efficient as the surface area is bigger. To
achieve the required deformation module, the surface has to be compacted with the aid of a
barrel compressor (1800 Birr / h). Both machines are handled by one operator each.
A performance of 400 m² / h is calculated.
Calculation
Labor
2 x 2100 Birr / h / 400 m² / h 10.5 Birr / m²
Material
Equipment
(3600 Birr / h + 1800 Birr / h) / 400 m / h 13.8 Birr/ m²
External services
Sum of direct costs 24.3 Birr / m²
Surcharges (20 %) 4.8 birr / m²
Unit price 29.16 Birr / m²
132
The excess material is loaded by an excavator (2400birr / h) which is handled by a machine

operator. A third-party contractor recycles the material (costs for recycling including transport
costs: 450 birr / t). Recycling costs are usually offered by subcontractors in the quantity unit
”ton”. In this case a conversion into the appropriate quantity unit ”m³”, with regard to the
expected density in the built-in condition (here 2.1 t / m³), has to be included in the calculation.
Calculation:
Labor
1 x 2100 birr / h / 30 m³ / h 70. Birr / m³
Material
Equipment
2400 / h / 30 m³ / h 80 Birr/ m³
External services
2.1 t / m³ x 450 birr/ t 945 Birr/ m³
Sum of direct costs 1095 Birr/ m³
Surcharges (20 %) 219 Birr/m3
Unit price 1314 Birr/ m³
133
The embedding of the binding material is done with a rotary cultivator (9000 Birr/ h), the
leveling with a grader and the compaction with a barrel compressor as used in item 1.2.10. Plants
are handled by one machine operator each. Additionally, the calculated amount of Portland
cement, with an offering price of 5400 Birr / t, has to be added. There must also be a conversion
from the offered material costs into the appropriate quantity unit.
Calculation
Labor
3 x 2100 birr / h / 300 m² / h 21 Birr / m²
Material
25 kg / m² / 1000 kg / t x 5400 birr / t 135 birr/ m²
Equipment
(9000 / h + 3600 / h + 1800 / h) / 300 m² / h 48 Birr / m²
External services
Sum of direct costs 204 Birr/ m²
Surcharges (20 %) 40.8Birr / m²
134
The material installation is completed with a grader and the compaction is, again, done with the
previously mentioned barrel compressor. The price for the frost protection material (600 Birr / t)
has to be converted into the appropriate quantity unit ”m³”.
Calculation
Labor
2 x 2100 Birr / h / 40 m3 / h 105 Birr / m³
Material
2.1 t / m³ x 600 Birr / t 1260 Birr / m³
Equipment
(3600 Birr / h +1800 Birr / h) / 50 m3 / h 108 Birr / m³
External services
Sum of direct costs 1473 /Birr m3
Surcharges (20 %) 294.6 Birr / m³
Unit price 1767.6 Birr / m³
135
The installation and compaction of the road shoulders is done by a subcontractor for road
shoulder work, which offers the stated services with a price of 90 Birr / m. Subcontractor
services are external services. Furthermore, the supply of compactable soil (300 Birr / t) and the
gravel terrace composite with a grain size of 0 /32 (750 Birr / t) need to be calculated.
Calculation
Labor
Material
Bottom layer: 1.50 m x 0.32 m x 2.0 t / m³ x 300 / t 288 Birr / m
Top layer: 1.50 m x 0.20 m x 2. 0 t / m³ x 750 birr / 450 Birr/ m
Equipment
External services
Subcontractor for road shoulder work 150 Birr/ m
Sum of direct cost 888 Birr / m
Surcharges (20 %) 177.6 Birr / m
Unit price 1065.6 Birr / m
136
The asphalt is mechanically applied with an asphalt finisher (12000 Birr / h) in large areas.
Recompaction of the installed material is done using two tandem rollers (2400 Birr / h). Usually,
the asphalt finisher equipment additionally consists of small equipment, such as, joint cutters,
various chains, etc., whose costs are calculated at a 600 Birr / h rate. For the operation of the
finisher equipment, five machine operators are required (one engine driver, two machinists for
the handling of the paving screed, and two roller drivers). The delivery of the asphalt mixes is
calculated as material costs. When working with asphalt mixes the delivery and also the
definition of the installation performance is usually performed using the quantity unit ”ton”. As a
consequence, a conversion from ”tons” into the appropriate quantity unit ”m²” is necessary. The
density of the asphalt mix is used as the conversion factor. This value is ascertained via
laboratory testing and is represented by the so-called Marshall density. In this case, the wide-
spread density of 2.50 t / m³ is chosen.
Calculation
Labor
0.12 m x 2.50 t / m³ x 5 x 2100 / h / 100 t / h 31.8 Birr / m²
Material
0.12 m x 2.50 t / m³ x 2700/ t 810 Birr / m²
Equipment
0.12 m x 2.50 t / m³ x (12000birr/ h + 2 x 2400 birr/ h + 600birr / h) / 100 t / h
52.2 Birr / m²
External services
Sum of direct costs 894 Birr / m²
Surcharges (20 %) 177.8 Birr / m²
137
Analogous to the previous item 2.2.10
Calculation
Labor
0.06 m x 2,500 t / m³ x 5 x 2100 birr / h / 75 t / h 21 Birr / m²
Material
0.06 m x 2,500 t / m³ x 600birr / t 540 Birr / m²
Equipment
0.06 m x 2,500 t / m³ x (12000 / h + 2 x 2400 / h + 600 / h) / 75 t / h 34.8 Birr / m²
External services
Surcharges (20 %) 119.4 Birr/ m²
138
Selection of technology:
Analogous to the previous item 02.01.10
Calculation:
Labor
0.04 m x 2,500 t / m³ x 5 x 35 € / h / 50 t / h 21 Birr / m²
Material
0.04 m x 2,500 t / m³ x 4800 Birr/ t 480.00 Birr / m²
Equipment
0.04 m x 2.5 t / m³ x (12000Birr / h + 2 x 4800 Birr / h + 600 Birr / h) / 50 t / h
34.8 Birr / m²
External services
__
Unit price 655.2 Birr/m2
The bituminous binder is sprayed on the asphalt base layer as well as on the binder layer to
ensure an adhesion with the overlying layer. The spraying of such large areas is done with so-
called spray bars (1500 Birr / h). The material C 60 BP1-S is calculated with 42000 Birr / t.
Calculation
Labor
1 x 2100 Birr / h / 500 m² / h 4.2 Birr/ m²
139
Material
0.200 kg / m2 / 1000 kg / t x 48000 Birr / t 9.60 Birr / m²
Equipment
1500 / h / 500 m2 / h 3.00 Birr / m²
External services
Spreading grit with a grain size of 1 / 3 (50 € / t) is scattered und rolled-on in order to enhance
skid resistance during the asphalt installation. This is done simultaneously to the application of
the asphalt surface using a tandem roller equipped with an attached chip spreader (45 € / h). The
scattering and rolling-in of the spreading grit therefore occurs at the same speed as the
installation of the asphalt surface (see item 2.1.30):
50 t / h / 2.5 t / m³ / 0.04 m = 500 m² / h.
Calculation:
Labor
1 x 2100 Birr / h / 500 m2 / h 4.20 Birr / m²
Material
1,000 kg / m² / 1000 kg / t x 3000 / t 3.00 Birr / m²
140
Equipment
2700 Birr / h / 500 m² / h 5.4 Birr / m²
External services
Surcharges (20 %) 2 .40 Birr / m²
Finishing the bid

After the calculation of the particular items, the bill of quantity now can be provided with the
unit prices.
Table 3.8 Bill of quantity with prices
Item Text Quantity Unit Unit price Total price

1. Preliminary works
1.1. Excavation works
1.1.10. 1.1.10. Mill asphalt and load 60.00 m2 982.20 Birr/ m² 55,692 Birr
it up
1.1.20. Detach asphalt pavement 45.00 m 306 Birr/m 13,700 Birr
1.2. Earthworks
1.2.10. Create subgrade 21,000.00 m2 29.40 Birr/m2 617,400 Birr
1.2.20. Load and recycle material 600.00 m3 1314 Birr / m3 788,400 Birr
1.2.30. Create soil improvement 21,000.00 m2 244.8 Birr / m² 5,140,800
Birr
2. Superstructure
2.1. Layers without binder
2.1.10. Create frost protection layer 7,500.00 m3 1767.6 Birr / 13,257.000
m3 Birr
2.1.20. Create road shoulders 4,000.00 m 1065.6 Birr/ m 4,262,400
Birr
2.2. Asphalt constructions
2.2.10. Apply asphalt base layer 15,000.00 m2 1,072.8 Birr/ m² 16,092.000
2.2.20. Apply asphalt binder layer 15,000.00 m2 715.2 Birr / m² 10,728,000
Birr
2.2.30. Apply asphalt surface 15,000.00 m2 643.2 Birr / m² 9,648,000
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Birr
2
2.2.40. Spray on bituminous binder 30,000.00 m 20.4 Birr / m² 612,000 Birr
2.2.50 Blunt measure 15,000.00 m2 15 Birr / m² 225,000 Birr
Net bid sum 61,640,462
Birr
VAT 15% 9,216,069.3
Birr
Gross bid sum 70,856,531.3
Birr
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Assessment
Objective types of questions
1. Which one of the followings is not included in quantity surveying?
a) Taking measurements of civil works (Taking off quantities and preparing BOQ)
b) Preparation of approximate (preliminary) cost estimate at the very early stage of the project
c) Preparation of detail cost estimate at different
d) All
e) None
2. _________________________ is a process of measuring or scaling dimensions from drawings

and recording all dimensions in an easily understood format.
a) Taking Off
b) Squaring
c) Abstracting
d) Writing the final bill
d) All
3. ______________________is the calculation of geometric quantities such as length, area, and

volume, from dimensions and angles that are already known
a) Mensuration
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b) Girth (perimeter) computation
c) Crossing method
d) Centre line method
e) None
4. _________________________is material not obtained from roadway excavation but secured

by widening cuts, flattening back slopes, excavating from sources adjacent to the road within the
right-of-way, or from selected borrow pits as may be noted on the plans.
a) Waste
b) Borrow
c) Free Haul
d) Overhaul
e) Economic Limit of Haul
5. _________________is material excavated from roadway cuts but not required for making the
embankment.
a) Waste
b) Borrow
c) Free Haul
d) Overhaul
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6. ______________________________is the maximum distance through which excavated
material may be transported without the added cost above the unit bid price.
a) Waste
b) Borrow
c) Free Haul
d) Overhaul
7. _________________________ is excavated material transported to a distance beyond the free

haul distance.
a) Waste
b) Borrow
c) Free Haul
d) Overhaul
8. __________________________ is distance through which it is more economical to haul

excavated material than to waste and borrow.
a) Waste
b) Borrow
c) Free Haul
d) Overhaul
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9. Which one of the following the correct procedure in computation of earthwork quantities and
the
development of the optimal mass haul diagram.
a) End area calculations, Earthwork calculations, Preparation of mass haul diagram, Balancing
earthworks using the mass haul diagram
b) Earthwork calculations, Preparation of mass haul diagram, balancing earthworks using the
mass haul diagram, End area calculations
c) Preparation of mass haul diagram, balancing earthworks using the mass haul diagram, End
area calculations Earthwork calculations
d) Preparation of mass haul diagram, balancing earthworks using the mass haul diagram,
Earthwork calculations, End area calculations.
E) None
10. What is the purpose of mass haul diagram?
a) Proper distribution of excavated material
b) Amount and location of waste
c) Amount and location of borrow
d) Amount of overhaul in kilometer-cubic meters
e) All
11. Which one of the following statement is not correct?
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a) An upward slope on the mass curve indicates embankment, and conversely, a downward slope
indicates excavation.
b) The maximum ordinate of the mass curve occurs at the point where excavation ends and
embankment starts. Similarly, the minimum ordinate occurs at the point where embankment ends
and excavation starts.
c) Cut and fill quantities between the points at which any horizontal line cuts off a loop of the
mass curve will exactly balance.
d) Areas below the balance line indicate that hauling of excavation to embankment is from right
to left, whereas areas above the balance line indicate that the haul is from left to right.
e) None
12. Which one of the following considerations needed to be included in determining the best
earthwork design?
a) Right-of-way restrictions may necessitate importing borrow material for the required
embankments.
b) Where large quantities of inferior or deleterious material are encountered in the excavation, it
will be necessary to waste this material, which is unsuitable for use as embankment.
c) Special conditions through deep cuts, such as sloughing, sight distance requirements, or sand
drift conditions may require very flat back slopes resulting in large amounts of excavation and no
large embankments within a reasonable haul distance. This situation will require that some
excavated material will be wasted.
d) The need to carry the road level considerably above the existing ground for extended distances
through flood plain areas will generally require borrow excavation.
E) All
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148
Subjective type question
1. Define the term quantity surveying.
2. What do we mean by writing the final bill?
3. Write and explain the methods of End area calculations.
4. Mention and explain the different elements of direct cost.
5. Mention the wage elements to be taken into account to calculate the average wage in the
calculation of labor cost.
6. Mention and explain the elements to be included in Estimating in road construction work.
7. What do we mean by Overheads cost in construction cost estimation?
149
150
References
[1]. http://www1.aust.edu/civil/lab_manual/ce_208.pdf
[2].https://coeng.uobaghdad.edu.iq/wp-content/uploads/sites/3/2019/09/QUANTITY-
SURVEYING.pdf
[3]. https://academics.su.edu.krd/public/profiles/mohammed.saber/teaching/teaching-532-21059-
1621755839-1.pdf
[4]. https://www.academia.edu/40555525/Chapter_4_Quantity_Surveying_2_
[5].https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_policy/---invest/documents/
instructionalmaterial/wcms_447740.pdf
151
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Chapter IV Procurement
4.1 – Introduction
New construction projects are invariably unique one-off designs and built on sites that are also
unique in nature. Thus, when considering a strategy to deliver a project, a client should be made
aware of the complex collection of activities and processes that are involved with the
procurement process so that they can be appropriately managed.
The selection of a procurement methodology essentially involves establishing:
 The most appropriate overall arrangements (or delivery system) for the procurement;
 A contract system for each of the contract or work packages involved as components of
the chosen delivery system; and
 How the procurement will be managed by the agency (or management system), to suit the
delivery system and contract system(s) selected.
A superfluity of procurement strategies have been developed to deal with the need to
successfully deliver construction projects. A procurement strategy outlines the key means by
which the objectives of the project are to be achieved.
The following steps will be helpful to the successful construction procurement:
1. Selecting project executive
2. Appointment of a principal adviser
3. Care in deciding the client’s requirements
4. Timing the project realistically
5. Selecting the procurement path
6. Choosing the organizations to work for the client
7. Designating a site or construction for remodeling
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The followings are the elements of successful construction procurement:
1. Identify and quantify a service demand for a genuine delivery need in an outcomes strategy.
2. Identify service delivery options for meeting the need with stakeholder and preliminary risk
analysis.
3. Justify proposed option with option evaluation, some financial/economic appraisal and
strategy report.
4. Define preferred project with brief, risk/benefits analysis, business case and authority to
proceed.
5. Define/select project procurement strategy with brief, risk/benefits analysis and risk
management plan, initial methodology report and later strategy report.
6. Define project specification with tender documents, estimate and tender evaluation plan for
each contract.
7. Call/close evaluate tenders for each contract and recommend/approve/engage best project
suppliers.
8. Project implementation with supplier(s) carrying out contract work and asset delivery 9. Asset
operation/maintenance and then disposal after supplier(s) completes asset delivery.
10. Project evaluation during/after delivery comparing outcomes sought and achieved, and using
lessons learnt.
The procurement method chosen in ‘steps 5’ above will influence the degree of integration and
collaboration that will take place between project team members, particularly the contractor. The
greater the integration between project members the more likely a project is in achieving a
successful outcome.
Noteworthy, the procurement method that is chosen for a given project will influence the degree
of integration that occurs between project team members, as this will depend upon the point in
time when the contractor is appointed in the procurement process. The selection of an
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independent advisor can assist a client with the identification of risks associated with the
procurement process.
4.2 Independent Advice
From the outset of a project clients want to ensure that they can achieve the solution they require
within their established budget and by an acceptable date in the future. This may be best
achieved if the client seeks independent advice on these matters from the outset from an
experienced construction professional, such as a consultant project manager.
In meeting the needs of the business case, where there is particular focus on building function or
running costs, or speed to completion or capital cost, an experienced independent project
manager can align these needs to an appropriate procurement strategy.
4.2.1 Identification of Risk
The establishments of a procurement strategy that identifies and prioritizes key project objectives
as well as reflects aspects of risk, and establishes how the process will be managed are keys to a
successful project outcome. The unique and bespoke nature of building projects means that
clients who decide to build are invariably confronted with high degrees of risk. These risks
include completing a project that does not meet the functional needs of the business, a project
that is delivered later than the initial programme or a project that costs more than the client’s
ability to pay or fund. All of these risks potentially could have an impact on the client’s core
business. Consequently, a procurement strategy should be developed that balances risk against
the project objectives that are established at an early stage.
The nature of the client’s business and the business case for a specific project should be used to
underpin the basic need for certainty in time and cost. The identification of the factor(s) that will
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constitute the greatest risk to the business if they fail to be achieved will assist in the
development of a weighted list of priorities and the overall procurement system to be considered.
The establishment of an appropriate project team to deliver a project at the right time, for the
right cost given the adopted strategy is a vital role for the client, who again should take
independent advice. During the selection of the project team, better outcomes are achieved when
‘value’ is considered over and above the price for the service that is being offered.
When running costs for the project are deemed important or the design itself is complex or given
importance, then procurement methods that enable a high degree of integration and collaboration
between project team members are deemed to be desirable.
3. FACTORS INFLUENCING PROCUREMENT STRATEGY
For any given project a client can adopt a collaborative strategy, such as partnering irrespective
of the procurement method used. Such a strategy has been often used by clients who have series
of projects to undertake. The performance of both contractors and consultants can be monitored
using pre-defined indicators for each of the projects they are involved with and then compared.
This approach is particularly useful to monitor and evaluate disbursement of incentives where
appropriate.
Once the primary strategy for a project has been established, then the following factors should be
considered when evaluating the most appropriate procurement strategy:
 External factors – consideration should be given to the potential impact of economic,

commercial, technological, political, social and legal factors which influence the client
and their business, and the project team during project’s lifecycle. For example, potential
changes in interest rates, changes in legislation and so on.
 Client resources – a client’s knowledge, the experience of the organization with

procuring building projects and the environment within which it operates will influence
the procurement strategy adopted. Client objectives are influenced by the nature and
culture of the organization. The degree of client involvement in the project is a major
consideration.
 Project characteristics – The size, complexity, location and uniqueness of the project
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should be considered as this will influence time, cost and risk.
 Ability to make changes – Ideally the needs of the client should be identified in the early
stages of the project. This is not always possible. Changes in technology may result in
changes being introduced to a project. Changes in scope invariably result in increase
costs and time, especially they occur during construction. It is important at the outset of
the project to consider the extent to which design can be completed and the possibility of
changes occurring.
 Cost issues – An assessment for the need for price certainty by the client should be
undertaken considering that there is a time delay from the initial estimate to when
tenders are received. The extent to which design is complete will influence the cost at the
time of tender. If price certainty is required, then design must be complete before
construction commences and design changes avoided.
 Timing – Most projects are required within a specific time frame. It is important that an
adequate design time is allowed, particularly if design is required to be complete before
construction. Assurances from the design team about the resources that are available for
the project should be sought. Planning approvals can influence the progress of the
project. If early completion is a critical factor then design and construction activities can
be overlapped so that construction can commence earlier on-site. Time and cost tradeoffs
should be evaluated.
4. PROCUREMENT SYSTEMS
A procurement system (or sometimes known as delivery system) “is an organizational system
that assigns specific responsibilities and authorities to people and organizations, and defines the
various elements in the construction of a project”.
Procurement systems can be classified as:
- Traditional (separated);
- Design and construct (integrated);
- Management (packaged); and
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 Collaborative (relational)
Sub-classifications of these systems have tended to proliferate in a response to market
demands. Holt et al. (2000) state that there are so many variables to each of the commonly
adopted procurement strategies, notwithstanding the commonly adopted nomenclature,
there is a very wide range of strategies available
The decision as to what procurement system to use should be made as early as possible
and underpinned by the client’s business case for the project. The risks associated with
each procurement system and how they can affect the client should also be considered.
In design and construct forms of procurement the contractor predominately assumes the
risk for design and construction of the project. Design and construct variations exist where
the level of design risk can be apportioned more evenly, for example, novation. With
traditional lump sum contracts the intention is that there should usually be a fair and
balance of risk between parties. The balance can be adjusted as required, but the greater
the risk to be assumed by the contractor, the higher the tender figure is likely to be. With
management forms of procurement the balance of risk is most onerous for the client as the
contractor is providing only ‘management expertise’ to a project. However, under a design
and manage method a high of risk can be placed on the contractor for design integration.
Construction management (CM) has been out of favor in recent years with only a select
group of commercial clients continuing to adopt the route. With the Fraser enquiry into
the Scottish Parliament delays and high-profile court cases highlighting the risks of CM, it
is not surprising that use of this form of procurement has fallen.
4.3 Traditional Procurement
In the traditional approach, the employer accepts that design work will generally separate from
construction, consultants are appointed for design and cost control, and the contractor is
responsible for carrying out the works. This responsibility extends to all workmanship and
materials, and includes all work by subcontractors and suppliers. The contractor is usually
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appointed by competitive tendering on complete information, but may if necessary be appointed
earlier by negotiation on the basis of partial or notional information.
The traditional method, using two-stage tendering or negotiated tendering, is sometimes referred
to as the ‘Accelerated Traditional Method’ – this is where the design and construction can run in
parallel to a limited extent. Whilst this allows an early start on site, it also entails less certainty
about cost. There are three types of contract under the traditional procurement method:
- Lump sum contracts - where the contract sum is determined before construction starts,
and the amount is entered in the agreement.
- Measurement contracts – where the contract sum is accurately known on completion and
after re-measurement to some agreed basis.
- Cost reimbursement – where the contract sum is arrived at on the basis of the actual costs
of labour, plant and materials, to which is added a fee to cover overheads and profit.
4.3.1 Lump sum
The contractor undertakes to carry out a defined amount of work in return for an agreed sum.
This can be a fixed amount not subject to recalculation, in which case there would be no
opportunity for the employer to make variations. The sum is likely to be subject to limited
fluctuations, usually to cover tax etc changes not foreseeable at the time of tendering. The sum
may be subject to fluctuations in the cost of labour, plant and materials – the so called
fluctuations provision. Recovery may be use of a formula, or by checking invoices.
Lump sum contracts with quantities are priced on the basis of drawings and a firm bill of
quantities. Items which cannot be accurately quantified can be recovered by an approximate
quantity or a provisional sum, but these should be kept to a minimum.
Lump sum contracts ‘without quantities’ are priced on the basis of drawings and another
document. This may simply be a specification of a descriptive kind, in which case the lump sum
will not be itemized, or one that is detailed to the extent that the contract sum is the total
of the price able items. The job might be more satisfactory described as a ‘Schedule of Works’,
where the lump sum is the total of the priced items. In the latter cases, an itemized breakdown of
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the lump sum will be a useful basis for valuing additional work. Where only a lump sum is
tendered, then a supporting ‘Schedule of Rates’ or a ‘Contract Sum Analysis’ will be needed
from the tenderer.
Tenders can be prepared on the basis of notional quantities, but they will need to be replaced by
firm quantities if it is intended to enter into a ‘with quantities’ lump sum contract.
4.3.2 Measurement
Measurement contracts are also referred to as ‘re-measurement contracts’. This is where the
work which the contractor undertakes to do cannot for some good reason be accurately measured
before tendering. The presumption is that it has been substantially designed, and that reasonably
accurate picture of the amount and quality of what is required is given to the tenderer. Probably
the most effective measurement contracts, involving least risk is to the employer, are those based
on drawings’ with approximate quantities.
Measurement contracts can also be based on drawings and a ‘Schedule of Rates’ or prices
prepared by the employer for the tenderer to compete. This type of contract might be appropriate
where there is not enough time to prepare even approximate quantities or where the quantity of
work is very uncertain. Obviously the employer has to accept the risk involved in starting work
with no accurate idea of the total cost, and generally this type of contract is best confined to
small jobs.
4.3.3 Cost reimbursement
These are sometimes referred to as ‘Cost Plus’ contracts. The contractor undertakes to carry out
an indeterminate amount of work on the basis that they are paid the prime or actual cost of
labour, plant, and materials. In addition, the contractor receives an agreed fee to cover
management, overheads and profit. Hybrids of the cost reimbursement contracts include:
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- Cost-plus percentage fee – the fee charged is directly related to the prime cost. It is
usually a flat rate percentage, but it can also be on a sliding scale. However, the
contractor has no real incentive to work at maximum efficiency, and this variant is only
likely to be considered where the requirements are particularly indeterminate precontract.
- Cost-plus fixed fee – The fee to be charged is tendered by the contractor. This is
appropriate provided that the amount and type of work is largely foreseeable. The
contractor has an incentive to work efficiently so as to remain within the agreed fee.
- Cost-plus fluctuating fee – The fee varies in proportion to the difference between the
estimated cost and the actual prime cost. The assumption is that as the latter cost
increases, the contractor’s supposed inefficiency will result in a fee which decreases.
This approach depends upon there being a realistic chance of ascertaining the amount and type of
work at tender stage.
4.3.4 Key points to consider with traditional procurement
 A traditional lump sum contract requires the production of a complete set of documents
before tenders are invited. Adequate time must be allowed for this.
 The traditional procurement method assumes that design will be appointed by
consultants, and it does not generally imply that the contractor has any design
obligations. If this is to be the case, express terms should be included in the contract.
 As the employer appoints consultants to provide advice on all matters of design and cost,
they thereby retain total control over the design and quality required.
 The contractor depends heavily upon the necessary information and instructions from the
architect being issued on time. There is a risk of claims if they are delayed.
 The employer decides which specialist firms the contractor is to use, although the
contractor may require certain safeguards relating to performance.
 All matters of valuation and payment are the responsibility of the employer’s consultants.
 If it is impossible to define precisely the quantity or nature of some of the work, it is still
possible to adopt a traditional method on the basis of approximate quantities, provisional
sums, or cost reimbursement. However, this is less than a perfect solution: the fuller and
more accurate the information, the nearer to the relative safety of the lump sum approach.
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4.3.5 Advantages and disadvantages of traditional procurement
The main advantages of using a traditional approach to procurement are:
 Accountability due to a competitive selection;

 Competitive equity as all tendering contractors bid on the same basis;
 Design lead and the client is able to have a direct influence which can facilitate a high
level of functionality and improve the quality in the overall design;
 Price certainty at the award of the contract;
 Variations (changes) to the contract are relatively easy to arrange and manage; and
 A tried and test method of procurement which the market is very familiar with.
The main disadvantages of using a traditional approach to procurement are:
 Can be a timely process to produce the full contract documentation. Tenders documents
from an incomplete design can be produced but can lead to less cost and time certainty,
and may lead to disputes;
 Overall project duration may be longer than other procurement methods as the strategy is
sequential and construction cannot be commenced prior to the completion of the design;
and
 No input into the design or planning of the project by the contractor as they are not
appointed during the design stage.
4.3.6 When should traditional procurement be used?
Traditional procurement should be used when:
 A programme allows sufficient time;

 Consultant design is warranted;
 A client wishes to appoint designers and contractors separately;
 Price certainty is wanted before the start of construction;
 Product quality is required; and
 A balance of risk is to be placed between the client and constructor.
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4.4 Design and Construct Procurement
With design and construct procurement a contractor accepts responsibility for some or all of the
design. There should be express reference to this in the contract, and the extent of design liability
should always be set out as clearly as possible. Unless the contract states otherwise, it seems that
the liability for design is an absolute liability under which the contractor warrants fitness for the
purpose intended.
Some design and construct forms limit the design liability of the contractor to the normal
professional duty to exercise reasonable care and skill. Independent consultants engaged by the
contractor are therefore under a liability no greater than normal. An indemnity or acceptance of
liability is likely to be worthless unless backed by adequate indemnity insurance, and this is
something that should be checked before a contractor is appointed. If the contractor does not
have in-house designers, which is often the case, and the contractor uses external consultants,
their identity should be established before a tender is accepted.
The client’s requirements might be stated briefly and simply, perhaps little more than a site plan
and schedule of accommodation. On the other hand, they may be a document of several hundred
pages with precise specifications. The contractor’s input might be restricted to taking a scheme
design supplied by the client and developing details and production information. It is however
better to specify in terms of the performance requirement rather than to prescribe in detail,
because this leaves the responsibility for design and selection firmly with the contractor.
Design and construct methods offer certainty on the contract sum and bring cost benefits. The
close integration of design and construction methods and the relative freedom of t a client with a
competitive price.
With a design and construct method, it is possible ensure a quicker start on site, and the close
integration of design and construction can result in more effective programming. Time, however,
is needed by the client’s consultants to prepare an adequate set of requirements, and time is
needed to compare and evaluate the schemes from competing tenderers. Once a contract is
signed, any changes by the client can prove costly.
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A number of variations of design and construct exist, which include :
 Direct – in this case no competition is obtained in tenders. Some appraisal of the possible
competitors may be made before tendering but only one tender is obtained.
 Competitive – tenders are obtained from documents that are prepared to enable several
contractors to offer competition in designs and in prices.
 Develop and construct – consultants design the building required to a partial stage, often
referred to as ‘scope design’, then competitive tenders are obtained from a select list of
contractors to develop and complete the design and construct the building. The amount of
consultant design can vary depending on the client’s needs.
 Package deal – this method is often used where the contractors competing will use a
significant part of their own or another proprietary building system or they will be
constructing variations of a repetitive theme. There is limited scope for innovation when
this method is used. Some contractors may offer to find a site, to sell, mortgage or lease
their product, obtain approvals etc at a risk to themselves or at a charge to the client.
 Novation – sometimes referred to a design, innovate and construct. This is where the
contractor takes over from the client a previous contract for the design work, completes
the design and constructs the work.
4.4.1 Key points to consider with design and construct procurement
 In design and construct contracts, in theory, there is usually a single point of

responsibility. The employer therefore has the advantage of only on firm to deal with –
and one firm to blame if things go wrong. In practice, the employer’s requirements are
detailed to the extent that the contractor’s design contribution, and liability, is diminished.
 The employer lacks control over the detailed design; however, this might be acceptable
where broad lines of the scheme are satisfactory and the detail relatively less important.
 Construction work can be started early as a great deal of detailed design can proceed in
parallel. However, it is mainly the contractor who benefits from this operational
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flexibility.
 Responsibility for completing on time rests wholly with the contractor. There should be
no risk of claims because of the allegations that information from the employer is late.
This obligation on the contractor to be responsible for the flow of their necessary
information is one of the most attractive features of design and construct.
 There is greater certainty of cost, even to the extent that, if required, responsibility for
investigating site and subsoil conditions can be made entirely the contractor’s. Any
changes in the employer’s requirements can affect the contract sum, however, and are
likely to prove costly.
 It is always advisable to ask for information about who the contractor intends using as a
designer. Adequate professional indemnity insurance should always be a requirement.
 The employer should be advised to appoint consultants to provide advice on the
preparation of the requirements; it is important that adequate time is allowed for this to be
done adequately.
 The requirements might include specific items or provisional sums, bit generally it is
prudent to prescribe performance criteria, so that a high degree of reliance is placed on
the contractor.
 In the absence of any stipulations to the contrary, the contractor’s design obligations are
absolute. However, they are usually reduced in standard forms of contract to those the
professional’s duty of using reasonable skill and care.
 It is difficult to evaluate competitive tenders realistically. Tenderers should be informed
of the criteria to be used, and whether price is likely to be the prime consideration.
 Benefits can arise from designers and estimators having to work closely together. The
contractor’s awareness of current market conditions and delivery times can ensure that a
contract runs smoothly, economically and expeditiously.
4.4.2 Advantages and disadvantages of design and construct procurement
The main advantages of using a design and construct approach to procurement are:
 Client has to deal with one firm and reduces the need to commit resources and time to
contracting designers and contractors separately;
 Price certainty is obtained before construction commences as client’s requirements are
specified and changes are not introduced;
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 Use of a guaranteed maximum price with a savings option split can stimulate innovation
and reduce time and cost;
 Overlap of design and construction activities can reduce project time; and
 Improved constructability due to contractor’s input into the design.
The main disadvantages of using a design and construct approach to procurement are:
 Difficulties can be experienced by clients in preparing an adequate and sufficiently

comprehensive brief;
 Client changes to project scope can be expensive;
 Difficulty in comparing bids since each design will be different, project programme will
vary between bidders, and prices for the project will be different for each design;
 Client is required to commit to a concept design at an early stage and often before the
detailed designs are complete; and
 Design liability is limited to the standard contracts that are available.
4.4.3 When should design and construct procurement be used?
Design and construct procurement should be used when a (Turner, 1990):
 The construction is functional rather than prestigious;

 The construction is simple rather than complex, is not highly serviced and does not
require technical innovation;
 Brief for scope design is likely to change;
 Programme can be accelerated by overlapping design and construction activities; and
 Single organization is required to take responsibility and risk for design and construction.
The following comments about using novation are provided :
For a limited marketplace with insufficient companies who do not have a proven record of
designing and constructing - perceived risk of taking over a design deters many would be
tenderers.
By accepting a novated design companies accept errors and omissions and other potential
problems including a design that may potentially prove unworkable.
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The client's right to nominate subcontractors or suppliers is removed under novation, thus the
company taking over both design and construction is free to make its own contractual
arrangements as it sees fit.
The architect will no longer supervise quality control or exercise sanction once novation occurs.
This is difficult for many designers, as their reputation is closely associated with their work,
which may be modified in a way that could upset them.
The client loses communication links with the design team once novation occurs.
Once novation occurs, the contractor pays the design team. This may pose a financial risk to the
design team if they believe that the contractor is not financially sound.
4. 5. Methods of selecting the contractor for Design & construct

procurement
In different countries where the Design and construct system has been is successfully used since
many years, selection of the best team to carry out the project is particularly important. Because
the team is chosen to carry out both the design and construction works, the method of selecting
the contractor has a huge influence on the final results.
Many scholars agree that the selection of the contractor with the lowest price is not a good
solution in this case. A multi-criteria assessment of contractors increases the chances for
successful completion of the project.
The first group of methods is based primarily on the selection of the contractor with the lowest
price. The example here can be the widely used open tendering based on legal conditions. In this
case, the contractors must meet only the minimum requirements of the client, assessment of their
competence shall be made at the same stage as the assessment of tenders and it is zero-one.
When selecting the right tender, criteria other than price can be applied; however, as shown by
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the results, the clients rarely use this option. According to experience of many countries, this
method is not recommended for the Design and Build system.
The second group of methods is based on the criteria of both price and quality, include
prequalification tender procedure. Many countries have developed different methods of
prequalification, some of which are adapted and intended strictly for the Design and Build
system. Prequalification is to some extent the equivalent of restricted tendering, where the first
stage is the selection of the contractors, based on their competence.
The last group of methods is based on assessment of the contractor’s competence only; this
assessment is largely subjective and the price is not the criterion.
4.5.1. Prequalification
Prequalification is a pre-tendering procedure enabling the selection of the most suitable

candidates out of those who declare their willingness to participate in the tender procedures. In
practice, there are two types of pre-qualification. Prequalification can mean grouping of the most
suitable contractors to perform certain types of projects. Eventually, the so-called standing list is
drawn-up. In this case, only the approved contractors can apply to a specific type of project.
Such lists are drawn-up in many countries by various government organizations, big companies,
but also by private business.
Prequalification may also mean selecting the most appropriate group of contractors to apply for a
specific project; the so-called “per project” pre-qualification.
Prequalification, in various forms mentioned above, is particularly recommended in case of

Design and construct project delivery. In addition to the standard criteria used in the
Prequalification procedures, related mainly to the financial position, technical capabilities,
organizational skills, reputation, the clients often apply the criteria specific to this type of
contract.
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The client in the process of the contractor’s selection evaluates design qualities and conditions of
its physical implementation. Design and construction should be combined into a single, well-
functioning contract. In relation to the companies offering design and construction, considering
the quality of the whole contract, three categories of the companies can be distinguished.
Another important factor affecting the selection process may be the availability of already
constructed and physically completed projects. The client may assess the values of thus built
structures. By contracting the design and construction, the client may achieve a relatively short
time of project completion due to “overlapping” of design and construction phases. To a large
extent it depends on a good co-ordination of design and construction, which in turn depends on
the organizational skills and experience of the personnel involved in the project; the leading
designers and construction managers.
Yet another Prequalification criterion should therefore include people who will be in charge of
the project; in other words: the quality of staff.
In addition to the generally applicable criteria, the authors propose additional criteria related to
the specifics of the contract agreement. They are related primarily to the experience in delivery
of the particular type of projects and the personnel involved. Both the design team and the
construction team are assessed, as well as the elements of co-operation between the two teams.
In the countries where Prequalification is commonly used, there are different rules for the Design
& construct system, including assessment of all the entities carrying out the project (designers,
contractors).
4.5.2 Management Procurement
Several variants of management procurement forms exist, which include; management

contracting, construction management and design and manage. There are some subtle differences
between these procurement methods. In the case of management contracting, the contractor has
direct contractual links with all the works contractors and is responsible for all construction
work. In construction management, a contractor is paid a fee to professionally manage, develop a
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programme and coordinate the design and construction activities, and to facilitate collaboration
to improve the project’s constructability.
4.5.2.1 Management contracting
The client appoints an independent professional team, and also a management contractor. Their
involvement at pre-construction stages will be as adviser to the team, and during construction
they will be responsible for executing the works using direct works contracts.
With this type of contract it is possible to make an early start on-site and achieve early
completion. Because of its flexibility, it allows the client to change the design during
construction because drawings and matters of detail can be adjusted and finalized as the work
proceeds.
For a management contract to be successful there must be trust and good teamwork on the part of
the client, the design consultants and contractor. The contractor should preferably be appointed
no later than the outline design stage. The contractor can advise on the design programme, tender
action, delivery of materials and goods, and construction programmes. proposed management
fee, and will be appointed after interviews with the client and the design team. The fee will
include for the total management service, expressed as a percentage of the total project cost, and
for a service to cover pre-construction stages should the project not proceed to site.
The management contractor undertakes the work on the basis of a contract cost plan prepared by
a quantity surveyor, project drawings, and a project specification. The client accepts most of thee
risk because there is no certainty about costs and programme.
Competitive tenders for works packages follow later and they will usually, though not always,
will be lump sum contracts with bills of quantities.
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4.5.2.2 Construction management
The management contractor is selected after a careful selection process and is paid a
management fee. The basic difference is that works contracts, although arranged and
administered by the management contractor, are direct between the client and works contractor.
Although in a sense this gives the client a greater measure of control, it also simply an agent, and
usually cannot guarantee that the project will be finished to time and cost.
A number of advantages have been identified that can be offered by the CM approach.
These may be summarized as follows;
 Reduced confrontation between the design teams and the team responsible for
supervising construction;
 Early involvement of construction management expertise;
 Overlap of design and construction;
 Increased competition for construction work on large projects due to work packaging and
splitting the construction activities into more digestible 'chunks';
 More even development of documentation;
 Fewer contract variations;
 No need for nominated trade contractors; and
 Public accountability
4.5.3 Design and manage
A design and manage strategy is similar to management contracting. Under a design and manage
contract, the contractor is paid a fee and assumes responsibility, not only for works contractors,
but also for the design team. The common variations of design and manage are:
 Contractor – a project design and management organization designs a subcontractors to

design/or construct.
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 Consultant – a project designer/manager is the client’s agent, who designs and manages
the work, obtains subcontract tenders from works contractors who then each enter into a
direct contract with the client.
4.5.4 Advantages and disadvantages of management procurement
The main advantages of using a management approach to procurement are:
 The client deals with only one firm, which enables improved coordination and
collaboration between designers and constructors;
 Potential for time savings for the overall project as design and construction activities are
overlapped;
 Under a design and manage form, the contractor assumes risk and responsibility for the
integration of the design with construction;
 Works packages can be let competitively at prices that are current;
 Improved constructability through constructor input into the design;
 Roles, risks and responsibilities for all parties are clear; and
 Flexibility for changes in design.
The main disadvantages of using a management approach to procurement are:
 Price certainty is not achieved until the final works package has been let
 Informed and proactive client is required.
 Poor price certainty
 Close time and information control required
 client must provide a good quality brief to the design team as the design will not be
complete until resources have been committed to the project (Construction management
and management contracting); and
 Client loses direct control of design quality which is influenced by the constructors
(design and manage).
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4.6.5 Key points to consider with management procurement
 Management procurement methods are best suited to large, complex, fast moving
projects where early completion is desirable.
 This method of procurement depends upon a high degree of confidence and trust. There
is no firm contract price before the work starts on site, and the decision to go ahead
usually has to be taken on the basis of an estimate.
 The management contractor is the agent of the client, and should therefore put their
interests first throughout the project.
 It is an advantage to appoint the management contractor at early stage, so that their

knowledge and expertise are available to the design team throughout the preconstruction
period.
 Much of the detailed design work can be left to proceed in parallel with the site
operations for some work packages, thus reducing the time needed before the project
starts on-site.
 The client has a considerable degree of flexibility on design matters. The design can be
adjusted as construction proceeds, without sacrificing cost control. This would not be
possible with traditional methods.
 The management contractor can select specialists and order materials with long lead-in
times for delivery in good time without any of the uncertainties and complexities which
attend traditional nomination procedures.
 The project proceeds on the basis of a contract cost plan, but an independent quantity
surveyor is required for effective cost control.
 A competitive tendering element is retained for all works contracts, which usually
account for most of the overall prime cost. Tenders for works packages will normally be
on a lump sum basis.
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174
Assessment
Objective Type Questions
1. In traditional procurement which one of the following types of contract is used where the
contract sum is determined before construction starts, and the amount is entered in the
agreement?
a) Measurement contracts b) Lump sum contracts c) Cost reimbursement d) None
contract sum is accurately known on completion and after re-measurement to some agreed basis?
a) Measurement contracts b) Lump sum contracts c) Cost reimbursement d) None
contract sum is arrived at on the basis of the actual costs of labor, plant and materials, to which is
added a fee to cover overheads and profit?
a) Measurement contracts b) Lump sum contracts c) Cost reimbursement d) All
4. Which one of the following payment is received by the contractor without quantity?
a) Measurement contracts b) Lump sum contracts c) Cost reimbursement d) All
5. Which one of the following Cost reimbursement fee is the fee charged is directly related to the
prime cost?
a) Cost-plus fixed fee b) Cost-plus fluctuating fee c) Cost-plus percentage fee d) All
6. Which one of the following Cost reimbursement fee is the fee to be charged is tendered by the
contractor?
7. Which one of the following Cost reimbursement fee is the fee varies in proportion to the
difference between the estimated cost and the actual prime cost.
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8. Which one of the following is not true about traditional procurement?
a) A traditional lump sum contract requires the production of a complete set of documents before
tenders are invited.
b) The traditional procurement method assumes that design will be appointed by Contractor.
c) As the employer appoints consultants to provide advice on all matters of design and cost, they
thereby retain total control over the design and quality required.
d) All matters of valuation and payment are the responsibility of the employer’s consultants.
9. Which one of the following is the disadvantage of traditional procurement?
a) Variations (changes) to the contract are relatively easy to arrange and manage
b) Design lead and the client is able to have a direct influence which can facilitate a high level of
functionality and improve the quality in the overall design
c) It can be a timely process to produce the full contract documentation
d) Price certainty is assured at the award of the contract
10. In one of the following types design and construct no competition is obtained in tenders
a) Package deal b) Competitive c) Develop and construct d) Direct
11. In which type of procurement there is usually a single point of responsibility?
a) Traditional procurement b) design and construct procurement
12. Which o e of the following is the disadvantage of design and construct procurement?
a) Client has to deal with one firm and reduces the need to commit resources and time to
contracting designers and contractors separately.
b) Use of a guaranteed maximum price with a savings option split can stimulate innovation and
reduce time and cost
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c) Difficulties can be experienced by clients in preparing an adequate and sufficiently
comprehensive brief
d) Overlap of design and construction activities can reduce project time
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1. Mention those steps of be implemented which are helpful to the successful construction
procurement.
2. Mention the basic three essential establishments required during the selection of a
procurement methodology.
3. Mention the ten elements of successful construction procurement.
4. Which on of the ten elements of successful construction procurement will influence the degree
of integration and collaboration that will take place between project team members, particularly
the contractor?
5. Mention and explain those factors should be considered when evaluating the most appropriate
procurement strategy.
6. Mention the three classifications of Procurement systems.
7. Explain the two procurement methods i.e.
- Traditional procurement and
- Design and construct procurement
8. Give a brief explanation on Measurement contracts.
9. What do we mean by Cost reimbursement contract? Give brief explanation.
10. Mention Key points to be considered with traditional procurement.
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References
[1]. https://www.diva-portal.org/smash/get/diva2:1011258/FULLTEXT01.pdf
[2].https://www.gov.scot/binaries/content/documents/govscot/publications/advice-and-
guidance/2018/12/construction-procurement-handbook/documents/chapter-5/chapter-5/govscot
%3Adocument/chapter-5.pdf
[3]. https://constructingexcellence.org.uk/wp- content/uploads/2015/03/procurement.pdf
[4]. https://www.academia.edu/33683475/CONSTRUCTION_PROCUREMENT
[5].https://intranet.birmingham.ac.uk/finance/documents/public/Estates-Procurement-
Procedures.pdf
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CHAPTER V Valuation
5.1 Objects of valuation
Valuation is the technique of estimating and determining the fair price or value of a property
such as a building, a factory or other engineering structures of various types, land etc.
5.1.1 Six important Purposes of Valuation:
The main purposes of valuation are as follows:
Buying or Selling Property
When it is required to buy or sell a property, its valuation is required.
Taxation
To assess the tax of a property, its valuation is required. Taxes may be municipal tax, wealth tax,
Property tax etc, and all the taxes are fixed on the valuation of the property
Rent Function
In order to determine the rent of a property, valuation is required. Rent is usually fixed on the
certain percentage of the amount of valuation which is 6% to 10% of valuation.
Security of loans or Mortgage
When loans are taken against the security of the property, its valuation is required.
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Compulsory acquisition
Whenever a property is acquired by law; compensation is paid to the owner. To determine the
amount of compensation, valuation of the property is required.
Valuation of a property is also required for Insurance, Betterment charges, speculations etc.
Valuation of Building:
Valuation of a building depends on the type of the building, its structure and durability, on the
situation, size, shape, frontage, width of roadways, the quality of materials used in the
construction and present day prices of materials. Valuation also depends on the height of the
building, height of the plinth, thickness of the wall, nature of the floor, roof, doors, windows etc.
The valuation of a building is determined on working out its cost of construction at present day
rate and allowing a suitable depreciation.
Six Methods of Valuation
- Rental Method of Valuation
- Direct Comparisons of the capital value
- Valuation based on the profit
- Valuation based on the cost
- Development method of Valuation
- Depreciation method of Valuation
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5.2 Definitions
5.2.1 Market Value
The market value of a property is the amount which can be obtained at any particular time from
the open market if the property is put for sale. The market value will differ from time to time
according to demand and supply.
The market value also changes from time to time for various miscellaneous reasons such as
changes in industry, changes in fashions, means of transport, cost of materials and labour etc.
5.2.2 Book Value
Book value is the amount shown in the account book after allowing necessary depreciations. The
book value of a property at a particular year is the original cost minus the amount of depreciation
allowed per year and will be gradually reduced year to year and at the end of the utility period of
the property, the book value will be only scrap value.
5.2.3 Capital cost
Capital cost is the total cost of construction including land, or the original total amount required
to possess a property. It is the original cost and does not change while the value of the property is
the present cost which may be calculated by methods of Valuation.
Capitalized Value of a Property
The capitalized value of a property is the amount of money whose annual interest at the highest
prevailing rate of interest will be equal to the net income from the property. To determine the
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capitalized value of a property, it is required to know the net income from the property and the
highest prevailing rate of interest.
Therefore, Capitalized Value = Net income x year’s purchase
Year’s Purchase
Year’s purchase is defined as the capital sum required to be invested in order to receive a net
receive a net annual income as an annuity of rupee one at a fixed rate of interest.
The capital sum should be 1×100/rate of interest.
Thus to gain an annual income of Rs x at a fixed rate of interest, the capital sum should be
x(100/rate of interest).
But (100/rate of interest) is termed as Year’s Purchase.
The multiplier of the net annual income to determine the capital value is known as the
Year’s Purchase (YP) and it is useful to obtain the capitalized value of the property.
5.2.4 Sinking Fund Method
In this method, the depreciation of a property is assumed to be equal to the annual sinking fund
plus the interest on the fund for that year, which is supposed to be invested on interest bearing
investment. If A is the annual sinking fund and b, c, d, etc. represent interest on the sinking fund
for subsequent years and C = total original cost, then –
Rental Method of Valuation
In this method, the net income by way of rent is found out by deducting all outgoing from the
gross rent. A suitable rate of interest as prevailing in the market is assumed and Year’s purchase
is calculated. This net income multiplied by Year’s Purchase gives the capitalized value or
valuation of the property. This method is applicable only when the rent is known or probable rent
is determined by enquiries.
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5.2.5 Direct comparison with the capital Value
This method may be adopted when the rental value is not available from the property concerned,
but there are evidences of sale price of properties as a whole. In such cases, the capitalized value
of the property is fixed by direct comparison with capitalized value of similar property in the
locality.
Valuation based on profit
This method of Valuation is suitable for buildings like hotels, cinemas, theatres etc for which the
capitalized value depends on the profit. In such cases, the net income is worked out after
deducting gross income; all possible working expense, outgoings, interest on the capital invested
etc. The net profit is multiplied by Year’s Purchase to get the capitalized value. In such cases, the
valuation may work out to be high in comparison with the cost of construction.
Valuation based on cost
In this method, the actual cost incurred in constructing the building or in possessing the property
is taken as basis to determine the value of property. In such cases, necessary depreciation should
be allowed and the points of obsolescence should also be considered.
- Development Method of Valuation

This method of Valuation is used for the properties which are in the underdeveloped stage
or partly developed and partly underdeveloped stage. If a large place of land is required to
be divided into plots after providing for roads, parks etc, this method of valuation is to be
adopted. In such cases, the probable selling price of the divided plots, the area required for
roads, parks etc and other expenditures for development should be known.
If a building is required to be renovated by making additional changes, alterations or

improvements, the development method of Valuation may be used
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5.2.6 Method of Valuation
Introduction
Many road administrators are considering or actively trying to implement asset management
systems. The main driver behind these initiatives is the public requirement to safeguard the
investment of taxpayers. Asset management (AM) systems are inherently linked to a certain level
of uncertainty created through both the asset valuation method and the infrastructure
performance models. To mitigate this uncertainty, it is recommended to link asset management
with well-developed component management systems, e.g., pavement management system,
bridge management system, rail management system, etc. These should be based on the life
cycle management principle. The topics of pavement performance modeling method, calculation
of residual life expectancy of pavement and bridges are described in this article in an informative
manner to provide background for the road asset value calculation method which is the main part
of the article. One of the main objectives of the asset management is the asset valuation. Asset
valuation is used to calculate the current and future value of an asset. Asset management systems
must be built on systems that work with robust values that can be accurately predicted. If a
parameter, on which asset valuation is based, cannot be predicted throughout the asset lifecycle
with a comfortable level of certainty, the accuracy of the asset management system will be too
inaccurate to be of use. The precondition of reliability and completeness of data needed for a
working road asset management has been pointed out in several studies. Refs. [6–8] Road
administrators are unable to adequately build an argument for a funding increase with subjective
systems or systems that arbitrarily simplify complex technical aspects of asset deterioration and
structural and material fatigue. The description of the road asset value calculation method that
utilizes these complex technical aspects is the main part of the article. Arbitrary or subjective
guess-based expert systems used in the calculation of assets value can be viewed by the
stakeholders and government authorities as unreliable or outright misleading. The asset value
calculation methods described in the following topic should produce objective funding claims
and performance indicators of a road network administrator. It has been widely recognized that
the implementation of the asset management is often an expensive and resource-intensive task .
The output of the method is programs for funding requirements based on asset performance
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related to demands of the society and road users. It also defines requirements for an optimal fund
allocation for the prevention of asset value decline of road infrastructure objects based on their
technical condition. The technical condition is based on diagnostics and residual life expectancy
calculation of objects such as roads, bridges, culverts, etc. Subsequently, alternatives for
rehabilitation technology are evaluated with the use of the optimization decision-making
methods and the benefit analyses including Cost-benefit analysis. CBA uses pavement
performance models (PPM) based on degradation functions . The equations for the asset value
calculations and PPM were created by the authors appointed by the national road network
manager. This would not have been possible without a complete road database maintained by the
administrator for well over 20 years. This database should contains long-term measurements of
pavement serviceability and bearing capacity. This allows for the creation of degradation
functions and residual service life calculations.
 Asset Management Principles and Rules

Asset management is subject to operational and accounting regulations of given country.
For instance, in the European Union, this should be carried out following the Regulation
of the European Parliament on the European system of national and regional accounts in
the European Union . This regulation defines road assets in the structure shown in Table
1.
Table 1 Road Infrastructure: Asset structure
Asset management is about managing a road administrator’s resources more similar to a

business. This business-like approach requires adhering to the principles of the business
economy during the road infrastructure asset management processes. Stakeholders (road
users, taxpayers, politicians) need to be treated similar to customers with emphasis on
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economics and finance. That means a shift in thinking from the traditional engineering
approach to approach focused on the satisfaction of customer expectations and more
sustainable solutions.
Its definition, AM is an integrated set of processes and systems designed to achieve

optimal and cost-effective use of assets over their lifetime, including needs identification,
procurement, operation and development. It includes an economic and financial
evaluation of comparisons between alternative investment options.
AM is a dynamic process. As assets wear out over time, their wear and tear manifest
influencing the serviceability of the asset, its operational capability and the quality of
service provided to the customer. These factors, in addition to the actual physical
degradation that eventually leads to inevitable replacement and related replacement costs,
constitute depreciation of the asset value. . To prolong the asset life cycle, enable reliable
planning and evaluation of resource allocation, system methods are incorporated into the
asset management methodology, in particular the Pavement management system, Life
cycles cost analysis, PPM, CBA and many others.
The implementation of AM within the road administrator also requires the creation of a
database system (road databank, asset inventory, etc.). Data collection storing and
analyzing should utilize modern technologies such as geographic information systems
(GIS) and spatially enabled management systems.
Implementation of AM into the structure of road administrator’s organization differs by

the level of organization’s maturity to adopt AM. Gap analysis can help to determine the
position of the organization.
Gap analysis can help to determine the position of the organization, but generally, road
administrators are usually required to follow these steps:
- Creation of asset structure,

- Implementing asset management policy,
- Implementation of an asset management information system,
- Creation of asset structure,
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- Assessment of the current state of existing assets,
- Proposal of future requirements on assets, development program and resource
planning,
- Monitoring and evaluation of assets condition and performance and adherence to
the development program,
- Implementation of system solutions and measures to achieve the optimal state of
assets.
Calculation of Asset Value
Calculation of asset value, i.e., asset valuation is the process of determining monetary
value which translates infrastructure condition and its impacts on stakeholders into
monetary terms as public wealth or equity. Basic asset valuation techniques are cost-
based. For long-life infrastructure, this value gives a good representation of what is being
spent on an asset omitting the effect of the periodic maintenance and necessary repairs on
the actual condition of the asset. More advanced asset valuation methods take into
account the actual value for the stakeholders in terms of their socio-economic benefits
and value for actual road users. Equations (1)–(4) can be used for these advanced asset
valuation techniques as road asset value of:
- Community society benefits.

- Road system performance.
The assessment of community benefits values the level of transport service available to
the stakeholders. These stakeholders are road users but also the public directly affected
by services provided by traffic on the valuated asset. These services include generation of
capital, providing clientele to services, development of the cities and regions, and the
protection of the environment.
The assessment of road system performance evaluates the road category and its capacity;
it takes into account the road geometric parameters, traffic intensity, and traffic safety.
The calculation of the asset value based on its technical condition is a method similar to
the Depreciated Replacement Cost (DRC) method. The improvement provided by here
presented method is that the depreciation is based on the exact determination of the
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operational serviceability and structure asset condition. The quantification of operational
serviceability and structure asset condition is carried out with the use of pavement
performance models and residual life expectancy, which is calculated as resistance to
fatigue of pavement construction and paving materials. These advanced concepts are
explained in later chapters, but the gist is that pavement operational serviceability is the
ability of pavement to ensure safe and economical road traf?c; residual life expectancy is
the technical condition of the pavement expressed as the ability of the road to bear the
traffic load.
 Performance-Based Asset Value

Performance-based asset valuation means that the road assets are valued in
terms of their services and socio-economic benefits to the community. These
benefits are achieved by road asset performance ensuring safe and economic
traffic.
o Value of the Community Benefits

The proposed asset value of community benefits is created by the
transport services provided by the road infrastructure to the
community’s wellbeing and prosperity. These services include
transportation to work, travel, medical accessibility, emergency
responder accessibility, communal services, etc. In addition,
transportation asset availability and a certain required level of asset
performance can be required to fulfill international agreements or
commitments. Road asset availability and performance may also
reduce environmental impacts of traffic and can help to develop a
region through the attraction of investors and developers by fulfilling
their logistic requirements.
The value of community benefits is produced by the mere existence

of an asset and its transportation significance, but it is heavily
influenced by the serviceability—traffic capacity, geometric
parameters, speed restrictions, and ride quality.
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The value of the community benefits of an asset is calculated by
comparing its current condition against its ideal condition. The
following method is recommended for the comparison:
1. DRC calculation of the existing asset;
2. Calculation of the acquisition cost of a new asset with the

ideal parameters, this may be a complex reconstruction and
modernization of the existing asset or construction of a new
ideal asset that will compete with the existing evaluated asset
(bypass, highway alternative, etc.);
3. Calculation of the difference between the DRC of the

evaluated existing asset and construction costs of the new ideal
asset.
The proposed method should be used to forecast asset value in the

future. The precondition is to be able to predict asset performance
during the asset life cycle and the exact length of the life cycle by
calculation of the residual service life of the road. This is elaborated
in detail in later chapters. The ratio of the residual service life of the
valuated asset to the theoretic service life of a new ideal asset is a
coefficient that has to be used to multiply DRC of the valuated asset.
Value of community benefit is the sum of discounted annual cash

flows during the evaluating period which is usually the asset life
cycle. Annual cash flow is the sum of annual benefits produced by the
asset improvement and the difference between the DRC and
purchasing price of a new ideal asset.
The proposed calculation of the asset value of community benefits is

shown in Equation (1)
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NPVCB = net present value of community benefits ,
Bt (a-b) = community benefits as a difference between scenario (a) no

complex reconstruction and modernization or a new asset and (b)
complex reconstruction and modernization or a new asset “do
something” (b) in year “t”,
APt = acquisition price in “do something” scenario in year “t” [ ],
MCt = maintenance cost increase in “do something” scenario in year

“t” [ ],
u = discount rate [%],
Tzp = year of the beginning of the life cycle [year],
T = evaluation of individual years of the life cycle [years].
o Value of Road Asset Performance

The performance of a road asset has a value related to the traffic
capacity, geometric parameters, speed restrictions, and ride quality.
This asset performance should ensure smooth, economic, and safe
traffic flow during the road life cycle.
The proposed calculation of economic efficiency is calculated the

same way as described in the above Section , however, instead of
community benefits, only road user costs are considered. The value of
road system performance will be always lesser than the value of the
community benefits since the value of the community benefits
includes the value of road system performance.
192
NVP SRP Net present value of community benefits ,
RUB(ab) = road user benefits as a difference between scenario a—no

complex reconstruction and modernization or a new asset and b—
complex reconstruction and modernization or a new asset “do
something” (b) in year “t”
APt = acquisition price in “do something” scenario in year “t”,
MCt = maintenance cost increase in “do something” scenario in year

“t” [ ],
u = discount rate [%],
Tzp = year of the beginning of the life cycle [year],
T = evaluation of individual years of the life cycle [years].
These road system performance benefits are tied with the road users’
benefits and their travel time costs, vehicle operating costs, and
accident costs. These costs are demands monetized for travel time,
fuel costs, lubricant costs, vehicle wear, etc. Additional external
environmental costs such as emissions, noise and others may be
included.
User costs are heavily influenced by traffic intensity, geometric

parameters, intersections, pavement degradation, etc. We propose that
the user cost calculation before and after the recovery is performed
following national CBA guidelines such as European Commission
guideline or software solutions such as the Highway Development
and Management Model (HDM-4).
193
 Calculation of Value Based on the Technical Condition
The technical condition of road infrastructure can be evaluated based on
parameters that define a road’s operational capability; therefore, value based
on technical condition can be called the technical condition value of the asset.
Operational capability is the ability of the road to perform the required

operational functions. It is the condition and quality of the asset. The criteria
of operational capability include road unevenness, surfacing defects, and skid
resistance.
Technical condition is the ability of the road to withstand traffic loads.

Technical condition is expressed as a level of wear compared to the asset’s
theoretical pristine condition. For roads, this is the difference calculated as the
residual bearing capacity or residual service life of pavement as described in.
o Calculation of Value Based on the Technical Condition

The technical condition of road infrastructure can be evaluated
based on parameters that define a road’s operational capability,
therefore, value based on technical condition can be called the
technical condition value of the asset.
Operational capability is the ability of the road to perform the

required operational functions. It is the condition and quality of the
asset. The criteria of operational capability include road
unevenness, surfacing defects, and skid resistance.
Technical condition is the ability of the road to withstand traffic

loads. Technical condition is expressed as a level of wear
compared to the asset’s theoretical pristine condition. For roads,
this is the difference calculated as the residual bearing capacity or
residual service life of pavement.
NPVOC = net present value of operational capability,
194
UCDN = total annual road user costs for “do nothing” scenario in
year t,
UCDS = total annual road user costs for “do something” scenario in
year t,
kDEG = degradation coefficient (incremental or absolute depending

on the pavement performance model),
kGAADT = annual average daily traffic growth coefficient.
UCDN and UCDS is the annual sum of road user costs categories of
all vehicle types on a road section (a road asset usually consists of
several homogenous road sections) for given scenario. For
maintenance and repair evaluation needed for calculation of asset
operational capability value, these consumptions are best related to
changes expressed by the international roughness index (IRI).
Changes in road user cost can be calculated using proprietary
software solutions such as HDM-4 or by simplified models where
road user cost increase coefficients are derived from IRI changes
as shown in Equation (4).
UCz,i,j,k = user costs of type “z” (fuel, oil, maintenance, etc.), in

year “i” of vehicle type “j” on section “k”,
ACz,i,j,k, IRI=1 = average consumption of type “z”, in year “i” of

vehicle type “j” on section “k” or IRI = 1 m km1 -1, [(l, hours, %
tires, % cars etc.) *],
UCz,j = unit cost of type “z” for vehicles of type “j” [ *(litre, hour,
tyre, car)-1],
195
kIRI = road user cost coefficient for IRI in the year “I”.
o The Value of the Construction—The Technical Condition

The proposed value of the construction—technical condition, i.e.,
construction value is an economically expressed value related to the
ability of the asset (road structure, bridge) to withstand traffic load.
This value is needed exclusively for the asset manager, i.e., not the
user due to optimal asset management related to the construction of the
road, bridge, etc.
The current value is defined by calculating the current acquisition

price which is reduced by the coefficient of wear of the structure. This
is expressed as a ratio of the residual life to the designed life.
VCC = value of an asset in current technical condition,
AAPPC = acquisition price of the asset in a pristine condition,
RLE = residual life expectancy [year],
DLE = designed life expectancy [year].
The proposed calculation of the current design value of an asset in

relation to the optimal value, i.e., projected life can be expressed by
Equation (6).
CVR = is the ratio of the current value of the asset to the current
acquisition price of the asset in pristine condition [%].
196
o Degradation Calculation
The key element of the proposed asset value calculations are the
PPM’s. PPM is used to mathematically express the surface
properties of pavements and their deterioration in relation to road
construction, climatic and traffic effects. The road user costs (see
Equation (4)) are directly proportional to pavement degradation
and, if everything else is being equal (traffic, maintenance, climatic
conditions etc.), this holds true also for the road user benefits which
make a difference between road user costs in “do something” and
“do nothing” scenarios in Equations (1) and (2).
Calculation of benefits RUB (a-b) in Equation (1) and NPV OC in

Equation (2) produces the difference between user costs in both
scenarios over the life expectancy of the asset.
However, the benefits over the course of the asset life cycle are not
linear due to the changing properties of the asset’s operational
capability. Therefore, it is necessary to know the course of these
changes, which is possible through PPM. Knowledge of PPM thus
determines the accuracy of the calculation of the asset value.
We propose that PPM should be derived either from experimental

measurements on experimental sections or from long-term
measurements on real pavements. For road asset managers with
incomplete road data inventory, accelerated pavement testing may
provide reliable PPM within the course of several months (Figure 1)
The actual pavement degradation expressed by the PPM is
sometimes also called the pavement degradation model or
degradation curves. Mathematically expressed degradation curves
are used to describe the changes in pavement conditions during its
life cycle. These mathematical functions express a relationship
197
between changes in pavement serviceability, and the time or the
number of load repetitions. The general shape of the degradation
curves is usually described as an exponential function, which is a
rule that gives independent variables (time or load repetitions) a
value of a dependent variable (pavement serviceability parameter),
see Equation (7).
P (n) = relative value of pavement serviceability parameter

depending on the number of load repetitions “n”,
n = number of past load repetitions at the time of evaluation,
N = estimated total number of load repetitions until the limit value

of the parameter is reached,
A = coefficient expressing the type of pavement and the types of

materials used 0 <A < 1,
B = exponent expressing the degradation, for individual parameters,

values in interval 0.2–6.0.
Figure 5. 1 Accelerated pavement tests facility

constructed and operated at University of Žilina (a)
198
and Accelerated pavement testing facility track
position (b).
At the APT experimental section, degradation curves were derived

for a given type of pavement construction, climatic conditions and
traffic load. Individual degradation functions were derived for the
parameter of skid resistance, transverse and longitudinal
unevenness.
An example of the transversal unevenness degradation function is

shown in Figures 5.2and 5,3.
Figure 5. 2. Degradation functions of transverse

unevenness dependence of Rut depth parameter in
relations to Number of crossings.
199
Figure 5.3. Degradation function—relative value of
transverse unevenness
In Figure 5.2 there are shown three degradation functions of the Rut
depth obtained experimentally by pavement operational
serviceability modeling; such functions can be evaluated as
dependence of Rut depth parameter in relation to number of
crossings.
In Figure 5.3 there is an evaluation of the same parameter of Rut

depth as a next step of operational serviceability modeling where a
growth of the Rut depth parameter is evaluated as a relative value
by Equation (7). Such degradation function of Rut depth obtained
from APT was already partly presented in several studies.
Road asset managers with mature and thorough road data

inventories may prefer using historical data to create PPM. This is
called long-term pavement performance monitoring (LTPPM).
Reliability may be higher or lesser than PPM created from APT
depending on the LTPPM data matrix. Loading intensity and
climate conditions data are well known in APT testing, LTPPM
usually provides only general estimation of these data.
200
As an example, we provide functions based on LTPPM of 15 years
on real pavement sections monitored by the national administrator.
Based on the analysis of these stored values, it was possible to
mathematically derive the following functions (Equations (8)–(13)).
Longitudinal unevenness of trunk roads:
- time dependence T
Where T is time parameter of monitoring, y is longitudinal

unevenness parameter and x is a ratio of elapsed life of construction
at the moment of evaluation and the total time of life cycle for
which the pavement section was designed (reaching the limit state
at the end of the pavement life cycle).
- load dependence N
Where N is a parameter of heavy axles loading application, y is

longitudinal unevenness parameter and x is a ratio of applied load
cycles at the moment of evaluation and the number of loading
cycles for which the pavement section was designed (reaching the
limit state at the end of the pavement life cycle).
Transverse unevenness of trunk roads:
- Time dependence T
201
- Where T is Time parameter of monitoring, y is transverse
unevenness parameter and x is a ratio of elapsed life of construction
at the moment of evaluation and the total time of life cycle for
which the pavement section was designed (reaching the limit state
at the end of the pavement life cycle).
- Load dependence N
Where N is parameter of heavy axles loading application, y is

transverse unevenness parameter and x is a ratio of applied load
cycles at the moment of evaluation and the number of loading
cycles for which the pavement section was designed (reaching the
limit state at the end of the pavement life cycle).
Skid resistance of trunk roads:
- time dependence T
Where T is Time parameter of monitoring, y is skid resistance

parameter and x is a ratio of elapsed life of construction at the
moment of evaluation and the total time of life cycle for which the
pavement section was designed (reaching the limit state at the end
of the pavement life cycle).
- Load dependence N
Where N is parameter of heavy axles loading application, y is skid

resistance parameter and x is a ratio of applied load cycles at the
202
moment of evaluation and the number of loading cycles for which
the pavement section was designed (reaching the limit state at the
end of the pavement life cycle).
o Calculation of the Residual Life Expectancy

The degradation of an asset at any given time during its life cycle
ranges from 1.0- pristine condition to 0.0 - emergency failure
condition. The technical condition can be calculated as the residual
life expectancy and its proportion to the projected life, see Equation
(5). The calculation of the residual life expectancy itself is relatively
difficult and differs for different types of assets (road, bridge, other).
Similar to the calculation of degradation curves, the accuracy of the
residual life expectancy calculation depends heavily on the accuracy
of the input values.
Pavements
We advocate that the calculation of the residual life expectancy

should be based on the methodology of pavement structure design,
calculation of the current physical and deformation characteristics of
pavement structure layers, and experimental measurement of fatigue
characteristics of asphalt mixtures of the pavement surfacing. The
basic relationship for the assessment of pavement construction is
shown in Equation (14).
To use this equation for the calculation of the residual life

expectancy of existing pavement, it is necessary to derive the actual
203
modulus of elasticity and strength, especially in the surfacing layers.
These are estimated during diagnostics of the pavements’
loadbearing capacity utilizing a falling weight deflect meter. FWD
produces an impact on the pavement, which induces a flexible
reaction. This reaction can be graphically represented by a defection
bowl. The shape of this bowl shows the defection ordinates of
individual sensors attached to the pavement. Based on the so-called
back-calculation, the actual modulus of elasticity of the individual
pavement layers is alculated. The back-calculation is a calculation in
the layered elastic half-space model Subsequently, based on the
modulus of elasticity, the stresses in the individual layers of the road
structure are calculated.
The calculation of the residual life expectancy itself is derived based

on the fatigue coefficients a and b in Equation (15). For the
calculation of the fatigue coefficients, it is necessary to
experimentally derive the parameters of fatigue characteristics which
express pavement resilience against repeated loading. The test is
carried out by repeated bending of a pavement surfacing layer test
sample. Fatigue tests were carried out according to the European
standard. The results of the fatigue test are in the form of a Wöhler
diagram shown in Figure 4.
Calculation of maximum design axle load repetitions that the

pavement can withstand can be determined from Equation (16).
204
For the implementation of this method into asset value calculation
described in previous chapters, measurements were performed for
the standard asphalt modified surfacing layer: AC 16 L PMB 45/80-
75. The resulting shape of the deflection curve and the achieved
parameters are shown in Figure 4 and Table 2. .
Table 5. 2. Fatigue parameters of AC 16 L PMB 45/80-75
Where ε6 is strain level required for 1 million cycles fatigue life; b is

slope parameter of fatigue line, B is falling gradient of the fatigue
line, B = 1/b and A0 is value of intercept of samples related strain
(log ") and samples loading cycles count (log N).
205
Figure 5. 4. Wöhler’s diagram.
5.2.6.1 Methods for calculating depreciation
1. Straight line Method
2. Constant percentage method
3. Sinking Fund Method
4. Quantity Survey Method
Straight Line Method
In this method, it is assumed that the property losses its value by the same amount every year. A
fixed amount of the original cost is deducted every year, so that at the end of the utility period,
only the scrap value is left.
Annual Depreciation, D = (original cost of the asset – Scrap Value)/life in years
For example, a vehicle that depreciates over 5 years, is purchased at a cost of US$17,000, and
will have a salvage value of US$2000, will depreciate at US$3,000 per year: ($17,000? $2,000)/
206
5 years = $3,000 annual straight-line depreciation expense. In other words, it is the depreciable
cost of the asset divided by the number of years of its useful life.
Constant Percentage Method or Declining balance Method
In this method, it is assumed that the property will lose its value by a constant percentage of its
value at the beginning of every year.
Annual Depreciation, D = 1-(scrap value/original value)1/life in year
Quantity Survey Method
In this method, the property is studied in detail and loss in value due to life, wear and tear,
decay, and obsolescence etc, worked out. Each and every step is based is based on some logical
grounds without any fixed percentage of the cost of the property. Only experimental value can
work out the amount of depreciation and present value of a property by this method.
207
208
Assessment

1. Which one of the followings is not the main purpose of valuation?
a) For buying or Selling Property b) For taxation
c) Security of loans or Mortgage d) For quality assurance
2. Which one of the following is the factor that valuation is not depends on?
a) The type of structure and durability b) size and shape
c) Width of roadways d) The traffic volume
3. _____________________________ is the total cost of construction including land, or the

original total amount required to possess a property.
a) Book value b) Capital cost c) Market Value d) Deprecation
4. ______________________________ the method of valuation by which the depreciation of a

property is assumed to be equal to the annual reducing fund plus the interest on the fund for that
year, which is supposed to be invested on interest bearing investment.
a) Sinking Fund Method b) Direct comparison with the capital Value
d) Valuation based on cost d) Rental Method
5. __________________________________ method of valuation is the actual cost incurred in

constructing the project or in possessing the property is taken as basis to determine the value of
property.
a) Sinking Fund Method b) Direct comparison with the capital Value
d) Valuation based on cost d) Rental Method
6. and socio-economic benefits to the community.
209
a) Performance-based asset valuation b) Sinking Fund valuation
c) Rental valuation d) Capital cost valuation
7. The performance of a road asset has a value related to ________________________________
a) The traffic capacity b) Geometric parameters c) Speed restrictions d) All
8. User costs are heavily not influenced by ____________________________________.
a) Traffic intensity b) Geometric parameters
c) Pavement degradation d) Pedestrians movement
9. ___________________________________ is the ability of the road to perform the required

operational functions.
a) Pavement degradation b) Operational capability c) Technical condition d) All
10. The value of community benefits does not depend on one of the followings?
a) Serviceability b) geometric parameters c) pedestrian movement d) ride quality.
210
1. Define the following terms :-
 Market Value
 Book Value and
 Capital cost
2. What is Rental Method of Valuation? Give brief explanation
3. What do we mean by Valuation based on profit? Give brief e explanation
4. What is Asset management? Give brief explanation
5. Define the term asset valuation. Give brief explanation
6. What do we mean by Performance-Based Asset Value? Discuss briefly
7. What is the Value of the Construction—The Technical Condition?
8. Explain the following methods of calculation of depreciation.
 Straight line Method

 Constant percentage method
 Sinking Fund Method
 Quantity Survey Method
211
212
References
[1]. https://lnct.ac.in/wp-content/uploads/2020/03/notes-on-valuation.pdf
[2]. https://kanchiuniv.ac.in/coursematerials/estimation,costingandvaluation.pdf
[3]. http://ndl.ethernet.edu.et/bitstream/123456789/29511/1/37.pdf
[4]. https://egyankosh.ac.in/bitstream/123456789/28777/1/Unit-7.pdf
[5]. https://egyankosh.ac.in/bitstream/123456789/28775/1/Unit-6.pdf
[6]. https://www.scribd.com/document/242596694/Methods-of-Valuation-of-a-Building
213
214
Part II Practical work
Week 1 Prepare a report by collecting information regarding to
how the client or the consultant ask proposal from contractors that
includes Request For Proposal (RFP) and a Request for Quote
(RFQ).
Session plan 1
1. Learning objectives
 Prepare Request for Proposal (RFP)

 Prepare Request for Quote (RFQ) that includes
- Procurement Management Plan
- Statement of Work (SOW)
- Other planning outputs like (schedules, estimates, constraints, assumptions,
2. Motivation
 Outputs through Question and Answer; repetitive discussion and instruction on the
preparation of RFP and RFQ
3. Expectations or Outcomes
 Explaining the basic terminologies regarding to RFP and RFQ.

 Prepare report on what the students do regarding to the preparation of RFP and RFQ.
 Prepare RFP and RFQ for a particular selected project
4. Equipment
 None
215
5. Practice contents/Activities/Safety
 Select a project and prepare RFP and RFQ

 Preparing report about their visit by including all the necessary information gathered
while their visit.
6. Assessments
 Assessment is done based on the evaluation sheet.

7. Independent practice/Follow-up activities
Learning through assignment and project
8. Review/Reflection
 Review the outcome of the practice, improvement measure and previous reflected
opinions.
216
Practical work 1 Prepare a report by collecting information regarding
to how the client or the consultant ask proposal from contractors that
includes Request For Proposal (RFP) and a Request for Quote (RFQ).
The report should include the information listed below:
1) A Request for Proposal (RFP) is a document used to solicit proposals from prospective
contractors. A proposal is a document prepared by a contractor when there are different
approaches for meeting client needs.
Example:
If an organization wants to construct a new construction project, it can write and issue an RFP so
contractors can respond with proposals. Contractors might propose various types of works to
meet the organization’s needs. Selections of winning contractor are often made on a variety of
criteria, not just the lowest price. Developing an RFP is often a time-consuming process.
Organizations must plan properly to ensure that they adequately describe what they want to
procure, what contractors to include in their proposals, and how they will evaluate proposals.
2) A Request for Quote (RFQ) is a document used to solicit quotes or bids from the prospective
of contractors. A bid, also called a tender or quote (short for quotation), is a document prepared
by contractors to provide pricing for standard items that the client has clearly defined.
Organizations often use an RFQ for solicitations that involve specific items.
a) Procurement Management Plan
It is a document that describes how the procurement processes will be managed, from developing
documentation for making outside purchases or acquisitions to contract closure. Like other
project plans, the contents of the procurement management plan will vary with project needs.
b) Statement of Work (SOW)
217
It is a description of the work required for procurement. It should be clear, concise, and as
complete as possible. It should describe all services required and include performance reporting.
Many organizations use samples and templates to generate SOW.
The basic outline or template for a contract SOW
I. Scope; describe the work to be done in detail
II. Location of work: describe where: the work should performed
III. Period of performance: specify when the work is expected to be started and finished
IV. Deliverables schedules: list specific deliverables, describe them in detail, and specify when
they are due.
V. Applicable standard: specify any company or Industry specific standard that relevant to
performing the work
VI. Acceptable criteria: describe how the client will determine if the work is acceptable
VII. Special requirements: specify any special requirements minimum degree of experience level
of personnel and other requirements
c) Other planning outputs
Other details within the project plan which includes:
- schedules,
- estimates,
- constraints,
- assumptions,
218
Evaluation Table
Evaluation Score* Remark
Working Principle
Procedures
followed to prepare
RFP and RFQ
Result The quality of
Evaluation overall content of
the RFP and RFQ
Conclusion and
recommendation
Applications
Participation in the
field practice
Communication
Work with field experts
Evaluation Attitude towards
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
* Score (5-point rating): Excellent 5, Good 4, Fair 3, Bad 2, and Worst 1
219
220
221
Week II Exercise how to arrange specification document by
referring different written specification of different projects
Session plan 2
 Select appropriate project for the gathering information for the arrangement of
specification document by referring different written specification of different projects
 Arrange specification document for the following road construction works
 Clearing and grubbing
 Removal of structures and obstructions
 Excavation and embankment
 Structure excavation and backfill for selected major structures
By using the appropriate specification system (or Master Format) to develop one
specification section for the project they have chosen by considering the following
elements:
- What are the project requirements for the specifications section you have
selected?
- Document the products you have selected to be used in this project.
- Analyze the characteristics of each product that meet the requirements for the
project. Note the reasons why you selected on product over another (e.g., cost,
lead time, aesthetics, etc.).
- Compare the information in General of the specification section you have written
and the information in General Requirements of the office master specification
system.
2. Motivation
222
arrangement of construction specification documents by using appropriate specification
system (or Master Format).
 Explaining the basic terminologies regarding to construction specification

 Prepare report on what the students do regarding to the preparation of construction
specification
 Prepare construction specification for a particular selected project
4. Equipment
 None
 Select a project and prepare construction specification for the selected types of road
construction works.
while their visit.
6. Assessments

Learning through assignment and project work
opinions.
223
Practical work II Exercise how to arrange specification
document by referring different written specification of
different projects
For this practical work, choose a project outside your Institute for which you have access to
detailed information. The project can be of any size and should be substantially complete.
First, review the drawings for the project you have selected. Note the design concept and how the
road pavement systems that are specified for the project will impact the design. Speak with the
project architect or project designer if appropriate to gain additional insight into the goals for the
project.
Next, select one of the following pavement systems:

Use the appropriate specification system (or Master Format) to develop one specification section
for the project you have chosen.
Consider the following:
 What are the project requirements for the specifications section you have selected?
 Document the products you have selected to be used in this project.
 Analyze the characteristics of each product that meet the requirements for the project. Note
the reasons why you selected on product over another (e.g., cost, lead time, aesthetics, etc.).
 Compare the information in General of the specification section you have written and the
information in General Requirements of the office master specification system. What is the
relationship of these two sets of information? Using the narrative as a reference, are there
any suggestions you could make to your office to improve these general requirements
sections. Why?
224
Share the specifications section you have developed with your supervisor or mentor and provide a
written explanation of your product selection decisions. Also document in writing your analysis of
the relationship between the General condition and General Requirements as well as any
improvements that may be considered.
225
Evaluation Table
Working Principle
Procedures
followed to arrange
specification
document
The quality of
Result
overall content of
Evaluation
arrangement of
specification
document
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
226
227
228
Week III specification writing
Session plan 3
 Prepare construction specification for the following road construction works

 Clearing and grubbing.
2. Motivation
preparation of construction specification by using the standard specification format.
 Explaining the basic terminologies regarding to construction specification.

 Prepare construction specification for the selected items of road construction work
 Prepare report on the developed construction specification and discuss with their
supervisor about the required correction to be made.
4. Equipment
 None
 Selecting appropriate project for the preparation of construction specification.

while their visit.
 Prepare Construction specification.
6. Assessments
229

Learning through assignment and project
opinions.
230
Practical work III specification writing
Specification of earthwork
The content of the specification
The specification should include the following elements:

For clearing and grubbing the following contents should be included
- Description of the work

- Definitions
- Construction Requirements
- Measurement
- Payment
For removal of structures and obstructions the following contents should be included

- Measurement
- Payment
For excavation and embankment the following contents should be included

- Definitions.
- Measurement
- Payment
For structure excavation and backfill for selected major structures

- Definitions.
- Measurement
231
- Payment
Start the codding with 201 for clearing and grubbing then proceed to removal of structures and
obstructions, excavation and embankment and structure excavation and backfill for selected
major structures with 202, 203, and 204 respectively.
232
Evaluation Table
Working Principle
Procedures
followed to write
construction
specification
The quality of
Result
overall content of
Evaluation
the developed
construction
specification
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
233
234
235
Week IV Write sample detail specification for a particular
Road construction project.
Session plan 4
 Prepare construction specification for the following road construction works

 Subbase construction
 Base course
 Binder course
1. Wearing course
By using the appropriate specification system (or Master Format) to develop detail
specification section for the project they have chosen by considering the following
elements:
- What are the project requirements for the specifications section you have
selected?
- Document the products you have selected to be used in this project.
- Analyze the characteristics of each product that meet the requirements for the
project. Note the reasons why you selected on product over another (e.g., cost,
lead time, aesthetics, etc.).
- Compare the information in General of the specification section you have written
and the information in General Requirements of the office master specification
system.
2. Motivation
writing of detail specification by using appropriate specification system (or Master
236
Format).
 Explaining the basic terminologies regarding to construction specification

 Prepare report on what the students do regarding to the preparation of deail construction
specification
 Prepare construction detail specification for a particular selected project
4. Equipment
 None
 Select a project and prepare detail construction specification for the selected types of road
construction works.
while their visit.
6. Assessments

opinions.
237
Practical work IV Write sample detail specification for a
particular Road construction project.
Detail specification on flexible pavement construction
The specification should include the following elements:
 Subbase construction
 Base course
 Binder course
 Wearing course
For sub-base course the following contents should be included:-
- Definitions
- Measurement
- Payment
For Base course the following contents should be included:-
- Definitions
- Measurement
- Payment
For Base course the following contents should be included:-
- Definitions
238
- Measurement
- Payment
For Wearing course the following contents should be included:-
- Definitions
- Measurement
- Payment
Start the codding with 301 for clearing and grubbing then proceed to removal of structures and
obstructions, excavation and embankment and structure excavation and backfill for selected
major structures with 302, 303, and 304 respectively.
239
Evaluation Table
Working Principle
Procedures
followed to write
detail construction
specification
The quality of
Result
overall content of
Evaluation
the developed
detail construction
specification
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
240
241
Week V Perform measurements for new road construction
project elements (collect profile and cross-section data) in
the field for the purpose of preparation of quantity
surveying
Session plan 5
 Read Road construction drawings

 Gather necessary profile, cross-section and horizontal alignment data for area and
volume calculation of a certain road roadway section.
While you are working with searching for profile, cross-section and horizontal alignment data
ask yourself the following questions”:-
 What are the requirements for searching and recording cross-section, profile and
horizontal alignment data for area and volume of earth work?
 What are those necessary data required for the calculation of area and volume for
a given roadway section?
 What types of standard formats are most appropriate for data collection of cross-
section, profile and horizontal alignment data?
 What should be the procedure for data collection?
 How can I analyze the data to produce necessary elements for area and volume
calculation of earth work?
2. Motivation
 Outputs through Question and Answer; repetitive discussion and instruction on standard
format and data collection procedure for profile, horizontal alignment and cross-section
date collection.
242
 Explaining the procedures for data collection; explain basic terminologies regarding to
profile , horizontal alignment and cross-section data collection;
4. Equipment
 Road construction Drawings

 Scale
 Standard formats
 Select a project and gather relevant data on cross-section, horizontal alignment and
profile elements.
while their visit.
6. Assessments

opinions.
243
Practical work V - Perform measurements for new road
construction project elements (collect profile and cross-
section data) in the field for the purpose of preparation of
quantity surveying
The measurement date should include the following elements:
 Measurement along the horizontal alignment of the center line of the

roadway
 Measurement on the profile section drawing
 Measurement from the cross-section drawing
 Prepare standard format for recording the measurement data
For this practical work, choose a project outside your Institute for which you can
gather sufficient detailed alignment, profile and cross-section data for your task.
The project can be of any size.
- Use the standard format to record the profile and cross-section data
- Consider the following while selecting the site for your practical work;-
 Make sure that the site you select can provide you sufficient
horizontal and profile data
 The length of the road should be minimum of 500 meter
 End with all the necessary information for area and volume
calculation
Prepare report about your task by including tables and figures which will help for
volume and area calculation.
244
245
Evaluation Table
Working Principle
Procedures
followed to take
measurement from
profile and cross
Result section drawings.
Evaluation The quality of
overall content of
the task done.
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
246
247
248
Week VI Calculate end area of cross section and volume
from the cross-section and profile data
Session plan 6
 Read profile and cross section data which are necessary for area and volume
calculation
 Calculate area of cross section for all stations
 Use end area method for calculation of area of cross section at every station
 Calculate volume by using the calculated cross section
While you are working with the calculation of area of cross section and volume calculation ask
yourself the following questions”:-
 What are those necessary data required for the calculation of area and volume for
a given roadway section?
 How can I determine the height of cut and fill at every section from profile and
cross section drawing?
 What types of standard formats are most appropriate for volume collection from
cross-section, profile and horizontal alignment data?
 What should be the procedure for volume and area collection?
 What will be the end required results
2. Motivation
 Outputs through Question and Answer; repetitive discussion and instruction on standard
format for area and volume calculation and the procedure to be followed during area and
volume calculation
 Explaining the procedures for area and volume calculation; explain basic terminologies
regarding to area and volume calculation of earth work.
4. Equipment
249
 None
 Calculate area and volume of earth work from data obtained during measurement work.
while their visit.
6. Assessments

opinions.
250
Practical work VI - Calculate end area of cross section and
volume from the cross-section and profile data
Your work should include the followings:-
 Read properly your data from the format you have prepared during your measurement
work in the previous work
 Take all the necessary data to perform area and volume calculation
 Determine height of cut and height of fill for each cross section from the cross section
drawings
 Calculate the area of cut cross section
 Calculate the area of fill cross section
 In area calculation use average end area method
 Finally calculate the volume of the road section you considered for your task by using the
standard format
The task that you will perform is based on the measurement that you obtained from your
practical work done in Practical work V.
Follow all the necessary steps in area and volume calculation and show all the necessary steps.
251
252
Evaluation Table
Working Principle
Procedures
followed to
calculate area and
volume from
measurement the
Result
date.
Evaluation
The quality of
overall content of
the task done.
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
253
254
Week VII Prepare mass haul diagram and balance the earth
work of a particular road section based on an existing data.
Session plan 7
At the end of the course, students will be able to understand that:
 Plot the earthwork profile based on the calculation of earthwork in your previous
 Understand that net cut values are plotted above the X-axis (positive Y value)
 Understand net fill values are plotted below the X-axis (negative Y value)
 Calculate volume by using the calculated cross section
 Presents a picture of the earthwork requirements
 When a horizontal line intersects two or more points along the curve, the
accumulated volumes at those points are equal
 A negative value at the end of the curve indicates that borrow is required to
complete the fill
 A positive value at the end of the curve indicates that a waste operation will be the
net result
Sample for plotting of mass haul diagram
255
2. Motivation
 Outputs through Question and Answer; repetitive discussion and instruction on mass haul
diagram plotting and the procedure to be followed during plotting of mass haul diagram.
 Explaining the procedures for the plotting of mass haul diagram; explain basic
terminologies regarding to mass haul diagram
 Plot the mass haul diagram of earthwork for the given road cross section.
 Draw the balancing lines.
 Determine earthwork volumes within each balanced section
 Determine whether there is an overall balance, waste or if borrow is required
4. Equipment
 None
 Plotting the mass haul diagram

 Draw balancing line
 Balance the earthwork
6. Assessments

opinions.
256
Practical work VII -Prepare mass haul diagram and balance
the earth work of a particular road section based on an
existing data.
To construct the Mass Haul Diagram manually do the followings:
 Compute the net earthwork values for each station, applying the appropriate shrink factor
 Calculate net cuts have a positive value, net fills have a negative value
 The value at the first station (origin) = 0
 Plot the value of each succeeding station which equals the cumulative value to that point,
i.e., the value at i = net cut/filla+b+c+…i
After drawing the mass haul diagram try to understand the following Characteristics of Mass
Curve:
1-Rising sections of the mass curve indicates areas where excavating exceeds fill, whereas
falling sections indicate where fill exceeds excavation.
2-Steep slopes reflect heavy cuts & Fills, while flat slopes indicate areas fro small amount of
earthwork.
3-The difference in ordinates between any two points indicate net excess of excavation over
embankment or vise versa.
4-Any horizontal line dawn to intersect two points within the same curve indicates a balance of
excavation (cut) and embankment (fill) quantities between the two points.
5-Points of zero slope represent points where roadway goes from cut to fill or from fill to cut.
6-The highest or the lowest points of the mass haul diagram represents the crossing points
between the grade line (roadway level) and natural ground level.
To analyze the Mass Haul Diagram manually do the followings :
 Identify the resulting balanced sections, which are bounded by points that intersect the X-
axis
 Draw a horizontal line midway between the peak or valley and the X-axis. The scale
length of that line is the average length of haul within that balanced section
257
 Determine earthwork volumes within each balanced section
 Determine whether there is an overall balance, waste or if borrow is required
Prepare general report about your work.
258
Evaluation Table
Working Principle
Procedures
followed to draw
an analyze the
mass haul diagram.
Result
The quality of
Evaluation
overall content of
the task done.
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
259
260
Week IX Visit project offices for acquiring knowledge and
skill on procurement methods
Session plan 9
At the end of the course, students will be able to understand that:
 Prepare a background knowledge on the different methods of procurement

 How to gather information from projects regarding to procurement methods
 Compare the difference between the ideal and practical implementation of
procurement methods
 Write report on the their visit regarding to procurement method
2. Motivation
 Outputs through Question and Answer; repetitive discussion and instruction on

procurement methods and procedure to be followed during selection of procurement
methods.
 Explaining about the different methods and procedure of procurement

 Acquiring information from projects regarding to procurement methods
 Evaluating the project implementation of procurement methods
 Identify the gap of the project while implementing procurement method
 Prepare report about their visit
4. Equipment
 None
 Prepare background ideas on procurement methods

 Acquire information from projects on procurement methods
261
 Identify the observed gap
 Prepare report
6. Assessments

opinions.
262
Practical work IX Visit project offices for acquiring
knowledge and skill on procurement methods
The practical work on week 8 should be started with acquiring the background knowledge from
different references and your note about the procure met and the different methods and
procedures including the following methods:
- Traditional / Conventional Procurement Method

- Design and Build Procurement Method
- Management Contracting Method
- Construction Management Procurement
 Visit the construction project near your area to get the practical implementation of
procurement method
 Compare the practical knowledge and skill you get from your visit with the concept and ideas that
you get from different literatures and your note.
 Discuss your comparison in detail
 Conclude weather the project that you visit follows the basic principles and procedures when it
select and implement the right procurement of not.
 Finally prepare complete report about your visit and your conclusion.
263
264
Evaluation Table
Working Principle
Procedures
followed to prepare
the background
knowledge.
Result
The quality of
Evaluation
overall content of
the task done.
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
265
266
267
WEEK X.XI and XII Prepare a procurement plan for a
given project.
Session plan 10
 preparing procurement plan

2. Motivation

preparation of procurement plan.
 Forecasting
 Developing the procurement work plan
 Initiating the procurement process
 . Requirement Step
 Requisition Step
 Solicitation -Selection Step
 Contract Administration Step
 Contract Closeout Step
4. Equipment
 None
 Forecasting
 Developing the procurement work plan
 Initiating the procurement process
 . Requirement Step
 Requisition Step
268
 Solicitation -Selection Step
 Contract Administration Step
 Contract Closeout Step
6. Assessments

opinions.
269
Practical work X Prepare a procurement plan for a given
project.
While preparing procurement plan follow the following steps:-
FORECASTING
Forecasting is the first, and arguably the most important step in the procurement process because
it provides the opportunity to link the procurement plan to the overall business strategy and
objectives of the ministry/project and the national budget. When forecasting, consideration
should be given to the following:
 Defining your procurement requirements;

 Assessing the capacity for implementation;
 Determining the time frame of project implementation;
 Presenting realistic three-year budget forecast (external/counterpart funds) for project
implementation;
 Seeking approval at the project levels and the department of Finance
 Identifying all items that have to be procured;
 Creating sound financial justification for procurement.
DEVELOPING THE PROCUREMENT WORK PLAN
There are three steps involved in developing a procurement work plan:
 First, define the items you need to procure;

 Next, define the process for acquiring those items;
 And finally, schedule the timeframes for delivery.
The Procurement Plan should include six key Steps:
- Requirement
- Requisition
- Solicitation – Selection
- Contract Administration
- Closeout
270
INITIATING THE PROCUREMENT PROCESS
1. Requirement Step
1. Requirement Step (This process should begin at leas Requirement Step t 6 months prior to the
start of the Step 2 below)
 Prioritize the procurement/work plan.

 Conduct market analysis to gain awareness of the products/services that are available for
procurement.
 Perform a make vs. buy analysis.
 Estimate investment costs of the Procurement Plan.
 Set clear and reasonable timelines for delivery or implementation.
 Based on the Procurement Plan, obtain authorization to proceed from appropriate levels
of approval authority (e.g., Procurement, Finance, IT, agency head, etc.).
At this Step the appropriate Project Plan approvals for a Project should be obtained (e.g.,
ensure that sufficient funds are available and approved for the project and that agency
management officially supports and or approves the project)
 Prepare Statement of Work (SOW) which clearly identifies and documents the details of
the work to be performed. The SOW should contain the following characteristics:
- A detailed statement of the purpose, objective or goals to be undertaken by the
contractor.
- The job classification or approximate skill level of the personnel to be made
available by the contractor.
- An identification of all significant material to be developed by the contractor and
delivered to the client.
- An identification of all significant materials to be delivered by the client to the
contractor.
- An estimated time schedule for the provision of these services by the contractor.
- Completion criteria for the work to be performed.
- The name or identification of the contractor’s personnel to be assigned.
- The contractor's work hours required to accomplish the purpose, objective or
goals.
- The contractor's billing rates per work hour (as provided in the contract
documentation).
- Contractor's total cost
271
2. Requisition Step
 Verify that necessary specifications have been provided.

 Establish evaluation criteria. Write clear, concise definitions for each criterion to
facilitate a good understanding of its meaning.
 Develop a detailed, mathematically sound scoring plan that explains how
proposals will be evaluated, and provides specific meaning of the scoring
methodology. (For example, if a certain criteria is worth X points, a description
should follow of what the points mean.)
 Determine if pre-solicitation conference will be used.
 Develop a change request management plan.
 Develop a vendor payment plan.
 Prepare solicitation package.
3. Solicitation -Selection Step
 Issue the Request for Proposal document (RFP) via advertisement or through
selective tendering.
 Answer questions received from vendors in a public forum.
 If necessary, prepare for vendor product demonstrations, or oral presentations.
 Form an Evaluation Team.
 Receive and evaluate Technical Proposals (by Evaluation Team)
 The Evaluation Team Should:
 Gather the facts,
 Develop objectives (min-max positions);
 Seller minimum willingness to accept,
 Buyer maximum willingness to pay.
 Evaluate each vendors competitive position,
 Define your strategy and tactics,
 Perform a complete cost analysis,
 Receive and evaluate financial proposals using scoring method to select Best
Value.
 Make selection recommendation to the responsible Procurement Officer.
 Procurement Officer reviews recommendation and drafts contract then forwards to
the respective Donor or relevant authority for review and approval.
 Agency awards and signs contract, then issues procurement order once the
requisite approval is obtained.
4. Contract Administration Step
272
The purpose of the Contract Administration Step is to ensure that the contractor (vendor) and the
products or services delivered comply with the contract requirements. Each project should be
assigned a Contract Administrator, who will perform the following functions:
 Interpret specifications.
 Ensure that quality of the product or service is maintained.
Manage product warranties.
 Manage sub-contractors (if required by the contract).
 Direct change management:
o Administrative changes,
o Budgetary changes,
o Contract modification (if necessary) and associated change order (get proper
approvals),
o Manage smaller, incidental contracts for work associated with the project.
 Resolve contract disputes:
o Part of the work may be accepted, or
o All of the work may be rejected, or
o Work may be accepted with provisions for corrections in the future.
 Completion of the project:
o Ensure that all project requirements are complete per contract,
o Product is technologically out of date (contract language should guarantee
current technology),
 Terminate the contract:
o Default of contract:
 Contractor fails to perform any provision of the contract including:
- Failure to deliver by scheduled date,
- Failure to make progress (endangers performance of the contract).
o Termination for Convenience (e.g., project canceled)
o Document contract problems and file formal vendor complaint with Agency
Procurement Office, e.g., liquidated damages, opportunity cost, etc. (if necessary).
273
 Manage contract risk associated with the project.
5. Contract Closeout Step
 Verify product and services meet acceptance criteria.

 Complete fiscal activities:
o Approve final payment (notify appropriate accounts payable office),
o Update project and activity records,
o Close procurement order (notify appropriate procurement office),
o Update contract fil
 Archive contract file (include completed Procurement Plan with Project Plan).
274
275
276
Evaluation Table
Working Principle
Procedures
followed to prepare
procurement plan.
Result The quality of
Evaluation overall content of
the task done.
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
277
278
WEEK XIII.XIV and XV Prepare a document for design
and construct procurement
Session plan 11
 Preparing a document for design and construct procurement

2. Motivation

preparation document for design and construct procurement
 An overview section
 RFP and technical proposal
 The General Requirements for the project
 The design scope
 The technical specifications
 The contract forms and boiler plate
4. Equipment
 None
Preparation of the following items
 An overview section
 RFP and technical proposal
 The General Requirements for the project
 The design scope
279
 The technical specifications
 The contract forms and boiler plate
6. Assessments

opinions.
280
Practical work 11 Prepare a document for design and
construct procurement
The D-B document should include:-
 The design requirements,

 The design standards,
 The allowable design exceptions,
 The design services required,
 The project constraints related to traffic,
 Utilities,
 The environment and Right-of-way,
 The construction requirements and
 The construction management services required. The
RFP may include:
 Restrictions as to the type of bridges,

 Pavements,
 Construction components, etc.,
The D-B Package is typically organized into six sections:
1. An overview section which contains the project advertisement and summary of the project,
2. The RFQ and Technical Proposal requirements containing the submittal requirements and
selection criteria to be used,
3. The General Requirements for the project describing the goals, objectives, incentives and
operational constraints for the project,
4. The design scope describing the design standards, criteria and references the project is to be
designed to,
281
5. The technical specifications which include the project special provisions, stored specs, and
other needed construction specifications.
6. The contract forms and boiler plate such as EEO requirements, federal contracting
specifications, contract affidavits, and the bid schedule.
OVERVIEW SECTION
This section contains the public notice or project advertisement and an introductory section.
Besides the regular boiler plate that goes into any public notice, the public notice should also
state project’s estimated cost of design and construction and contain a selection process calendar
detailing the key milestone dates for selecting the Design-Builder.
STATEMENT OF QUALIFICATIONS AND TECHNICAL PROPOSAL

REQUIREMENTS
The purpose of the SOQ process is to narrow the number of interested Proposers who will submit
Technical Proposals down to a maximum of five but no less than three.
The SOQ should be divided into five key areas:
 Understanding and Approach

 Project Team
 Firm’s Capabilities
 Quality Program, and
 Safety Program
Technical Proposals
The objective of the Technical Proposal is to evaluate how each Proposer intends to design and
build the project.
The Technical Proposal shall include:
 Preliminary plan sheets showing typical sections and dimensions,

 Horizontal and vertical alignments,
 Structure locations and identifications,
 Roadway layout concepts, showing survey layout data and dimensions,
 Signing, striping and lighting concepts, traffic control and phasing schemes,
282
 Other design features as needed,
 Design and construction schedules,
 Organizational charts,
 Resource utilizations tables,
 Resumes of key personnel if changed from the SOQ*,
 Any sketches or renderings,
 Design exceptions,
 Completed forms and certificates as required by the D-B Package.
Price Proposal
The D-B Package shall include well-defined Price Proposal requirements. D-B projects are bid
lump sum and are paid through a payout schedule based on major items or tasks.
ENERAL REQUIREMENTS
The General Requirements section of the D-B Package is similar to general requirements of a
design-bid build project. It contains special requirements and unusual specifications for the
project that are usually outside the scope of standard Specifications.
Traffic control, public involvement, and quality management are project requirements that come
up on almost all projects and are usually found in the General Requirements.
DESIGN SCOPE
Unlike traditional design-bid-build project where a consulting engineer is retained to do the

design work and a contractor the construction, a D-B project is designed and built by a single
firm under contract with the Department. Furthermore, this firm must give the Department a hard
dollar amount for both design and construction.
TECHNICAL SPECIFICATIONS
The D-B Package shall add any applicable specifications not found in the Standard
Specifications or other referenced technical publications.
CONTRACT FORMS, BID SCHEDULE AND BOILERPLATE
The contract forms and boiler plate such as, federal contracting specifications, contract
affidavits, and the bid schedule
283
284
285
Evaluation Table
Working Principle
Procedures
followed to prepare
document for
design construct
Result procurement
Evaluation The quality of
overall content of
the task done.
Conclusion and
recommendation
Applications
field practice
Communication
getting knowledge
and skill in the
field
Time used
Time (180 Min.)
(1 per 10 min.)
Total /45
286
Technical and Vocational Training Institute (TVTI)
Yeka Subcity, Woreda 9, Addis Ababa, Ethiopia
Phone: 011-646-4455, Fax: 011-646-5675/5678
E-mail: info@etu.edu.et, Website: http://www.etu.edu.et
287

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This textbook was developed by TVTI faculties through KOICA

project “PMC Service for Capacity Development for TVET

የኢፌዲሪ ቴክኒክና ሙያ ስልጠና ኢንስቲትዩት

FDRE Technical and Vocational Training Institute

Contract, specification and quantity

Technical and Vocational Training Institute (TVTI)

Aklilu Tefera ( M.Sc.)

Road Construction Technology

2.8.2 Reinforced concrete and allied works:.........................................................................52

2.8.4 Steel reinforcement.......................................................................................................61

3.5.2 Calculating Earthwork..................................................................................................90

3.5.3 Mass Haul Diagram......................................................................................................95

3.5.4 Balancing Earthwork Using the Mass Haul Diagram...................................................97

3.5.5 Methods of Balancing Earthwork.................................................................................98

3.5.6 Bill of quantities and cost estimation n Road Construction.......................................106

4.3 Traditional Procurement....................................................................................................156

4.3.3 Cost reimbursement....................................................................................................158

4.3.4 Key points to consider with traditional procurement.................................................159

4.3.5 Advantages and disadvantages of traditional procurement........................................160

4.3.6 When should traditional procurement be used?..........................................................160

4.4 Design and Construct Procurement....................................................................................161

4.4.2 Advantages and disadvantages of design and construct procurement........................163

4.4.3 When should design and construct procurement be used?.........................................164

4. 5. Methods of selecting the contractor for Design & construct procurement......................165

4.5.2 Management Procurement..........................................................................................167

4.5.3 Design and manage.....................................................................................................169

4.5.4 Advantages and disadvantages of management procurement....................................170

4.6.5 Key points to consider with management procurement.............................................171

5.2.2 Book Value.................................................................................................................181

5.2.3 Capital cost.................................................................................................................181

5.2.4 Sinking Fund Method.................................................................................................182

5.2.5 Direct comparison with the capital Value..................................................................183

5.2.6 Method of Valuation...................................................................................................184

Department Road Construction Technology

Course title Contract Specification and Quantity Survey

Course consultant and contractor;

Pre-requisite Engineering drawing for Road

Target group 4th year Road Construction Technology

Chapter Two: Specifications

11 4.4 Design and Construct  . 5.1.10, None

Construction Industry can be categorized into three major sectors:

iii. Buildings and Other Physical Infrastructures.

What is the difference between Transport and communication?

What is Road transport?

a) Less Capital Outlay

b) It involve Door to Door Service

c) Provides Service in Rural Areas

e) It is Suitable for Short Distance

f) There is Lesser Risk of Damage in Transit

Disadvantages of road transport

B. Vulnerable to Accidents and Breakdowns

C. Unsuitable for Long Distance and Bulky Traffic

D. The speed of motor transport is comparatively slow and limited

E. The road transport is comparatively less organized.

F. Driving regulations can cause delays

G. Parking issues challenge

g) It is Feeder to other Modes of Transport

The contribution of transport and communication in economic development

a) It promotes internal and external trade

b) It promotes economic use of natural resources

c) It promotes mobility of skilled labour-force

d) It promotes diversification of markets

f) It promotes reduction in unemployment