ACCOUNTING FOR

WASTE
Reporter: Khing Harold Asentos
Group 4
Accounting for Waste

Quantities derived during the

takeoff process are often not
the same quantities that are
purchased when the work is
actually in process. The
difference between what to
include in the takeoff and
estimate and what is actually
installed is called waste.
 Accounting for Waste
Net Quantities Gross Quantities Pricing
- The material quantities before - The material quantities including Is done with the gross quantities
waste is added waste

Example:

The area of a floor to be covered with plywood is 300SF but we know that plywood is sold in full sheets, which
are each 32 SF, 300/32 = 9.375 sheets. Since only full sheets are to be sold, so 10 sheets must be bought
• Accounting for
waste allows us
to get an accurate
idea of costs,
which then
influence the
pricing.
 Waste may need to be added for any of three primary
reasons:

To adjust to the standard sales unit As anticipated waste resulting To achieved a specific assembly
from handling lap, as in shingles or rebar
Adjusting for Standard Sales Units

• It is important to be attentive to other types of materials

with similar waste requirements. Any material with a
standard sales unit larger than needed for the task
qualifies as having a waste component. Construction
materials sold in lengths, rolls, bundles, boxes, or sheets,
and fluids sold in gallons, drums, or barrels, should be
reviewed for waste.
Waste Resulting from Handling

• Waste can occur as a result of handling or placement,

which is fairly common. Even with careful planning and
execution of a task, waste occurs.
• Generally, the more the materials are handled, the more
waste can be expected.
Waste Required for Lap

• Often, additional materials are required to satisfy a specific lap in

order to maintain continuity of a particular feature.
• Lapping include concrete reinforcement, siding materials such as
clapboard and shingles, and roofing underlayment such as bismuthine
membranes and felt paper.
• Allowing for lap does not meet the strict definition of waste, since
the material is actually used in the project, but lap requires additional
materials, so the same principle applies.
 Economy of
Scale
• There are other considerations that,
while not specifically considered
waste, have an impact on the
amount of materials included
within the takeoff. Price breaks
based on total quantities, referred
to as economy of scale, should also
be taken into account.
• This is a simple economic principle
that can be defined for our
purposes as securing a better unit
price for a large quantity of a
material purchased.
 Compaction
• Other types of tasks require
additional materials, though they
do not fit the standard definition of
waste. Take, for example, soil
placement. When soils are
imported to a site, placed, and
compacted, there is a portion of the
in-truck, or loose volume, that is
“lost” due to compaction. This is
expected and must be accounted for
in the takeoff process. Compaction
is accounted for by adding a
percentage to the volume needed.
THANK YOU
Reporter: Khing Harold Asentos
Group 4