TAKORADI TECHNICAL UNIVERSITY

DEPARTMENT OF BUILDING TECHNOLOGY

BUILDING ESTIMATING
 PREPARATION OF THE ESTIMATE

 This unit will look at the following

1. Explain what all-in rate is
2. Compute all-in rate for construction
works (labour and plant)
3. Factors affecting materials input
4. Factors affecting labour output
5. Factors affecting plant output
PREPARING OF THE ESTIMATES
The process of preparing the
estimates is generally in the
following sequence:
1. Establishing of all-in-rates for
labour and plant
2. Building-up of unit rates for the
bill items
3. The project overheads
ALL-IN-RATE FOR LABOUR

 Labour rates are based on statutory

minimum daily wages which vary with
trades and skills levels.
 All-in-dailyrate of any operative can
be said to be the total cost of the
employer-contractor for employing the
services of the operatives for
Operative Day”s output
Components/Constinuents of All-in-rate

1. Basic daily wage

2. Statutory additions (ssnit,rent,leave etc)
3. Trade union requirements (tools
allowance, uniform, protective cloths etc.)
4. Social expenses (canteen subsidy, sick
pay, death benefits, tnt etc)
5. Unforeseen expenses covering bad
weather day, idleness and overtime.
 Computation of all-in-daily rate starts
with calculating effective working days
per year.
 Cal. Effective working days per year using
 Holidays………13
 Annual leave days…..20
 Casual or sick leave….7
 Bad weather days……..10
All-in-rate for Plant
 This
is the total cost of employer, in
employing the services of item of plant for
One Plant Day”s output
Basic components

1. Daily hiring rate (including the

operator)
2. Delivery installation. Maintenance and
removal expenses
3. Running expenses for fuel, oil and
other consumables
4. Administrative charges for co-
ordination
Advantages of Hiring Plant
1. Plant can be hired for a minimum
period where necessary. The firm is
not bound to find work for plant when
idle.
2. The firm does not engage skilled
fitters and special staff responsible for
plant operation and maintenance.
Advantages of Plant Ownership
1. Convenience-Plant can be used when
needed
2. Plant can be purchased for particular
purposes
3. Flexibility of pricing projects
4. Flexibility of operation
5. Tax allowance, grants and subsidies
Disadvantages of Plant Ownership
1. Difficulties in keeping up to date with
equipment
2. Ties up working capital
3. The cost of maintaining plant
4. Thecost of plant when not in use
(depreciation)
5. The cost of transporting to and from
sites.
To Hire or Own: Factors to
Consider

1.Financial standing of the

firm
2.The amount of work for
the plant
Outright purchase components

1. Capital cost and interest

2. Depreciation cost
3. Insurance and licenses
4. Operators wages
Operating cost components

1. Renewal and repairs

2. Transport to and from sites as
well as installation
3. Utilization during its economic
life
Running expenses and consumables

1. Fuel
2. Resale value
3. Overheard expenses
Calculations (63-66)
FACTORS AFFECTING MATERIALS COST/INPUT

The cost of materials vary

considerably depending upon
1. The firm of suppliers and
2. The purchaser
Factors Affecting Cost of Materials
(Wastage)
Wastage of materials varies from
firm to firm. Wastage depends on
1. The extent of skills of buyer
2. The efficiency of site foremen
and
3. The firm in general.
Classification of Material Waste
There are two (2) main types of
material waste.
Namely

1. Avoidable waste and

2. Unavoidable waste
Avoidable Waste
1. Pilfering
2. Carelessness
3. Demolishing sub-standard works
4. Wrong utilization or preparation
5. Mistakesin ordering (quality and
quantity)
6. Improper storage
7. Ineffective supervision
Unavoidable waste

1.Cutting waste
2.Damage in transit
3.Stock pile or residual waste
4.Utilization waste
FACTORS AFFECTING LABOUR OUTPUT

There are two (2) major factors

affecting labour output
Namely:

1.External factors and

2.Human factors
External Factors
1. Type of supervision
2. Climatic condition
3. Site condition/health/safety
4. Site location
5. Employer/Firm Environment
6. Operatives skill level: Team spirit
7. Familiarity with works: Physique
8. Equipment
Human Factors

1. Personal imperfection: Job

satisfaction
2. Operatives skill level: Team spirit
3. Familiarity with works: Physique
4. Equipment
5. Personal imperfection: job
satisfaction