CECOST430

CONSTRUCTION COST
PROJECT COST DERIVATION
AND
UNIT COST DERIVATION
 TOTAL CONSTRUCTION PROJECT COST

Total Construction Cost means the sum of site costs,

structures costs, general requirements, bond premiums,
and contractor overhead and profit.
Sum of costs of each project elements gives the total
construction cost of the project.
UNIT COST METHOD OF ESTIMATION
 UNIT COST METHOD OF ESTIMATION

Unit cost method of estimation in construction projects

starts with dividing a project into various components or
elements for the purpose of cost estimation. The cost of
each of the project's components or elements are assessed
and their cost estimation is calculated.
 2 VARIATIONS OF ESTIMATION

1. BY ITEM OF WORKS
works are divided into major components of works
-CONCRETING, FORMWORKS, STEELWORKS
2. BY STRUCTURAL MEMBERS
works are divided into major structures of the project
- footings, column pedestals
Two main Types of Cost in Construction
Project
 Types of Cost Construction Project Costs

I. DIRECT COST II. INDIRECT COST

The costs and The costs, unlike
expenses that are direct costs, is not
accountable directly directly accountable
on a facility, function for a particular facility,
or product product or function.
Indirect costs can be
either variable or
fixed.
 Types of Cost Construction Project Costs
I. DIRECT COST II. INDIRECT COST
-MATERIAL COST EXAMPLE:
- LABOR COST - CARI
-EQUIPMENT COST -OVERHEAD
-CONTINGENCY
-MISCELLANEOUS
- PROFIT
- TAX
-escalation cost
 SAMPLE BOQ
SEE SEPARATE SPREADSHEET FOR BOQ
Contract
ID: 22GO0095
Contract
Construction of Multi-Purpose Building, Bacolod City Police Office, Negros Occidental
Name:
Location
of the
Contract: Bacolod City, Negros Occidental

BILL OF QUANTITIES
UNIT PRICE AMOUNT
ITEM NO. DESCRIPTION UNIT QTY.
(Pesos) (Pesos)
804(1)b Embankment (from Common Borrow) cu.m 890.50 -
804(4) Gravel Fill cu.m 80.42 -
CIVIL, MECHANICAL, ELECTRICAL AND
PART II
SANITARY/PLUMBING WORKS
PART B PLAIN AND REINFORCED CONCRETE WORKS
900(1)c1 Structural Concrete (Class A, 28days) cu.m 195.95 16,454.76 3,224,309.76
UNIT COST DERIVATION
UNIT COST DERIVATION
- in finding the unit cost of every pay item of works stated in
the bill of quantities, you need to compute the direct cost
first.
- compute and add the indirect cost and divide with the
given quantity of the item.
UNIT COST ANALYSIS OF CONCRETING
WORKS
Contract ID: 22GO0095
Contract
Name: Construction of Multi-Purpose Building, Bacolod City Police Office, Negros Occidental
Location of
the
Contract: Bacolod City, Negros Occidental

BILL OF QUANTITIES
UNIT PRICE AMOUNT
ITEM NO. DESCRIPTION UNIT QTY.
(Pesos) (Pesos)

PART II CIVIL, MECHANICAL, ELECTRICAL AND

SANITARY/PLUMBING WORKS

PART B PLAIN AND REINFORCED CONCRETE WORKS

900(1)c1 Structural Concrete (Class A, 28days) cu.m 195.95 14,557.31 2,852,505.60

 COMPUTATION OF MATERIAL COST
UNIT COST ANALYSIS

Project CONSTRUCTION OF BLEACHERS BRGY. IV COVERED COURT

Location San Carlos City, Negros Occidental

ITEM NO. 900(1)c1

DESCRIPTION Structural Concrete (Class A, 28days)

QUANTITY 195.95 cu.m
I. DIRECT COST
A.
MATERIA
LS
Description Quantity Unit Unit Cost Total Cost

CEMENT 2,352.00 BAGS 250.00 588,000.00

SAND 98.00 CU 1,400.00 137,200.00
GRAVEL 196.00 CU 1,300.00 254,800.00

Sub - Total P 980,000.00

 COMPUTATION OF LABORCOST
UNIT COST ANALYSIS

Project CONSTRUCTION OF BLEACHERS BRGY. IV COVERED COURT

Location San Carlos City, Negros Occidental

ITEM NO. 900(1)c1

DESCRIPTION Structural Concrete (Class A, 28days)

QUANTITY 195.95 cu.m
I. DIRECT COST
B. LABOR
Description No. Days Rate Cost

ENGINEER 1 4 1,000.00 4,000.00

SKILLED
WORKER 30 4 600.00 72,000.00
UNSKILLED
WORKER 40 4 455.00 72,800.00

Sub - Total P 148,800.00

NOTE:
YOU CAN GET THE INFORMATION REGARDING THE
NECESSARY LABOR FORCE NEEDED FROM YOUR
PERT CPM AND MANPOWER SCHEDULE
 COMPUTATION OF EQUIPMENT COST
UNIT COST ANALYSIS

Project CONSTRUCTION OF BLEACHERS BRGY. IV COVERED COURT

Location San Carlos City, Negros Occidental

ITEM NO. 900(1)c1

DESCRIPTION Structural Concrete (Class A, 28days)

QUANTITY 195.95 cu.m
I. DIRECT
COST
C.
EQUIPMENT
Description Quantity Unit Unit Cost Cost

TRANSIT
MIXER 2 4 10,500.00 84,000.00

Sub - Total P 84,000.00

NOTE:
YOU CAN GET THE INFORMATION REGARDING THE
NECESSARY EQUIPMENTS NEEDED FROM YOUR
PERT CPM AND EQUIPMENT SCHEDULE
 WHAT WILL BE THE UNIT COST?
UNIT COST ANALYSIS
Project CONSTRUCTION OF BLEACHERS BRGY. IV COVERED COURT
Location San Carlos City, Negros Occidental
ITEM NO. 900(1)c1
DESCRIPTION Structural Concrete (Class A, 28days)
QUANTITY 195.95 cu.m
I. DIRECT COST
A. MATERIALS
Sub - Total P 980,000.00
B. LABOR
Sub - Total P 148,800.00
C.
EQUIPME
NT
Sub - Total P 84,000.00
I - TOTAL DIRECT COST (A+B+C) P 1,212,800.00

II - INDERECT COST a) Overhead/Contingency/Misc.(10% of I) 0.10 121,280.00

b) Profit (10% of I) 0.10 1,212,800.00

c) VAT (12 % OF ITEM 1, ITEM IIA AND IIB) 0.12 305,625.60

TOTAL ITEM COST P 2,852,505.60
TOTAL UNIT COST P 14,557.31
OTHER EXAMPLES ON CONCRETING
COSTING
 PROBLEM NO. 1

A SIMPLE HOUSE IS SUPPORTED BY 6 COLUMNS.

EACH COLUMS HAS A VOLUME OF 0.315 CU.M. OF
CONCRETE. CALCULATE THE MATERIAL COST IF YOU
USE 3000 PSI CONCRETE MIX. THE COST OF CEMENT
PER BAG IS Php 245, SAND = Php 900/CU.M. AND
GRAVEL COST IS Php 1200/CU.M.
 PROBLEM NO. 2

EACH COLUMN ON PROBLEM NO. 1 USES THE

FOLLOWING:
2” X 2” COCO LUMBER = 47.66 bd.ft
1/4” thck ordinary plywood = 1 sq.m
if the cost of 2” x 2” x 8’ coco lumber = Php 86
and 1/4” thck oridnary plywood = PhP 388
Calculate the material cost using exact material quantity.
 PROBLEM NO. 3

IF THE TOTAL VOLUME TO BE EXCAVATED ON A

SIMPLE HOUSE IS 15 CU.M. CALCULATE THE
EXCAVATION COST IF A WORKER CAN EXCAVATE 0.8
CU.M. PER MAN-DAY AND ITS SALARY IS Php 395 PER
DAY.