Civil Eng. Dept.

GCOEJ

Estimating & Costing

Notes

By
Prof. Udayram Patil
Government College of Engineering
Jalgaon

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Civil Eng. Dept. GCOEJ

CE401 ESTIMATING AND COSTING SYLLABUS

Credit: 03
Evaluation Scheme: 15 ISE1 +15 ISE2 + 10 ISA + 60 ESE Total Marks: 100
Duration of ESE: 03Hrs

Approximate Estimate: Definition and necessity, general principles, methods of preparing

approximate estimates for buildings, roads, bridges, water supply scheme, drainage scheme, and
retaining wall
Detailed Estimate: Types of detailed estimate, purpose, data required for preparing detailed
estimate, factors to be considered during preparing detailed estimate, methods of taking out
quantities, abstracting, units of measurement
Building Cost: Building cost, provisional sum, centage charges, work charged establishment,
administrative approval, budget provision, technical sanction, different methods of execution of
minor works in PWD, like piece work, check list, day work, daily labour. introduction to
registration as contractor in the PWD
Building Estimate: PWD method and centre line method of taking out quantities, using is 1200
rules, estimate of load bearing residential building (1 BHK Only)
Specification: Definition & purpose, types of standard specification, red book, legal aspect,
drafting detailed specification with reference to material, quality, workmanship, method of
execution, mode of measurement and payment for major items like (excavation, stone/ brick
masonry, plastering, ceramic tile flooring, r.c.c. work only)
Analysis of Rates: Purpose and principles, importance of schedule of rates in cost estimates,
Rate analysis, factors affecting rate analysis, task work, market rate analysis, fixed, variable,
prime and supplementary cost, overhead cost
Valuation: Purpose of valuation, value and cost, types of value, factors affecting value of
property, net and gross return, free hold and lease hold property, sinking fund, depreciation,
capitalized value, annualized value, methods of valuation, rent fixation, valuation of old building
Text Books
1. Estimating and Costing in Civil Engineering, Theory and Practice, Datta B.N., UBS Publisher,
New Delhi, 28th edition, 2016.
2. Estimating, Costing Specifications & Valuation in Civil Engineering, Chakraborti M., UBS
Publisher, New Delhi, 25th edition, 2014.
3. Estimating, Costing and Valuation, Rangwala S. C., Charotar Publishing House, Anand, 17th
edition, 2015.

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Civil Eng. Dept. GCOEJ

CE406–ESTIMATING AND COSTING-LAB SYLLABUS

Credit: 01
Evaluation Scheme: 25 ICA + 25 ESE Total Marks: 50

1) Units of measurements of various Items of Civil Engineering Works / study of DSR, study
and use of check list of PWD for estimating of various building works
2) Approximate estimate of
i) Residential building. ii) Public building. iii) Industrial shed
iii) Elevated service reservoir iv) road and bridges
3) Prepare detailed estimate of a single storey (up to 2 bhk) load bearing structure by using
current DSR
4) Prepare detailed estimate of a framed residential double storey structure by using current DSR
and estimate of detailed quantities of steel reinforcement and prepare bar bending schedule
5) Detailed estimate of any two of following
i) Compound wall. ii) Septic tank. iii) Earth work in road / canal
6) Rate analysis of any ten items
7) Site visit (attached estimate and photographs) / study standard estimate of PWD or any civil
organization

Note: Any one of the above lab course content should be done using any estimating and costing
software/ prepare excel spread sheet.

– Internal Continuous Assessment shall support for regular performance of practical and
its regular assessment. In addition; it shall be based on knowledge acquired and record submitted
by student based on practical performed by him/her. The performance shall be assessed
experiment wise using internal continuous assessment format (S 10).
– The End Semester Exam for this course shall be based on oral examination to judge the
skills acquired by student. It shall be evaluated by two examiners out of which one examiner
shall be out of institute.

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Civil Eng. Dept. GCOEJ

ESTIMATING
Estimating is the technique of calculating or computing the various
quantities and the expected Expenditure to be incurred on a particular
work or project.

Estimating Costing

Quantity of Item × Cost of Item = Estimated Cost

“What is the purpose and necessity of studying this subject?” This is the
first question which arises in mind. The answer lies in the following
questions:-
(a) Has one got enough money to spend on the construction?
(b) Has one got ample time that one can wait for the completion of the
construction?
(c) Has one got resources that one can arrange any amount of desired
material to be used in construction?
Everyone has to know answers of above question, before starting the
construction of any project and we get those answers by estimating and
costing the given project

 Before taking up any work for its execution, the owner or builder
should have a thorough knowledge about the volume of work that can
be completed within the limits of his funds or the probable cost that
may be required to complete the proposed work.

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Civil Eng. Dept. GCOEJ

 It is therefore necessary to prepare the probable cost or estimate for the

proposed work.
 Otherwise, it may so happen that the work has to be stopped before its
completion due to the shortage of funds or of materials.
 So to avoid that we prepare the estimate.
 Besides the above, an estimate for any public construction work is
required to be prepared and submitted beforehand so that sanction of
necessary funds may be obtained from the authority concerned.

NEED FOR ESTIMATING:-

1. To give an idea of the cost of the work and hence its feasibility can
be determined i.e. whether the project could be taken up with in the
funds available or not.
2. To gives an idea of time required for the completion of the work.
3. To invite the tenders and Quotations and to arrange contract.
4. To control the expenditure during the execution of work.
5. To decides whether the proposed plan matches the funds available
or not.
6. To calculate the number of different categories of workers that is to
be employed to complete the work within the scheduled time of
completion.
7. To assess the requirements of tool, plants and equipment required to
complete the work according to the programmed.
8. To fix up the completion period from the volume of works involved
in the estimate.
9. To draw up a construction schedule and programmed and also to
arrange the funds required according to the programming.
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Civil Eng. Dept. GCOEJ

10. To justify the investment from benefit cost ratio.(for ideal

investment ,this ratio should be more than one)

ESTIMATING W.R.T. STAGES IN PROJECT

Preparing detailed
estimate

Multiple options for Implimentation

& Completion
building new hostel Final Selection

Selection

Solution Preparing Revised or

Preparing Approximate Supplementary estimate
and calculating B/C ratio if any changes in rate or
design
Problem

Need more
accommodation facility

PRINCIPLES (RULES) OF ESTIAMTE

1. The estimate must be accurate reflection of reality
2. It should include all items but nothing extra
3. It should be easy to understand
4. Unnecessary details should be avoided
5. It should be as close as possible to actual cost
6. Proper contingencies for unforeseen expenditure should be added
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Civil Eng. Dept. GCOEJ

APPROXIMATE ESTIMATE
An estimate prepared using approximate rate and quantity of material
without doing any detailed calculations is known as approximate estimate.
Why do we need approximate estimate?
1. To give rough idea of probable cost.
2. To make investment decision by using benefit cost ratio.
3. For administrative approval.
4. For valuation and rent fixation.
5. Ranking the alternatives.

cost of cost of
building road

cost of Cost of
land connecting
APPROXIMATE road
COST

Plinth Area Method

METHODS OF
APPROXIMATE Cubical Content Method
ESTIMATE
Service Unit Method

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Civil Eng. Dept. GCOEJ

PLINTH AREA METHOD

 It is prepared on the basis of plinth area of the building multiplied by
plinth area rate.
 Plinth area is the area occupied by the building at plinth level. It can
be easily calculated from the developed plan of the building.
 Plinth area rates are fixed from the cost of similar buildings
constructed in the same locality having similar specifications and
amenities.
 The rates are calculated by dividing the total cost of construction with
its plinth area. For example if total cost of a building is Rs. 2 lac and
its plinth area is 50 sq. m. then plinth area rate =2,00,000/50 =
Rs.4000/- per sq.m.
Total Cost of Building
 𝑃𝑙𝑖𝑛𝑡ℎ 𝑎𝑟𝑒𝑎 𝑟𝑎𝑡𝑒 =
Plinth area of building

 Using this rate as basis of the next construction, approximate or rough

cost of the proposal can be arrived at by multiplying the plinth area of
the proposed building with this plinth area rate.
 Cost of proposed building = Plinth area rate × Plinth area of proposed
building.
 In fixing the plinth area rate, careful observation and necessary
enquiries are made in respect of quality and quantity aspect of
materials and labor, type of foundation, height of building, roof, wood
work, fixtures, number of stores etc.
 If the building plan is not ready plinth area can be calculated by adding
30-40% to the carpet area.

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Civil Eng. Dept. GCOEJ

CUBE RATE / CUBICAL CONTENT METHOD

 This estimate is worked out on the basis of the cubical contents of
proposed building to be constructed and then applying to it the rate per
cubic meter.
 Cubical contents of a building = plinth area x height of the building.
 The height is taken from ground floor level to top of roof.
 Height or depth of footing, parapet and plinth is excluded.
 The cubic contents of the proposed building are multiplied with cubic
rates arrived at for the similar construction.
Total Cost of building
 𝐶𝑢𝑏𝑒 𝑟𝑎𝑡𝑒 =
Cubical Content of building

 Cost of Proposed building = Cube rate × Cubical content of proposed

building
 This method is generally used for multi-storied buildings.
 It is more accurate that the other two methods viz., plinth area method
and unit base method

SERVICE UNIT METHOD

 Some of the structures cannot be estimated or are not feasible to
estimate by using above methods of approximate estimate, thus this
type of structure are estimated by considering the purpose they are
built to be serve.
 For example a hospital is built to accommodate certain number of
beds/patients, a hostel is built to accommodate certain number of
students, a water tank is built to store certain amount (liters) of water
et cetera.

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Civil Eng. Dept. GCOEJ

 So for this types of structure we find out the rate of building with
respect to the service unit the building is built for.
 Service unit is the unit for the service a building is built for.
 For example for hospital service unit is bed, for water tank service
unite is liters etc.
Total Cost of building
 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝑢𝑛𝑖𝑡 𝑟𝑎𝑡𝑒 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑒𝑟𝑣𝑖𝑐𝑒 𝑢𝑛𝑖𝑡𝑠

 Cost of proposed building = Service unit rate × no. of service unit in

proposed building
 This estimates are very approximate and may vary to great extent
according change in shapes, size etc.

APPROXIMATE ESTIMATE OF ROAD, BRIDGE & CURVE

1. Approximate estimate of road is prepared by per km or per mile basis
Total cost of road
2. Rate for road construction =
Total length of straight road

3. This rate is calculated by considering road with similar specification,

width, thickness etc. or we can also use the standard rate given by
P.W.D.
4. Due the large difference in the construction cost, the cost of curves
and bridges are calculated separately.
5. The cost of curves and bridges is calculated on the basis of running
meter (per meter).
6. The cost for sub structure and super structure of road may be
calculated separately.
7. Total cost proposed road = Cost of straight road + cost of bridges +
cost of curves.
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Civil Eng. Dept. GCOEJ

APPROXIMATE ESTIMATE OF WATER SUPPLY SCHEME

8. Approximate estimate of water supply scheme is prepared by service
unit method.
9. The different water supply work may have different service unit.
10. E.g. For dam service unit is Hectare of area irrigated or per m3 of
water stored, for canal per kilometer or per hectares of area irrigated,
for water supply in city per connection or per building or per capita,
for overhead tank per liters of water stored etc.
11. Again according to the service unit and cost of previously build
project the service unit for proposed project is calculated and cost of
proposed project is calculated.

APPROXIMATE ESTIMATE OF DRAINAGE SCHEME

12. Approximate estimate of drainage scheme is prepared on basis of per
meter/kilometer (depending upon size of project) or by amount of
drainage/sewage water the scheme have to drain.
13. Again according to the service unit and cost of previously build project
the service unit for proposed project is calculated and cost of proposed
project is calculated.

APPROXIMATE ESTIMATE OF RETAINING WALL

14. Approximate estimate of drainage scheme is prepared on basis of per
running meter or in some cases amount of soil retained by the wall.
15. For amount basis analysis separate rate for surcharge and earth fill may
be calculated.

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Civil Eng. Dept. GCOEJ

16. For meter basis analysis separate rate for sub structure and
superstructure may be calculated
17. Again according to the service unit and cost of previously build project
the service unit for proposed project is calculated and cost of proposed
project is calculated.

NUMERICAL ON APPROXIMATE ESTIMATE

Plinth area method

1. Taking building A into consideration find out the approximate estimate
for building B, given that
 Cost of building A = 10 Lac
 Plinth area of building A = 500 sq.m.
 Deduction in plinth area for duct, opening etc. = 3 % of plinth area
 Extra cost for services = 6 %
 Contingencies = 3%
 Supervision charges = 5%
 Contractors profit = 4%
Solution:
Cost of building A
𝑃𝑙𝑖𝑛𝑡ℎ 𝑎𝑟𝑒𝑎 𝑟𝑎𝑡𝑒 =
Plinth area of building A
10,00,000
=
500
= 2000 rs/m2
Plinth area of building B = 400 sq.m

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Civil Eng. Dept. GCOEJ

Net plinth area after deductions = 400 – [(3/100) × 400] or 400 × 0.97
= 388 sq.m
Cost of building B = Plinth area rate × Plinth area of building B
= 2000 × 388
= 7, 76,000 /- rs.
Extra cost for services = (6/100) × 7, 76,000 or 7, 76,000 × 0.06
= 46,560 rs
Overall cost = Cost of building + cost of services
= 7, 76,000 + 46,560
= 8, 22,560/- rs
Contingencies = (3/100) × 8, 22,560 or 0.03 × 8, 22,560
= 24,677 rs
Supervision Charges = (5/100) × 8, 22,560 or 0.05 × 8, 22,560
= 41,128 rs
Total cost = 8, 22,560 + 24,677 + 41,128 = 8, 88,365 /- rs
Contractors profit = (4/100) × 8, 88,365 or 0.04 × 8, 88,365
= 35,534 rs
Final cost of building B = 8, 88,365 = 35,534
= 9, 23,899/- rs

Cubical content method

2. Taking building A into consideration find out the approximate estimate
for building B, given that
 Cost of building A = 50 Lac
 Plinth area of building A = 500 sq.m.
 Height of building A = 2 story with floor to floor height 3.1m

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Civil Eng. Dept. GCOEJ

 Plinth area of building B = 400 sq.m

 Height of building B = 3 story with floor to floor height 3.1m
Solution:

Total height of building A = 2 × 3.1 = 6.2 m

Cubical content of building A = Plinth area × height
= 500 × 6.2 = 3100 m3
Cost of building A
𝐶𝑢𝑏𝑒 𝑟𝑎𝑡𝑒 =
Cubical content of building A
50,00,000
=
3100
= 1613 rs/m3

Total height of building B = 3 × 3.1 = 9.3 m

Cubical content of building B = 400 × 9.3 = 3720 m3
Cost of building B = 1613 × 3720 = 60.00,360 /- rs

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Civil Eng. Dept. GCOEJ

Cost of services % taken on Cost of building

Contingencies,
% taken on Overall Cost
supervision charges
Contractors profit % taken on total cost

Cost of building Cost calculated by multiplying rate with

area/volume/services unit

Overall cost Cost of building + cost of services

Overall cost + Contingencies +
Total cost
supervision charges
Final Cost Total cost + Contractor’s profit

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