Indent of Materials

Prepared By- Priyanka Jadhav-Chavan

Sinhgad College of Architecture

QUANTITY SURVEYING & ESTIMATING-I

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Direct Cost
• Direct cost is a price that can be completely attributed to the
product of specific goods or work or service.

• Same cost, depreciation or administrative expenses, are more

difficult to assign to a specific product and therefore, are
consider to be indirect cost.

• From Architect’s and Engineer’s point of view the direct cost is

cost of labour, material and equipment required for executing
the work, that is the amount payable to the contractor for
necessary execution,

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Indirect Cost
Indirect cost is made up of the following:
• Architect’s and Engineer’s professional charges including R.C.C.
specialist’s fees
• Supervisor’s salary
• Municipal tax of the land where work is going on during the
period of construction

From the contractor’s point of view direct cost is cost of various

materials of construction and wages paid the labours whereas the
indirect cost will include the rental or depreciation of centering
materials, concrete mixer or other equipment, tender fees,
establishment charges, legal expenses, insurance, advertisement
etc.
QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE
 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Overhead costs
Overhead cost include general office expenses, rent, taxes and
supervision and other cost which are indirect expenses and not
productive expenses on job.

General overheads
• Establishment (office staff),
• Stationary, printing, postages etc.
• Travelling expenses
• Telephone
• Rate and taxes

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Overhead costs
Job overheads
• Supervision (salary of engineers, overseers supervision)
• Handling of Materials
• Reprise
• Carriage and depreciation of T. and P.
• Amenities of labour
• Workmen compensations, insurance etc
• Interest on investment
• Losses on advance

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Overhead costs
• The contractor may be allowed a net profit of 6-8%, and the
misc. overhead expenses may come to about 5-10%.

• For overhead expenses and contractors profit 15% of actual cost

may be reasonable amount but it is usually practice to at 10% for
all this under the head profit.

• For a small work overhead cost may be very little.

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Unit rate
• “Unit rate” is a comparison of any two separate but related
measurements when the second of these measurements is
reduced to a value of one. Calculating the unit rate in any set of
circumstances will require the use of division.
• A unit rate is the cost per unit to build an asset or to perform
some action. Unit rates can be used to calculate the value of an
individual asset, to estimate the cost of planned works, or to
perform a complete valuation or revaluation of a network of
assets.

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Unit rate
• The execution of the works can also be carried out by any
of the following arrangement depending upon nature of
work and other factors:
1. Day work
2. Piece work
3. Task work

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Day work
• This method of execution of the work is adopted for all small
item of the work which cannot either to be measured or valued,
• The payment made to the contractor consist of net cost of
material and labour to complete the work and usually about 20
to25 present on the same which will cover the contractor’s
profit, establishment charges, and the rentals for plants, if any.
• It required the proper check on the material and the labour
employed.
• It is duty of architect and engineer to sanction those extra works
in written which cannot be measured valued properly to be paid
day work prices.

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Day work

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Day work
1. The work should not be the commenced till the necessary
sanction has been obtained from the architect.
2. Due notice of its commencement should be given to the
architect or the engineer.
3. Day work statement should be certified weekly by the architect
or the engineer. If the contractor is found irregular in the same, it is
likely that the architect or the engineer may not certify the
payment of the same later on.
• The day work method of execution should be avoided as far as
possible as it forms an expensive method. A close supervision is
necessary as the contractor will try to increase the cost, so as to
get more profit.

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Piece work
• If the work is of an urgent nature and where day work is not
possible, it is divided into the parts and each part is given to the
contractor known as piece work.
• The items of the work and their rate are agreed upon prior to its
commencement. It cannot be called contract in the strict sense
as there is no time limit, no security deposit or no penalty.

• PWD and other Government agencies usually carry out the work
up to Rs.2000 by this system and when the work is likely to cost
more up to a limit of Rs.75000, special sanction is required for
the executive engineer to that effect.

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Piece work
• The rate quote by the various contractor must be within the
limit of sanction rates.
• The measurements in this case of recorded in the measurement
book and are checked by the executive engineer to see that the
payment made tells with the work executed.

• For example, excavation for a canal work about a mile long is

divided into the parts and cash contractor is entrusted with the
work of excavation to a specified depth and dumping to the
excavated material within a specified lead, subject to time limit.

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Task work
• The quantity of work that can be done by a labour in one day is
termed as the task work or the outturn of the labour. Here, a
day means working for 8 hours.

Factor affecting the task work

• Task work varies depending upon the nature, size, location,
climate condition, techniques adopted equipment employed but
above all it depends on the previous experience of the labour.

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 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

Indent of material
• A document that is prepared by the contactor/engineer ,
internally that authorize the purchasing of products and material
needed for the project
• These are documents that are used to track the movement of
materials and stock before it is brought on the site
• Different item are listed and the required materials are given in
the tabular format and filled as per quantity of material required
for each item
• All the quantities of different items for one particular material are
added with addition of 2% wastage to get the total requirement
of particular material for construction

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE

 INTRODUCTION TO ESTIMATION AND TYPES OF ESTIMATES

THANKYOU
REFERANCE: Notes (SCOA/18-19/Compiled by Prof. Nalini Naiknimbalkar, Prof. T.B. Shinde and Er. Dakshayani Shete)

QUANTITY SURVEYING & ESTIMATING-I (Sinhgad College of Architecture) MODULE- ONE