Methods of Estimation for Building Works

-Long Wall Short Wall, Center Line

Methods of Estimation for Building Works
The estimation of building quantities like earth work, foundation concrete, brickwork in plinth
and superstructure etc. can be worked out long wall short wall method and centerline method.

Following are the three different methods used for estimating building works:

1. Long wall – short wall method

2. Centreline method.
3. Partly centre line and short wall method.

Long Wall – Short Wall Method

In this method, the wall along the length of room is considered to be long wall while the wall
perpendicular to long wall is said to be short wall.

To get the length of longwall or shortwall, calculate first the centre line lengths of individual
walls. Then the length of long wall, (out to out) may be calculated after adding half breadth at
each end to its centre line length.

Thus the length of short wall measured into in and may be found by deducting half breadth from
its centre line length at each end.
The length of long wall usually decreases from earth work to brick work in super structure while
the short wall increases. These lengths are multiplied by breadth and depth to get quantities.

Centre Line Method

This method is suitable for walls of similar cross sections. Here the total centre line length is
multiplied by breadth and depth of respective item to get the total quantity at a time.

When cross walls or partitions or verandah walls join with main wall, the centre line length gets
reduced by half of breadth for each junction.

Such junction or joints are studied carefully while calculating total centre line length. The
estimates prepared by this method are most accurate and quick.

Partly Centre Line and Partly Cross Wall Method

This method is adopted when external (i.e., around the building) wall is of one thickness and the
internal walls having different thicknesses. In such cases, centre line method is applied to
external walls and long wall-short wall method is used to internal walls.

This method suits for different thicknesses walls and different level of foundations. Because of
this reason, all Engineering departments are practicing this method.
How to Make Deductions in Masonry
Construction Estimation?
Deduction is necessary in certain cases while estimations are carried out for masonry
constructions. For instance, the presence of openings in masonry walls, bearings, doors,
windows, segmental arch openings, and semi-circular arch openings. Deductions for these
conditions shall be conducted properly and the suitable mathematical rule needs to be applied.

1. Rectangular Opening
Commonly, full reduction is done for the rectangular openings during estimation of masonry
construction. The deduction quantity is equal to the opening height times its width times the
thickness of the masonry wall.

2. Doors and Windows with Small Segmental Arch

In this case, deduction is made for the rectangular portion of the door or window up to the
springing line. The computation of deduction amount is similar to that of the rectangular opening
discussed above. The segmental arch is assumed to be solid to allow for possible extra cost used
in the construction of the arch.

Fig. 1: Window
Opening with Segmental Arch
2. Segmental Arch Openings
Deduction is done for the entire opening which includes rectangular and segmental part. The
reduction quantity is estimated as follow:

Deduction quantity= b*h+2/3*b*r*wall thickness          Equation 1

Fig. 2: Segmental-Arch-Opening-with-Dimensions-
used-for-Calculation-of-Deduction-Quantity

3. Semi-Circular Arch Opening

The actual area for semi-circular portion is computed as follow:

Area=0.5*PI*r^2              Equation 2

However, the amount of reduction which is made for semi-circular part is computed using the
following expression:

Area=3/4*b*r                 Equation 3

And the total deduction quantity for the entire opening is calculated using the following formula:

Area=b*h+ 3/4*b*r        Equation 4

As for elliptical arches, it is considered as semi-circular arches and the deduction quantity
estimation is the same.

Fig. 3: Semi-circular-Arch-Opening

4. Lintels Over Openings

Lintels Over Openings is another Item that needs to be deduced from the masonry construction
estimation. The deduced quantity which the volume of the lintel is calculates using the following
equation:

Deduced Quantity= Lintel Length* Thickness* Wall Thickness  Equation 5 

The length of the lintel is equal to the lintel span plus two times lintel bearing. If the dimension
of the bearing is not provided, then a minimum bearing length of 12 cm can be assumed.
Fig. 4: Lintel-Over-Openings

5. Arch masonry work

It is another element that should be removed from the masonry construction estimation. The
volume of the arch as shown in Fig. 5 is calculated by multiplying the mean length of the arch by
its thickness by the width of the wall.

Fig. 5: Arch-Masonry-Work
What are the Requirements of Good Building
Construction Estimator?
Construction estimator plays essential role in the success of building construction projects. There
are several requirements that each construction estimator need to have in order to produce proper
estimation. For instance, he/ she needs to have sufficient knowledge about drawings and be able
to read drawings. Not only do they need to set up schedule for pricing but also understand
construction method, possess experience in construction procedure and different materials.

What are the Requirements of Good Construction

Estimator?
 Building construction estimator needs to have adequate knowledge about drawings of
works
 Estimators must be able to read drawings correctly.
 He needs to bill the quantities accurately.
 Good construction estimator should be able to prepare schedule to be priced by tender
 He is required to have sufficient knowledge about the construction procedure that is
adopted; different items of the works involved in the execution and various materials
used in the construction.
 An understanding of a good method of preparing an estimate.
 Good estimators are required to be consistent throughout their works

Degree of Accuracy in Estimating

Construction Works
The degree of accuracy used in the estimation of various material quantities used in the
construction is crucial. This is to prevent cost estimate errors due to lack of proper accuracy and
time consuming because of considering great accuracy which is not practical.

Degree of Accuracy in Estimating Construction Works

The accuracy considered in preparing an estimate is based on the unit of payment and the rate of
the item. The higher the rates the greater should be the accuracy with which the quantities are
computed. The dimensions need to be absolutely correct If the rates are high and payments are
per unit.

Nonetheless, taking dimensions to nearest 1 to 0.5 cm may be permitted for practical reasons.
However, extreme accuracy is not needed if rates are low and paid for % to ‰ unit.
Reduction or subtraction of a few centimeter to length or height of a wall where masonry is paid
per cubic meter would not make great difference. In contrary, the width and thickness of the wall
must be measured with great accuracy. This is because half centimeter or quarter centimeter
would affect the result significantly. Table 1 provides general approximation for various
measurements and construction items.

Table 1 Degree of Accuracy for Various Measurements and Construction Works

Items Degree of Accuracy

Dimensions Measured to the nearest 1 cm or 0.01 m
Areas Computed to the nearest 0.01 square meter
Cubic Calculated to the nearest 0.01 cubic meter
Measured to the nearest 0.5 centimeter or 0.005
Thickness of slab
meter
Measured to the nearest 0.5 centimeter or 0.005
Partitions
meter
Sectional dimensions of columns, pillars, and Measured to the nearest 0.5 centimeter or 0.005
beams meter

Valuation of Building – Methods and

Calculation of Valuation
Valuation of building or property is the method of calculating the present marketable cost of a
building. Valuation of a building depends on the sort of building, its structure, durability,
location, size, shape, the width of roads, frontage, types and quality of building materials used
and the cost of these materials.

Valuation of a building also depends on the height of the plinth, height of the building, thickness
of its walls, nature of structure (such as load bearing or framed structure), type of flooring,
roofing, doors and windows etc.

Location of a building also plays an important role in deciding the value of a building. For
example, a building located in a market area would have a stronger and higher valuation than the
same building located in a residential area. Also, the buildings located in areas with proper
municipal water supply, sewer and electricity have increased values. A building located on a
freehold land generates a higher valuation amount compared to a building located on the
leasehold land.

The valuation of a building also depends on the demands for purchase which varies from time to
time. More demands make the building more valuable.

A building may provide income to the owner in the form of rent; thus valuation also depends on
the income the building can generate if let out. If a building is not let out, then 6% of the capital
cost of the building is considered as the annual rent. It varies from time to time and location and
depends on the prevalent market rate.

Valuation of Building

Calculation of Valuation of Building or Property

Age of property affects the valuation of the building, so the age of the property should be known
from the records or by enquiries or from visual inspection and the future life of the building
should be ascertained.

The valuation of the building is calculated by finding the present-day cost of the building and
allowing a suitable depreciation. The present-day cost of the building can be calculated by:

1. Cost from the Record

The cost of construction can be determined from the estimations, the bill of quantities and using
the present-day rate of building materials and labors. If the actual cost of construction of the
building is known, this cost can be manipulated by using the percentage of increase or decrease
to the present-day rate of materials and labors.

2. Cost by Detailed Measurement

If the old record is not available, then the cost of construction can be calculated by a detailed
measurement of the building and preparing the bill of quantities of various items of works. The
present rate of materials and labors are used to calculate the cost of the building.

3. Cost by Plinth Area Method

Plinth area method of calculating the cost of a building is simpler than the detailed measurement
method which is laborious and lengthy. In this method, the plinth area of the building is
measured and calculated and plinth-area rate of a similar building in the locality is obtained by
enquiry and cost is calculated.

The plinth area method may not be accurate if the building is not thoroughly examined and
compared with the reference building of the locality. To fix this problem, different parts of the
building such as foundation, structure, floor, roof, doors, windows, finishing etc. should be
thoroughly examined. If the plinth area method is judiciously used, then the cost calculation will
be precise and sufficient to suit practical purposes.

Determination of Depreciation
Depreciation is allowed to the current cost of the building to calculate the valuation of the
building or the structure. Depreciation depends on the use of the building, age of the building and
type of maintenance etc. generally, for the first 5 to 10 years, there is a very little depreciation of
the building or the structure. The depreciation increases with the age of the building.

Consider a building with a life of 80 years, if well maintained, the following table shows the
depreciation with the age of the building:

Age of Building Depreciation per Year Total Depreciation

0 to 5 years – Nil
5 to 10 years @ 0.5% 2.5%
10 to 20 years @ 0.75% 7.5%
20 to 40 years @1% 20 %
4o to 80 years @ 1.5 % 60 %
Total 90 %

The final 10% is the scrap value on the dismantling at the end of the utility period.

Methods of Valuation of Buildings and Properties

Following are the different methods of valuations of the property:

1. Rental Method of Valuation

2. Direct comparison with capital value
3. Valuation based on profit
 4. Valuation based on cost
5. Development method of valuation
6. Depreciation method of valuation

1. Rental Method of valuation

In this method, net income from the building is calculated by deducting all the outgoings from
gross rent. Year’s purchase (Y.P.) value is calculated by assuming a suitable rate of interest
prevailing in the market. For example, consider a rate of interest as 5%, the Year’s Purchase =
100/5 = 20 years.

The net income multiplied by the year’s purchase gives the capitalized value or the valuation of
the property. This method is used only when the rent is known or probable rent is determined by
enquiries.

2. Direct Comparison with Capital Value

When the rental value is not known, this method of direct comparison with the capital value of a
similar property of the locality is used. In this case, the valuation of the property is fixed by
direct comparison with the valuation or capitalized value of similar property in the locality.

3. Valuation based on Profit

This method of valuation is suitable for commercial properties such as hotels, restaurants, shops,
offices, malls, cinemas, theaters etc. for which the valuation depends on the profit. In such cases,
the net annual income is used from the valuation after deducting all the outgoings and expenses
from the gross income. The valuation of building or property is found by multiplying the net
income by year’s purchase. The valuation, in this case, can be too high in comparison with the
actual cost of construction.

4. Valuation based on Cost

In this case, the actual cost of construction of the building or the cost incurred in possessing the
building is considered as the basis to determine the valuation of the property. In this case,
necessary depreciation is allowed and points of obsolescence are considered.

5. Development method of valuation

This method is suitable for properties which are under the developmental stage. For example, if a
large place of land is to be divided into plots after provision for roads and other amenities, this
method is used. The probable selling price of the plots, the area required for amenities and other
expenditures for development is considered for valuation.

Development method of valuation is also used for properties or buildings which are required to
be renovated by making alterations, additions, improvements etc. The value is calculated based
on the anticipated net income generated from the building after renovation work is complete.
The net income multiplied by year’s purchase gives the valuation of the property. The actual cost
of the property with a total cost of renovation shall be compared with the anticipated value of the
property to decide if the renovation is justified.

6. Depreciation Method of Valuation

Based on the depreciation method, the valuation of the buildings is divided into four parts:

1. Walls
2. Roofs
3. Floors
4. Doors and windows

Cost of each part at the present rate is calculated based on detailed measurement. The life of each
part is calculated by the formula:

D = P [(100 – rd)/100)]n

where,
D = depreciated value
r  = rate
d = depreciation
n = age of building in years

rd values are considered as per following table:

Life of Building rd
100 years 1.0
75 years 1.3
50 years 2.0
25 years 4.0
20 years 5.0

The valuation calculated is exclusive of the cost of land, amenities, water supply, electrical and
sanitary fittings etc. and is used only for buildings which are well maintained. If it is not well
maintained, then suitable deductions are considered in the valuation calculated above. The
present values of the land, amenities, water supply, electrical and sanitary fittings should be
added to find the valuation of the property.
Methods of Cost Estimation in Projects –
Tools and Techniques
Reliable cost estimates are necessary for all projects. Without a cost estimate, it would be
impossible to prepare a business plan, establish detailed budgets, predict resource requirement or
control project costs.

In the process of cost estimation, the Project Cost Engineer uses either one or the combination of
the following tools and technique:

Estimating Methods

Methods of Cost Estimation in Projects

1. Expert Judgement
2. Analogous Estimating
3. Parametric Estimating
4. Bottom-up Estimating
5. Three-point Estimating
6. Data Analysis (Alternative analysis/Reserve analysis)
7. Project Management Information system
8. Decision making (voting)
1) Expert Judgement Method
Expertise should be considered from individuals or groups with specialized knowledge or
training in team and physical resource planning and estimating.

Expert judgment, guided by historical information, provides valuable insight about the
environment and information from prior similar projects.

Expert judgment can also be used to determine whether to combine different methods of
estimation and how to reconcile differences between them.

2) Analogous Estimating Method

Analogous cost estimating uses the values such as scope, cost, budget, and duration or measures
of scale such as size, weight, and complexity from a previous, similar project as the basis for
estimating the same parameter or measurement for a current project.

When estimating costs, this technique relies on the actual cost of previous, similar projects as the
basis for estimating the cost of the current project.

It is most reliable when the previous projects are similar in fact and not just in appearance, and
the project team members preparing the estimates have the needed expertise.

3) Parametric Estimating Method

Parametric estimating uses an algorithm or a statistical relationship between historical data and
other variables (e.g., square footage in construction) to calculate resource quantities needed for
an activity, based on historical data and project parameters.

For example, if an activity needs 4,000 hours of coding and it needs to finish it in 1 year, it will
require two people to code (each doing 2,000 hours a year). This technique can produce higher
levels of accuracy depending on the sophistication and underlying data built into the model.

4) Bottom-up Estimating Method

In the Bottom-up estimating method, team and physical resources are estimated at the activity
level and then aggregated to develop the estimates for work packages, control accounts, and
summary project levels.

Bottom-up estimating is a method of estimating a component of work. The cost of individual

work packages or activities is estimated to the greatest level of specified detail. The detailed cost
is then summarized or rolled up to higher levels for subsequent reporting and tracking purposes.
The cost and accuracy of bottom-up cost estimating are typically influenced by the size and
complexity of the individual activity or work package.

5) Three-Point Estimating Method

The accuracy of single-point activity cost estimates may be improved by considering estimation
uncertainty and risk and using three estimates to define an approximate range for an activity‘s
cost:

• Most likely (M): The cost of the activity, based on realistic effort assessment for the required
work and any predicted expenses.
• Optimistic (O): The activity cost based on analysis of the best-case scenario for the activity.
• Pessimistic (P): The activity cost based on analysis of the worst-case scenario for the activity.

Depending on the assumed distribution of values within the range of the three estimates the
expected cost, cE, can be calculated using a formula. Two commonly used formulas are
triangular and beta distributions. The formulas are:

 Triangular Distribution
E = (O+M+P)/3
 Beta Distribution (from a traditional PERT analysis)
E = (O+4M+P)/6

Cost estimates based on three points with an assumed distribution provide an expected cost and
clarify the range of uncertainty around the expected cost.

6) Data Analysis Method

A data analysis technique used in this process includes but is not limited to alternatives analysis.
Alternatives analysis is used to evaluate identified options in order to select the options or
approaches to use to execute and perform the work of the project. Alternatives analysis assists in
providing the best solution to perform the project activities, within the defined constraints.

Instead of overestimating each cost, money is budgeted for dealing with unplanned but
statistically predictable cost increases. Funds allocated for this purpose are called contingency
reserves.

7) Project Management Information System Method

Project management information systems can include resource management software that can
help plan, organize, and manage resource pools and develop resource estimates.

Depending on the sophistication of the software, resource breakdown structures, resource

availability, resource rates, and various resource calendars can be designed to assist in
optimizing resource utilization.
8) Decision-Making Method
Some decision techniques are unanimity, majority, plurality, points allocation, and dictatorship.
For unanimity, everyone must agree; there is a shared consensus. A majority or plurality is
usually determined by a vote. For a majority, the decision must be agreed to by more than half
the participants.

What is Cost of Concrete Construction?

Concrete construction cost is one of the crucial and major components of total cost of a project.
It greatly influences the total cost, so it is required to be estimated accurately. There are several
parameters that influence the cost of concrete construction for instance grade of concrete, cost of
materials like formworks, reinforcement steel, labors, finishing etc.

The cost of these parameters are not constant but rather vary from one location to another one, in
addition to the material quality which also affect concrete construction cost.

Moreover,  if concrete construction cost is overestimated, it leads to overestimation in the total

project cost and the owner would have to spend more money, or he/she probably makes a
decision not to proceed with the project.

However, if construction costs are underestimated, there would be several unexpected expenses
during the construction stage. These costs affect the contractor, the owner, or both, in addition to
substantial loses. Therefore, it is considerably important to have adequate information about
different variables and item of concrete construction cost.

Components of Concrete Construction Cost 

Costs for specific items of concrete construction varies from one location to another one. There
are many variables that need to be considered which are being discussed below:

1. Grade of Concrete
2. Surface Preparation Cost
3. Cost of Formwork
4. Cost of Reinforcing Materials
5. Concreting Cost
6. Finishing Work Cost
7. Cost of Hiring Engineers
8. Contingency Cost

1. Grade of Concrete
The most important item to consider is the cost of concrete whether it is ready mix concrete or
onsite mix concrete. Commonly, concrete supplier gives the cost of concrete after the project
specifications and the job location are provided. The cost of concrete is priced per cubic meter.

It should be known that, the price of concrete increases with the increase of concrete grade.
According to Allied ready mix concrete price list, Grade 25 concrete price in Canada range from
182 to 200$ per cubic meter whereas Grade 35 concrete price range from 202 to 217$. The
distance between project site and concrete plant would influence concrete construction cost. As
the distance increase the cost would rise.

Fig. 1: Onsite Concrete Mixer

2. Surface Preparation Cost

If concrete is poured over nearly leveled soil surface, then the ground should be prepared for
concrete placement. This involves cost of grading, compaction, excavation, trenching, and other
components. special work is needed to prepare the site.

In contrary, when concrete is placed on a surface which is not leveled. Then the cost of surface
preparation would be greater than previous case. It includes excavation and filling with suitable
material or removing a soft soil.

If filling process is needed, then the distance between the project and the borrowing material
source affect preparation cost.
Fig. 2: Surface preparation

3. Cost of Formwork

Cost of formwork make up fairly large quantity of the entire cost of concrete construction. There
are certain details which should be known so as to be able to estimate cost of formwork.

For instance, cost of type of formwork employed, how the it is fixed, and whether the form is
rental or bought, the use of crane is needed or not, machines used to transport formwork
materials, re-using formwork material, and repair of forms after multiple utilization. Commonly,
the cost of formwork is priced and expressed in square meter of the concrete area. Added to that,
the cost of working hours of labors shall be included. The cost of labor who fix formwork ranges
from 180 to 215$ per 2.6h in the United States.

Fig. 3: Fixing Formwork

4. Cost of Reinforcing Materials

There are various types of reinforcements which are used to reinforce concrete. For example,
steel bars, wire mesh, fiber reinforced polymer (FRP) bars, plastic mesh, and fiber added to
concrete mixer to improve strength and crack resistance.

The cost of reinforcing materials would vary based on the material type and size of
reinforcement. for example, the cost of FRP bars are higher than steel reinforcement and larger
diameter bars are costlier than small ones. Lastly, cost of reinforcement installation is one of the
major components of material cost. In 2017, the price of reinforcing steel was 619$ in the United
States.

5. Concreting Cost

It begins after formwork is fixed and reinforcements are installed. The technique used for
concrete placement and equipment used for placement, spreading, and compacting concrete
affect concrete costing, in addition to labor costs. Concrete may be ready mix and pumped to the
specified locations or mixed onsite and require other machinery to deliver fresh concrete to its
final position.

6. Finishing Work Cost

The type of finishing and its complexity determined in the design controls the cos of finishing
operations. Concrete could be finished in number of different ways for example smooth surface,
exposed aggregate surface, or stamped concrete finish.

Certain surfaces may require only a strike-off and screed to proper contour and elevation, while
other surfaces, a broomed, floated, or troweled finish may be specified. Finally, the cost of any
curing compound or testing services is also included in finish work cost.
Fig. 4:Finishing Concrete Surface

7. Cost of Hiring Engineers

Frequently, it is required to hire an engineer to supervise the project and make sure that the work
is done in accordance with applicable codes and specifications. So, the cost of services provided
by the engineer should be taken into considerations.

8. Contingency Cost

Obviously, no construction work is totally accurate and there is no guarantee for  stoppage of
concreting due to technical problems or natural events like rain. This needs to be accounted for
in the total cost of concrete construction and allocate certain quantity of money for contingency
works. This amount is commonly specified by experienced estimator based on their experience.

Methods of Approximate Construction Cost

Estimate Preparation
Methods of preparation of preliminary or approximate construction cost estimation for studies
of various aspects of work of project and its administrative approval is discussed. This estimate
can decide, in case of commercial projects, whether the net income earned justifies the amount
invested or not.

The approximate estimate is prepared from the practical knowledge and cost of similar works.
The estimate is accompanied by a report duly explaining necessity and utility of the project and
with a site or layout plan. A percentage 5 to 10% is allowed for contingencies.

 
Methods of Approximate Construction Cost Estimation
Preparation
The following are the methods used for preparation of approximate construction cost
estimates:

a. Plinth area method

b. Cubical contents method
c. Unit base method

a) Plinth area method:

The cost of construction is determined by multiplying plinth area with plinth area rate. The area
is obtained by multiplying length and breadth (outer dimensions of building).

In fixing the plinth area rate, careful observation and necessary enquiries are made in respect of
quality and quantity aspect of materials and labour, type of foundation, height of building, roof,
wood work, fixtures, number of storeys etc.

As per IS 3861-1966, the following areas include while calculating the plinth area of
building:

Types of Estimates:

 Area of walls at floor level.

 Internal shafts of sanitary installations not exceeding 2.0 sqm, lifts, air-conditioning ducts
etc.,
 Area of barsati at terrace level: Barsati means any covered space open on one side,
constructed on one side, constructed on terraced roof which is used as shelter during
rainy season.
 Porches of non-cantilever type.

Areas which are not to include

 Area of lofts.
 Unenclosed balconies.
 Architectural bands, cornices etc.,
 Domes, towers projecting above terrace level.
 Box louvers and vertical sun breakers.

b) Cubical Contents Method:

This method is generally used for multi-storeyed buildings. It is more accurate that the other two
methods viz., plinth area method and unit base method.
The cost of a structure is calculated approximately as the total cubical contents (Volume of
buildings) multiplied by Local Cubic Rate. The volume of building is obtained by Length x
breadth x depth or height.

The length and breadth are measured out to out of walls excluding the plinth offset.

The cost of string course, cornice, corbelling etc., is neglected.

The cost of building = volume of buildings x rate/ unit volume.

c) Unit Base Method:

According to this method the cost of structure is determined by multiplying the total number of
units with unit rate of each item. In case schools and colleges, the unit considered to be as ‘one
student’ and in case of hospital, the unit is ‘one bed’.

The unit rate is calculated by dividing the actual expenditure incurred or cost of similar building
in the nearby locality by the number of units.

Methods of Detailed Construction Estimation

Preparation
The preparations of detailed construction estimate consist of working out quantities of various
items of work and then determine the cost of each item. This is prepared in two stages.

Methods of Detailed Construction Estimation Preparation

i) Details of measurements and calculation of quantities:

The complete work is divided into various items of work such as earthwork concreting,
brickwork, reinforced concrete, plastering etc. The details of measurements are taken from
drawings and entered in respective columns of prescribed proforma.

The quantities are calculated by multiplying the values that are in numbers column to Depth
column as shown below:

Details of measurements form

ii) Abstract of Estimated Cost:

The cost of each item of work is worked out from the quantities that already computed in the
detailed measurement form at workable rate. But the total cost is worked out in the prescribed
form is known as abstract of estimated form. 4%of estimated Cost is allowed for Petty
Supervision, contingencies and unforeseen items.

Abstract of Estimate Form

The detailed estimate should be accompanied with:

1. Report
2. Specification
3. Drawings (plans, elevation, sections)
4. Design charts and calculations
 5. Standard schedule of rates.

Factors to be considered while Preparing Detailed Estimate:

i) Quantity and transportation of materials: For bigger project, the requirement of materials is
more. Such bulk volume of materials will be purchased and transported definitely at cheaper rate.

ii) Location of site: The site of work is selected, such that it should reduce damage or in transit
during loading, unloading, stocking of materials.

iii) Local labour charges: The skill, suitability and wages of local labores are considered while
preparing the detailed estimate.

Data for detailed estimate:

The process of working out the cost or rate per unit of each item is called as Data. In preparation
of Data, the rates of materials and labour are obtained from current standard scheduled of rates
and while the quantities of materials and labour required for one unit of item are taken from
Standard Data Book (S.D.B).

Fixing of Rate per Unit of an Item:

The rate per unit of an item includes the following:

1) Quantity of materials & cost: The requirement of materials is taken strictly in accordance with
standard data book (S.D.B). The cost of these includes first cost, freight, insurance and
transportation charges.

ii) Cost of labour: The exact number of labourers required for unit of work and the multiplied by
the wages/ day to get of labour for unit item work.

iii) Cost of equipment (T&P): Some works need special type of equipment, tools and plant. In
such case, an amount of 1 to 2% of estimated cost is provided.

iv) Overhead charges: To meet expenses of office rent, depreciation of equipment salaries of
staff postage, lighting an amount of 4% of estimate cost is allocated.

Unit Cost Method of Estimation in

Construction Projects
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. Sum of costs of each
project elements gives the total construction cost of the project.
The unit cost method of estimation can be used for project design estimates as well as for bid
estimates.

Construction cost estimates are of three types mentioned below:

1. Preliminary Cost Estimates

2. Detailed Cost Estimates
3. Engineer’s Cost Estimates

During the preliminery cost estimate, as cost details of every minute elements are not of much
importance, the project is divided into major components and cost estimate of these major units
are calcualted based on the past project experiences. The cost of euipments if any is also
included. For example, estimating the cost of entire floor based on its area.

During detailed Cost estimates, the project is divided into components of various major systams
and cost of each components is estimated to calculate project cost. For example, cost of
installation of any equipment, cost of beams, columns or walls etc.

During Engineer’s cost estimates, each of the components of the major systems of the project is
divided into various components that contributes to the cost of the major systems.

For example, for cost estimation of an RCC column, the components are concrete, which is also
divided into cement, sand and aggregates, reinforcement steel, formworks etc. The unit cost of
each of these materials are considered by calculating the cost of an RCC column.

For bid estimates, the unit cost method of estimation can also be used even though the contractor
divides the project into different levels in a hierarchy as follows:
 1. Subcontractor Quotations: The general contractor of the construction project may get
quotations for various items from the subcontractors. The rates prescribed by the
subcontractors for various items of the projects can be used for the total construction cost
etimate for the project. However, the reliability of accuracy of the cost depends on the
method of cost estimates selected by the subcontractor.
2. Quantity Takeoffs: The division of a construction project into various items of
quantities that are measured from the engineer’s plan will result in a procedure similar to
that adopted for a detailed estimate or an engineer’s estimate by the design professional.
The levels of detail may vary according to the desire of the general contractor and the
availability of cost data.
3. Construction Procedures: If the construction procedure of a proposed project is used as
the basis of a cost estimate, the project may be decomposed into items such as labor,
material and equipment needed to perform various tasks in the projects.

Formula for Unit Cost Method

Suppose that a construction project is divided into “n” elements for cost estimation. Let “Qi” be
the quantity of the ith element and ui be the corresponding unit cost. Then, the total cost of the
project is given by:

where n is the number of units. The unit cost of element ui is estimated based on the method of
construction, technology used, type of materials used etc.

Factored Unit Cost Estimate Formula

Sometimes during the cost estimate, there can be some of the minute components which may not
have been considered or there can be some variations w.r.t time. In such cases, the cost of units
are factored as an allowance for variations or the elements not considered in the estimates. The
formula for factored unit cost estimation is as follows:

where Ci is the purchase cost of a major component i and fi be a factor accounting for the cost
variation of the item, n is the number of components included in the construction project.

Formula Based on Labor, Material and Equipment

Suppose that a construction project is decomposed into n tasks. Let Qi be the quantity of work
for task i, Mi be the unit material cost of task i, Ei be the unit equipment rate for task i, Li be the
units of labor required per unit of Qi, and Wi be the wage rate associated with Li. In this case,
the total cost y is:
Note that WiLi yields the labor cost per unit of Qi, or the labor unit cost of task i. Consequently,
the units for all terms in Equation above are consistent.

Analysis of Rates for Civil Engineering

Works
In order to determine the rate of a particular item, the factors affecting the rate of that item are
studied carefully and then finally a rate is decided for that item. This process of determining the
rates of an item is termed as analysis of rates or rate analysis.

The rate of particular item of work depends on the following:

1. Specifications of works and material about their quality, proportion and constructional
operation method.

2. Quantity of materials and their costs.

3. Cost of labours and their wages.

4. Location of site of work and the distances from source and conveyance charges.

5. Overhead and establishment charges

6. Profit

Cost of materials at source and at site of construction:

The costs of materials are taken as delivered at site inclusive of the transport local taxes and
other charges.
Purpose of Analysis of rates:

Purpose of Analysis of rates:

1. To work out the actual cost of per unit of the items.

2. To work out the economical use of materials and processes in completing the particulars item.

3. To work out the cost of extra items which are not provided in the contract bond, but are to be
done as per the directions of the department.

4. To revise the schedule of rates due to increase in the cost of material and labour or due to
change in technique.

Cost of labour -types of labour, standard schedule of rates:

The labour can be classified in to

1) Skilled – 1st class

2) Skilled – 2d Class

3) Unskilled
The labour charges can be obtained from the standard schedule of rates 30% of the skilled labour
provided in the data may be taken as Ist class, remaining 70% as II class.

The rates of materials for Government works are fixed by the superintendent Engineer for his
circle every year and approved by the Board of Chief Engineers. These rates are incorporated in
the standard schedule of rates.

Lead statement: The distance between the source of availability of material and construction
site is known as “Lead ” and is expected in Km. The cost of conveyance of material depends on
lead.

This statement will give the total cost of materials per unit item. It includes first cost, conveyance
loading, unloading stacking, charges etc.

The rate shown in the lead statement are for metalled road and include loading and staking
charges. The environment lead on the metalled roads are arrived by multiplying by a factor.

a) For metal tracks – Lead x 1.0

b) For cartze tracks – Lead x 1.1

c) For Sandy tracks – Lead x 1.4