MATERIAL COST

ESTIMATION: A Primer
Understanding the Basics

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 Material Cost Estimation
process of calculating the
anticipated expenses for the
materials required to complete a
project.

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 COMPONENTS OF COSTING
Direct Costs
•Material Costs. The primary materials required for
construction, such as cement, steel, bricks, and timber,
etc.
•Labor Costs. Wages for workers directly involved in the
construction process.
•Equipment Costs. Costs for machinery and tools used in
construction, including depreciation and maintenance.

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 COMPONENTS OF COSTING
Indirect Costs
•Contingency Costs. Funds set aside to cover unexpected
expenses or risks that may arise during the project.
• Overhead Costs. Expenses not directly tied to a specific
project, such as administrative salaries, office supplies,
and utilities.
• Profit Margin. The contractor’s profit added to the total
cost of the project.
• Miscellaneous Costs. Costs for transporting materials to
the construction site and packaging materials and labeling
for identification and safety.

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 W H AT T O K N O W W H E N
E S T I M AT I N G :
0 1 Understanding Material Types.
Concrete, Steel, Wood, etc.
Different projects require different materials, and each
has its own cost and usage considerations.

Specialty Materials.
Some projects may require unique materials that are not
commonly used.

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 COMMERCIAL SIZE OF COMMON CONSTRUCTION MATERIALS

Cement Bags.
1. Weight: Typically available in 40 kg and 50 kg bags.
2. Volume: A 50 kg bag of cement is roughly equivalent to 0.035 cubic
meters of cement.

Plywood.
1. Standard Sizes: Typically available in 1.22 meters by 2.44 meters sheets.
2. Thickness: Common thicknesses include 6 mm, 12 mm, 18 mm, and 25
mm.

Concrete Hollow Blocks.

1. Standard Sizes: Often available in 200mm by 400mm.
2. Thickness: Common thicknesses include 4”, 5”, 6”.

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 W H AT T O K N O W W H E N
E S T I M AT I N G :
0 2 Quantity Takeoff
Measurement.
Accurate measurements of dimensions, lengths, areas,
and volumes of various components and elements within
the project. This involves detailed drawings and
specifications.

Units of Measure.
Be familiar with the units used for different materials
(e.g., cubic meters for concrete, kilograms for steel).
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 02
UNITS OF MEASUREMENT
The units of measurements are mainly categorized for their nature, shape and size and for
making payments to the contractor and also. The principle of units of measurements
normally consists of the following:

 Single units work like doors, windows, trusses, etc., is expressed in numbers.

 Works consist of linear measurements involving length like cornice, fencing,

handrail, bands of specified width, etc., are expressed in linear meters (l.m.).

 Works consist of surface area measurements like finishing works, masonry works,
plastering works, etc. are expressed in square meters (m2).

 Works consist of cubical contents which involve volume like earthwork, cement
concrete, etc. are expressed in cubic meters (m3).

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 W H AT T O K N O W W H E N
E S T I M AT I N G :
0 3 Basic Mathematical Concepts / Formulas
Area Calculations.
Used to determine the surface area of materials needed
(e.g., flooring, roofing).
Formula: Area = Length × Width

Volume Calculations.
Used for materials like concrete or soil for embankment.
Formula: Volume = Length × Width × Height
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 W H AT T O K N O W W H E N
E S T I M AT I N G :
0 4 Cost Estimation
Unit Costs.
Know the cost per unit of each material. This can vary
based on location, supplier, and market conditions.

Bulk Discounts.
Sometimes buying in bulk can reduce costs.

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 Techniques in Cost Estimation
ANALOGOUS ESTIMATING
uses historical data from similar projects to estimate
costs.

Example:
If a previous project of similar scope and size cost
$100,000, you might estimate the new project will
cost around the same.

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 Techniques in Cost Estimation
PARAMETRIC ESTIMATING
Uses statistical relationships between historical data
and other variables (e.g., square footage, number of
units) to estimate costs.

Example:
If the cost per square meter of flooring is $50, and
you need 200 square meters, the estimated cost is
200×50=$10,000

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 Techniques in Cost Estimation
BOTTOM-UP ESTIMATING
Breaks down the project into smaller components and
estimates the cost of each component individually,
then sums them up.

Example:
Estimating the cost of materials for each room in a
building separately and then adding them together
for the total cost.

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 Techniques in Cost Estimation
TOTAL COST CALCUL ATION
To find the total cost of a material, multiply the quantity
by the unit cost.

Total Cost = Quantity × Unit Cost

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 W H AT T O K N O W W H E N
E S T I M AT I N G :
0 5 Waste Factors
Allowances for Waste.
Account for potential waste and overage. This can vary by
material type and project complexity.

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 WASTAGE ALLOWANCE
It is common to add a percentage to account for
material wastage

Example:
If you estimate a 5% wastage for 100 units, the total
required would be

100×1.05=105 units

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