INTRODUCTION TO

CONSTRUCTION COST
CONSTRUCTION COST ENGINEERING
INTRODUCTION

• Construction Engineering deals almost entirely with cost estimating job which involves
time, money and resources.
• Estimates involves the determination of quantity and unit cost of a piece of work.
• Estimate is a general calculation of size, quantity, value requirements. It is an approximate
computation of the probable cost of a piece of work made or to be done
APPLICATION OF ENGINEERING ESTIMATE

• Engineering estimate is used for several purposes:

• A. For new project construction
• B. For rehabilitation and repair works
• C. For appraisal of existing structures
• D. For numerical bid evaluation
• E. For Audit review
COST ENGINEERING

• Cost Engineering, which is part of detailed engineering activities, comprises:

• A. Construction materials assessment
• Necessary field investigation regarding construction materials should be carried out
to determine local prices and availability. All material field surveys shall be carried out
in a fitting manner to ensure preparation of reliable cost estimate.
• B. Calculation of Bill of Quantities
• Bill of quantities shall be computed to a reasonable accuracy with plus or minus
three to five percent deviation from actual construction quantities.
COST ENGINEERING

• Cost Engineering, which is part of detailed engineering activities, comprises:

• C. Cost Analysis computation
• Cost analysis shall be prepared for each item of works using current prices, labor
rates, and equipment rental rates.
• D. Calculation of labor man-hours
• E. Calculation of equipment operation-hours
• F. Computation on Indirect costs
• Indirect cost, which is a markup cost, should be figured out and estimated in detailed
manner for transparency.
COST ENGINEERING

• Cost Engineering, which is part of detailed engineering activities, comprises:

• G. Preparation of construction schedule and cash flow
• Construction schedule shall be prepared based on the estimated quantities, labor
productivity, and equipment production. Construction duration should be
determined based on conformity with the estimated man-hours and equipment
operation-hours. Cash flow must be projected in relation to purchases and payments
progress of construction indicated in the construction schedule.
TYPES OF ESTIMATE

• Conceptual Estimate
• Estimates are prepared in the design phase to guide the owner and designer about
cost information so that appropriate design can be made. Prior to the start of design
process, only conceptual information is available like size and type of the facility to be
built whether residential unit, hotel, school, apartment, hospital, etc.
• Conceptual estimate can be prepared by area method or assembly method. The area
method of preparing conceptual estimate is done by multiplying the area of the
facility by a price per unit area to obtain a gross estimate. The calculated total
estimate by the area method varies from plus or minus 20 to 30 per cent of the
actual or final estimate. Therefore, area method is unreliable estimate
TYPES OF ESTIMATE

• Conceptual Estimate
• In assembly method of conceptual estimate, the different components of the facility
are estimated by assembly units like: roofing, walls and partitions, slabs, columns,
footings, etc. Assembly method of costing conceptual design is more accurate than
area method. Conceptual estimate is useful during schematic or budgetary phase
when design details are not available, or for preliminary cost projections based on
minimal design data.
TYPES OF ESTIMATE

• Preliminary Estimate
• The first step in the production of plans and specifications is preliminary design
which comprises about 40% of the complete detailed design. At this level of design,
the preliminary estimate is prepared by the engineer to derive a cost based on more
refined data than in conceptual estimate to be approved by the owner.
 TYPES OF ESTIMATE

• Designer's Estimate
• After the approval of the preliminary design by the owner, detailed design and specification
are completed. In this phase, the designer prepares estimate based on the final design, which
is referred to as "designer's estimate". This estimate should be made to achieve a deviation of
plus (+) or minus (-) 3 to 5% from actual cost since the total design details and specifications
are already available. The designer's estimate is for the use of the owner for two purposes:
• (1) To ensure that the completed design is within the owner's financial budget to construct,
and
• (2) To establish a reference cost (or bench mark) in evaluating offers or contractors' bids to
check if the bids contain fair and effective costs for the work.
TYPES OF ESTIMATE

• Designer's Estimate
• Without designer's estimate, the owner has no basis for the actual cost of his
project; hence, he searches and agrees for the contract price uncertainly. Bill of
quantities for designer's estimate is normally expressed in terms of areas, volumes,
lengths, weights, board feet, etc. for unit cost analysis
TYPES OF ESTIMATE

• Bid Estimate
• Similarly, on the basis of the final drawings and specifications, the contractor prepares
his estimate for the for bidding competition. This estimate is called "bid estimate"
which must be made accurate, competitive, and profitable. This requires considerable
estimator days to finish. As a rough rule of thumb, the preparation of bid estimate for
simple jobs will cost about one-fourth (1/4) of one percent (1%) of the total bid cost;
i. e., for 10,000,000 totals bid cost, estimator's fee will be 25,000. This minimum
professional fee is a cost that should be included in the bid estimate under item
"overhead"". For complicated estimates, the fee may be increased defending on the
complexity of the estimate and on the competence of the estimator.
TYPES OF ESTIMATE

• Bid Estimate
• Bill of quantities for bid estimate is also expressed in terms of areas, volumes,
lengths, weights, board feet, etc. for unit cost analysis and easy bid evaluation
TYPES OF ESTIMATE

• Construction Estimate
• As construction works progress, estimating task continues requiring a greater effort
to reach a higher level of accuracy to establish whether the actual construction costs
agree with the bid estimate. This type of estimate is referred to as "construction
estimate". It permits the contractor to make projections about profit or loss (that is,
to maximize profit, or minimize losses) on a job during actual implementation of the
project. Sometimes, construction estimate goes to the extent of employing cost-
value engineering regarding construction methods to reduce cost with the approval
of the owner's project engineer
TYPES OF ESTIMATE

• Construction Estimate
• Construction estimate requires a more accurate calculation than designer's estimate
in which the bill of quantities is described by number of pieces, bags, boxes, gallons,
etc. like: 123 pieces steel bars, 12 mm x 6 m, Grade 275 or 100 bags Portland cement
for pricing and purchase purposes. Construction estimate must be made precise to
suit primary considerations such as actual dimensions and field conditions.
TYPES OF ESTIMATE

• Appraisal Estimate
• Appraisal is an art of estimating the fair value or worth of a property at specified
date. The appraised value of properties requires the determination of the present
value of the estimated "Most Probable Cost", which can be reduced by deducting the
accrued depreciation. To estimate the appraised value (or fair market value) of a
subject property, there are three methods of cost analysis that can be used: (1)
quantity survey method, (2) assembly method, (3) cost-per-area method. In all these
three methods, engineering estimate plays a vital role.
TYPES OF ESTIMATE

Quantity survey, although tedious and time consuming, is the most accurate method in
calculating direct and indirect costs which are necessary in competent appraisal work.
It takes a lot of time and effort to do a good and honest work which is measured by
completeness, accuracy, and truthfulness. In assembly method, existing structures are
priced by parts like: roofing, ceiling, masonry wall, concrete structural elements, etc. The
simplest method, but highly approximate, used by appraisers is the cost-per-area
method where a value of property is determined by multiplying the total area by unit
cost like Php16,000 per square meter (for low cost construction) or Php 25,000 (for
high cost housing). The fixed cost-per-area method, due to its inaccuracy, is not
recommended for appraisal
PRINCIPLES OF ENGINEERING ESTIMATE

• Estimate, a special field of construction engineering, requires appropriate methods based

on established theory. This requirement is intended to provide knowledge and to set a
uniform level of quality standard in estimating job. Standard regulates practice, promotes
competency and establishes values among practitioners. Engineering estimate procedures
are established to be used as a guide in the preparation of fair estimates. Therefore, every
estimate should be prepared to satisfy basic requirements before it can be accepted as
fair estimate.
• Engineering estimate must be made: (a) complete, (b) reliable, (c) effective and (d)
organized and properly documented.
PRINCIPLES OF ENGINEERING ESTIMATE

• Complete Estimate
• To make the estimate complete, all quantities of materials, man-hours, equipment-
hours and indirect costs must be calculated based on the dimensions shown in the
plans and descriptions stipulated in the specification. The main elements of complete
estimate include:
• a. Materials - bill of quantities expressed in volume, weight, area, length, etc.
• b. Labor - manpower in man-hours, man-days or team-days
• c. Equipment - in operated-hour or bare month rental
• d. Indirect Cost - estimated with breakdowns or details.
PRINCIPLES OF ENGINEERING ESTIMATE

• Quantity Survey
• Quantity Surveyor is the estimator who prepares: (a) material, (b) labor and (c)
equipment quantities, and (d) construction schedules. Quantity survey is the
backbone of cost engineering, is the most important piece of cost engineering
because it provides the foundational part to the estimate.
• Quantity Surveyor (QS) is tasked to calculate all quantities up to the last detail of
the drawing and description or condition of the specification. The estimator may not
be able to think of all the cost items, but the more he can predict in advance the
complete quantities, the smaller the chance of having unexpected pay item that
incurs losses, reduces profit or requires additional budget. Incomplete drawing or
insufficient specification produces unfinished estimate.
PRINCIPLES OF ENGINEERING ESTIMATE

• Estimate Time
• The estimator must have sufficient reasonable time in listing all cost items and their
components, performing calculations, gathering data, verifying and checking the
completeness of the estimate and consequently, preparing the final estimated
quantities in the "bill of quantities" or in the bid forms. All these tasks must be
accomplished in an efficiently manner within the allocated reasonable estimating time
duration. Rush estimating work due to time constraint often results to incomplete
estimate that invites problems during construction.
PRINCIPLES OF ENGINEERING ESTIMATE

• Estimate Information
• When estimate information is difficult to obtain due to lack of detailed working
drawings or scope of work not clearly defined in the specification, extra effort of
research work in the attainment of sound judgment should be supplied by the
responsible estimator. The estimator has to exercise his judgment in modifying cost
items based on his personal experience and skill in order to make the estimate
realistic as possible, but not to exaggerate to cause overestimate. The estimator is
advised to inform in writing, through the Owner or client, all the designers involved
in the problems arising from incomplete plans and/or specifications regarding
estimate data and criteria
PRINCIPLES OF ENGINEERING ESTIMATE

• Reliable Estimate
• To make the estimate reliable, both quantities and prices must be determined
accurately. The availability and accuracy of information determine the quality and
reliability of an estimate. The first important and main sources of information for
estimate jobs are the plans and specification. These construction documents must be
carefully and thoroughly studied before estimating work begins
PRINCIPLES OF ENGINEERING ESTIMATE

• Bill of Quantities
• Quantities of materials are calculated from the drawings shown in the plans. With
the aid of solid mensuration principles, quantities can be determined with high
degree of accuracy. As a result, the estimated bill of quantities is considered reliable.
From the estimated quantities of materials, the estimator can compute the
corresponding required manpower and equipment requirement for the project. If the
estimated quantity is faulty, the corresponding estimated cost is wrong which affects
the entire estimate.
PRINCIPLES OF ENGINEERING ESTIMATE

• Unit Prices, Wage, and Rental Rates

• Unit prices of materials are based on the specification which contains description, size
and dimensions, make, color, etc. Most estimate information depends on past or
previous project cost data. Unit prices of materials, labor wage, equipment rental rates
vary from time to time, from one place to another. Most often, modifications of past
data are required to conform with present market condition on prices or to suit actual
job situation for unit cost analysis. For example, the cost of certain item differs from
one location to another because of hauling expenses or depends on the availability of
the item in the locality where the project is to be built. Wage rates differ from one
region to another as well as equipment rental rates. An estimator who determines unit
cost or price for estimated quantity is known as "Cost Engineer”
PRINCIPLES OF ENGINEERING ESTIMATE

• Reliable Estimate
• The primary task of a cost engineer is to derive or to validate all unit prices, wage
and rental rates by "cost analysis". The CE prepares the costing or pricing of the
estimated quantities: (a) material, (b) labor, (c) equipment and (d) indirect cost and
(e) construction schedule in terms of manpower and cash flow. Unit cost puts
monetary value on the estimated quantities to make engineering estimate complete.
PRINCIPLES OF ENGINEERING ESTIMATE

• Cost Data Evaluation

• The cost engineer has to exercise judgment in modifying cost data based on his
personal experience or augment his knowledge and skill through research and make
the unit cost estimate realistic as possible. The cost engineer is tasked many cost
variables such as: availability of materials, labor, and equipment, fluctuation of prices,
job conditions, workmen efficiency, accessibility, etc. for the determination of the most
probable cost of every item. He must be able to locate the best source and predict
prices suitable for preparing reliable estimate for fund allocation, competitive bidding,
and efficient construction.
PRINCIPLES OF ENGINEERING ESTIMATE

• Effective Estimate
• The effectiveness of the final estimate depends on the completeness and accuracy of
calculated quantities and reliability of unit prices. However, adjustment shall be made
in the estimated quantities and unit costs to include allowances for wastes and price
fluctuations which make the estimate effective during construction. In the same way,
the estimate must contain waste or allowance factor for the estimated quantities and
fluctuation factor for the canvassed unit prices to make the final estimate effective;
thus, the probability of loss is minimized, if not eliminated.
PRINCIPLES OF ENGINEERING ESTIMATE

• Engineering Estimate Documentation

• A good estimate must be properly substantiated and documented by standard
analytical computations. It should be made well organized to provide easy
verification, correction, and examination. The estimate calculations must be done in
an orderly manner to give efficient means for editing the estimate in case of changes
or variations which involves addition or deletion of some portions of the estimate if
so required. Many changes of information may occur during estimate preparation and
that a good estimate computation is traceable and can be easily altered in any
particular detail without undergoing the whole estimating process. This is the proper
way of preparing engineering estimate computation in compliance with standard
practice.
BASIC REQUIREMENTS OF ENGINEERING ESTIMATE

To ensure a complete, reliable, and effective estimate, the following requirements are mandatory:
1. Quantity take-off worksheets of all work items
2. Unit price and cost analysis of all cost items
3. Labor rates and productivity analysis
4. Equipment rental rates and production analysis
5. Breakdown of indirect cost (Overhead, Miscellaneous, Contingencies)
6. Mark Ups Details (Profit, Expanded Withholding Tax (EWT), Expanded Value Added Tax
(EVAT))
7. Total Estimated Project Cost (EPC)
REQUIREMENTS IN ESTIMATING BOQ

The two main requirements in preparing estimates are: (a) working drawings and (b)
construction specifications. Working drawings are sometimes called construction plans.
They are graphical presentations drawn on tracing papers or shown on blueprints that
indicate measurements and configurations of the building. Working drawings enable the
estimator visualize the building elements and their assemblage in order to construct the
whole structure. On the other hand, the construction specification stipulates the type,
make quality of materials, and the construction methods to be complied.
REQUIREMENTS IN ESTIMATING BOQ

The minimum requirements in estimating the bill of quantities for buildings, among others,
are:
For Architectural
1. Perspective drawing of the building 2. Site development plan
3. Location plan 4. Floor plans
5. Elevations 6. Transverse and longitudinal sections
7. Cabinets and closets 8. Stairs and handrails
9. Doors and windows 10. Ceiling plans
11. Interior designs and features 12. Schedule of Finishes
REQUIREMENTS IN ESTIMATING BOQ

For Structural
13. Foundation plans
- Details of foundation - isolated and wall footings, mat
- Details of columns and wall, slab on ground
- Details of piles and pile caps, tie beams
14. Floor framing plans
- Details of beams, girders, slabs
15. Roof framing plans
- Details of trusses, rafters, purlins, sagrods, gutters, parapets
REQUIREMENTS IN ESTIMATING BOQ

For Formworks
16. Formwork plans
- Details of forms and scaffoldings
For Plumbing
17. Plumbing plans
- Details of water pipe networks, sanitary and drainage pipes, vent pipes
- Isometric drawings of water and sanitary pipe system
REQUIREMENTS IN ESTIMATING BOQ

For Electrical
18. Electrical plans
- Details of riser diagram, load computations, panel boards, switches,
- Lightning and convenience outlets layout
For Mechanical
19. Mechanical plans
- Details of air-conditioning units or systems, pumps, fire protection, elevator,
escalator
REQUIREMENTS IN ESTIMATING BOQ

For Specialty
20. Painting - Plans for areas of substrates
21. Glass and Aluminum - Details of frames and connections
22. Waterproofing - Plans for area of surfaces
23. Landscaping - Planting and ground cover plan, sprinkles
24. Masonry - Plans and details of masonry units
25. Roofing - Installation and anchorage details
26. Pest control - Plan for areas of infestation
REQUIREMENTS IN ESTIMATING BOQ

Site development plan should be accompanied by spot pictures to enable estimators assess
the place for the evaluation of site conditions whether it is excellent, average or severe. Site
condition assessment is important in labor output and equipment production analysis. If the
site condition is restricted, workers mobility is affected resulting to slow labor productivity
likewise that of equipment production. In addition, the quantity of site excavation and the
amount of clearing work can be estimated precisely with the use of topographic maps and
site pictures. Drawings and pictures paint a thousand words. For rugged terrain, a
topographic map is mandatory for site development plan.
IMPORTANCE OF SPECIFICATION

The technical information is prepared in two formats: (a) graphical drawings and (b)
specifications. The drawings are presentation while the specifications are narrative in form.
During the estimating stage, the most needed and indispensable documents are plans and
specifications which define the project to be constructed. Drawings are shown in the plans
and detailed description of materials, equipments, and methods of construction are
stipulated in the technical specification. The specification governs whenever there is
discrepancy between the drawings and specifications.
PURPOSE OF SPECIFICATION

Specification, which is a detailed description of work to be done or materials to be used,

has various significant purposes in engineering such as:
1. To describe clearly what the end user (owner or client) intends to purchase or to make.
2. To provide the basis to evaluate materials and work quality during and after construction.
3. To be used by estimators and bidders to prepare quantity take-off, labor man-hours,
equipment-hours, unit costs.
MOST PROBABLE COST

Cost item is a piece of material, amount of work, or equipment - hour that entails cost. The
most probable cost of a project contains several cost items and each item must be
calculated in detail to ensure accuracy of estimate. The cost items comprising the most
probable cost are:
1. Direct costs: Materials, Labor, Equipment
2. Indirect costs: Overhead Contingencies Miscellaneous Mobilization/demobilization
3. Mark ups: Profit Taxes - Expanded Withholding Tax (EWT) - Expanded Value Added Tax
(EVAT), Construction Permits Fees
DIRECT COST

Direct cost of a project is calculated based on the drawings shown in the plans and
descriptions in the specification. It is a cost that includes materials, labor, and equipments
needed to complete the job.
DIRECT COST

Materials
Material for construction involves: (a) quantity and (b) unit price. Quantity of materials is
calculated based on the dimensions shown in the drawings expressed in measures of
volume, weight, area, etc. Estimate of quantities must be based on clear span length or clear
height, out-to-out dimension of members. Quantities can be calculated with acceptable
accuracy using engineering theory on plane and solid mensuration. Prices of materials must
conform to the approved plans and specifications in relation to size, quality, grade, physical
properties, and other requirements. The price must include delivery charge or must specify
whether the supplier is responsible for loading, transporting and unloading the materials to
the job site. If not, the delivery fee or hauling cost shall be included in the cost of materials
DIRECT COST

Labor
Workmen and job efficiency are two important factors that must be considered in Labor
Productivity analysis. Labor cost is made up of two parts, namely: (a) basic daily wage, and
(b) fringe benefits and insurance. The basic daily wage is a base rate usually per day minus
withholding tax for fixed income worker (income tax), if there is any. In addition to the daily
base rate, fringe benefits shall be paid
DIRECT COST

Equipment
After identifying the type and size of equipment to be used, it can calculate the total time of
operation, usually in number of days or month. The total equipment operation time can be
calculated considering the production capacity of the appropriate equipment and the
estimated quantity to be worked. The equipment cost includes:
a. The prevailing rental fee (operated-hour or bare month),
b. The wage for the operator,
c. Fuel, lubricants and maintenance costs, and
d. The cost to mobilize the equipment to and from the job site. This is called "equipment
mobilization and demobilization".
INDIRECT COST

Indirect cost is a cost related and incidental to direct cost that were established by
experience in actual construction of projects. It is a cost mainly intended to provide:
a) Factors of allowance for underestimated items of work,
b) Contingencies for unforeseen events and
c) The risk to do business
INDIRECT COST

Overhead
Overhead is an indirect cost or allied expenses intended for the operation of the
construction business including engineering and administrative supervision. Construction
schedule of shorter time duration reduces overhead cost. Overhead can be broken down
into two types, namely: to
a. The cost to operate the main office; and
b. The cost to operate the construction job at site.
INDIRECT COST

1. Temporary Facilities a. Construction of field office, bath and comfort rooms, quarters,
warehouse, barricades b. Cost of water and power for domestic use
2. Construction Quality Control a. Service vehicle and transportation allowances b. Fees
for as-built drawings c. Expenses for coordination meetings d. Cost in securing
construction permits e. Expenses for photographs and photocopying
3. Field Office Salaries and Expenses a. Salaries of field employees and consultants b.
Security, safety and protection, health care c. Cleaning and sanitation d. Telephone and
communication
INDIRECT COST

Contingencies
Contingencies are allowances for unforeseen events, necessarily indicated in the plans or
stipulated in the specifications. works, and items that are necessary to complete the job but
not necessarily indicated in the plans or stipulated in the sepcifications. The contingency
allowance can be derived from: (a) the actual site nature of work scheduling (normal or
rush), (d) the proximity of the conditions, (b) availability of local materials and labor, (c) the
project to main roads and (e) the working style of the architect/engineer as owner's
representative either strict, competent and/or cooperative
INDIRECT COST

Contingencies may include but not limited to the following:

a. Unforeseen overtime
b. Temporary shortage or untimely delivery of materials
c. Site condition - rugged terrain, loose soil or rock excavation, space restriction for
workers
d. Unpredictable weather
e. Unexpected pumping due to rain or ground water
f. Space restriction for warehouse, mobility
g. Fluctuations in prices of construction materials
INDIRECT COST

Miscellaneous
Miscellaneous includes expenses intended for cost of small items that are not readily
determined or difficult to quantify, and other various works. This cost must be included in
the computation of the most probable cost, such as: a. Cost for small tools that wear-out or
may be lost like shovels, crowbars, chisels and other similar items; b. Final touch-up, patching
and cleaning; c. Hauling of debris from site during move out; d. Neglected or
underestimated small items like nails, welding rods, roof screws, tie wires, tapes, solvent,
hand gloves etc.; e. Cost for protecting adjoining small structures; f. Expenses for field
material sampling and laboratory testing. g. Barangay road users fee for heavy equipment,
dump trucks, equipment carriers or haulers
INDIRECT COST

Mobilization/Demobilization
Mobilization and demobilization in construction cover the cost of "bringing in and taking
out" of non-moving tools and equipment to and from the job site. This includes concrete
mixers, welding machines, boom-and-tackle, concrete vibrators, wheelbarrows, water
containers, bar cutters, steel forms and scaffoldings and some especial building materials. In
addition, key personnel and workers are also mobilized to the job site at the start of
construction
MARK UPS

Profit
Profit is a cost as reward in relation to the expertise, skill and experience and the risk that
one should take to do a job or operate a business. This is the net amount one should like
to earn after the completion of a job. Profit can range from eight to ten percent (8 to 10%)
of the total direct cost for ordinary construction works.
MARK UPS

Taxes
Tax is a sum of money paid to the government so that it can pay public services. People pay
tax according to their income and businesses pay tax according to their profits.
Infrastructure construction is business; therefore, it pays taxes in the form of:
1. Expanded Withholding Tax (EWT)
2. Expanded Value added Tax (EVAT)
EWT normally ranges from 2.5 to 3% and EVAT is 5.5 to 7% of the total estimated direct
cost.
FACTOR OF WASTE

In actual construction, waste materials cannot be avoided due to: (a) minimum ordering or
standard purchasing requirement and (b) accidental spillages and breakages. Waste materials
require extra cost that should be included in the unit price. However, extra materials for
splices, hooks, overlaps, anchorages, etc. are not waste materials and should be estimated
separately in detailed manner to satisfy design requirements. Waste material is usually
expressed in percent of the estimated quantities called "factor of waste" which normally
varies from 2 to 5 percent. In some cases, factor of waste (FW) can reach ten percent
(10%).
FACTOR OF WASTE

Concrete
Concrete for footings is directly deposited on the ground; as a result, lesser chance of
spillage or waste can occur except in deep bored foundations and pile caps where poor
site condition and space restrictions exist. The reinforcements in columns and walls offer
obstruction during concrete pouring thereby causing a greater chance of spillage. Beams
and slabs are generally poured simultaneously for monolithic construction with a wide area
for concreting work which minimizes waste. Waste factors vary on the volume of concrete
to be poured and location where the concrete will be deposited. Longer distance or
greater height for concrete deposition aggravates the risk for spilled materials
FACTOR OF WASTE

Masonry
Large quantity of masonry materials requires wider search for appropriate suppliers to
provide better standard and quality products to minimize damages. Big jobs requires
greater attention regarding careful handling on the part of the contractor to avoid greater
losses due to breakages and spillages.
FACTOR OF WASTE

Reinforcement
For main steel bars: 5% for beams 3% for columns and slabs 2% for ties and stirrups
Amount of waste materials for steel bars can be reduced by preparing bar-cutting schedule.
Main reinforcements are terminated at designated cut-off points approved by the structural
engineer along the span which require strict compliance in conformity with design criteria
stipulated in the structural code (NSCP).
FACTOR OF WASTE

Steel and Wood

For steel: 3% For wood: 5%
Smaller or short pieces of steel can be joined easily by weld. But wood requires splice
plates for connection which make short cuttings as wastes.