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The document discusses the importance of cost estimation in construction, detailing the types of estimates, their purposes, and the data required for preparation. It outlines the differences between estimated and actual costs, factors influencing rate analysis, and the role of quantity surveyors at various organizational levels. The content serves as an educational resource for understanding cost estimation and its relevance in project management.

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Arian Ashfaque
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13 views19 pages

Presentation 1

The document discusses the importance of cost estimation in construction, detailing the types of estimates, their purposes, and the data required for preparation. It outlines the differences between estimated and actual costs, factors influencing rate analysis, and the role of quantity surveyors at various organizational levels. The content serves as an educational resource for understanding cost estimation and its relevance in project management.

Uploaded by

Arian Ashfaque
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Quantity Surveying & Accounting

Importance of Cost Estimation


Estimate and its’ types
Fair Use Notice

The material used in this presentation i.e., pictures/graphs/text, etc. is solely


intended for educational/teaching purpose, offered free of cost to the students for
use under special circumstances of Online Education due to COVID-19 Lockdown
situation and may include copyrighted material - the use of which may not have
been specifically authorised by Copyright Owners. It’s application constitutes Fair
Use of any such copyrighted material as provided in globally accepted law of many
countries. The contents of presentations are intended only for the attendees of the
class being conducted by the presenter.
Estimation
Importance of Cost Estimation
- Global Perspective
- Local Perspective
- Public Sector Client (Engineer’s Estimate)
- Contractor (Bid/Proposal)
- Private Sector Client
Estimation is the process of working out the approximate cost of an project before execution of the work.
• It is totally different from calculation of the exact cost after completion of the project.
• Estimation requires a thorough Knowledge of the construction procedures , cost of materials & labours in
addition to the skill , experience, foresight and good judgment.
• Level of Accuracy is different
• Preliminary Estimate and Detailed Estimate
• Level of Accuracy is likely to be less in P.E.
Detailed Estimate
• At the end of design
• Drawings
• Specifications
• Methods
• Materials
• Tests
• Contract Conditions
Detailed Estimate
• General Contract Conditions, Procurement guidelines
• Location
• Type of Structure
• Time required to complete the project
• Estimation of the time of project
• Level of accuracy is likely to be more in detailed estimate.
Difference between ESTIMATE and ACTUAL COST

• Difference between ESTIMATE and ACTUAL COST


• Actual Cost can be determined at the end of project
• Actual Cost? When
• At the end of project.
• As Built Drawings
• As per actual expenditures
NEED FOR ESTIMATION AND COSTING

1. Estimate 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. Estimate gives an idea of time required for the completion of the work (prices).

3. Estimate is required to invite the tenders and Quotations and to arrange contract.

4. Estimate is also required to control the expenditure during the execution of work.

5. Estimate decides whether the proposed plan matches the funds available or not.
DATA REQUIRED TO PREPARE AN ESTIMATE
(Detailed Estimate)

1. Drawings after detailed design (i.e. plans, elevations, sections etc). Architectural
2. Structural
3. Electrification
4. Plumbing works
5. Interior design

6. -
2. Specifications (Genral, Technical, construction methods, material testing, end product testing)
3. Rates (Rate Analysis of various works).
4. Project Location
Project duration

5. Project Scope (Quality, Quantity, End user, Design Life of the project)
Facilities available at project location

DRAWINGS:
• If the drawings are not clear and without complete dimensions the preparation of estimation become very difficult. So, it is very essential
before preparing an estimate to have complete and clear drawings in hand.
Factors Influencing Rate Analysis
• Engineer’s Estimate
• Client or Consultant on behalf of Client
• Contractor (Bid/Offer)
• LOCATION
• Transportation of Materials- Distance/Level of service of transportation
facility/access
• Availability of Materials related to that activity/item/project
• Labor cost (Skilled/Unskilled), Technical/Administrative
• Site Conditions- Geotechnical data/type of the soil/state of the soil
(compacted/loose/water content/water table)
Factors Influencing Rate Analysis
• Environment
• Weather (Very Hot/ Very Cold) affect the productivity/construction output
• Available facilities (accommodation/food/water/health)
• Construction Method (Manual/Equipment based)
• Quality Requirements/Specifications (less the tolerance limits/high
standards in terms of safety/ architecture/ other designs)/level of
workmanship
• Testing requirements
• Project duration
• Productivity (Labor/Equipment)
SPECIFICATIONS

a) General Specifications: These gives the nature, quality, class and work
and materials in general terms to be used in various parts of wok. It
helps to form a general idea of building. For e.g. Concrete of 1:4:8 in
foundation.

b) Detailed Specifications: These gives the detailed description of the


various items of work laying down the Quantities and qualities of
materials, their proportions, the method of preparation workmanship
and execution of work.
For e.g. concrete of 1:4:8, having size of coarse aggregates not more
than 20mm ,laid properly ,well compacted with tamping bar.
RATES

• For preparing the estimate the unit rates of each item of work are
required for arriving at the unit rates of each item.

1. The rates of various materials to be used in the construction.

2. The cost of transport materials.

3. The wages of labor, skilled or unskilled of masons, carpenters,


Amador, etc
TYPES OF ESTIMATE
• Preliminary or Approximate estimate or rough cost estimate
• Detailed estimate
• Annual repairs estimate
• Special repairs estimate
• Revised estimate
• Supplementary estimate
• Plinth Area Estimate= Total expenditure/Covered Area
• Total expenditure is known at the completion of project
Types of Estimate
• 5000,000 Rs/2000 sq.ft
• Rs 2500 per sq.ft.
• 2000 and above presently for R.C.C constructions
• Approximate estimate for future constructions keeping the forecasting of
increase/decrease in the price
• Duration of the project
• 2200 Rs
• Approximate estimate
• Exact plinth area rate can be determined at the end of the project
• Estimated plinth area rate can be worked out after detailed design/complete design
of the project.
Types of Estimate
• Cubical Content Method
• Unit base method
ROLE OF QUANTITY SURVEYOR AT DIFFERENT ORGANIZATION
LEVELS

• Role of Quantity Surveyor at different levels


• Public Sector Client level- Govt. organizations
• Private sector client
• Consultant /designer level
• Constructor/ Contactor level
• Sub-contractor level
ROLE OF QUANTITY SURVEYOR AT DIFFERENT
ORGANIZATION LEVELS
• Public Sector Client Level/Consultant Level
• Preliminary estimate/approximate estimate for different proposals
• To choose the most appropriate/feasible option for the client
considering available funds, function, end user requirement
• Advantages and disadvantages
• Detailed design- detailed estimate- Engineer’s Estimate
• Tender process- Evaluation of Bids/ Proposals submitted by
contractors- Selection of the suitable contractor
• Planning, organizing and Monitor the cost of construction
ROLE OF QUANTITY SURVEYOR AT DIFFERENT
ORGANIZATION LEVELS
• Contractor Level
• To win the project or to have the business
• Tender documents (Drgs, specification, quantities)
• Each interested contractor
• Detailed estimate/ Bids/ Proposals/ offer of different contractors- different proposals
• Rate Analysis of each item
• Confirm the quantities
• A Quantitity Surveyor either makes a Firm or Breaks a Firm
• Selected for a project or firm is awarded a project
• ate
• Execution Stage
• Planning, organizing and Monitor the cost of construction

• Purchase of material
• At what stage material may be purchased
• What quantity, quality consideration
ROLE OF QUANTITY SURVEYOR AT DIFFERENT
ORGANIZATION LEVELS
• Sub-contractor level/ Specialist
• Private sector client level

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