Project & Contract Management

Lab Lecture - 02

Aqsa Shabbir
Department of Civil Engineering
Estimation:

An estimate is probable or anticipated amount and cost
of work.

Estimation is the scientific way of working out the
approximate quantities required and expenditure likely
to be incurred in the construction of a project and is
done before the execution of the construction work.

Estimation is different (in its nature) from the calculation
of exact cost after the completion of the project.
Estimation requires thorough knowledge of the
construction procedures, the skills required, the cost of
materials and labour , and good judgmental skills.

Estimate should not differ more than 5% to 10% to the
actual cost of the project.
Why an Estimate is Needed?

The main purpose of an estimate is to know
probable amount and cost before the work is
executed.

The actual cost is always obtained after completion
of the project. If the estimate is prepared with a lot
of accuracy and care, the estimated amount will be
near to the actual cost.

Inaccuracy in preparing estimate, omission of
items, changes in designs, improper rates, etc. can
be the reasons for exceeding the estimate,
although increase in rates is considered to be the
main cause for that.
Why an Estimate is Needed?

The rates in the estimate provided for the whole
work, and consists of the cost of materials, cost of
transport, cost of labor, cost of scaffolding, cost of
tools and plants, cost of water, taxes, establishment
and supervision cost, reasonable range of
contractor’s profit etc.

In case the estimate exceeds 5%-10% than the
prescribed limits, it become very difficult for the
concerned people to explain the excess amount
when accounted for and to arrange the additional
money needed due to the excess amount.
Why an Estimate is Needed?
Estimate helps in following ways:

It tells whether the project is suitable or not by
considering the cost comparison.

It tells the quantity of major components of the
project like cement, bricks, steel, sand etc and the
cost involved.

It helps to invite tenders.

It helps to monitor the contractor’s payment /
invoicing record.

It helps to check contractor’s work performance
while it’s being executed.
Why an Estimate is Needed?

It helps to foresee the details of the work to be
executed and the minor and major components of
the project to be prepared.

Estimate also helps to develop job costing system.
It is the system that compares actual cost of the
project at specific time for particular item of
estimate and tells which item needs more cost
control during the construction process.

Estimate helps in preparing construction schedule
prior to its execution.

It helps to find out various activities for construction
schedule, e.g. duration of work.
Why an Estimate is Needed?
 The essence of an estimate consists of forecasting future
events in construction process and then placing rupee
value on these events. However, many additional factors
may affect the future events during a construction process,
e.g.
a) Labor production
b) Material availability
c) Financial markets
d) Weather
e) Construct ability issues
f) Equipment availability
g) Contract types
h) Ethics
i) Quality issues
j) Project control system
k) Management ability
 Quantity Surveyor:

The person who deals with quantity
surveying and estimation is a quantity
surveyor. QS Provides wide range of
services including:
 Carry out estimation and measurement of
construction works prior to tender.
 Determine the types of materials that needs
to be used.
 Producing the bill of quantities (BOQs)
 Produce tender documentation and manage
the tender process
Quantity Surveyor:
 Manage the contract through monthly valuations
of the equipment used for construction sites and
ensure all timelines are met and remain within
budget. That means effective and efficient
utilization of resources (material, manpower and
money) is the main objective of the quantity
surveyor.
 The QSs who carry out work on behalf of a client
organization are often known as a "professional
quantity surveyors", while those who work for
construction companies are often known as
"contractor's quantity surveyors".
 Estimation Requirements:

Estimation is done theoretically by

mathematical calculations based on project
plan, drawings and rates in local market.

Therefore, it requires:
 Drawings
 Specifications

 Rates
Drawings - - Estimation Requirement

Drawings are the mean by which designer convey
the physical, quantitative and visual description of
the project to the contractor.
Drawings are two dimensional representation of
physical structure that conveys the objective of the
owner.

The drawings which are normally used in
construction project, include:
 Architectural drawings

 Electrical drawings

 Mechanical drawings

 Structural drawings
Specifications - - Estimation Requirement

They are also known as technical provisions. They
are the written instrument to be used in
conjunction with the drawings, and so, together
the drawings and the specifications fully describe
and define the requirements of contract to include
the quality that is to be achieved.

The specifications or technical provisions consists
of following data:
 Quality of material

 Quality of workmanship

 Execution and installation procedures

 Test and inspection requirement methods

Specifications - - Estimation Requirement

Specifications describe following criteria:

 Accuracy and adequacy
 Definite and clear stipulation
 Fair and equitable requirements
 A format that is easy to use during bidding or
tendering and also during construction process
 Legal enforceability
Rates- - Estimation Requirement

There are mainly three types of rates:
1. Scheduled Rates
2. Non-Scheduled Rates
3. Item Rates

Scheduled Rates: They are also called
composite scheduled rates because they provide
us total rates (company’s overheads + salary of
labour + all other expenses). Composite
scheduled rates are published by the standing
rates committee for Punjab that provides schedule
rates for the preparation and consideration of an
estimate.
Rates- - Estimation Requirement

Tender Price: Tender price is the estimated
amount through composite schedule rates (CSR)
plus 20% - 30% of premium announced on these
rates in that year.

Non-Scheduled Rates: These are the rates

for those items which are encountered during the
execution of the project and were not considered
during preparation of the estimate. These rates are
considered only due to unforeseen and
unavoidable circumstances.
Rates- - Estimation Requirement

Item Rates: These are the rates which are not

considered or given in composite scheduled rates
but considered in estimates, bill of quantities,
acceptance letter and contract.
 Stages of An Estimate
Serial Estimated Reason For
Stage Method Used
No. Procedure By Estimate
To compare
alternatives and give Comparisons with
01 Feasibility study Designer the owner an previous similar
indication of funds projects
required
To provide more
accurate indication
Bill of quantities
of funds needed to
(BOQ) rates from
Completion of detailed complete the project
02 Designer previous similar
design and to assists in the
projects are
assessment of
adjusted
tenders as necessary
into completion
Operational
estimating unit rate
03 Tender stage Contractor As basis of tender estimate, sub-
contractor
quotation
 Types of Estimates

Following are the types of estimates:

1. Preliminary/Approximate/Rough cost estimate
2. Plinth area estimate
3. Cube rate estimate
4. Approximate quantity method estimate
5. Detailed/Item rate Estimate
6. Revised estimate
7. Supplementary estimate
8. Supplementary revised estimate
9. Annual repair & maintenance estimate

First four are the rough cost estimates, whereas,
next five to nine are detailed estimates.
 Preliminary/Approximate
/Rough cost estimate

It is an estimate of cost before the construction from
the line plans or architectural drawings of the
project scheme, when even detailed or structural
design has not been prepared.

Note: These estimates are used for obtaining

administrative approval from the concerning
authority (client). Sometimes, on the basis of rough
cost estimates, a proposal (project) may be
dropped altogether.
 Preliminary/Approximate
/Rough cost estimate

Method: Average unit cost is worked out for
projects of similar nature, i.e. the project under
consideration. Unit cost means cost of execution of
a unit quantity of the work. In this method average
unit cost is multiplied by total quantity of present
work in the same unit.
e.g.
a) For building cost per person
b) For hospital cost per bed
c) For student Hostel cot per student
d) For hotels cost per person
 Plinth Area Estimate

Covered area of building is worked out and cost per
square feet of the covered area is calculated. This
is most commonly adopted criterion for preparing
rough cost estimate for most of the residential
buildings.

For public buildings, cost Per person (cost per
capita) is used. For example,
 Students hostel—————-—Cost per student
 Hospitals————————————Cost per bed

 Hotel—————————————Cost per Guest

Example:

Given that
Covered area of ground floor = 10000sft.

Covered area of first floor = 10000sft.

Covered area of second floor = 10000sft.

Covered area of third floor = 5000sft.

Covered area for parking = 4000sft. (unit cost
for parking is 12/sft.)

Walkways + Land Scapping + Boundary wall +
External services = Rs.1750000/-
Example:
Unit cost Rs/sft.
Floor
ΣTotal
Building Gas/Sewerag
Sanitary Electricity Rs.
worth e
628 х 10000
Ground 438/- 88/- 70/- 32/- =6280000/-

570 х 10000
st
1 350/- 105/- 70/- 45/- =5700000/-

641 х 10000
nd
2 403/- 123/- 70/- 45/- =6410000/-

700 х 5000
rd
3 432/- 140/- 80/- 48/- =350000/-

18740000/-
i) Covered area cost per sft. = 18740000/35000 = 535.43 Rs/sft.
ii) Area for Parking cost per sft. = 4000 х 12 = 48000 Rs/sft.
 Cube Rate Estimate

In this method third dimension, the “height” is

included and thereby a cube rate is established.
In this method, first the covered area is calculated
which is then multiplied up to level of ceiling. This is
how, for each floor level separate cube rate
estimate is obtained.

Cost per cubic foot is particularly suitable for
commercial offices, shopping centers, and
factory buildings, etc.

For water tank/reservoir, cost may be worked out
on the basis of capacity in gallons of water stored.
 Approximate Quantity Method
Estimate

In this method a linear length is used for estimation,
and total length of the object (wall) is calculated in
running foot/meter (m/ft). This length is then
multiplied by running rate per running foot of the
object (wall) to get the respective cost.
In this method, cost may be calculated in following
ways:
a) For roads & railways Cost/Km or Cost/miles
b) For street Cost/100ft or Cost/30m
c) For bridges cost/ ft or cost/ meter of clear span*
*Clear span means distance between two supports
of bridge.
 Detailed Estimates

Detailed estimates are prepared from the detailed
working drawings and the specifications once the
design is finalized carefully. The whole project is
divided in to different items of work or activities that
constitute the whole project. The quantity for each
item is calculated separately from drawing as
accurately as possible. This procedure is known as
“taking out quantities”.

The quantities for each item may be estimated and
shown in the pattern which is called "Bill of
quantities."
 Detailed Estimates

Each item of the work is multiplied by its estimated
current rate to find out the cost of the item. By
adding cost of all items of the work at the end, the
total estimated cost of the project is calculated.

The rates are usually as per Schedule of Rates for
the locality plus a premium to allow for rise in labour
and material rates. A percentage, usually 5% is
also provided on the total estimated cost for the
work to allow for the possible contingencies due to
unforeseen items or expenditure or other causes,
besides 2% establishment charges.
 Detailed Estimates

The unit in which each item of the wok is calculated

is very important and should be according to the
prevailing practices being followed in other
departments of that country.

If there is any mistake in rough cost estimate, it is
eliminated in detailed cost estimate.

Detailed estimates are submitted to competent
authorities for obtaining technical approval of the
project.
 Estimated and Actual Cost

ESTIMATED COST
After detailed estimation, the expected cost for the
project is called estimated cost.

ACTUAL COST
Actual cost of work is known on its completion. During
the execution of the work, the accounts section
maintains accounts of all expenditure on daily
basis. On completion of the work, the accounts are
also complete and thereby reflect the actual cost of
the work.

The actual cost should not differ much from the
estimated cost worked out in the beginning.
 Types of Detail Estimate

There are three common types of detail estimates.

 Contractor's estimate.
 Engineer's estimate.

 Progress estimate.

Contractor's estimate is made by the Contractor

to determine the cost to be bid for tender. It is a
carefully prepared detailed estimate.

Engineer's estimate is made by the Design
Consultant for the purpose of financing the work
and for checking bids made by contractors.
 Types of Detail Estimate

Progress estimate is made by the Supervision

Consultant at regular intervals for the completed
parts of the project during the progress of the work
to determine the amounts of partial payments to be
made to the contractor. On large contracts, such
estimates are commonly made each month and,
hence, are frequently called monthly estimates.
 BILL OF QUANTITY (BOQ)

An itemized list of materials, parts, and labor (with
their costs) required to construct, maintain, or repair
a specific structure is called bill of quantities.

MOBILIZATION ADVANCE is the amount given to
contractor to start the project. Usually it is 10% of
the estimated cost.

During BOQ PAYMENT client takes back 10% of
mobilization advance and 2 – 5 % of total BOQ
payment as security / Retention money. Once these
deductions are made, remaining payment is given
to the contractor.
 Abstract of Bill of Quantities (BOQs)
Sr. Description of Quantity Unit Rate Amount
No. Items (Quantity*Rate)

1 Excavation m3 ….

2 Termite Proofing m2 ….

3 Compaction m2 ….

4 P.C.C (1:4:8) m3 …..

5 ….. …. …. ….. …..

Description of Items / Item Work

EARTH WORK:
 Earth work in excavation and earth work in filling
are usually taken out separately under different
items, and quantities are calculated in cu m.
 Foundation trenches (Trenches are generally
measured as being deeper than their width and
being narrower than their length) are usually dug to
exact width of foundation with vertical sides.
 Earth work in excavation in foundation is calculated
by taking the dimension of each trench length ×
breath × depth. (Breath: distance from side to
side).
Description of Items / Item Work

EARTH WORK:
 Filling in trenches after construction of foundations
masonry is ordinary neglected. If the trench filling
is accounted, this may be calculated by deducing
the masonry from the excavation.
 Extra earth if required for filling is brought from
outside. If there is surplus earth after trench and
plinth filling, this may be utilized in leveling and
dressing of suite or carted away and removed.
Description of Items / Item Work

CONCRETE IN FOUNDATION:
 The concrete is taken out in cu m by length ×
breath × thickness. The length and breath of
foundation concrete are usually the same as for
excavation, only the depth and thickness differ.
The thickness of concrete varies from 20cm to
45cm, usually 30cm (9” to 18” usually 12”).
 Foundation concrete consists of lime concrete or
weak cement concrete. The proportion of
cement concrete in foundation may be 1: 4: 8 or
1: 5: 10.
Description of Items / Item Work

SOLING:
 When the soil is soft or bad, one layer of dry
brick or stone is applied below the foundation
concrete. This is known as soling layer and is
computed in sq m (length × breath) specifying
the thickness
Description of Items / Item Work

DAMP PROOF COURSE (D.P.C.):
 D.P.C is usually 205cm (1”) thick rich cement
concrete 1: 11/2 : 3 or 2cm,( ¾”) thick rich cement
mortar 1 : 2, mixed with slandered waterproofing
material.
 It is provided at the plinth level to full width of plinth
wall, and the quantities are computed in sq m,
(length × breath).
 Usually D.P.C is not provided at the sill of the
doors and veranda opening, for which deductions
are made, instead one kg of Cem- seal or Impermo
or the other standard waterproofing compound per
bag of cement is generally used.
Description of Items / Item Work

MASONRY:
 Masonry is computed in cu m (length × breath ×
Height).
 Foundation and plinth masonry are taken as one
item, and masonry in superstructure is taken as
a separate item.
 In multi-storey building, the masonry in each
storey as ground floor above plinth level, first
floor, etc is computed separately.
 While taking out quantities, walls are measured
as solid item and then deduction are made for
openings as doors , windows, etc.
Description of Items / Item Work

MASONRY:
 Masonry with different types and classes, is
taken as separate item.
 Splayed or rounded sides of wall are considered
as rectangular and extreme dimensions are
taken to find out the quantities.
 Thin partition wall is measured in sq m.
 Honey comb brick wall is taken as separate item
in sq m and no deduction is made for holes.
 Stone masonry is calculated in the same manner
as if the brick masonry.
Description of Items / Item Work

Deduction for opening, bearings etc. in
masonry:
No deduction is made for the following:
1. Opening each up to 1000 sq cm or 0.1 sq m
(1 sq ft)
2. Ends of beams, posts, rafters, purlins, etc. up
to 500 sq cm or 0.05 sq m (72 sq in) in
section.
3. Bed plate, wall plate, bearings of chajjas and
the like up to 10 cm (4”) depth.
4. d) Bearing of floor and roof slabs are not
deducted from the wall masonry.
 Description of Items / Item Work

Deduction for openings in masonry:

For other opening the deduction is made in the following

way:
 Rectangular openings:-
Full deduction is made
Deduction --------- l × h × thickness of the wall.
 Doors and windows with small Segmental
Arches:-
Deduction is made only for rectangular portion.
Deduction --------- l × h × thickness of the wall.
Description of Items / Item Work

Deduction for openings in masonry:

 Segmental Arch opening:-

Deduction is made for the whole opening (rectangular
opening as well as the segmental opening).
Deduct ion --------- [(l × h) + (2/3 ×l × r)] × thickness of the
wall.
 Semi circular Arch opening:-

The total Deduct ion --------- [(l × h) + (3/4 ×l × r)] ×

thickness of the wall.
Description of Items / Item Work

Deduction for openings in masonry:
 Arch masonry work:-
Masonry work in arches is calculated in cu m separately
by multiplying length of the arch to the thickness of the
arch and to the breath of the wall.
Deduct ion--------- l × h × thickness of the wall.
 Lintel over opening:-

Lintel are either of R.C.C or of R.B, quantities are

calculated in cu m. Length of the lintel is equal to the
clear span plus two bearings. If dimension of bearing is
not given may be taken as same as thickness of the
lintel with a minimum of 12cm (41/2”). Thus the length
of the lintel is equal to l = S + 2t
 Deduct ion--------- l × h × thickness of the wall.
Description of Items / Item Work

R.C.C AND R.B WORK:
 R.C.C and R.B work may be present in roof or
floor slab, in beams, lintel, columns, foundations,
etc. and the quantities are calculated in cu m
exclusive of the steel reinforcement and its
bending but inclusive of centering and shuttering
and fixing and binding reinforcement on position.
 0.6% to 1 %( usually 1%) of R.C.C or R.B work
by volume may be taken for steel.
 Centering and shuttering (form work) are usually
considered as R.C.C and R.B work, but may
also be taken as separately in sq m of surface in
content with concrete.
Description of Items / Item Work

FLOORING AND ROOFING:
 Ground Floor:-
The base lime concrete and floor finishing of C.C
or stone or marble or mosaic, etc are usually
taken as one job or one item and quantities are
taken in sq m multiplied by the length & breadth.
The length and breadth are taken as inside
dimensions from wall to wall of superstructure.
 1st floor, 2nd floor, etc:-

Supporting structure is taken separately in cu m as

R.C.C or R.B, etc. and floor finishing is taken as
separately in sq m as 2.5cm or 4cm(1” or 11/2”)
C.C or marble or mosaic, etc.
Description of Items / Item Work

FLOORING AND ROOFING:
Roof:-
Supporting structure is taken separately in cu m
and the lime concrete terracing is computed in
sq m with thickness specified, under a separate
item including surface rendering smooth.
Description of Items / Item Work

PLASTERING AND POINTING:
 Plastering for wall, usually 12mm(1/2”) thick is
calculated in sq m. The measurements are taken
for whole face of wall for both sides as solid, and
deduction for openings are made in following
manner:-
 No deduction is made for ends of beam, posts,
rafters, etc.
 For small opening up to 0.5 sq m (5 sq ft), no
deduction is made and at the same time no addition
is made for jambs, soffits and of sills of these
openings.
Description of Items / Item Work

PLASTERING AND POINTING:
 For opening exceeding from 0.5 sq m (5 sq ft) but
not from 3 sq m (30 sq ft), the deduction is made
only for one face.
 For opening greater the 3 sq m (30 sq ft), deduction
is made for both faces of the opening and the jambs,
soffits and sills are taken into account and added.

 Pointing in wall is calculated in sq m for whole

surface and deductions similar to plastering are
made.
Description of Items / Item Work

PILLARS:
 Pillars are taken separately in cu m for their
net volume and quantities are calculated by
correct geometrical measurements by simple
method. Hexagonal, octagonal, etc pillars are
dealt similarly.
 Plastering in the pillars are calculated in sq m
by multiplying the circumference of the
perimeter by the height.
Description of Items / Item Work

DOOR AND WINDOWS:
 Chowkhat and Frame:-
Door and window frames or chowkhats are
computed in cu m. Length is obtained by adding
the length of all components of the chowkhat,
top and two verticals if there is no sill member,
and also adding bottom length.
 Door or window leaves or Shutters:-

They are computed in sq m by multiplying the

breadth by height of shutters. The rebates in the
chowkhat should be taken into consideration in
finding the breadth and the height.
 Description of Items / Item Work

WOOD WORK:
 Wooden beams, burgahs, posts, wooden roof
trusses, chowkhats, etc. come under this item,
and quantities are computed in cu m. The
dimensions of the finished work shall be taken.

IRON WORK
 This is computed in weight in kg or quintal and
quantities are calculated correctly by multiplying
weights per running meter by the length. The weight
of bolts, nuts and rivets with heads can be calculated
by counting their numbers and sizes and consulting
steel table. Sometimes certain percentage is
provided for the bolts, nuts and rivets, etc.
 Description of Items / Item Work

WHITE-WASHING OR COLOUR-WASHING OR
DISTEMPERING:
 The quantities are computed in sq m and are
usually same as for the plastering. Deduction is
dealt in the same manners as for the plastering.

PAINTING:
 Painting or varnishing of doors and windows are
computed in sq m. The dimension should be taken
for the outer dimension of chowkhat. The area is
measured flat. Painting is done in two or three
coats, usually over a coat of priming. The rates
cover for the number of coats under one item.
 Description of Items / Item Work

Site Clearance works:
 This item is described in detail but the price of
this item is usually indicated as lump sum
(LS).The cost of this item is provided in the
estimate by judgment, according to the
description of the item.

Water and Heat proofing of Roof:
 It usually consists of bitumen coating and/or
Polythene sheets (water proofing), earth filling
(heat proofing) and brick tiles, etc. Dimensions
are taken from inner face to inner face of parapet
walls in Square ft or Square meter.
Description of Items / Item Work

Reinforcement Steel (Kg or ton):
 Quantity of steel can either be worked out by rules of
thumb practice or by intensive calculations taking the
length and diameter of steel bars from the working
drawings showing reinforcement details and bar-
bending schedules.
 As a rule of thumb practice, for ordinary beams and
slabs for residences, assume 6.75 Ibs of steel per cft
of R.C.C. work. However, for R.C.C. columns, it
varies from 8 to 10 Ibs per cft., because normally, we
use 2% of steel in columns. Percentage of steel
means, area of steel divided by total area of the
column multiplied by 100 and 1% of steel in columns
corresponds to a quantity of 4.5 Ibs/cft.
Description of Items / Item Work

Plumbing Works or Sanitary Fittings:
 For water supply and drainage works in a building,
the pipe lines and sewer lines are measured in RFT,
while other items are measured in numbers. These
items include wash hand basins (W.H.B.), kitchen
basins (which may be of glazed ceramic, mosaic, or
stainless steel), water closets (W.C., which may be of
European type or local type), flushing tanks (also
known as flushing cisterns), shower rose, and all
type of water tapes. Within sewer lines, man holes
or inspection chambers are to be provided at every
corner and also at a distance, not exceeding every
50 ft inside the house and every 100 ft outside the
house.
Description of Items / Item Work

Plumbing Works or Sanitary Fittings:
 The size of man hole may be 2.5ft X 2,5ft for low
depths and 3ft X 3ft, 4ft X 4ft or 5ft X 5ft for deep
depths. Drainage pipe lines outside the covered area
are, usually, of R.C.C. with minimum diameter 4 in,
however, these are available in different sizes. Inside
the building, drainage pipe is, usually, of C.I. with
minimum diameter 3 in. Water supply pipes are,
usually, G.I. pipes., estimated in RFT in different
dias. Other accessories, like sockets, elbows, tees,
reducers, unions, etc., are estimated in numbers.
 Description of Items / Item Work

Electrical Works:
 All the accessories used in electric fittings are
described in detail and payment is done in
numbers or RFT.
The End