Estimation, Valuation and

Project Management (EVPM)

(CE701)

Sandip Chakraborty
Civil Engineering Department
IIEST, Shibpur
9830733143
26th August 2020
 Syllabus
1. Concept of engineering project; Types of projects;
characteristics of civil construction project;
Importance of construction project management;
Role of construction project manager; Stakeholders
in construction project; Ethical issues in civil
construction
2. Purpose of Estimating; Quantity Survey; Types of
Estimating – Detailed Estimate, Preliminary
Estimate, Approximate Estimate; Revised
Estimate, Supplementary Estimate, Maintenance
Estimate, Introduction to Rate Analysis of
different items of works of a standard residential
building.
 Syllabus

3. Purpose of valuation of land and building,

Concept of price, value and cost, free hold and
lease hold properties; market value, present
value; sinking fund; year’s purchase, Different
methods of valuation of land and real properties,
Fixation of rents.
4. Construction planning, sequencing, scheduling; Bar
Charts; Network analysis, elements of PERT and
CPM, upgrading; Cash flow diagram; Resource
leveling and resource allocation; Construction
material management
5. DPR preparation, contract agreement types,
Tendering process, case study
 Suggested Readings

• Chakraborti, M., “Estimating Costing

Specification and Valuation in Civil
Engineering”.
• Dutta B.N., and Dutta S., “Estimating and
Costing in Civil Engineering”.
• Schedule of rates (SOR) from Public Works
Department, Government of West Bengal
• National Building Code of India, BUREAU OF
INDIAN STANDARDS, 2016 (SP 7 : 2016)
 Definition of Buildings
Any structure for whatsoever purpose and of
whatsoever materials constructed and every part
thereof whether used as human habitation or not and
includes foundation, plinth, walls, floors, roofs,
chimneys, plumbing and building services, fixed
platforms, verandah, balcony, cornice or projection,
part of a building or anything affixed thereto or any wall
enclosing or intended to enclose any land or space and
signs and outdoor display structures.
Tents/ Shamianahs/Pandals, tarpaulin shelters, etc,
erected for temporary and ceremonial occasions with
the permission of the authority shall not be considered
as building.
(National Building Code of India, 2016, Volume 1, Clause 2.2 of Part 0)
 Classifications of Building
Buildings are classified on the basis of occupancy or
type of construction:
Occupancy classification of buildings
i) Residential ii) Educational
iii) Institutional iv) Business and commercial
v) Assembly vi) Storage
vii) Hazardous viii) Industrial
ix) Mercantile (including retail and wholesale
stores)
 Classifications of Building
Buildings are classified on the basis of occupancy or
type of construction:
Type of Construction classification of buildings
i) Type 1
ii) Type 2
iii) Type 3
iv) Type 4
 Definition of Residential Buildings

This Shall includes any building in which

sleeping accommodation is provided for
normal residential purposes with or
without cooking or dining or both facilities
(except buildings under institutional
buildings). It includes lodging or rooming
houses, one or two-family private
dwellings, dormitories, apartment houses
(flats) and hotels.
(National Building Code of India, 2016, Volume 1, Part 6, Section 1)
 Components of Buildings

 Foundation
 Plinth
 Superstructure
 Components of Buildings
Foundation,
Plinth,
Walls and columns,
Floors,
Lintels and chajjas,
Roof,
Doors and windows,
Stairs and lifts,
Finishing work (plastering and painting),
Building services,
Components of Buildings
Components of Buildings
Components of Buildings
Foundation
Plinth
Walls
Column
Beam
Slab
Staircase
Tie Beam
Tie Beam
Lintel
Lintel and Chajja
Continuous lintel for doors and windows
Damp Proof Course
Mezzanine Floor: An intermediate floor
between two floors above ground level with
area of mezzanine restricted to one-third of the
area of that floor with a minimum height of
2.2m.
Covered Area: Ground area covered by the
building immediately above the plinth level
Carpet Area: The covered area of the usable
rooms at any floor level (excluding the area of
the wall).
Plinth Area: The built up covered area
measured at the floor level of the basement or
of any storey.
Doors
Windows
 Utilities of a building
• Electricity supply
• Gas supply
• Water supply
• Sewage and drainage system
• communications services
Introduction to Estimation
 Estimate????

An estimate of any construction

work may be defined as the process
of calculating the quantities and
costs of the various items required in
connection with the work.
 Purpose of Estimating
• To ascertain the necessary amount of money
required by the owner to complete the proposed
work. For public construction works, estimates are
required in order to obtain administrative approval,
allotment of funds and technical sanction.
• To ascertain quantities of materials required in
order to program their timely procurement.
• To calculate the number of different types of
workers required.
• To assess the requirements of tools, plants and
equipments.
• To fix up the completion period from the
volume of works.
• To justify the investment from benefit cost
ratio.
• To invite tenders and prepare bills for
payment.
• An estimate for an existing property is
required for valuation.

But an estimate is never the actual cost of

construction.
35
 Different types of estimates
• Detailed estimate
• Preliminary / approximate / rough estimate
• Quantity estimate / quantity survey
• Revised estimate
• Supplementary estimate
• Complete estimate
• Annual maintenance or repair estimate
36
 Detailed Estimate
• This includes the detailed particulars for the
quantities, rates and costs of all the items
involved for the satisfactory completion of a
project.
• Quantities of all the items are calculated from
their respective dimensions on drawing.
• Then it is multiplied by unit rate in a separate
sheet to get individual cost.
• All the individual costs are added to get total
cost.
• This is the best and most accurate estimate that
can be prepared. 37
A detailed estimate is accompanied by
• Report
• Specifications
• Detailed drawing showing plans, different
sections, key or index plan etc.,
• Design data and calculations
• Basis of rates adopted in the estimate

Such detailed estimate is prepared for

technical sanction, administrative approval
and also for the execution of a contract with
the contractor 38
 The procedure for preparation of a detailed
estimate is decided into two parts

Details of measurement and calculation of

quantities (using measurement form)
Abstract of estimated cost (using abstract
form)

 Add 5% as contingency and 2.5% work charge to

cost obtained by adding all item prices.

39
 Measurement form
Item Description or No. Length Breadth Height / Content
no. particulars depth or
quantity

1 Earth work in 01 10 m 0.75 m 1.0 m 7.5 m3

excavation

40
 Abstract of estimate form
Sl. Description or Quantity Unit Rate Unit of Amount
No. particulars Rs. P. rate Rs. P.

1 Earth work in 7.5 m3 150.00 Rs./m3 1125.00

excavation

41
Data Required for Preparing Detailed Estimates

• Drawing
• Specifications
• Rates
• Up dated mode of measurement for standard
deductions or additions are also necessary to
determine the correct quantities of work
• Standing circulars for taxes and insurances etc.
are required to fix up rates of those items which
are not in the schedule of rates. 42
 Factors to be considered during
preparation of a detailed estimate

• Quality of materials
• Availability of materials
• Transportation of materials
• Location of site
• Local labour charge

43
Preliminary / approximate / rough estimate
• To find out the approximate cost in a
short time.
• It enables the authority to consider the
financial aspect of the scheme.
• Such an estimate is framed after
knowing the rates of similar works and
from practical knowledge in various of
ways for various types of works such as:
© Plinth area or square meter method
© Cubic rate or cubic meter method
© Service unit or unit rate method
© Bay method
© Approximate quantities with bill method
© Cost comparison method
© Costs from materials and labour
 Quantity estimate or survey
• This is a complete estimate or list of
quantities for all items of work required to
complete the concerned project.

• The quantity of each individual item of work

is worked out from respective dimensions on
the drawing of the structure.

46
 Revised estimate
• A revised estimate is a detailed estimate for
the revised quantities and rates of items of
works originally provided in the estimate
without material deviations of the structural
nature from the design originally approved
for a project.

47
• It is required to be prepared for the following
reasons:
a) When a sanction estimate is likely to exceed
by more that 5%.
b) When the expenditure of work exceeds or
likely to exceed by more than 10 % of the
administrative approval (for more than Rs. 5
lakhs)
c) When there are material deviations from the
original proposal but not due to deviation of
structural nature.
d) When it is found that the sanctioned estimate
is more than the actual requirement. 48
 Supplementary estimate
While a work is in progress, some changes or
additional works due to material deviation
of a structural nature from the design
originally approved may be thought necessary
for the development of a project.
An estimate is then prepared to include all
such works, called supplementary estimate.

49
 Difference between revised and supplementary estimate

Revised estimate Supplementary estimate

•Fairly dependent on the •Fairly independent of the
works first sanctioned work at first sanctioned
•It is accompanied by •No comparative statement.
comparative statement Similar to that of detailed
showing the variations and estimate for new additions.
reasons
•It is required due to change •It is required due to new
of rate or quantity of works or due to change of
materials, so no additions or design, so additions or
revisions of drawings is revisions of drawings may
necessary be necessary 50
 Complete estimate

• This is an estimated cost of all items

which are related to the works in
addition to the main contract or to the
“detailed estimate”.

51
• Complete estimate includes the following:
∆ Cost of land
∆ Cost of legal expenses required
between owner and the contractor
∆ Cost of main contract or material,
labour and supervision
∆ Contingency @5% of the work for
extra works
52
∆ Engineering fees
Cost of preparation of plan, design,
estimate and sanction fee
Cost for supervision of works
∆ Permit free for water and electricity during
construction
∆ Miscellaneous (i.e. transportation cost of
owner with his party)
53
Annual maintenance or repair estimate

• After completion of a work it is necessary

to maintain the same for its proper
function and for the same, an estimate is
prepared for the items which require
renewal, replacement, repairs etc. in the
form of detailed estimate.

54
 Nomenclature of an item
• There should be an adequate but concise
description of the nature of the item of work,
specially the names of materials, their quantities,
proportions of all materials, workmanship,
operation including all transport, tools and plant
required to complete the work.

• Any other sub-work like dewatering, curing and

the like involved during execution and to
complete the work may be included in the
nomenclature of an item.
55
 Sub--heads of estimate
Sub
• For building works the sub-heads should be as
follows:
 Earthwork
 Concrete work
 Brickwork
 Stonework
 Roofing
 Woodworks
 Steel work
 Plastering
 Flooring
 Finishing water supply and sanitary works
 Electrical works
56
 Order of items for taking off
• Items of an estimate should be arranged
following the sequence of execution so that an
estimator may imagine the progress of
construction work and can arrange the items
accordingly.
Earthwork in excavation for foundation
Brick flat soling
Brick or stone work at foundation and
plinth
57
 Damp-proof course
 Brickwork in superstructure
 RCC work in lintel and roof etc.
 Woodwork for doors and windows
 Steel work
 Plastering
 Flooring
 Lime terracing for roof
 White washing and colour washing etc.
58