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Estimation

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[For 1st Year Diploma Students of Interior Designing]

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Institute of Design &
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Technology
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 Mr. Ashok. Goyal
Founder and Director
Institute of Design & Technology
Surat

Board of Studies and Content preparation Team

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Mr. Ashok Goyal Mr. Anupam Goyal

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Founder And Director Director
Institute of Design & Technology Institute of Design &Technology

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Surat Surat

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Mrs Ankita Goyal
Lecturer at IDT
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MBA in Human Resource and Information Tech from Institute of
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Management Education, Ghaziabad
Advanced Diploma in Interior Designing, IIFT
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Diploma Course in Vastu Shashtra and Numerology

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Mrs Shabnam Dagur

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Lecturer at IDT
3 years Diploma in Interior Designing from UID (United Istitute of Designing)
of

Azad Nagar Kanpur.

Persuing B.Arch through AMIE.
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Estimation
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Content Writing Content Editing

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Mrs Ankita Goyal Mrs Ankita Goyal

 This Book comprises a collection of learning material for students of
Institute of Design and Technology, Surat. The centre is well known for
its multifaceted fields in Education and technology. This Book is printed
and Published on behalf of Institute of Design and Technology for
Interior Designing, Surat.

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 Index
Unit Name of Unit Page No.
Unit 1 Estimating and Costing 01
Unit 2 Rate Analysis 05

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Unit 3 Code of Ethics 09

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Unit 4 Types of Fees 11

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 Estimating and Costing Unit 1

UNIT 1
ESTIMATING AND COSTING

An estimate of project is a Forecast of its probable cost. The Process of

preparing an estimate is known as estimating.

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In any Construction activity the two basic things are involved.

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 Quality aspect
 Quantity aspect.

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 Quality aspect: The Quality aspect governed by study and analyses
drawings which are prepay is with respect to the dazing are the

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project.
 Quantity aspect: It is governed through specification of materials
and workmanship. d
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Types of estimates:
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There are delight different types of estimates:

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1. Detailed estimate
2. Approximate estimate
3. Quality estimate
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4. Revised estimate
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5. Supplementary estimate
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6. Revised estimate and Supplementary estimate due to reduction of

cost.
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7. Complete Estimate.
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8. Annual maintenance and report

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 Estimation Unit 1

Measurement Sheet:

Sr. No. Items No. L B D Quantity

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Abstract Sheet:

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Sr. No. Items Quantity Rate Amount

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Percent cost analysis:

Sr. No. Sub. Items

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Material Labour Total
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cost [%] cost [%]
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Types of estimates:
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1. Detailed estimate:
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a. Purpose cost of various men’s of work.

b. Allowance for the contingencies.
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c. To accommodate unforseen expenditure on missed item and

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small Variations in Quality and for rate in different items of work.

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d. Establishment charges of supervision.

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2 Institute of Design & Technology

 Estimating and Costing Unit 1

e. Estimated amount for the service charged which include water

supply connections, sanitary arrangement and Electrical
installations.

2. Approximate estimate: It is workout before its detailed estimate is

taken in hand. The reasons for this are various.

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a. Preliminary studies: If gives a fairly good idea of the project

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but at a same time good deal of labour and time which are

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required to work out a detailed estimate.

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b. Investment: The probable net return after the completion of
commercia project can be work out than by knowing the

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proximity cost of estimate it can be seen whether the investment
in sub a project is justified or not.
c. d
Financial aspect: The approximate estimate of the project
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given a fairly good idea regarding the approximate cost of
construction and hence It becomes possible to make suitable
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arrangements before hand for the financial aspect of the project.

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d. Tax schedules: In case of works of public utility the

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approximate estimate becomes very much useful in framing the

tax scheduled E.g. – service tax octroi.
e. Insurance: The approximate estimate is used in fixing up value
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of the project for the insurance requirement.

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3. Quality estimate: It is a complete estimate showing quantities of all

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the items required to complete the project. The quantity of each

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individual item is than workout from the drawing it is them multiplied

by the rate to find out the cost. In this type of estimate only bills of
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Quantity are prepared for all necessary items.

3 Institute of Design & Technology
 Estimation Unit 1

4. Revised estimate: It is detailed estimate for the revised quantity

rates of items of original estimate revised estimate is prepared for
the following reason.
a. When a sanctioned estimate is likely to exceed more than 5%.
b. When a expenditure of work exceeds or likely exceed by more

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than 10%.

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c. When there are material deviations from the original proposal

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d. When sanctioned estimate is found more than the actual

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estimate.

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5. Supplementary estimate: Sometimes some changes or additional
work due to material deviation of structure nature from the originally

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approved design may be through necessary when the work in
progress, a detailed estimate is prepared which is known as a
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supple estimate. It is to be attached with a report describing the
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reasons for near additional work.
6. Revised estimate and supplementary estimate due to reduction
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of cost: When a certain section of project costing two than 5% of

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the total sanctioned cost of the project is all and oned, where
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deviation from the original proposal are expected to result in

substantial saving, the estimate is revised.
7. Complete estimate: A Complete estimate is prepared after adding
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on estimate cost of all items of the project to the main detailed

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estimate.
8. Annual maintenance repair estimate: It is required to maintain the
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completed project for its proper function on estimate is prepared for

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the same in the, form of a detailed estimate.

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This estimate includes items for renewal, replacement, repair etc.

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 Rate Analysis Unit 2

UNIT 2
RATE ANALYSIS

DEFINITION OF RATE ANALYSIS:

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To determine the rate of a particular item ,all the factor affecting the rate

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of that item are studies carefully than the rate is finalise.

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The process of determinate the rate of an item is turned as analysis.

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PURPOSES OF RATE ANALYSIS:

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 To determine the actual cost per unit of item.
 To examine the item for economic processes economic uses of
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materials in value in making the item involved.
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FACTORS AFFECTING OF THE RATE ANALYSIS:
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1. Major factors.
2. Minor factors.
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1. Major factors:
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 Materials: It is the essential to collect the current prices of all the

materials from the market for staring the rate analysis. It is the
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duty of the person forming the materials available in the market in

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accordance with the item A person should also consider

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percentage for wastage of materials, breakages losses cutting

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waste.

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 Estimation Unit 2

 Labour: The labour force will be necessary to arrange the

materials in proper way so that the item can be completed the
amount of labour force required to carry out a unit of particularr
item is decided from the past experience the wages of the labour
should be properly studies before starting the rate analysis for

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particular item.

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2. Minor factor:

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 Special equipments: The execution of some items requires the

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use of some Special equipments the cost of using such special

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equipment only the rental basic should be included on the rate
analysis of that items.
 Place of work: The site of work will also have some effect on the
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rate of an item under certain conditions if it is too far than
chartings will be more it is an a conduction area materials will
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have to be stocked on the main road than they will have to be

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taken in hand lories which will increase the cost of transport of the
material.
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 Nature of work: If the work consists of large quantities of the

items, the rates may be high and vice versa.
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 Conditions of contract: If the conditions of contract are very

stiff, the rates of the various items are very high vice –e- versa.
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 Profit of the contractor: The usual percentage of the profit of

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the contractor 10% it can be more or less depending upon the

rate of the item correspondingly affected.
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The over head expenses of the contractor can be divided into

categories.
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 Rate Analysis Unit 2

Expenses, incurred, on site for tools, testing supervision,

insurance etc.
Expenses relating to the office establishment like for postage,
rent, travelling etc.

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 Specification: If the specifications of work provide superior

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quality turn out the rate will be on the higher site.
 Site conditions: If the site conditions are search that the

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difficulties will be experience during execution of work such as
water trouble than rates will be on the higher site and if the site

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construction activates the contractor make slightly lower rates.

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 Miscellaneous: The other reaming miscellaneous factor affecting
rates of items include time of competitions of the project, climatic

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conditions, reputation of the contracting firm discipline of the
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organisation etc.

IMPORTANCE OF RATE ANALYSIS

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The process of rate analysis gives a clear picture of various forces

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acting behind the performance of a particular item. The rate analysis of

any item is never complete for ex. Then rate for bricks is derived by
the manufacturer of brick by his own rate analysis for preparing bricks
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thus teratic the rate analysis of an items is incomplete But in practise a

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reasonable rate for a portion for item.

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ESSENTIAL OF RATE ANALYSIS:

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For arriving at the correct rate analysis of an particular item for a

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following are necessary for a person carrying out the rate analysis.

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 Estimation Unit 2

1. Good knowledge of construction work and familiarity with the trade.

2. Information regarding of materials, labour and equity.
3. Out put of labours work per day for various trades.

SCHEDULE OF RATES:

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A schedule or list of rates of various items is prepared after the analysis
of rate of these items.

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Such document is known as schedule of rate or S.O.R. That is prepared

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by large concerns or public bodies.

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It becomes very useful as especially in deciding the rate of an items
carry out by the contractor.
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In some cases, the contractor may be asking to submit his tender by
simply coating the percentage about or below. We for carry out the
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constructed work. As the rate of item mention in schedule of rate are

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likely to very the schedule of rates is periodically revise, usually after

three years.
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 Code of Ethics Unit 3

UNIT 3
CODE OF ETHICS

There are certain specification give by SIA. [Social of Industrial Artist] in

London which are follows:

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1. In whichever area the member is engaged into and she must show
the trust tower is that client, employee and other members with

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whom his/her work in collected. Any information of the client should
not be diverted to any other person or company by the consultancy

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or a free practician.

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2. No members working for a fees or a salary shall accept any
discount, commission or allowance in connection with any

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professional work in which he is engaged without full knowledge of
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the client when the member is ask for advice upon the selection of a
designer for a specific work. He shall not accept any commission for
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all sequence from the designer.

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3. Any member acting as a consultancy as a free lancer practitioner at

the same time without disclosing the fact to his client cannot be
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financially concerned with any person, firm as a business which

makes substantial benefits from any recommendation made by him.
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4. No work shall be under take by a member acting as a free lancer as

consultation designer.
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5. Advertising on behalf as by other member is only permission

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provided at the advertisement of work and not unfair to the other

member.
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 Estimation Unit 3

6. No member should be part in any open competition or a limited

competition whose terms are against the regular of the society for
the design competitions.

BUSINESS ETHICS AND PROFESSIONAL EQUITIES:

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1. A professional must not obtain a client by cutting down his fees on
sub planting another design who is not working with him.

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2. A client may decide to commission you he is already as still his
another designer working for him. Then it is your duty to first see the

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permission of the co-designer before accepting such commotion.

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 Types of Fees Unit 4

UNIT 4
TYPES OF FEES

1. Fees in the form of salary: salaries are given in the form of fees for
the cost of time and the work put in by the individuals in order to

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given an incentive to the individuals.

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2. Overheads and Profits: Overheads are business running
expenses profits are the gains that the individual have while

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planning a business.

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3. Lumsoum fees: This includes the specially and extra charges
besides the actual fees which you have adequate and his type of

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fees is given only in one instalment.
4. Fees at yearly rates: this type of fees is subject to review at the

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end of the year for possible increase in the costs other overheads.
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5. Fees at daily wages: This is the fee that you can change at the end
of the day.
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6. Fees based on percentage of costing: all the architectural and

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decorators work on the basic for this first work and the estimates
and then charge a certain percentage of the total cost of the project.
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If the client decide not to supply the materials for the project. You
are entity to receive a percentage for the material and the services
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which are actually include in the specific plus a lower percentage for
the supplementary work not designed or specified by you but which
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has to be incorporated with your work and has to be supervised by

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you.
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7. Retaining fees: Retaining fees means to engage a person on to

keep services to person. It can be the following types:
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 Estimation Unit 4

If a designer is to be employed purely for consulate to the

services for just advising the client at meetings and by available
for consultation. It is not easy to calculate the cost amount of the
retaining fees to be quoted by the designer for his consulate
services, the only way to search a figure is by setting a made

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time limit i.e. the time you are prepared to donate for the fees

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suggested.

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In this type of retaining fees you are supposed to cover a single

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program of designing as re designing a project all this kind of

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work may involve you in a large no. 7 incant juries and
correspondence not only with the client but also with production

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team. A client may also want you professional advice for the
problems relating to the project and above all be would not only
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a complete secrecy for the new work you are doing for him but
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also your understand that you will not work for any other office,
firm etc. at the same time, therefore the may restrains you with
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an annual fees.
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Combination of the above two type of work consultancy and

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professional work with regard once particular project for this type
of project you are except to charge the same of money which is
large enough to cover both consultancy and professional work
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with a lump sum fees at hourly rates for developing and attentive
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the scheme.
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RULES REGARDING RETAINING FEES:

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1. All the letters and correncepondance consulting the retaining fees

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must specify the starting dates, the period of time and noticed to be
12 Institute of Design & Technology
 Types of Fees Unit 4

giving for continuously and renewal an annual retain with three

months notice an either side on sir monthly retainer with one month
notice an either side.
2. The correspondence regarding the retaining fees must specify the
mode of payment of the retaining fees. Whether it monthly, quarterly

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advice an in the form of areas.

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3. Fees for meetings: if you are working as an consultation, you are
required to attend the meeting at regular influence and for attending

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this meetings you are expected to charge a fees which will include
the cost of time travelling and the cost of travelling time.

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4. Fees as Royalty: in this words of SIA for the services regarding

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furniture designing and interior design the fees may be best on
monthly agreement there the fees will be changed to cover the cost

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of drafting are complete and an average starting regularly of 1/4 th
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percentage of the manufacturing price is charged.
5. Rejection fees: a work may be abounded at any stage but it is
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necessary to know when to make a claim for done and what

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proportion of fees to win.

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