Ambit - QS Module 1A

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- Civil Engineering Department

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- Civil Engineering Department
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DAY TOPICS TOTAL HRS


TAKEN
1 INTRODUCTION / IMPORTANCE OF QUANTITY SURVEYING – NEED FOR SPECIALIZING –
OPPORTUNITIES IN INDIA & ABROAD – ROLE & RESPONSIBILITIES – UNITS & CONVERSIONS
2 MANAGEMENT AT DIFFERENT STAGES – NECESSITY & PROCEDURE OF ESTIMATION AND
COSTING – TYPES OF ESTIMATES, EXAMPLES – TENDER & BID, E-PROCUREMENT SYSTEM
3 CONTRACT – OBLIGATIONS OF CLIENT, CONSULTING ENGINEER & CONTRACTOR –
REFERENCE ON GENERAL CONDITIONS OF CONTRACT – TYPES OF CONTRACTS
4 GENERAL RULES OF IS : 1200 – METHODS OF TAKING QUANITIES (LONG WALL, SHORT WALL
& CENTRE LINE) – COMPARISON OF METHODS – FACTORS AFFECTING RATE OF AN ITEM
5 PRACTICAL EXAMPLE – LONG WALL – SHORT WALL METHOD
6 PRACTICAL EXAMPLE – LONG WALL – SHORT WALL METHOD
7 PRACTICAL EXAMPLE – CENTRE LINE METHOD
8 PRACTICAL EXAMPLE – CENRTE LINE METHOD

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1. INTRODUCTION / IMPORTANCE OF QUANTITY SURVEYING

Quantity Surveying is concerned with the estimation, planning and control of the cost on construction projects. A Quantity
surveyor is a professional with expert knowledge on construction costs and contracts.

Quantity surveyors are involved in all phases of a facility’s lifecycle such as feasibility, design, construction, extension,
refurbishment, maintenance and demolition. The competencies of quantity surveyors are aimed at producing constructions
that meet the client’s value system.

The key skills of a Quantity surveyor are;

(i) Numeracy
(ii) A good working knowledge of MS excel and the ability to learn how to use specialist software.
(iii) Excellent relationship-building and interpersonal skills.
(iv) The ability to work in a team.
(v) The ability to negotiate.
(vi) Attention to detail and a methodological approach to work.

2. NEED FOR SPECIALIZING

The infrastructure sector has been considered as a key driver of the Indian economy. As this sector is propelling the overall
development across the world, specifically in India, with intense support from the government, a career in this infrastructure
sector will be a lucrative one. The infrastructure sector takes care of the development of bridges, roads, building, dams etc.,

The primary responsibility of a quantity surveyor includes calculating the budget based on the consumer’s requirement and
preparing an effective budget estimate for each stage of the construction process.

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3. OPPORTUNITIES IN INDIA & ABROAD

In India, the demand for quantity surveyors is high. Many private companies even recruit freshers with a good pay structure. Most
of the quantity surveyors will be associated with construction companies and property developers.

There are lot of opportunities for Quantity surveyors in countries like Singapore, Netherlands, Germany, UAE, UK, France, Ireland
etc.

How does a Property developer work?

Explore and identify land and property opportunities and determine the most profitable use of properties. Purchase properties
and liaise with architects, builders and councils regarding design and planning permits. Oversee and monitor work being
undertaken and manage the sale or lease of completed properties.

How does a Construction company work?

Construction companies execute the building and infrastructure work. Whatever is there on drawing sheets, they make it real
by constructing it for an amount agreed upon for their clients. Construction companies are concerned with the construction of
buildings, developments, properties, facilities, housing, path, pavement, roads, motorway, bridges, dams etc.,

LIST OF CONSTRUCTION COMPANIES IN KERALA

LIST OF PROPERTY DEVELOPERS IN KERALA

4. ROLE & RESPONSIBILITIES OF QUANTITY SURVEYOR


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1. Review architectural plans and prepare quantity needs.


2. Estimate the quantity and costs of materials.
3. Prepare contracts and documents
4. Set budgets for payments, inventory needs and materials.
5. Analyze costs for maintenance and additional building needs.
6. Track changes in plans or constructions, update budgets.
7. Negotiate with contractors and subcontractors.
8. Hire and document contractors and subcontractors.
9. Act as a liaison between clients and site managers/ engineers.
10. Keep track of construction materials and inventory
11. Identify potential financial or construction risks.
12. Advise clients on improvements, strategies, and/or estimated costs.
13. Prepare payments for contractors and subcontractors.
14. Document progress, materials and reports on project.
15. Advise on property taxes, regulations and local news.
16. Source maintenance costs and facilities management for clients.
17. Develop and maintain working relationships with contractors and subcontractors.
18. Utilize software to calculate, record and track inventory and estimates.
19. Analyze completed projects to determine ROI and compare costs.

ROI (Return on Investment) is calculated by subtracting the initial value of the investment from the final value of the investment
(which equals the net return), then dividing this new number (the net return) by the cost of the investment and finally multiplying
it by 100.

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5. UNITS & CONVERSIONS
(METRIC)

LENGTH AREA CAPACITY WEIGHT


1 km = 10 hm 1 km2 = 100 hectares 1 m3 = 1000 litres 1 tonne = 1000 kg
1 km = 1000 m 1 hectare = 100 ares 1 litre = 1 dm3 1 kg = 1000 gm
1 hm = 100 m 1 are = 100 m2 1 litre = 1000 cc 1 gm= 1000 mg
1 m = 10 dm 1 m2 = 100 dm2 1 litre = 1000 ml

1 dm = 10 cm 1 dm2 = 100 cm2


1 cm = 10 mm 1 cm2 = 100 mm2

(IMPERIAL TO METRIC)

LENGTH AREA CAPACITY WEIGHT


1 mile = 1.609 km 1 sq. mile = 2.59 km2 1 gallon = 4.5461 litres 1 lb = 0.4536 kg
1 yard = 0.9144 m 1 acre = 0.4047 hectares 1 cu. Inch = 16.3871 m3 1 oz = 28.3495 gm
1 foot = 0.3048 m 1 acre = 4046.86 m2
1 inch = 25.4 mm 1 sq. yard = 0.8361 m2
1 sq. foot = 0.0929 m2
1 sq. inch = 645.16 mm2

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CONVERSIONS & DATAS RELATED TO CONSTRUCTION

1 m = 3.28 ft
1 m2 = 10.76 sq. ft,
1 m3 = 35.31 cu. ft
1 cent = 40.4685 m2,
100 cent = 4046.86 m2,
100 cent = 1 acre,
1 are = 100 m2,
1 are = 2.471 cents,

1 hectare = 10000 m2,


1 cent = 0.004 hectare
Volume of 1 bag of cement = 0.035 m3

Density of OPC = 1440 kg/m3

6. MANAGEMENT AT DIFFERENT STAGES OF CONSTRUCTION

The five stages of construction are;


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1. Project initiation
2. Project planning
3. Project execution
4. Project monitoring and control
5. Project closure

PROJECT INITIATION – It is the first phase of the project management lifecycle and in this stage, companies decide if the
project is needed and how beneficial it will be for them. The two factors used to judge a proposed project and determine the
expectations from it are the business case and feasibility study.

PROJECT PLANNING – It is a crucial stage that comes right after initiation in project management phases. Through proper
planning, you streamline the entire project into a series of steps and ensure the availability of all the resources on time.
Project constraints such as time, scope and costs are discussed in the project planning process and mitigation plans are
developed after the identification of potential risks. By comparing the actual progress with the project plan, the performance
of the team can be monitored and necessary steps for improvement can be taken.

PROJECT EXECUTION – It is the longest phase in the project life cycle; and the most demanding. The three main objectives
during the execution phase are; managing people, managing processes, managing communication. The benefits of a well
executed project are;

The project can be completed on time and budget.


Team morale can be maintained.
Stakeholders are satisfied with overall project progress.

PROJECT MONITORING AND CONTROL – Monitoring and control processes continually track, review, adjust and report on
the project’s performance. It’s important to find out how a project’s performing and whether it’s on time, as well as implement
approved changes. This ensures that the project remains on track, on budget and on time.

PROJECT CLOSURE – The key-elements of project close-out are;

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(i) Verify acceptance of final project deliverables.


(ii) Conduct post-project assessment and lessons learned.
(iii) Conduct post-project review and evaluation.
(iv) Recognize outstanding project work.
(v) Disburse project resources – staff, facilities and automated systems.

7. NECESSITY & PROCEDURE OF ESTIMATION AND COSTING

The main purpose of an estimate is to know the probable amount before the work is executed. The actual cost is always
obtained after the completion of project. If the estimate is carried out with lot of accuracy, it tells whether the project is suitable or
not by considering the cost comparison.

The most common way to estimate costs is to make a list of items that is needed and add up their costs. Make sure that all
applicable costs are included; such as equipment and parts, materials and supplies, labour, financing, fees and licensing,
transportation, and acquisition costs for land or facilities.

8. TYPES OF ESTIMATES

1. Preliminary Estimate or Approximate or Abstract Estimate or Rough Cost Estimate


2. Plinth Area Estimate
3. Cube rate Estimate or Cubical Content Estimate
4. Approximate Quantity Method Estimate
5. Detailed Estimate or Item rate Estimate
6. Revised Estimate
7. Supplementary Estimate
8. Supplementary and Revised Estimate
9. Annual Repair or Maintenance Estimate

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1. Preliminary Estimate or Approximate or Abstract Estimate or Rough Cost Estimate
It is required for preliminary studies of various aspects of a work or project, to decide the financial position and policy for
administrative sanction by the competent administrative authority. Approximate estimate is prepared from the practical knowledge
and cost of similar works. The estimate is accompanied by a brief report explaining the necessity and utility of the project and showing
how the cost of separate items have been arrived at. This is also accompanied by with a site plan or layout plan. A percentage of about 5 %
to 10 % is added as contingencies.

The preliminary estimate may be prepared by various ways for different structures and works –
(a) Buildings – Per unit basis – Per student for schools and hostels, per class room for schools, per bed for hospitals, per set for
cinema and theatre halls, per bay for factories, barracks and dormitories, per tenement for residential buildings.

Eg : Approximate cost of a hostel building for 100 students @ Rs. 10,000/- per student works out to be Rs. 10 Lakhs. (Rates may
vary on a regular basis)

(b) Roads and Highways – Per kilometer basis depending on the nature of road, width and thickness, etc.

(c) Irrigation channels – Per kilometer basis depending on the capacity of the channel. Per hectare basis depending on the area of
land commanded.

(d) Bridges and Culverts – Per running metre of span depending on the roadway, nature and depth of foundation, type of structure,
etc. Per number of culverts of different spans for small culverts.

(e) Sewerage project and water supply project – Per head of population served or per hectare basis of area covered.

(f) Overhead water tank – Per litre of tank on the basis of capacity, depending on the type of structure, height of tank etc.

2. Plinth Area Estimate


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It is prepared on the basis of plinth area of building, the rate being considered from the cost of similar building having similar
specification, heights and construction, in the locality. Plinth area estimate is calculated by finding the plinth area of the
building and multiplying by the plinth area rate.

The plinth area should be calculated for the covered area by taking external dimensions of the building at the floor level.
Courtyard and other open area should not be included in the plinth area.

For storeyed building, the plinth area estimate is prepared for each storey separately.

3. Cube Rate Estimate

It is prepared on the basis of cubical contents (length x breadth x height) of building, the rate being considered from the
cost of similar building having similar specification, heights and construction, in the locality. Cube rate estimate is calculated
by finding the cubical content of the building and multiplying by the cube rate.

The length and breadth should be taken as the external dimensions of the building at the floor level and the height should be
taken from the floor level to top of roof (or half way of the sloped roof). Foundation and plinth, parapet above roof should
not be included in the cubical content.

For storeyed building, the height should be taken between the floor level of one storey to top of next higher floor.

Cube rate estimate is most accurate as compared to the Plinth Area Estimate as the height of the building is also compared.

4. Approximate Quantity method Estimate

In this method, approximate total length of walls is found in running metre and this total length is multiplied by the rate
per running metre of wall to give a fairly accurate cost. For this method, the structure may be divided into two parts; (i)
foundation including plinth (ii) superstructure.

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The running metre cost for foundation and superstructure should be calculated first and these running metre rate should be
multiplied by the total length of walls.

For this method, the plan or line plan of the structure should be available.

5. Detailed Estimate or Item rate estimate

It is an accurate estimate and consists of working out the quantities of each item of work and finding out its cost. It is prepared
in two stages;

(a) Details of Measurement and Calculation of Quantities

The details of measurements of each item of work are taken out correctly from the drawings and quantities under each item
are calculated in a tabular form named as Details of measurement form

Height or
Sl Length Breadth
Particulars or Description No. Depth (H Quantity Remarks
No (L) (B)
or D)

(b) Abstract of Estimated Cost

The cost of each item of work is calculated in a tabular form from the quantities already computed and total cost is worked
out in Absrtact of Estimate Form. The rates of different items of work are taken out as per schedule of rates or current
rates or analysed rates for finished items of work.

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Sl
Particulars or Description Quantity Unit Rate Amount
No

The detailed estimate is accompanied with;

(i) Report
(ii) General Specifications
(iii) Detailed specifications
(iv) Drawings – Plan, Elevation, sectional elevations, detailed drawings, site plan or layout plan or index plan etc.
(v) Calculation and designs of structural members as foundation, column, beam, slab etc
(vi) Analysis of rates.

Detailed Estimate is prepared for technical sanction of the competent authority, for arranging contract and for the
execution of work.
If in the ‘Abstract of Estimate’ form, the columns of rate and amount are left blank (to be filled by contractor) it is then known as ‘Bill of
Quantity’(BOQ).

6. Revised estimate

It is a detailed estimate and is required to be prepared under any one of the following circumstances;

(i) When the original sanctioned estimate exceeds by more than 5 %.


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(ii) When the expenditure on a work exceeds the amount of administrative sanction by more than 10%
(iii) When there are material deviation from the original proposal, even though the cost may be met from the sanctioned
amount.
The revised estimate should be accompanied by a comparative statement showing the variations of each items of work, its
quantity, rate and cost under original and revised, the excess or saving and reason for variation.

7. Supplementary estimate

It is a detailed estimate and is prepared when additional works are required to supplement the original works, or when
further development is required during the progress of work.

The abstract should show the amount of the original estimate and the total amount including the supplementary amount for
which sanction is required.

8. Supplementary and Revised Estimate

When a work is partially abandoned and the estimated cost of the remaining work is less than 95 % of the original work, or
when there are material deviations and changes in the design which may cause substantial saving in the estimate, then the
amount of the original estimate is revised by the competent authority.

9. Annual repair or Maintenance estimate

It is a detailed estimate and is prepared to maintain the structure or work in proper order and safe condition. It includes
painting, minor repairs for buildings.

IMPORTANT TERMS RELATED TO ESTIMATE

1. Contingencies
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It indicates the incidental expenses of miscellaneous character which cannot be classified under any distinct item sub-
head, yet pertain to the work as a whole. Usually 3 % to 5 % of the estimated cost is provided as contingencies.

If there is any saving against the amount provided under contingencies, it may be utilized with the sanction of the competent
authority, to meet the expenses of extra items of work.

2. Work charged Establishment

It is the expense charged to works directly. During the construction of a project, a certain number of work supervisors,
securities etc are employed and their salaries are paid from the amount of work-charged establishment provided in the
estimate. Usually 11/2 % to 2% of the estimated cost is provided as work-charged establishment.

3. Tools and Plants (T & P)

For big projects, a percentage of 1 % to 11/2 % of the estimated cost is provided in the estimate for the purchase of Tools and
Plants which will be required for the execution of the work. Normally the contractor has to arrange and use his own tools and
plants.

4. Centage charges or Departmental charges

When the engineering department takes up the work of other department, a percentage amount of 10 % to 15 % of the
estimated cost is charged to meet the expenses of establishment, designing, planning, supervision, etc., and this percentage
charge is known as Centage charge.

5. Report

Estimate is usually accompanied with a report which gives all brief information of the whole work or project. It should
consist of the following main points;

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(i) Brief history with reference to the proposal.
(ii) Object, necessity, utility and feasibility of the project with reasons.
(iii) Selection of site or selection of alignment.
(iv) Surveying
(v) Accommodation provided or brief description of the works provided in the estimate.
(vi) Nature of soil, and topography of the land, orientation etc.
(vii) General specifications and basis of design calculations.
(viii) Arrangements for water supply, sanitary works and electrical installations.
(ix) Roads and drains
(x) Miscellaneous items as labour amenities, temporary accommodation for staff etc. for big project.
(xi) Manner of execution.
(xii) Total cost and how to be financed.
(xiii) Return or revenue income if any.
(xiv) Rent statement if any.
(xv) Time of execution.

6. Site Plan

For all building plans, site plans are prepared to a small scale of 1 : 500 to 1 : 1000, showing the orientation of the building,
boundaries of land, position of roads, drains, sewer line, water pipelines and adjoining plots of lands with their ownership. The
North direction is also shown on one corner of the site plan to show the geographical orientation of the building.

7. Layout Plan

For a project consisting of a number of buildings and structures, a layout plan of the whole area is prepared to a small scale of
1 : 1000 to 1 : 2000, with all proposed buildings, structures, roads, lanes, drains, pipelines, electric lines, parks etc with their
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sizes, positions, locations and orientations, with their ownership. The North direction is shown on one corner of the layout
plan to indicate the geographical orientation of the buildings.

8. Index plan or Key Plan

For Road project, Irrigation project, Water supply project, Sanitary work project, Major building project etc., an index plan to a
scale of 1 : 50000 is prepared showing alignment with position of culverts, outlets and other main works or main outlines of
the whole work so that at a glance an idea of the project may be formed.

9. Electrification, Sanitary and Water Supply works

The provision are usually made as given below;

(i) Sanitary and Water supply works - 8 % of the estimated cost of building works.
(ii) Electrification works - 8 % of the estimated cost of building works.
(iii) Electric Fans - 4 % of the estimated cost of building works.

Detailed estimate of Electrification, Sanitary and Water supply works may also be prepared initially while preparing the
estimate of building work.
10. Sub-head of items of work

The detailed estimate is prepared sub-head wise and items are grouped under different sub-heads and during the execution
accounts are kept sub-head wise to keep a check on the expenditure. These sub-divisions are known as the sub-head of items
of work.

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The whole work is divided into different classes of items and items of similar nature are grouped under sub-heads of work are
as follows:

(i) Earthwork (ii) Concrete (iii) Brick-work (iv) Stone work (v) Wood work (vi) Steel-work (vii) Roofing
(viii)Flooring (ix) Plastering and pointing (x) Painting and Distempering

(xi) White washing and colour washing (xii) Miscellaneous items

11. Sub-work

A large work or project may consist of several buildings or small works and each of these work is known as sub-work. Detailed
estimate of each sub-work is prepared separately and accounts of expenditure are kept sub-work wise.

A hospital project may consist of ;

(i) Main hospital buildings (ii) Out patient ward (iii) Emergency ward (iv) Resident doctor’s quarters

(v) Nurses quarters (vi) Kitchen blocks (vii) Roads, etc and each will be a sub-work.

12. Summary or Estimated Cost or General Abstract of cost

When the whole work or project consists of number of works or sub-works, detailed estimate and abstract of estimated
cost are prepared for each sub-work separately and at the end, a summary of estimated cost or General abstract of cost is
prepared for the whole work or project.
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13. Complete set of Estimate

Detailed estimate is prepared in standard forms and the complete set of estimate consists of;

(i) Title page giving name of the Engineering Department, Division, District of Sub-Division, Estimate No., Name of work
and amount of Estimate.
(ii) Index of contents, plan and drawings.
(iii) Report
(iv) Design Calculations
(v) General specifications
(vi) Detailed specifications
(vii) Analysis of Rates if required
(viii) Details of measurement and calculation of quantities
(ix) Abstract of estimated cost
(x) General abstract of cost
(xi) Drawings – plans, elevations, detailed drawing, site plan, index planet.

At the end of the Abstract of estimated cost or Summary of estimated cost, there should be signature of the Assistant
Engineer, Executive Engineer and Superintending Engineer and on the back page, head of account should be given.

14. Schedule of Rates

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Schedule of rates is a list of rates of various items of works. The rates are workable rates for the completion of the items
including materials, transport, labour, profit, etc. The Schedule of rate is prepared on the basis of analysis of rates. Usually,
transport of materials up to a distance of 8 km is included in the rates.

15. Building Cost Index

It indicates the increase or decrease of the cost above the cost at the certain base year and is expressed by a percentage rise
or fall.

16. Administrative Approval or Sanction

For any project required by a department, an approval or sanction of the competent authority of the department, with respect
to the cost and work is necessary at the beginning. Administrative approval denotes the formal acceptance by the
department concerned of the proposal and after the administrative approval is given, the engineering department (PWD) take
up the work and prepares detailed designs, plans and estimates and then executes the work.

17. Expenditure Sanction

Expenditure sanction means allotment of fund for a specific work and is usually accorded by the Finance Department. No
expenditure can be incurred before expenditure sanction is given.

18. Technical Sanction

Technical sanction means the sanction of the detailed estimate, design calculations, quantities of works, rates and cost of the
work by the competent authority of the Engineering department. The work is taken up for construction only after the
technical sanction of the estimate is given.

19. Bill of Quantities (BOQ)

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It is a statement of the various items of work giving the description, quantities and unit of rates. It is primarily meant for
inviting tenders and supplied to the contractor to fill up the rates and amounts columns. On receipt of the tenders, the rates
and amounts are compared and decision about entrusting the work is finalized.

Sl
Particulars or Description Quantity Unit Rate Amount
No

20. Day Work

‘Day work’ method of payment is usually confined to small items of works and may be on hourly basis. For the purpose of
day work payment, the contractor is to maintain day work sheets, where the details of various materials actually used and the
details of hours of working of each type of labourers should be recorded. The day work sheet should be frequently checked
and verified by the Engineer.

21. Prime Cost

It is the actual cost of articles at shop and refers to the supply of articles only and not to the carrying out of work. The supply
of the articles will be made by the contractor on receiving the instructions and approval of the Engineer- in-charge regarding
quality and price. Contractor is not allowed any profit on the ‘Prime cost’ articles but he may be allowed actual cost for
carriage, if specified.

22. Provisional sum

Provisional sum is the amount provided in the estimate and bill of quantities for some specialized work to be done by a
specialist firm; whose details are not known at the time of preparing estimate.

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Installation of lift, air conditioning, etc for which full information and details may not be known at the time of preparing
estimate and entering into contract and are required to be installed by a specialist firm, a reasonable amount is provided in the
estimate and in the bill of quantities of contract as ‘Provisional Sum’.

The electric service connection for electrifications of a building shall be provided as Provisional as the charges of the
Electricity department are not known.

23. Provisional Quantities

When the quantities of a particular item are not certain, Provisional quantities are provided separately for such items. For
this purpose, the quantities are calculated from measurements of the drawings with certain assumption of the probable
increase and are kept separately in the bill of quantities and marked as Provisional.

In the tender and in the bill of quantities, of contract, the provisional quantities will be shown separately and the contractor
shall have to quote rates for the provisional quantities but the payment of these quantities will be made on the completion of
these items of work as actually done.

24. Plinth Area

Plinth area is the built up covered area of a building measured at floor level of any storey. Plinth area is calculated by taking
the external dimensions of the building at the floor level excluding plinth offsets if any.

Court-yard, open areas, balconies and cantilever projections are not included in the Plinth Area. Supported porches, other than
cantilevered are included in the Plinth Area.

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25. Floor Area

Floor area of a building is the total area of floor in between walls and consists of floor of all rooms; verandah, passages,
corridors, staircase room, kitchen, bath etc.

Sills of doors and openings are not included in the Floor Area. Area occupied by walls, pillars and other intermediate supports
are not included in the Floor Area.

Floor Area = Plinth Area - Wall Area

26. Circulation Area

Circulation Area is the floor area of verandahs, passages, corridors, balconies, entrance hall, porches, stair cases, etc., which are
used for movements of persons using the building.

The circulation area may be divided into two parts :

(i) Horizontal Circulation Area – It is the area of verandahs, passages, corridors, balconies, porches etc. which are
required for the horizontal movement of the users of the building. It may be 10 % to 15 % of the plinth area of the
building.

(ii) Vertical Circulation Area – It is the area occupied by staircases, lifts, and the entrance halls adjacent to them, which
are required for vertical movement of the users of the building. It may be 4 % to 5 % of the plinth area of the
building.

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27. Carpet Area

Carpet Area of building is the useful area or liveable area. For residential building, carpet area is the liveable area and should
exclude the kitchen, pantry, stores and similar other room which are not used for living purposes.

Carpet area of an office building may be 60 % to 75 % of plinth area of the building.

Carpet area of residential building may be 50% to 65 % of plinth area of the building.

28. External Services

In a project besides the building structure, certain outside works such as; digging, filling, levelling and dressing of road,
external sewerage, storm water drains, arboriculture etc., are required which comes under the External services.

The cost of external service works may vary from 10 % to 20 % depending on the nature and size of the project.

29. Capital Cost

For a project, the capital cost is the total cost of the whole project including all buildings, structures, external services etc.
Cost of land may also be included in the capital cost.

30. Project

Project means a full scheme consisting of detailed technical report, design data and calculations, drawings, specifications,
rates, project estimates etc. It is the detailed requirement of a proposal or scheme. The project gives full details of all works
involved for both structural and financial requirements.

31. Complete Estimate of a Project


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The complete estimate of a project or building structure should include all items of expenditure from the beginning up to the
end. The complete estimate include the following;

(i) Cost of preliminary works as surveying, preliminary observations and investigations.


(ii) Cost of land including its acquisition and legal expenses.
(iii) Cost of improvement of land by levelling, digging and filling if required.
(iv) Cost of planning, designing, preparation of estimate etc.
(v) Cost of building of structure, including internal electrification, sanitary and water supply works.
(vi) Cost of supervision charges during execution of works
(vii) Cost of temporary accommodation or staff labour and other amenities.
(viii) Cost of water supply and electric connection during construction
(ix) Cost of external services as roads, electric service lines, storm water drains, external water supply and sanitary works
etc.
(x) Cost of maintenance and repair works and other running expenditures during the construction.
(xi) For building designed and supervised during construction by an Architect, the fees of Architect should also be included
in the estimate.

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EXAMPLES OF PRELIMINARY ESTIMATE

(1) Prepare a preliminary estimate of a building project with a total plinth area of all buildings of 1500 sq.m. Given
that;

(i) Plinth area rate - Rs.12,500 per sq.m


(ii) Architectural treatment - 11/2 % of the building cost
(iii) Water supply and Sanitary installations - 5 % of the building cost
(iv) Internal installations - 14 % of the building cost
(v) Extra services - 6 % of the building cost
(vi) Contingencies - 3%
(vii) Supervision charges - 8%

SOLUTION
Building Cost = 1500 x 12500 = Rs. 1,87,50,000/-
Architectural treatment - 11/2 % of the building cost = 1,87,50,000 x (1.5/100) = Rs. 2,81,250/-
Water supply & sanitary - 5 % of the building cost = 1,87,50,000 x (5/100) = Rs. 9,37,500/-
Internal installations - 14 % of the building cost = 1,87,50,000 x (14/100) = Rs. 26,25,000/-
Extra services - 6 % of the building cost = 1,87,50,000 x (6/100) = Rs. 11,25,000/-
Total Building cost Rs. 2,37,18,750/-

Contingencies - 3 % of overall cost = 2,37,18,750 x (3/100) = Rs. 7,11,562.50/-


Supervision charges - 8 % of overall cost = 2,37,18,750 x (8/100) = Rs. 18,97,500/-
Grand Total = Rs. 2,63,27,812.50/-
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(2) Prepare the rough estimate for a proposed commercial complex for a municipal corporation for the following
data:

(i) Plinth Area = 500 m²


(ii) Height of each storey = 3.5 m
(iii) No. of storeys =G+2
(iv) Cubical content rate = Rs. 1000/m³

Provided with the following as a percentage of structural cost;

(a) Water supply & Sanitary arrangement – 8 %


(b) Electrification – 6 %
(c) Fluctuation of rates – 5 %
(d) Contractor’s profit – 10 %
(e) Petty supervision & contingencies – 3 %

SOLUTION

Cubical content = No: of storeys x Plinth Area x Height of each storey

= 3 x 500 x 3.5 = 5250 m³

Cubical content rate = Rs 1000 per m³

Structural cost = 5250 x 1000 = Rs. 52,50,000/-

Cost of water supply & sanitary arrangement @ 8 % of structural cost = 52,50,000 x (8/100) = Rs. 4,20,000/-
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Cost of electrification @ 6 % of structural cost = 52,50,000 x (6/100) = Rs. 3,15,000/-

Fluctuation of rates @ 5 % of structural cost = 52,50,000 x (5/100) = Rs. 2,62,500/-

Total cost of building = Rs. 62,47,500/-


Contractor’s profit @ 10 % of structural cost = 62,47,500 x (10/100) = Rs. 6,24,750/-

Cost of P.S. & contingencies @3 % of building cost = 62,47,500 x (3/100) = Rs. 1,87,425/-
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Grand Total = Rs. 70,59,675/-

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9. TENDER

INTRODUCTION – The tender is an offer to perform some task or to supply goods at a fixed price. The contractors will be
invited to submit sealed bids for construction or for the provision of specifically designed services or goods during a particular
time frame in the initial step of the tender.

UNDERSTANDING A TENDER – India’s e-tender process is structured to ensure that the work to be performed for the government
or a specific client is accomplished reasonably. For example, some places may have specific procurement policies that direct on
how to make a decision and which tender to accept.

An open tender is the main form of tender followed by both the government and the private sector. The client advertises
the tender offers in the local newspaper along with the critical information of the proposed works, inviting, interested contractors.

TENDERS IN INDIA – There are various types of tenders such as open tender, selective tender, serial tender, negotiated
tender and term tender.

(i) Open tender – An open tender is the principal tender procedure employed by both the private and government sectors. In
the local newspaper, the customer advertises the tender offer along with the key information of the proposed works and
invites interested contractors.

(ii) Selective tender – Selective tender is an alternative that has been developed to address the open tender procedure’s
limitation. This tender aims to increase the quality of bids received and ensures that the contractor’s with the requisite
expertise are given the opportunity and submit the bids needed.

(iii) Negotiation tender – This is widely used in the engineering and the construction industry, which is the subject of pre-
contract and post-contract negotiations.

(iv) Term Tender – Term tender is normally used on projects which require enormous maintenance. The contractor would be
asked to cover several specific buildings at multiple locations. This tender is also limited to a fixed time and it may demand
that the criterion be applied to the client’s needs.
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RELATED TERMS

(i) Ratio Analysis – It is a quantitative procedure of obtaining a look into a firm’s functional efficiency, liquidity, revenues and
profitability by analysing it’s financial records and statements.

(ii) Operating Revenue – It refers to the revenue generated by a company from it’s primary activities.

(iii) Private Limited Company – It is a company which is owned by non-governmental organisations or a relatively small
number of shareholders or members of a company.

(iv) Escalator clause – It is the provision which allows for an automatic increase in the wages or prices.

(v) Agency problem – It is a scenario of a conflict of interest which is inherent in all relations wherein one party is anticipated
to operate in the best interests of another party.

(vi) Marginal Costs of Funds – It is the increase in the financial costs for a lending institution as a result of adding one more
dollar of new funding.

COLLECT TENDER NOTICES FOR ANY CONSTRUCTION PROJECTS

10. BID

The bid covers the total cost of building the structure submitted by the main contractor, including any money for
subcontractor’s who work under the main contractor and is. The bid also incorporates the main contractor’s costs, overhead and
profit. The owner will be at risk of dealing with increased contracting costs if there are any design errors.

The strategies for winning construction bid proposals are;

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(i) Get bid in early. Getting bid in before anyone else will have a huge impact on the ability to win bids.
(ii) Know the client.
(iii) Sell on value, not price.
(iv) Use construction estimating software to improve the bid quality.
(v) Increase the team’s productivity.
The shortest time for bid validity is normally 30 days. This seems to provide sufficient time for most projects to go through the bid
evaluation process. Sometimes 45 or 60 days are required depending on the nature of the project.
11. E-PROCUREMENT SYSTEM

E-procurement is the short form of electronic procurement and describes the purchasing of goods or services with electronic
systems often via digital networks such as the internet. The advantage of e-procurement is time and thus cost savings in the
handling of order processes.

E-procurement provide various services such as customer support services, fund transfer, online payment and feed back. E-
procurement is done on e-market place. An e-market place is an internet based environment that provides a platform for buyers
and sellers to gather and do business using an online platform.

The stages of procurement process are;

(i) Identify goods or services needed.


(ii) Consider a list of suppliers.
(iii) Negotiate contract terms with selected supplier.
(iv) Finalise the purchase order.
(v) Receive invoice and process payment.
(vi) Delivery and Audit of the order.
(vii) Maintain accurate record of invoices.

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12. CONTRACT

Contract is an agreement between two or more parties creating obligations that are enforceable or recognizable by law. It
establishes an obligation of each party to fulfill what it is agreed to perform.

(a) Obligations of the Employer

1. Appointing the engineer to administer the contract


2. Provision of the site
3. Provision of information, permits, and approvals
4. Providing funds and making payments in accordance with the contract
5. Participation in consultations with the engineer to agree matters on claims or conflicts between parties

(b) Obligations of the Contractor

1. Execution and completion of the works and remedying any defects therein.

2. Provision of :
a. Labour, materials, plant, and equipment needed
b. Preparation of progress report
c. Works program for execution, and updating it whenever required
d. Setting out of the works
e. Measurement and/or assisting the engineer to do so
f. Records of his personnel and equipment
g. Sample of materials specified
h. Testing and re-testing
i. Temporary works
j. Facilities for other contractors working on the site
k. Keeping the site clean, and remove rubbish

3. The contractor is required to:


a. Sign the contract when he is called to do so
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b. Obtain and submit securities, guarantees, and insurance policies
c. Ensure that his representatives will be available on site at all times
d. Prepare and submit the contractor’s document, including “as built drawings” and manuals of operation and maintenance
e. Attend to the engineer’s instructions
f. Provide access to the employer’s personnel to enter the site
g. Prepare and submit payment statement and documentation
h. To uncover works for inspection when required
i. Rectify (Correct) defective works
j. Secure or compensate the employer against any claims
k. Submit notices to the engineer whenever he encounters circumstances that may cause future claims
l. Getting approval before assigning sub-contractors or partners of the works
m. Respond for consultation with the engineer

4. Comply with the applicable laws, labour law and other local regulations.

(c) Role of the Engineer

Usually the employer will enter into a consultancy agreement with the engineer to design and/or supervise the works.

The Engineer shall have no authority to amend the contract.

Engineer’s role can be :

1. As the employer’s agent:


a. Administration of the contract – dealing with the procedures, provision of information and interpretations, issuance of
variations, approval of samples, etc.
b. Cost accountancy and payments

2. As a supervisor:

The engineer must ensure that the work is being performed to fulfill the contract documents.

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3. As a certifier:

The Engineer is required to certify or approve the payments that should be paid by the employer to the contractor. Those
payments should be made periodically, mostly on monthly basis and should depend on the quantity of works finished by the
contractor

4. As a determiner :

The Engineer must act as a mediator to help the parties towards agreement in issues such as claims for reimbursement of
costs or extension of time.

5. Issuance of Instructions & Variations

Include issuance of additional or modified drawings, actions in relation to defective works, issuance of clarifications, giving
approval and ordering variations

TYPES OF CONSTRUCTION CONTRACTS

(i) Measured or Unit Rate Contract

In this type of contract, the price is computed by multiplying quantities of work executed by the unit rate offered by the
contractor in his tender. The rates are usually set out in the Bill of Quantities(BOQ).

Such contracts are often used where there are significant changes in the quantities or working conditions. So, when there
are certain reasonable differences of the quantities accepted by all the parties, then the contract can be paid for by
multiplying the actual measured quantities by the unit rates.

ADVANTAGES

1. This type of contract is widely used in the execution of large projects financed by public bodies or governments. It also
suits the works which can be split into separate items and the quantity of each item could be estimated with
reasonable accuracy.

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2. The employer pays for the actual work executed.
3. The contractor usually allows for a certain margin of variation, with a clear mechanism for valuation of such variations.
4. The Engineer/Employer has liberty to provide some drawings during the execution of the project, after award.

DISADVANTAGES

1. The employer cannot be absolutely sure of the total cost of the project until the whole work is completed. In case the
quantities in the BOQ are inaccurate or roughly approximated, the value of the work may vary considerably. The
contractor may try to offer an unbalanced tender on the basis of his anticipation of the uncertainty of quantities of
certain items.
2. Both the Engineer and the Contractor have to do considerable computations and book-keeping during the progress of
work.
3. Extra works or varied items of work are often a source of conflict. The contractor may press for higher rates than he
would have tendered for in the beginning.

(ii) Lumpsum Contract

In a lumpsum contract, the contractor agrees to carry out the entire work as indicated in the drawings and described in the
specifications, for a specified fixed lumpsum amount. Sometimes, the contract makes provisions to adjust the “lumpsum”
allowing for extra work and limited variations.

Normally, a bill of quantities is not usually included, and if included it does not form part of the “Contract Documents”, but
may be used just for guidance.

Instead, a schedule of rates may be of value to evaluate the cost of extras or omissions.

ADVANTAGES

1. From the employer's stand point, and if no extras are contemplated, the tender sum tells him the exact cost of the
project. Sometimes the employer will be working within a tight margin of budget.
2. From the contractor's stand point, because the design will often be prepared by him, the contractor can gain through
proper planning and efficient management to increase his margin of profit and/or control timing.

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3. Both parties need less number of staff for book-keeping, accounting and measurement.

DISADVANTAGES

1. In lumpsum contracts, there should be a complete set of plans and specifications, or what is called "Employer's
Requirements" which should be sufficiently detailed.
2. Variations in lumpsum contract may trigger conflicts about whether or not a particular item of work falls within the
agreed scope of work, and whether there has been a variation to such scope.
3. This type of contract will not be suitable for works with scope and nature that cannot be predicted accurately in
advance. The outcome will be unfair for the contractor to assume all risks and uncertainties, or for the employer to pay
a higher cost.

(iii) Cost-plus Contract

This type of contract differs from both the measured and the lumpsum contract in that the employer agrees to pay the
contractor for the actual cost of the work plus an agreed percentage of this actual cost to cover overhead and profit.
The Contractor agrees to execute the works based on the drawings and specifications and any other information that will
be provided to him from time to time during progress of the works.

The percentage to be paid should not be applied on the costs of salaries of the contractor’s staff, whether on-site or off-site.

ADVANTAGES

1. Early completion of the work - The work can be started even before the design and estimates are prepared. Decisions
can be taken speedily, and flexibility allows adoption of alternates for construction to suit the Employer's
Requirements.
2. The quality of the work can be assured. The contractor is induced to perform the work in the best interest of the
employer.
3. No conflicts will be anticipated as to extras or omissions.

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DISADVANTAGES

1. The final cost to the employer cannot be foretold.


2. Both parties have to do a lot of accounting and book-keeping regarding labour; purchase of materials and plant and use
of equipment.
3. The contractor has no incentive to economize or finish the work speedily.

SUITABILITY

1. In spite of some drawbacks in certain cases, this form of contract can be used suitably for:
(a) Emergency works that require speedy construction and where no time is available to prepare drawings for it.
(b) Construction of special or expensive projects, where the cost of the work is of no consequence but the materials
and workmanship to be purchased are just to suit the choice and taste of the employer.

REMARKS

An alternate to the ‘cost-plus contract’ is the ‘cost-plus fixed fee contract’, where the contractor will be paid for the actual
cost of construction plus a fixed amount of fees for his overhead and profit. The fee does not fluctuate with the actual cost
of the project. This factor may overcome the possible drawback of the cost-plus contract.

(iv) Construction Management Contract (C.M)

In this type of contract, the employer engages a specialized construction manager (C.M) to provide administrative service
for him and manage the work on his behalf. The C.M has full control on Cost and Time, on the budget and programming,
and is usually paid on a staff-reimbursement basis.

The C.M assists in choosing the design consultant and the various contractors for a project divided into packages
structural, finishes, electro-mechanical etc.

The technical role is kept with the design-professional, but as to control, coordination, certification and dispute resolution,
the C.M normally possesses the major role.

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13. GENERAL RULES OF IS :1200

Item
Description or Particulars Unit Remarks
No
1 Earthwork m3
Thickness of concrete varies from 20 cm to 45 cm,
2 Concrete in Foundation m3 usually 30 cm. Proportion of cement concrete may be
1 : 4 : 8 or 1 : 5 : 10
When the soil is soft, one layer of dry brick or stone
3 Soling m2
soling is applied below the foundation concrete.
Usually of 2.5 cm thick, 1 : 1½ : 3 C.C
2 cm thick, 1 : 2 C.M.
Mixed with standard water proofing material
4 Damp proof course (D.P.C) m2
provided at the plinth level to full width of plinth wall.
Not provided at the sills of doors and verandah
openings for which deduction are made.

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Item Description or Particulars Unit Remarks


No
(i) Foundation and plinth masonry is taken
under one item.
(ii) Masonry in superstructure is taken
separate.
(iii) Masonry in each storey is computed
separately.
(iv) Deductions are made for openings as
doors, windows, etc.
(v) Arch masonry is taken out separately.
(vi) Splayed or rounded sides of wall are
considered as rectangular and extreme
dimensions are taken.
(vii) Thin partitions, Honey comb brick wall are
5 Masonry m3 considered separately and measured in
sq.m.
No deductions are made for
(i) Openings up to 0.1 sq.m.
(ii) Ends of beams, posts, rafters, purlins, etc
up to 0.05 sq.m.
(iii) Bed plate, wall plate, bearings of chajjas up
to 10 cm depth.
Deductions are made for
(i) Rectangular openings – ( l x h x t)
(ii) Doors and windows with small segmental
Arches - ( l x h x t)
(iii) Segmental arch openings –
(l x h ) + (⅔ x l x r) x t
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(iv) Semi-circular arch openings
(l x h ) + (3/4 x l x r) x t

Item Description or Particulars Unit Remarks


No
lm x t x thickness of wall
6 Arch masonry work m3 (lm – mean length)

lx t x thickness of wall
7 Lintels over openings m3
For roof or floor slab, beams, lintels, columns,
8 R.C.C and R.B work m3
foundations.
(i) Ground floor – Base concrete and floor
finishing are taken as one job.
(ii) 1st floor, 2nd floor – Supporting structure of
R.C.C and floor finishing is taken
9 Flooring and roofing m2 separately.
(iii) Roof - Supporting structure of R.C.C and
finishing in terrace is taken separately.
Bearing of roof or floor slab is same as slab thickness,
usually 10 cm to 15 cm.

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Item
Description or Particulars Unit Remarks
No
Plastering of walls is usually 12 mm thick.
Measurements are taken for both sides.

Deductions
(i) Openings of 0.5 sq.m – 3 sq.m (one face
only)
(ii) Openings above 3 sq.m (both faces)
10 Plastering and pointing m2 (iii) No deduction is made for ends of beams,
posts, rafters etc.
(iv) No deduction for opening upto 0.5 sq.m.

Plastering of ceiling is usually 12 mm thick.


Pointing in walls is for whole surface and deductions
similar to plastering are made.

Ornamental or large cornice, string course, drip


11 Cornice r.m course, coping etc.

Qty = Area x ht
Plastering in pillars = circumference of perimeter x
12 Pillars m3
height.

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Item
Description or Particulars Unit Remarks
No
Frame
(i) Top and two verticals ( no sill member)
(ii) Top, sill, two verticals (if sill member)
(iii) If there is no sill member, vertical
members should be inserted into the floor
by about 2.5 cm to 4 cm.
Shutters ( m2)
(i) The rebates in the frame (12 mm to 20
mm) should be taken into consideration in
finding the breadth and height.
13 Doors and Windows m3 (ii) A clearance of 6 mm may be allowed at the
bottom of door if there is no sill member.
 Name of timber used, thickness of shutters,
type of shutters, nature of fittings should be
noted.
 Shutters of different types (paneled, glazed,
partly paneled, partly glazed, venetian etc.)
should be computed separately as the rate
differs.
Fittings are computed by number (rate for shutters
shall include the labour for fixing the fittings).
14 Wood work m3 Wooden beams, posts, wooden roof trusses etc.

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Item
Description or Particulars Unit Remarks
No
 Calculated by multiplying wt per r.m by the
length.
 Density of mild steel = 7850 kg/ m3
Kg or  For doors – 6 holdfasts (3 on each side)
15 Iron work
qtl  For windows – 4 holdfasts
 For steel roof truss, 5 % of the steel work is
usually provided for rivets and bolts and nuts.

Inside walls – white washing or distemper, same as


for inside plaster.
16 White washing or Colour washing or distempering m2
Outside walls – Colour washing, same as for outside
plaster.
Area is same as for wall opening. For both faces of
doors and windows, the area measured is multiplied
by appropriate numbers.
(i) Panelled& framed, braced ledged and
battened or ledged, battened and braced. -
2¼ times one surface area, for both sides.
(ii) Fully glazed or gauged – 1 time one
17 Painting or Varnishing (Doors & Windows) m2 surface area, for both sides.
(iii) Partly paneled and partly glazed or
gauged – 2 times one surface area, for both
sides.
(iv) Flush door - 2 times one surface area, for
both sides.
(v) Venetian – 3 times one surface area, for
both sides.

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Item
Description or Particulars Unit Remarks
No
Small items or front decoration work of building, fire-
18 Lump-sum item
place, site cleaning and dressing etc.
 Sanitary and Water supply works
– 8 % of estimated cost.
19 Electrification, Sanitary and Water supply works  Electrification - 8 % of estimated cost.

14. RULES FOR MEASUREMENTS

The rules for measurement of each item are invariably described in IS- 1200.

However, some of the general rules are listed below.

1. Measurement shall be made for finished item of work and description of each item
shall include materials, transport, labor, fabrication tools and plant and all types of
overheads for finishing the work in required shape, size and specification.
2. In booking, the order shall be in sequence of length, breadth and height or thickness.
3. All works shall be measured subject to the following tolerances.
(i) linear measurement shall be measured to the nearest 0.01m.
(ii) Areas shall be measured to the nearest 0.01 sq.m
(iii) Cubic contents shall be worked-out to the nearest 0.01 cum
4. Same type of work under different conditions and nature shall be measured separately under separate items.
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5. The bill of quantities shall fully describe the materials, proportions, workmanships and accurately represent the work to be
executed.
6. In case of masonry (stone or brick) or structural concrete, the categories shall be measured separately and the heights shall be
described:
(a) From foundation to plinth level
(b) From plinth level to first floor level
(c) From first floor to second floor level and so on.

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