Cost Planning and Management: Typical Construction Project Organization

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Cost Planning and Management

MBA in Construction Project Management
2nd Semester
Typical Construction Project Organization
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Sequence of Activities
Construction Estimates
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Estimation
• Estimating is the compilation of all the costs

of the elements of a project or effort
included within an agreed upon project
scope. To a contractor, this is the cost that
will most likely be incurred to complete the
project as defined in the contract documents
and to turn it over to the owner.
• In another definition, it is the production of a
statement of the approximate quantity of
materials, time and costs to perform
construction decisions. Cost estimating is, also
defined as, the process of analyzing a
specific scope of work and predicting the
cost of performing the work.
• The basic challenges the construction contractor faces are to estimate the cost of constructing a
project, schedule the specific construction activities, and then build the project within the estimated
cost and schedule.
Estimate
• Estimation is the scientific way of working out the approximate cost of an engineering
project before execution of the work.
• It is totally different from calculation of the exact cost after completion of the project.
• Estimation requires a thorough Knowledge of the construction procedures and cost of
materials & labour in addition to the skill , experience, foresight and good judgment.
• An estimate of the cost of a construction job is the probable cost of that job as computed
from plans and specifications.
• For a good estimate the, actual cost of the proposed work after completion should not
differ by more then 5 to 10 % from its approximate cost estimate, provided there are no
unusual, unforeseen circumstances
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Site Conditions Affecting The Overall Cost

• Each type of work requires a different method of construction. Construction may be of an
ordinary house or office and it may also be of a Dam, Tunnel, Multistory building,
Airport, Bridge, or a Road, already in operation. Each of these works requires totally
different construction techniques, type of machinery, and formwork.
• Quality of labour and labour output varies in different localities.
• Weather conditions greatly affect the output and, hence, the overall cost.
• Ground conditions vary and change the method of construction. For example, excavation
may be dry, wet, hard, soft, shallow or deep requiring different efforts.
• The work may be in open ground such as fields or it may be in congested areas such as
near or on the public roads, necessitating extensive watching, lightening, and controlling
efforts, etc.
• The source of availability of a sufficient supply of materials of good quality is also a
factor.
• The availability of construction machinery also affects the method of construction.
• Access to the site must be reasonable. If the access is poor, temporary roads may be
constructed.
Unforeseen Items in Detailed Estimate
• While preparing a detailed estimate, one had to be very careful to see that all items of
the work are incorporated.
• It is likely that a few Items, though unimportant in nature, might have been overlooked
and which may result in raising the estimate of the project.
• There may be also certain unforeseen circumstances affecting the project.
• Hence, a certain allowance usually
5 to 10% of the total cost, is made
in the estimation which will take
care of all these items that are
unforeseen or are overlooked and
are known as "Contingencies".
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Types of Estimates
Cost estimates is divided into seven types:

1. Preliminary or rough cost or approximate estimate is prepared to decide the financial aspect
and accompanied by detailed report, brief specifications, layout plan showing the proposal in
hand; and brief idea of rates for different items;
2. Detailed estimate, is prepared in detail prior to inviting of tenders;
3. Quantity estimate, is a complete estimate of quantities for all items of work required to
complete a project;
4. Revised estimate is also a detailed estimate and is prepared afresh, when the original
sanctioned detailed estimate exceeds by 5% or more;
5. Annual repair or maintenance prepared in order to keep the structures in proper condition;
6. Supplementary estimate, when some additions are done in the original work; and
7. Extension estimate, when some changes and extensions are required to be made in old work
Types of Estimates
• Cost estimates are divided into three major types based on fully developed construction drawings
and specifications
1. Conceptual cost estimates are developed using incomplete project documentation;
2. Semi-detailed cost estimates are prepared when parts of the project have been completely
designed; and
3. Detailed cost estimates are prepared.
• The accuracy of the estimate depends on the completeness of the contract documents and the
experience of an estimator.
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Design & Estimating Process
Conceptual Detailed
Feasibility Pre-bid Construction
design design
Conceptual & Preliminary Definitive

Detailed Estimates
Estimates Estimates
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Types of Estimate
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Conceptual Estimates
• At the outset of the project, when the scope and definition are in the early stages of
development, little information is available, yet there is often a need for some assessment
of the potential cost. The owner needs to have a rough or approximate value for the
project’s cost for purposes of determining the economic desirability of proceeding with
design and construction. Special quick techniques are usually employed, utilizing minimal
available information at this point to prepare a conceptual estimate.
• Little effort is expended to prepare this type of estimate, which often utilizes only a
single project parameter, such as square feet of floor area, span length of a bridge, or
barrels per day of output. Using available, historical cost information and applying like
parameters, a quick and simple estimate can be prepared
• These types of estimates are valuable in determining the order of magnitude of the cost
for very rough comparisons and analysis but are not appropriate for critical decision
making and commitment.
• Conceptual estimates have value, but they have many limitations as well. Care must be
exercised to choose the appropriate method for conceptual estimating based on the
available information
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• Conceptual estimating relies heavily on past cost data, which is adjusted to reflect current
trends and actual project economic conditions
• The accuracy of an estimate is a function of time spent in its preparation, the quantity of
design data utilized in the evaluation, and the accuracy of the information used. In
general, more effort and more money produce a better estimate, one in which the
estimator has more confidence regarding the accuracy of his or her prediction.
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• Conceptual estimates are often called ballpark estimates. Typically there are no
drawings available at all. You can use conceptual estimates when you are in the idea or
concept stage of a project. Often an owner doesn’t really know whether their idea is
economically feasible, and they don’t want to start spending money on design until they
know that the project is at least possible. An experienced estimator can help out in a
situation like this by offering a rough order of magnitude (ROM) estimate. These
estimates are based upon a cost per primary unit for the facility. For example, for
hospitals, the primary unit of measure would be beds, and you would multiply the
proposed number of beds by the appropriate unit cost. For a school, the calculation
would be cost per pupil; for a highway the estimate would be based on a cost per mile.
Once the owner suggests how many primary units they would like to build, an estimator
can whip out a rough order of magnitude estimate within minutes; however, the accuracy
is limited.
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Conceptual estimate
• A conceptual estimate is also known as a top-down, order of magnitude, feasibility,

analogous, or preliminary estimate. It is the first serious effort made at attempting to
predict the cost of the project. A conceptual estimate is usually performed as part of the
project feasibility analysis at the beginning of the project. In this way, the estimate is
made with limited information on project scope, and is usually made without detailed
design and engineering data.
• The conceptual estimate is also defined as approximate estimate and used to know the
budget for a project. Considerable experience and judgment are required to obtain a
dependable approximate estimate for the cost.
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Conceptual cost estimating characteristics
• The first recognized characteristic of conceptual estimating, like all other estimating, is the
inexactness in the process. With the absence of data and with shortage of time, there
may be no other way to evaluate designs but to use opinion. Conceptual estimating is a
mixture of art and science; the science of estimating tells the cost of past work. The art is
in visualizing a project and the construction of each detail, selecting comparative costs
from past projects and adjusting them to new conditions.
• The second characteristic of conceptual estimating is that its accuracy and validity are
highly related to the level of information provided by the project scope. The
availability of a good, complete scope definition is considered the most crucial factor for
conceptual estimating.
• The third characteristic of conceptual estimating is that it is a resource restricted activity.
The main resources for conceptual estimating are information, time, and cost. Due to the
fact that conceptual estimating is performed in the early stages of the project, the scope
information available is usually restricted in detail as well as in precision. In addition, the
time and cost available for making the estimate is restricted.
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Importance of conceptual cost estimates
• These estimate assists the overall cost-control program by serving as the first check
against the budget. It will indicate the cost overruns early enough for the project team to
review the design for possible alternates.
• Since these estimate is made prior to the completion of detailed design, the margin of
error will be relatively large. Then, the larger contingency should be applied. The
contingency varies with the amount of design information available and the extent of cost
information obtainable from similar projects.
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Broad Scope of Conceptual Estimates
• Prior the design of a project, cost estimate could be prepared based on the cost
information based on previously completed projects similar to the proposed project. The
number of units or size of the project is the only available information. Although the
range of costs varies among projects, the estimator can develop unit costs to forecast the
cost of future projects.
• The unit cost should be developed from weighting the data that emphasizes the average
value, yet it should account for the extreme maximum and minimum values. In that regard
Eq. can be used for weighting cost data from previous projects.
• UC = (A + 4B + C) / 6
Where: UC = forecast unit cost
A = minimum unit cost of previous projects
B = average unit cost of previous project
C = maximum unit cost of previous projects
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Problem
• Determine the conceptual cost estimate for a proposed parking that is to contain 135
parked cars. Previous projects data are given in Table.
(Rs)
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Solution
• The unit cost per car can be calculated as given in Table

(Rs
• Then, the average unit cost = 30,431.5 / 8 = 3,803.94 / car

• Using Eq, the forecast unit cost = (2,987.3 + 4 × 3,803.94 + 4,375.8) / 6 = 3,763.14.
• Accordingly, the cost estimate for 135-cars parking = 135 × 3,763.14 = Rs. 508,023
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Problem
• Determine the conceptual cost estimate of a 2700-m2 housing project.
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Semi-detailed estimate
• Semi-detailed cost estimates are developed while basic design decisions are being made
to verify that the project can be constructed at its intended scope within the owner's
budget. Some aspects of the project may be completely designed. Detailed estimating
methods can be used to estimate the cost of project components that have been
designed, and conceptual estimating methods are used to estimate the cost of those
components that remain to be designed. This means that databases are used to estimate
the cost of components for which the design is not complete, and project data are used to
estimate the cost of components for which the design is complete. Therefore, these
estimates are known as semi-detailed cost estimates.
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Detailed estimate
• A detailed estimate is also known as a bottom-up, fair-cost, or bid estimate. Detailed

estimates are prepared once the design has been completed and all construction
documents prepared. The estimator divides the project into individual elements of work
and estimates the quantities of work for each element. Next, the individual elements of
work are priced to determine an estimated cost for each one. The estimated costs are
summed, and overhead costs are added to cover the contractor's cost of managing the
work.
• The breakdown of tender price is illustrated in Figure. The tender price consists of two
components, the construction cost estimate and mark-up (margin). The direct cost is the
combined costs of labor, equipment, material, and subcontractor’s costs. The addition of
site overheads and office overheads to the direct cost produces the construction cost
estimates. The second component of the tender price is the mark-up (margin) which
consists of the profit margin, risk allowance, and financial charge.
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Detailed estimate
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Detailed Estimates
• Whenever you have a complete

set of plans and specs, you
should do a detailed estimate.
This is where you count every
brick and stick, so to speak.
Quantities and costs are
calculated for every aspect of
the project, and this is by far the
most reliable estimate if the
contractor is being asked to give
a firm bid on a project.
• Detailed estimates are the most accurate. But keep in mind that as the accuracy
increases, so does the time, effort, and skill required to complete the estimate. Although
computerized estimating has reduced the time needed to compile project costs, it can still
take two to three weeks and a team of estimators to put together a detailed estimate for
a large, multistory commercial building such as an office or retail complex.
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Steps for preparing a detailed cost estimate
1. Review the scope of project. Consider the effect of location, security, traffic, available
storage space, underground utilities, etc. on costs.
2. Determine quantities. Perform a material quantity takeoff for all work items.
3. Obtain suppliers’ bids.
4. Price material. Material cost = quantity x unit price.
5. Price labor based on their probable production rate.
6. Price equipment based on their probable production rates.
7. Obtain specialty contractors’ bids.
8. Calculate taxes, bonds, insurance and overhead.
9. Contingency and markup. Add costs for potential unforeseen work.
10. Profit. Add costs for compensation for performing the work.
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Types of Cost Estimates
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Preliminary Estimates
• If you have a preliminary set of drawings with overall dimensions, you can move to the
next level of estimating after conceptual estimates. Preliminary estimates provide a
somewhat higher level of accuracy and may be used to establish initial budgets and
preliminary financing scenarios. However, these estimates should never be used to commit
to a contract price because too many factors can influence the reliability of the numbers.
Although there are numerous preliminary estimate methodologies, the most common is
probably the square foot method. In its simplest form, the estimator calculates the area
of the floor plan and multiplies that number by a unit price.
• There are various levels of skill and detail that can be applied to the square foot
estimating method, and the degree of accuracy increases with each step up, as will the
time it takes to calculate the price.
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TYPES OF ESTIMATES
S.No. Estimate type Comments
1 Project proposal indicative Feasibility stage

cost estimate
2 Preliminary estimate Budgeting costs toward the end of planning and design phase
3 Detailed estimate Controlling costs during the execution of the project
4 Definitive estimate To assess cost at completion
5 Final closure cost estimate Final cost
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Estimation of Preliminary Costs of Different Civil Engineering Jobs
S.No. Structure Basis for preliminary estimates
1 Buildings Depending upon the type of the building, the basis could be number of occupants (e.g., per student
for schools and hostels, per bed for hospitals, or per seat for theatres).
2 Roads and The estimates are usually made on a per-kilometre basis, depending upon the nature and
highways classification of the road, its width and the cross-section of the road. Obviously, the estimates are
different for concrete and bitumen-topped roads.
3 Irrigation Estimates for these could be on the basis of length involved, the capacity of the channel, or also the
works area of land to be covered.
4 Bridges and This is done on the basis of the span of the structure, depending on the roadway, the nature and
culverts depth of foundation, the type of structure, etc. For small culverts, an approximate cost may also be
available in handbooks on a ‘per culvert’ basis for culverts of different spans. At times, approximate
costs of bridges are also worked out separately for the substructure and the superstructure.
5 Sewage and Estimates for these could be made on the basis of per head of population served or the area
water supply covered.
6 Overhead Estimates could be made on the basis of the capacity of the tank, depending on the type of
water tank structure, height of staging, etc.
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Methods of Estimating (Preliminary)
• Estimators typically turn to preliminary estimating methods to compile a budget estimate

when there is too little design information available to put together a detailed estimate.
Preliminary methods of estimating can be divided into two main categories:
• Single-rate methods: Single-rate methods include the price per unit, price per unit
area, and price per unit volume.
• Multi-rate methods: Multi-rate methods include price per typical bay, assembly, and
elemental estimates
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Single-Rate Methods - Price per Unit
With the price per unit method of estimating, a certain unit that is common to all projects of this type
is selected and the number of these units is calculated for each project, for example, beds in a
hospital. Using this method, the construction cost of a newly constructed hospital is divided by the
number of beds provided in the new building. This calculation provides the unit price per bed, which
can then be used to price future hospital projects by multiplying the number of beds in the proposed
facility by this unit price per bed. For example, suppose a 500-bed hospital wing has been
constructed for $60 million. So the unit cost = $30 million/500 beds = $60,000 per bed. A similar
400- bed wing is proposed, so its estimated price is 400 × $60,000 = $24 million.
This method of preliminary estimating has some strengths:
• Produces an estimate quickly.
• Little data required for the calculation—just the number of units involved and the projected cost
per unit.
• Can serve as a rough check on estimates.
• One building can be compared with another on a functional basis.
• It can be an indication of design efficiency.
Weakness – low accuracy level; not useful for cost control
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Single-Rate Methods - Price per Area
• Here the unit of analysis is the square foot or square meter of gross floor area of the
project. The gross floor area is defined as the area of all floors measured to the outside
of containing walls. As with the previous method, the analysis begins with the construction
cost of a completed project. The known project construction cost is divided by the gross
floor area of the project to obtain a cost per unit area, which can then be applied to
future projects to estimate their construction cost. This is the most common method of
preliminary estimating as it is easy to understand and a large amount of data on prices
per square foot are published that may supplement data derived from designers’
analysis of their own projects. Because one of the first details of design to be defined is
always the floor area of a proposed building, this method of estimating can be applied
very early in the development of a project.
• For example, suppose a 50,000-square-foot office building of a certain type was built in
a certain place for $9,850,000. Therefore, the unit cost is $9,850,000/50,000, or $197
per square foot. A similar 39,000-square-foot office is proposed, so the estimated price
is 39,000 × $197 = $7,683,000.
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Single-Rate Methods - Price per Area
The unit area method has several strengths: However, the unit area method does have
• Produces an estimate quickly. some weaknesses:
• Can be accurate only when very similar
• Little data required for the calculation—just
buildings are involved.
the gross floor area (GFA) and the projected
cost per square foot. • Improving accuracy is complicated: Rate
adjustments are required for differences in
• As a rough check on estimates.
building function, building size, building
• One design can be compared with another. shape, location, quality and type of
• A large amount of data is published on unit construction, and other factors.
area costs. • Because there is no breakdown of the single
• Widely used and understood. rate, it is not useful for controlling costs.
• Easy to communicate to laypeople.
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Single-Rate Methods - Price per Volume
• One variable that can be a significant influence on the cost of some projects is the story
height. The height of warehouses, for instance, can vary considerably, thus making the use
of price per unit floor area inappropriate. A better method employs the price per unit of
volume as the means of determining the preliminary estimate.
• The cost per unit volume is obtained by dividing the total construction cost by the volume
of the building. The volume of the building is calculated by multiplying the area of the
building by the height from the bottom of the gravel under the basement slab-on-grade
to the top of the roof surface. The area of the building is again measured to the outside
of containing walls.
• Example: A retail building with a volume of 274,500 cubic feet was constructed for
$2,470,500, so the cost = $2,470,500/274,500 = $9 per cu. ft. A similar 290,000 cu.
ft. retail building is proposed, so the estimated price is 290,000 × $9 = $2,610,000.
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Preliminary Estimate for Buildings

Plinth Area Method
• For similar specifications, a bigger building costs more to build than a smaller building.
This dictum forms the basis of this method and estimates are prepared on the basis of
plinth area of the building. The rate is being deduced from the cost of similar buildings
having similar specifications, heights and types of construction in the same locality.
• Plinth area estimates are made by determining the plinth area of a building and
multiplying it by the plinth area rate. The former should be calculated for the covered
area by taking external dimensions of the building at the floor level, excluding areas
such as a courtyard or other open areas, which are not likely to count towards the
construction cost.
• In cases where the plan of the building is not ready or available, and the plinth area
cannot be accurately determined, the estimate may be made by estimating the proposed
floor area of the rooms from the functional requirements, and about 30 per cent to 40
per cent of this total added to account for walls, circulation area, etc., and an
approximate cost may be obtained by multiplying the unit rate and the estimated plinth
area rate.
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• Plinth Area Rate (PAR) method is one of the popular methods for preparing preliminary
estimates. PAR is prepared by Central Public Works Department (CPWD) for preparation
of preliminary estimates based on plinth area of a building. In PAR-2007, buildings are
classified in residential and non residential categories such as houses of different types
(e.g. Type I, Type II, Type III, Type IV, Type V, Type VI, and Servant quarters), hostels,
offices, college, schools, and hospitals.
• In PAR-2007, typical specifications such as type of foundation (based on safe bearing
capacity), type of structure (such as load-bearing or RCC-framed structure), flooring
(such as mosaic, Kota stone, or marble), other finishing items and electrical fixtures are
specified for a standard (nominal) building specification.
• The rates specified in PAR-2012 are based on prevailing market rates as on 1.10.2012,
and the base index for year 2012 is assumed to be 100. At regular intervals, the indices
are revised based on the current market rates. Correction factors need to be applied if
PAR-2012 is to be used in places other than Delhi.
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• The step-by-step method of preparing preliminary estimates based on PAR-2007 is
given below
Step 1: Preparation of preliminary architectural drawings based on requirement of area,
specification, function, etc.
Step 2: Fixing of architectural features, type of foundation system, type of superstructure, general
specification pertaining to civil works, electrical works, sanitary, water supply, external
development, etc., and special structural requirements
Step 3: Based on the specification, classification of proposed building into one of the categories
available in PAR-2007. Additional amount, as the case may be, need to be applied for a richer
specification than those specified in PAR-2007
Step 4: Calculation of plinth area of the building in accordance with the specified methods
Step 5: Multiplication of the plinth area and the specified rate with additional cost for richer
specification, if any
Step 6: Cost-index correction is applied based on the prevailing cost index
Step 7: Addition of contingency and architect’s fee (if applicable) in the total sum calculated as above
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Cube Rate Estimate

• The cube rate estimate based on the overall volume of enclosed space comes handy,
especially in cases such as multi-storey buildings, with the rate per cubic metre being
deduced on the basis of location, specifications and type of construction.
• The volume of the building is calculated from the external dimensions of the building (with
the length and breadth being taken at the floor level), excluding the foundation, the
plinth and the parapet above roof. Needless to say, this method is more accurate than
the plinth area estimate.
• In fact, some engineers also use an approximate estimate based on the total floor area
to be provided on a per-square-metre basis. This method also includes the height of the
building and is fairly accurate.
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Single-Rate Methods - Price per Volume
Unit volume method strengths: However, the volume method does

• Produces an estimate quickly. have some weaknesses:
• Little data required for the calculation—just • Not widely used except for warehouse-type
the volume and the projected structures.
• cost per cubic foot. • Can be accurate only when very similar
buildings are involved.
• Can serve as a rough check on estimates.
• Improving accuracy is complicated: Rate
• Useful as a means of comparing designs. adjustments are required for differences in
• Some data are published on unit area costs. building function, building size, building
shape, location, quality and type of
• Fairly easy to communicate to laypeople. construction, and other factors.
• Because there is no breakdown of the single
rate, it is not useful for controlling costs.
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Illustrative Cases in Preparation of Estimate- Case1:

Multi-level Car Parking Facility
• A municipal body of the country is planning to construct a multilevel car-parking facility in a

locality. The study constructed in the locality suggests the requirement of parking facility for about
1,000 car units. Further, there is a requirement of parking space for about 400 two-wheelers.
• Usually, such estimates are accompanied with the description of need for the project. The need for
this illustrative project is stated thus:
• Increase in number of vehicles and stringent parking regulations coming into force are making
parking in public areas and in new upcoming projects a very important design consideration.
Solutions are required to create sufficient parking areas to enable maximum cars to be parked
safely, in minimum time and in minimum land area.
• The municipal authority has proposed the preliminary estimate on plinth area basis, which is shown
in Table next slide. This estimate has also been used to obtain administrative and financial
approval from the competent authority. The schematic sketch of proposed parking is given in next
slide
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Plinth area calculation Layout of car parking
Cross section showing different levels of car parking
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Illustrative Cases In Preparation Of Estimate- Case:

• The schematic diagram provides only the entry and exit schemes of the proposed car park,
besides providing the overall area involved in the project. The designer at this stage is familiar
with broad specifications of the project and he would also know the preliminary scheme of car
parking. For example, at this stage he is expected to know the number of levels in which cars will
be stacked and, thus, the construction height involved in the project. Based on the broad
specifications and the preliminary sketch, the quantities are worked out and schedules are
referred to in order to arrive at the project cost. The preliminary plan and sectional drawing
shown form the basis of plinth area calculation, which is the basis of estimate preparation at this
stage. The plinth area calculation for this example.
• Now, based on the plinth area calculated above, the broad specification for the project can be
laid out, and on basis of CPWD plinth area rate as on 01.10.2007, the estimate can be
prepared. The estimate is made in two parts—for schedule items and for non-schedule items.
While the rates for schedule items are readily available in the schedule of rates, the non-schedule
items are estimated based on the market rates prevailing at the time of preparation of estimate.
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Illustrative Cases In Preparation Of Estimate- Case:

The estimate for schedule items is given in Table. The estimate contains the following major
parts:
• RCC Frame Structure
• The total area for RCC frame structure is 16,000 m2, and the corresponding rate given
in schedule of rates is Rs. 18,035/m2. On this base rate, the provision for mastic asphalt
in the basement, earthquake resistant design and stronger structural members to carry
heavy loads are to be added. Further, the schedule specifies additional cost provisions
for modules over 35 m2 (which in our case is applicable), and for additional heights
above 3.35 m (this is again applicable in our case), and accordingly, these provisions
have been kept as given in Table.
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Problem
• Derive the rate per cubic metre for providing and laying in position cement concrete
1:2:4 (1 cement: 2 coarse aggregate: 4 graded stone aggregate 20 mm nominal size)
for all work up to plinth level excluding the cost of centering and shuttering.
Solution:
• The approach adopted here for the analysis of rate is mostly adopted by government
departments for small jobs or projects. The labour and material coefficients per m3 or
per 10 m3 are specified along with the rates of material and labour as on the base
year of the schedule of rates. The coefficient for material carriage is also specified in
them. The working for this example is based on per m3basis according to the Delhi
Schedule of Rates for the base year 2007.
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Problem 1
• Calculate the rough cost estimate for a 1st class building having plinth area 500 sq. m.
Make necessary addition for public health and electric services.
• Solution:
• Plinth Area = 500 sq. m.
• Rate per sq.m. = ` 6000/- (assumed)
• Total cost = 500 × 6000 = ` 30,00,000/-
• Add for Public health & Electric services
• @ 20% of the estimate = ` 6,00,000/-
• Cost × percentage/100
• Total = ` 30,00,000 + 6,00,000 = ` 36,00,000.00/-
• (Brief report and brief specifications are also attached as documents with this estimate.)
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Problem 2
• Prepare a preliminary estimate of multi-storeyed office building having carpet area of

2,200 sq.m. 35% the building area will be taken up by corridors, verandah, lavatory,
staircase etc. and 10% of the built up area will be occupied by walls. Assume plinth area
rate to be` 6000/- per sq.m. and also provide for water supply, sanitary fittings &
electric installations, contingencies and other services as 30%.
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Problem 2
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Problem 3
• Prepare a preliminary estimate for civil works required for establishing a polytechnic
building requiring a total carpet area of 6000 sq.m. This includes actual total area
required for classrooms, labs, office, store etc. Suitable extra provision as 12% of the
carpet area be made for walls, verandah corridors, toilets, staircase etc. The plinth area
rate is ` 900/- sq.m. Suitable extra provision as 8% of building cost for water supply,
10% for electric fittings, 6% for other services, 1.5% for special architectural treatment,
of the building cost is also to be calculated.
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Solution 3
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Problem 4
• Prepare a preliminary estimate of a double storeyed building having carpet area of

1800 sq.m. It may be assumed that 30% of the built up area will be taken by corridors,
verandahs etc. & 10% of the area to be occupied by walls. given
i. Plinth area rate = ` 150/-m2
ii. Extra of W/s and sanitary = 5% of building cost
iii. Electric installations = 12.5% of building cost
iv. Contingencies = 10%
55
Solution 4
56
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Problem 5
• Prepare a preliminary estimate for a building with the following data:

• Plinth area = 1800 sq.m.
• Rate = ` 3600 per sq.m.
Add for:
i. Special architectural design = 1.5%
ii. Water supply & Sanitary fittings = 10%
iii. Electric installations = 15%
iv. Miscellaneous = 5%
v. Contingencies and Supervision = 8%
57
Solution 5
58
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Problem 6
• Prepare a rough cost estimate to secure Administrative approval, for a dispensary and
residence with the following data:
• Covered Area of main building = 410 sq.m. @ 4,500/- per sq.m.
• Covered Area of residence = 165 sq.m. @ 4,600/- per sq.m.
• Cost of Land @ 4% of cost of building
• Levelling and dressing of land = 0.5 % of building cost.
• Cost of approach road −3.5 % of building cost
• Services @ 24% of the building cost.
• External Electric fittings and connections = 1% of the building cost
• Contingencies @ 4% of the building cost
Ans. ` 35,67,480.00
59
Multi-Rate Methods - Price per Typical Bay
• With buildings such as warehouses, we can divide the floor area into bays using the
column gridlines to define the size of the bays. A price per typical bay can be compiled
by estimating the cost of all the components that go into its construction. Either the
detailed or assembly method of estimating can be used to arrive at the bay price.
Adjustments may have to be made for any non-typical bays that have to be included,
and the cost of the exterior wall construction is usually accounted for separately. Once
the price of the typical bay is determined, it is multiplied by the number of bays in the
building to obtain the basic building price. Prices for the exterior walls, plumbing and
HVAC, electrical, and site improvements are added to obtain the total estimated price
for the project.
• It is not always possible to use this method since some buildings are not divided into
regular bays. Even with buildings that are laid out in bays, it can be difficult to find a
“typical” bay when each bay can differ in size or have a different combination of
components. Because of this, typical bay estimates are not very common. However, if
typical bays can be identified, this method provides a speedy way to obtain a fairly
accurate estimate price
60
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Multi-Rate Methods - Price per Typical Bay
strengths: weaknesses:
• Far more accurate than single-rate • Not all types of buildings can be divided
methods. into regular bays.
• Produces an estimate fairly quickly, but • It is not widely used except for large
more calculations are required than those retail and warehouse-type structures.
needed for single-rate methods. • Accuracy depends on the availability of
• Although little data are published on prices of similar buildings
typical bay costs, prices can be put
together from publications.
• Useful as a means of comparing designs.
• Can be useful as a cost control tool.
61
Typical Bay Estimate
62
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Multi-Rate Methods - Assembly Estimates
• To achieve greater accuracy in preliminary estimating, a price-forecasting method is required that

accounts for not just the overall size of the project but also the prices of the particular resources
used in its construction, the design details, the quality of finish, the geographical location, and the
time of year when the work was undertaken.
• All these variables are considered in a detailed estimate, but at the time of the preliminary
estimate, many factors are not yet defined, so time spent measuring and pricing each factor in
great detail would be wasted as many of the specific details will change before the design is
finalized. We have seen that the typical bay method can account for variables, but it has
limitations as identified previously.
• The assembly method is more flexible than the typical bay method; it can be used with any
building layout and provides the estimator the opportunity to account for variables on an overall
basis without having to contend with the fine detail of the design. This objective is achieved by
measuring and pricing assemblies of work that comprise a group of related trade activities.
• An example of an assembly would be concrete pad footings. Using the assembly method of
estimating, all that is necessary to do is count the number of pad footings required, so the unit of
measurement would be number (No.) and a single price (composite unit rate) would be applied to
this number to arrive at the total cost for all pad footings in one calculation.
63
• Assembly estimating can be a powerful cost control tool since the nature of the assembly,
materials, and construction methods can all be defined and these data reflected in the
estimated price.
• If a change is made in any aspect of the scope, its impact on price can be determined;
this will allow the owner to make an informed decision about the scope change. Keeping
track of these changes can provide a document trail that helps explain why final costs
differ from initial estimates.
• However, assembly estimating requires at least some design information (specifications),
and accuracy can suffer if assumptions are made that turn out to be wrong. Also, if
composite unit prices are not readily available and have to be calculated, assembly
estimating can be a very time-consuming process.
64
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strengths: weaknesses:
• Far more accurate than single-rate • Poor accuracy may result from erroneous
methods. design assumptions.
• Can be used with any building design. • Can involve a lot of calculating if
• Produces an estimate fairly quickly but composite rates have to be developed.
more calculations are required than those
needed for single-rate methods.
• A large amount of data are published.
• Can be used as a means of comparing
designs.
• Very useful as a cost control tool.
65
Example
66
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Multi-Rate Methods - Elemental Estimates
• One final multi-rate option for preparing preliminary estimates is the elemental method.
This is the most sophisticated preliminary estimating technique and provides the greatest
ability to manage the cost of projects from conception to construction.
67
Example on Bay Estimate
• Prepare a typical bay estimate based on the following information:

a) Bay size of 30 × 50 feet and a building perimeter of 1,100 feet.
b) There are 50 bays in the building.
c) Unit prices:
• Concrete piles: $950.00 each in a bay • Roofing: $8.20 per sq. ft.
• Concrete pile caps: $ 725.00 each in a bay • Plumbing & HVAC: $9.80 per sq. ft.
• Slab-on-grade: $12.50 per sq. ft. • Electrical: $6.10 per sq. ft.
• Structural steel frame: $4.90 per sq. ft. • Exterior foundations: $100.00 per linear ft.
• Roof structure: $10.75 per sq. ft. • Exterior walls: 728.00 per linear ft.
68
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Answer
Description Unit Qty Rate Amount
Concrete piles: $950.00 each Nos 1 950 950
Concrete pile caps: $ 725.00 each Nos 1 725 725
Slab-on-grade: $12.50 per sq. ft. sqft 1500 12.5 18750
Structural steel frame: $4.90 per sq. ft. sqft 1500 4.9 7350
Roof structure: $10.75 per sq. ft. sqft 1500 10.8 16125
Roofing: $8.20 per sq. ft. sqft 1500 8.2 12300
Plumbing & HVAC: $9.80 per sq. ft. sqft 1500 9.8 14700
Electrical: $6.10 per sq. ft. sqft 1500 6.1 9150
Cost per Bay 80050
No of bays 50
Total Cost 4002500
Exterior foundations: $100.00 per linear ft. Lft 1100 100 110000
Exterior walls: 728.00 per linear ft. Lft 1100 728 800800
Total Cost of the Building 4913300
69
Methods of Structuring Project Costs

• The cost estimate, prepared by
a client during the planning
stage, generally follows a
structured approach. The
structure of this estimate takes
many forms. These forms vary
with the nature of the project,
the type of contract, the
company policy, the type of
contract and the client
requirements. The three typical
well-known forms in structuring
estimation items in the United
States, besides the one used
predominantly in India, are
given in Table below
The prevalent structured approach
70
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Estimation of
Quantities
Module 2
71
Estimating – Calculate the Volume of Excavation

for the Trench Shown
6m – Long wall length = 2 x 6 = 12m
– Short wall length = 2 x (4 – 2 x 0.8)
80 cm = 4.8m
– Total Length = 16.8m
80 cm 80 cm
– Volume of Excavation
4m
A A = 16.8 x 0.8 x 0.6 = 8.064 cum
80 cm
Section on A-A
G.L
60cm
– Center Line length = 2x[(4-0.4x2)+(6-0.4x2)] = 16.8m
– Volume = 16.8x0.6x0.8 = 8.064 cu.m 80 cm
72
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Earth works
• The length of excavation = 5.4 × 2 + (4.4 – 2) × 2 = 15.6 m

• Depth of excavation = 1.8 m
• Width of excavation = width of plain concrete footing = 1.0 m
• Volume = 15.6 × 1.8 × 1.0 = 18.8 m3
73
Earthworks
Consider another case (Figure). Plain concrete dimensions (1.2 × 2.0 × 0.2 m), reinforced
concrete footings dimensions (0.8 × 1.6 × 0.4 m); depth of excavation 1.2 m and ground
beams cross section is (0.25 × 0.4 m). Find the volume of the excavated material (see
Figure 2.4). Distance between centerlines is 5 m.
Excavation for footings

= 2 × 1.2 × 2.0 × 1.2 = 5.76 cum
Excavation for smell

= (5 – 2 × 1) × 0.6 × 0.25 = 0.45 cum
Volume = 5.76 + 0.45 = 6.21 cum
74
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Estimating Earthwork Quantities
1. Mid-Section Method: Total V = (Bxdm + Sxdm2)xL B

2. Mean-Sectional Area Method: Total V = L(A1+A2)/2
3. Prismoidal Method: Total V = L/6x(A1+A2+4Am) A2
d2
dm Am L/2
B
L
d1 A1 L/2
75
Earthwork
• Case I. When natural surface level is above full supply level i.e. fully in cutting.
• Case II. When natural surface level is between F.S.L. and Bed level i.e. partly in cutting
and partly in filling.
• Case III. When natural surface level is below bed level i.e. fully in embankment
76
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Problem
• Prepare and estimate for the portion of a road between chainage 14 to 22 from the
data given below. The rate of earthwork in cutting is Rs.8.50 per cu.m and embankment
is Rs 7.50 per cu.m. The formation width of the proposed road is 12m, side slope is 1.5:1
in cutting and 2:1 in banking. The road formation is proposed at a uniform falling
gradient 1 in 200 passing through G.L. at chainage 14. Length of one chain is 30m
Chainage (30m) 14 15 16 17 18 19 20 21 22
R.L. of Ground 108.6 109.25 109.40 108.85 108.50 107.25 106.8 107.15 107.2
77
Solution
• Length of one chain = 30 m

• Hence fall per chainage = 30x1/200 = 0.15m
• The final profile calculations are:
Chainage (30m) 14 15 16 17 18 19 20 21 22
R.L. of Ground 108.6 109.25 109.40 108.85 108.50 107.25 106.8 107.15 107.2
R.L of Formation 108.6 108.45 108.3 108.15 108 107.85 107.7 107.55 107.4
Difference 0 -0.8 -1.1 -0.7 -0.5 0.6 0.9 0.4 0.2
78
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Profile
14 15 16 17 18 20
19 21 22
79
Between Chainage 18 and 19
• Using Elementary Trigonometry – x/0.5 = (30 – x)/0.6.

• Hence x is approximately 14 m
0.5
30-X
X
0.6
18
19
80
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Calculations
Total Area using Length

Depth or Mean Depth or Cutting Banking
Chainage Midsection between
Height (m) Height dm (m) Quantity Quantity
Method Chainage
81
Calculations

Method Chainage
14 0
15 -0.8
16 -1.1
17 -0.7
18 -0.5
19A 0
19 0.6
20 0.9
21 0.4
22 0.2
Total
82
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Calculations

Method Chainage
14 0 0
15 -0.8 -0.4
16 -1.1 -0.95
17 -0.7 -0.9
18 -0.5 -0.6
19A 0 -0.25
19 0.6 0.3
20 0.9 0.75
21 0.4 0.65
22 0.2 0.3
Total
83
Calculations

Method Chainage
14 0 0 0
15 -0.8 -0.4 5.04
16 -1.1 -0.95 12.75
17 -0.7 -0.9 12.02
18 -0.5 -0.6 7.74
19A 0 -0.25 3.09
19 0.6 0.3 3.78
20 0.9 0.75 10.12
21 0.4 0.65 8.64
22 0.2 0.3 3.78
Total
84
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Calculations

Method Chainage
14 0 0 0 0
15 -0.8 -0.4 5.04 30
16 -1.1 -0.95 12.75 30
17 -0.7 -0.9 12.02 30
18 -0.5 -0.6 7.74 30
19A 0 -0.25 3.09 14
19 0.6 0.3 3.78 16
20 0.9 0.75 10.12 30
21 0.4 0.65 8.64 30
22 0.2 0.3 3.78 30
Total
85
Calculations

Method Chainage
14 0 0 0 0 0 0
15 -0.8 -0.4 5.04 30 151.2
16 -1.1 -0.95 12.75 30 382.61
17 -0.7 -0.9 12.02 30 360.45
18 -0.5 -0.6 7.74 30 232.20
19A 0 -0.25 3.09 14 43.31
19 0.6 0.3 3.78 16 60.48
20 0.9 0.75 10.12 30 303.7
21 0.4 0.65 8.64 30 259.3
22 0.2 0.3 3.78 30 113.4
Total 1169.8 737.0
86
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Final Estimate
Unit Amount
No. Item Quantity Unit
Rate (Rs.)
1 Earthwork in Excavation 1169.8 Cu.m 8.5 9943.088
2 Earthwork in Banking 737.0 Cu.m 7.5 5527.35
Total 15470.44
87
Problem
• Estimate the quantity and cost of earthwork for a road between two stations A to B with
the following data-
• Width for road is 10m at formation surface. Side slope is 2:1 rate for earthwork in
banking and cutting. Rate of earthwork may be taken as Rs 10.00per cubic meter
included a lead up to a 150 m with a condition that portion of earthwork available from
cutting is to be utilized for banking within the same lead of 150 m. the data of field
book for the portion of road are as below [one chain =30 m]
88
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Solution
• the portion of banking

between the 2nd and 3rd
chainage have been found
from similar triangles. Let
the distance from 2nd
chainage up to the portion
of cutting be x.
• x/0.6 = (30-x)/0.4
• hence, x = 14m ; B=10m ;
s=2
785 1954.5
89
Solution
• Since qty of earthwork in cutting from 0 to 2.14 chainage may be utilized in banking
within a range of 150m lead, balance quantity of earthwork required for banking =
1954.5 – 785.8 = 1168.7 cum
• Total qty of earthwork to be aid = 785.8 + 1168.7 = 1954.5 cum
• Cost of earthwork @ Rs 10.00per cubic meter = 1954.5 * 10 = Rs. 19545.00
90
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Problem
• Prepare and estimate for the portion of a road between chainage 10 to 18 from the
data given below. The rate of earthwork in cutting is Rs. 20.50 per cu.m and
embankment is Rs 24.50 per cu.m. The formation width of the proposed road is 14m,
side slope is 1.8:1 in cutting and 2.4:1 in banking. The road formation is proposed at a
uniform falling gradient 1 in 180 passing through G.L. at chainage 10.
Chainage (30m) 10 11 12 13 14 15 16 17 18
R.L. of Ground 109.9 110.55 110.7 110.15 109.8 108.55 108.1 108.45 108.5
91
Cross Section
Superstructure Wall
3.5 m 20 cm
2.5 cm. DPC
Plinth Level
60 cm 30 cm
G.L
30 cm Plinth Wall
20 cm 40 cm Second Footing
20 cm 50 cm First Footing
20 cm Lime Concrete
70 cm PLAN
92
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Estimate
Item
Description No Length Breadth Height Qty Unit
No
1 Earthwork in Excavation
Lime Concrete in
2
Foundation
Brickwork in
3
Foundation and Plinth
First Footing
Second Footing
Plinth Wall
Total
Brickwork in
4
Superstructure Wall
5 2.5 cm thick DPC
93
PLAN
Cross Section
Superstructure Wall
3.5 m 20 cm
2.5 cm. DPC
Plinth Level
60 cm 30 cm
G.L
30 cm Plinth Wall
20 cm Lime Concrete
70 cm
94
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Estimate
Item
No
1 Earthwork in Excavation
2 Lime Concrete in Foundation
Brickwork in Foundation and
3
Plinth
First Footing
Second Footing
Plinth Wall
Total
Brickwork in Superstructure
4
Wall
5 2.5 cm thick DPC
95
PLAN
Cross Section
Superstructure Wall
3.5 m 20 cm
2.5 cm. DPC
Plinth Level
60 cm 30 cm
G.L
30 cm Plinth Wall
20 cm Lime Concrete
70 cm
96
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Estimate
Item
No
1 Earthwork in Excavation 1 5 0.7 0.9 3.15 cu.m
2 Lime Concrete in Foundation 1 5 0.7 0.2 0.7 cu.m
Brickwork in Foundation and
3
Plinth
First Footing 1 5 0.5 0.2 0.5 cu.m
Second Footing 1 5 0.4 0.2 0.4 cu.m
Plinth Wall 1 5 0.3 0.9 1.35 cu.m
Total 2.25 cu.m
Brickwork in Superstructure
4 1 5 0.2 3.5 3.5 cu.m
Wall
5 2.5 cm thick DPC 1 5 0.2 1 sq.m
97
Buffers
• In Excavation you might need to consider the following

• Working Space to the Side of the Footings
• Side Slopes from GL to Footing Base
GL
Side Slope
Working Space
98
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Excavation Support
• Supports need to be used when the area is congested and side slopes cannot be formed
• Example
• Sheet Piling,
• Soldier Piles and Horizontal Sheeting
• Diaphragm Wall
99
Excavation Support
Sheet Piles Diaphragm Wall
100
50
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Piling BOQ
SL. NO. PARTICULARS UNIT RATE QUANTITY
1.2 Providing and concreting Of bored cast in situ end bearing piles conforming to IS 2911, Part l, with M30
Concrete (minimum cement content as per IS 456 as specified in the structural drawings which ever is more)
through tremie pipe; including use Of plasticisers and other additives as approved, to correct level, withdrawing
the steel casing pipe as directed etc.; including finishing Of pile heads as per specifications, and completing as
per drawings and specifications, all complete to the satisfaction of the PMC. (Concreting of piles to be carried
out 600mm above the cut Off level which not be paid.) Note: After lowering the reinforcement cage and tremie
pipe, the borehole shall be thoroughly cleaned by continuous circulation of fresh bentonite slurry to remove all
the debris from shaft bottom. The concreting shall be immediately carried out after the cleaning.
a. 600mm dia, capacity 180 Tonne Rmt 2936
b. 1000mm dia, capacity 500 Tonne Rmt 8203
1.3 Empty Boring measured from the existing ground level to the cut-off levels the piles. Further it shall be filled with
approved dry sand.
a. 600mm dia Rmt 294
b. 1000mm dia Rmt 1231
1.4 Providing and fixing steel RCC. including transporting, de- coiling, straightening, cutting, bending, and placing in
position at all levels and binding with approved quality G.l. annealed binding wire of 18 gauge for end
bearing cast-in-situ piles conforming to IS 2911,Part I with correct size PVC cover blocks or approved concrete
cover blocks of same grade as of concrete. The rate shall include cost of binding wire, chairs, spacers, pins,
which will not be measured separately for payment. Quantity Of steel as per bar bending schedule as
approved by the PMC and with authorized overlaps only shall be measured and paid for. Further include where
required carryout dewatering, provide required labour and machines/ equipments/ tools/ tackles
a. High yield strength deformed TMT bars conforming to IS 1786 - Fe 500 MT 846
101
Piling BOQ
BILLS OF QUANTITIES
SL. NO. PARTICULARS UNIT RATE QUANTITY AMOUNT
1.5 Providing, conducting Of routine Dynamic high strain testing pile Driving analyser by a
1.5 percent of capacity of pile with a fall varying from 1m to 3m including preparing
head, providing ply and steel plates, fixing strain gauges etc. all conforming to
ASTMD4945. Further include evaluating and submitting report covering:
i) True static capacity of the pile at the time of testing
ii) Simulated static load test curve
iii) Total skin friction and end bearing of pile
iv) Skin friction variation along the length of the pile
v) Compressive and tensile stresses developed in pile during testing
vi) Net and total displacement of the pile
vii) Pile integrity
all complete to satisfaction of the PMC for followings
a. 600mm dia, capacity 180 Tonne Nos. 5
b. 1000 dia, capacity 500 Tonne Nos. 13
1.6 Providing, conducting and submission documented report on RCC bored pile integrity
test using pile integrity tester on completion of required setting of piles, preparation of
heads, mobilising and demobilising of equipments all complete. Report should include
graphical wave form, interpretation of results, cross sectional or material changes if any
in, length of pile, concrete quantity etc. all complete conforming to ASTMD5882 and to
satisfaction of the PMC. (Routine test - Samples shall be chosen by PMC at random )
a. 600mm dia, capacity 180 Tonne Nos. 5
b. 1000 dia, capacity 500 Tonne Nos. 5
102
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Other Consideration
• Dewatering
• If ground water level is too high. Pump the water out
• Piling
• Number of Piles
• Bored vs Driven etc
• Paving
• Flexible or Rigid
• Landscaping
• Number and Type of Trees
103
Estimating
Concrete and Masonry
Module 2
104
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Quantity Take-Off elements
• Footings Item Unit Description

• Abutments Concrete Volume Cu. M Footings, Beams, Columns etc.
• Columns (various sizes)
Contact Area Sq. M Surface Areas to be formed
• Beams
Joints M Water-stops etc.
• Slabs
Formwork Area Sq. M
• Walls
• Decks (bridges etc) Shoring Area Sq. M Formwork to be Supported
• Special Elements Finish Area Sq. M Special Treatment for surfaces
Embedded Elements Pipes etc.
105
Stages in Concrete Construction
1. Form Preparation
2. Embedded Unit Placement
3. Concrete Placement
4. Curing
5. Form Removal
106
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Types of Labour used in Concreting
Name Role
1. Carpenter Formwork
2. Labour for Placement Placing concrete in forms
3. Barbenders Prepare and place reinforcement

4. Masons Finishes, Mortar
Drive cement trucks, operate pumps, cranes, batching
5. Operators
plants etc
107
Equipment
108
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Alternative Checklist
Item Consideration
1. Material Cement, Sand etc
2. Forms and Shoring Erection, Removal, Cleaning, Oiling etc
3. Reinforcements Bars, Wires etc

4. Concrete Elements Vol. of Beams, Columns etc
5. Finishes Trowels, Brooms
6. Placing and Curing Admixtures, pumps, vibrators etc
109
Formwork
• Types
• Wall forms
• Slab/Beam/Column Forms
• High-Rise Forms
• Materials
• Plywood, Aluminium
110
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Formwork Types
Table Forms Ply Forms
Doka System Aluminum Formwork
111
Supporting
112
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Example – Calculate Wall and Footing Form Quantities
8m
0.3 m
6m
113
Solution
L B
SNo Item No D Units Qty
(m) (m)
1 Wall Forms
1.1 N&S Exterior 2 8.0 3 Sq. m 48
1.2 N&S Interior 2 7.4 3 Sq. m 44.4
1.3 E&W Exterior 2 6.0 3 Sq. m 36
1.4 E&W Interior 2 5.4 3 Sq. m 32.4
Total Sq. m 160.8
114
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Footing formwork
7.7 m
5.7 m
7.7+0.9/2+0.9/2=8.6 m
7.7-
0.9=6.8 m
5.7- 5.7+0.9/2+0
0.9=4.8 m .9/2=6.6 m
5.7+0.9/2+0.9/2=6.6 m
7.7+0.9/2+0.9/2=8.6 m
115
Solution
L B
SNo Item No D Units Qty
(m) (m)
1 Footing Forms
1.1 N&S Exterior 2 8.6 0.3 Sq. m 5.2
1.2 N&S Interior 2 6.8 0.3 Sq. m 4.1
1.3 E&W Exterior 2 6.6 0.3 Sq. m 4.0
1.4 E&W Interior 2 4.8 0.3 Sq. m 2.9
Total Sq. m 16.2
Total Formwork Required = 16.2+160.8 = 177 sq. m
116
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Bar Bending Schedule

Steel fabrication and erection
117
Calculation of quantity of steel
• Approximately the quantity of steel for a R.C.C. member can be calculated as below;
when detailed drawings and designs are not available.
• For lintel and slab: Quantity of steel = 0.7 to 1% of quantity of concrete (m3)
• For beams: Quantity of steel = 1 to 2 %
• For columns: Quantity of steel = 1 to 5%
• For foundation and footing: Quantity of steel = 0.5 to 0.8%
• Minimum cover for steel should be provided as below:

• For slab- side cover 4 cm to 5 cm;
• top and bottom cover 1.2 cm to 2 cms.
• For beams – 2.5 cm to 5 cm.
Concrete cover for reinforcement
is required to protect the rebar
against corrosion and to provide
resistance against fire
118
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BBS
• For guidance of supervisors and laborers it is provided. It is list of the reinforcement bars
give in tabular form as below:
• It is the list of reinforcement bars in tabular form giving the particulars of bars, shape of
bending with sketches, length of each bar, total length and total weight for each R.C.C.
work, a schedule of bar or bar bending schedule is prepared. From this requirement of
different size and length of bars may be known and bent up during the time of
construction.
Bar Bending Schedule, commonly referred to as “BBS” is a comprehensive list that describes the
location, mark, type, size, length and number, and bending details of each bar or fabric in
a Reinforcement Drawing of a Structure.
119
Bar Bending Schedule

• Member identification Codes
• Bar mark 1. IS:432 – Mild steel & medium tensile steel bars and hard
drawn steel wires for concrete reinforcement : Part-II -Hard
• Type of steel drawn steel wire.
• Diameter of bar 2. IS:1786 - Specification for High strength deformed steel bars
• Length of each bar and wires for concrete reinforcement.
3. IS:2502 - Code of practice for bending & fixing of bars for
• Number of members concrete reinforcement
• Number of bars in 4. IS:2751 - Recommended practice for welding of mild steel
each member plain & deformed bars for reinforced construction.
• Total number of bars 5. IS:5525 - Recommendation for detailing of reinforcement in
• Total length reinforced concrete works.
• Shape code 6. IS:9077 - Code of practice for corrosion protection of steel

reinforcement in RB & RCC construction.
• Bending dimensions 7. SP:34 – Handbook on concrete reinforcement detailing.
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BBS for RC Beams
121
BBS for RC Slabs
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Rebar
• Primary reinforcement refers to the steel which is employed to guarantee the

resistance needed by the structure as a whole to support the design loads.
• Secondary reinforcement, also known as distribution or thermal reinforcement, is
employed for durability and aesthetic reasons, by providing enough localized
resistance to limit cracking and resist stresses caused by effects such as temperature
changes and shrinkage.
• Stirrups - These are shaped rebar that hold the lateral reinforcement in a certain
configuration, often called a cage. They create a framework that keeps these larger bars
in position, and may be round, square, rectangular, or even complex combinations of
shapes.
• Dowels - These are usually L shapes, or straight lengths of rebar with a ninety degree
bend on one end.
• Corner bars - These are also L shapes, with each side of the ell the same length.
• Hairpins - These are U shaped rebar that are often used to interlock two or more
individual mats of rebar to give lateral strength to the concrete casting.
123
Cover blocks
• cover blocks were provided to bottom reinforcement. Concrete cover for steel bar is
much necessary to protect the steel against corrosion (rusting) and to provide resistance
against fire.
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Stools
• Stools are commonly used to maintain a cover between top and bottom reinforcements
bars. It is used in arrangement of reinforcement bars of slabs. As we are walking on the
top reinforcement mesh stools should strength enough to bear the load without changing
the gap of two layers.
125
BBS for Columns and walls
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Steel
• Reinforced concrete is a composite material, hence a proper bond between the two
materials – concrete and reinforcement – is the first requirement. A minimum length of
reinforcing bar is needed to develop the full bond strength between concrete and steel.
This length is expressed in terms of development length.
• ‘Development length’ on each side of any

section is the length over which the force in the
reinforcement at that section will be developed
without bond failure between these two
materials. Sometimes a reinforcing bar is
extended and/or bent at its ends to satisfy
development length requirement. Such extension
and/or bending of a bar at its ends is called
anchorage. A bent bar provides a greater safety
against bond failure as during a pull-out the
whole concrete is to be crushed.
127
What is rolling margin in reinforcement steel

or structural steel
• Rolling margin in reinforcement steel is percentage of deviation in Sectional weight of
Reinforcement steel allowable as per IS codes. Reinforcement steel is extruded from a
mould which is made for a particular size e.g. 8mm Dia. When the mould is brand new,
the sectional weight of 8mm steel extruded through mould would exact as per IS
standard of lower than that.i.e. 0.395Kg per Metre or lessor. Mould gets little bigger
after certain period of time or after certain quantity of production is taken from a
particular mould. Now same 8mm dia bars extruded from the same mould will have more
weight per Metre say 0.400Kg per Metre instead of 0.395 as per IS. That is more mass
per Metre/Length is required for same length. This deviation in weight is defined in IS
codes for different dia which is as under
• Allowable deviation in rolling margin in reinforcement steel as per indian standards
• 8mm to 10mm +/- 7%; 12mm to 16mm+/- 5%.; 20mm and above+/-3%
• Rolling Margin is calculated as under :-Total Weight of Bars (Dia wise ) / Total Running
Metre of Bars = Actual Sectional Weight of bars. Compare sectional weight with
Standard IS Weight.
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Steel
• Reinforcing bars have limited lengths for ease of handling and transporting; hence in
case of a continuous member or a member of large span it is necessary for continuity to
join two bars by overlapping the ends at the joint. The overlapping portion are joined
together either by concrete itself by providing proper development length or by welding
in case of limitation of length for overlapping. Such jointing of two bars for continuity of
reinforcing bar at any section is called splicing.
129
Bend & Hook
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Bend and Hook

Allowance as Per
IS Standards
131
BBS
• Bar bending schedule (or schedule of bars) is a list of

reinforcement bars, vis-à-vis, a given RCC work item, and
is presented in a tabular form for easy visual reference.
This table summarizes all the needed particulars of bars –
diameter, shape of bending, length of each bent and
straight portions, angles of bending, total length of each
bar, and number of each type of bar. This information is a
great help in preparing an estimate of quantities.
• Length of one hook = 4 + [ 4 + ]– where,
4 + refers to the curved portion = 9d
• The additional length (
) that is introduced in the simple,
straight end-to-end length of a reinforcement bar due to
being bent up at say 30° to 60° , but it is generally 45°
=
−
=

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Reinforcement
• Giving different values to (= 30° , 45° 60° !

"), we get different values
of
, as tabulated below:
133
Reinforcement
L bend length is 5d
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No of stirrups
Number of bars:
• Suppose the spacing of stirrups is 150 c/c and the length along which they are placed is
6800 mm, we can find the number of bars by the formula below:
#$ℎ 6800
+ 1 = ()* +, * → + 1 = 46.33
& $ 150
• In this case, we always round up. Hence, we require 47 stirrups.
For stirrups:
• 90 degree hook: Length of stirrup = (2A + 2B) + 20 x dia
• 135 degree hook: Length of stirrup = (2A + 2B) + 24 x dia
135
Lap length
• Normally, steel bars have a 6m length. If length of a bar is not enough to keep
the reinforcement, we have to lap two steel bars.
• Normally, lapping position is at where near the minimum shear force is acting.
• Normally lap length is 50D meaning 50 times the bar diameter if both bars are of same
diameter.
• When lapping two bars of different diameters, the lap length is considered as 50 times
the smaller diameter.
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Cutting Length
• We must remember that steel is ductile in nature and is subject to elongation. Hence, the
length of a bar is increased when bends or hooks are introduced. Hence, certain
deductions are needed to offset this increase in length.
Cutting Length = True Length of a bar – Deductions
• For 45 degree
Cutting length = Total length – 1 x Dia of bar x No. of bends
• For 90 degree
Cutting length = Total length – 2 x Dia of bar x No. of bends
137
Example Problem
Consider a beam of clear length of 4m, 300mm wide by 450mm depth. It consists of 2-12
diameter bars at top, and 2-16 diameter and 1 – 12 diameter bars at the bottom.
Diameter of stirrup is 8mm spaced at 180mm center to center and provided between walls
or support for a beam. Clear cover to reinforcement provided is 40mm.
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Example
• Bar shape of B1 is as shown below:
Length of B1 = clear distance between walls + 2 x width of walls – 2 x bar cover

+ 2 x bend length = 4000 + 2 x 230 – 2 x 40 + 2 x5 x 16=4540mm
• Length of bar B2 is calculated based on shape of this bar. This bar bends up near the
support as shown below:
H = 450 – 2 x 40 – 12= 358mm

Length of bar B2 = A + B + C = 4000 + 2 x 230 – 2 x 40 + 2X 0.42 x H
B2 = 4000 + 2 x 230 – 2 x 40 + (2 X 0.42 X 358) = 4680.7 = 4681mm
139
BBS
• Length of Bar T1 = 4000 + 2 x 230 -2 x 40 = 4380mm
• Length of Stirrups S1:

No. of stirrups required for given beam =
#$ℎ 4000
+1= + 1 = 24
& $ 180
Length a = 450 – 2 x40 = 370mm

Length b = 300 – 2 x 40 = 220mm
Therefore length of 1 stirrup S1 = 2 x (370+220) + 2 x 12 x d = 1372 mm
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BBS
Bar Bar dia No. of Length Weight of

No. Bar Shape
Mark (mm) bars (mm) bars (kg)
1 B1 16 2 4540 14.5
2 B2 12 1 4681 4.02
3 T1 12 2 4380 7.80
4 S1 8 24 1372 13
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Hook Length
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Precasting
• Types
• Precast Panels, Slabs
• Precast Joists
• Tilt-Up Walls
• Precast Beams, Columns
• Prices are set based on the
economics of the yard and
transportation
• Pre-stressing also adds to the
cost
143
Masonry Components
• Masonry Units
• Bricks, blocks etc
• Mortar
• Cement, Lime and Sand
• Grout
• Can fill cells in hollow units,
or between units
• Accessory Materials
• Reinforcement, Sealants,
vapour barriers
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Masonry
145
Estimating Finishes
146
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Waterproofing
• Membrane
• Fluid
• Sheet
• Bituminous
• Bentonite Clay
• Cementitious Waterproofing
• Damp proofing through Bitumen and other materials
• Surface Area, Technology and Productivity drive costs
147
Insulation
• Rigid Insulation
• Sheets or Boards made out of Polystyrene, Glass fiber etc
• Loose Fill Insulation

• Fibers or granules of wool, etc
• Foamed Insulation
• Foam boards made of Urethane etc
• Cost depends on production, cutting, installation equipment and labour
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Doors & Windows
• Take Off Numbers and Size from Drawings
• Prepare Frame, Accessories, Attachment Method
• Procure, Transport and Install Doors

• Install Glazing etc if Required
• Special Requirements – sound control, rating etc
• Cost: Labour, Materials, Transportation, Waste
149
Painting and Plastering
• Take Off Surface Sizes from the Drawings

• Deduct for Openings
• Estimate No. of Coats of Plaster
• Add Primer
• Add number of finish coats of paint
• Cost: Labour Productivity, Materials
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Tiling and Flooring
• Estimate Work for leveling and pouring sub-

floor to desired level
• Procurement, Transportation and Storage of
Tiles is very costly
– Granite, Marble, Marbonite, Terazzo
• Considerable wastage due to cutting at site
• Estimate labour costs of laying cut tiles on

finished surface
• Cleaning
151
Acoustical Treatment
• Identify locations for the installation of

baffles and other acoustical panels.
• Identify accessories
– Suspension or hanging systems
to be built,
• attachments to the wall
• Install systems
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Key items to estimate
• Preparatory Work • Doors, Windows and Fittings (Units)

• Foundation Excavation (Volume) • Plaster on inner and outer walls (Area)
• Concrete in Foundation (Volume) • Plaster on ceiling (Area)
• Brickwork in Foundation (Volume) • Painting of inner and outer walls (Area)
• Brickwork in Superstructure (Volume) • Flooring (Area)
• Concrete in Superstructure (Volume) • Electrical and Mechanical work (Unit,
• Concrete in Roof (Volume) length)
• Formwork for Concrete (Area) • D.P.C etc (Area,…)
153
Tutorial
Estimation
154
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Problem 1
Typical plan and sections views of a building footing and foundation wall are given in figures.
a. Determine the amount of earth that will be removed from the site.
b. Determine amount of formwork required to pour footings, walls and slab.
155
Problem 1
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157
Solution
a. Excavation calculations: Depth of excavation = 17.9 – 16.4= 1.5m.

• Volume excavated can be calculated as the volume of the rectangular area plus the
volume of slopes (shown with S in Figure):
• Volume of rectangular area
• Length of rectangular area: 25.6 + 2x0.9 = 27.4 m.
• Width of rectangular area: 10.6 + 2x0.9 = 12.4 m.
• Volume of rectangular area: 27.4 x 12.4 x 1.5 = 509.6 m3.
• Volume of Slopes
• Width of slopes: (X in Fig 2) is equal to 1.5 m. since angle of slopes is 45˚.
using figure 3
• Volume of slopes; = 2[½(27.4 x 1.5 x 1.5) + ½(15.4 x 1.5 x 1.5)] =
96.3m3.
• Total amount removed from site = (509.6 + 96.3) = 605.9m3.
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Solution
b. Formwork calculations:
• Footing outer strip: 2 (25.6 + 10.6) x 0.3 = 21.7 m2.
• Footing inner strip: 2 (24 + 9) x 0.3 = 19.8 m2.
• Walls outer strip: 2 (25 + 10) x (18.2 – 16.7) = 105 m2.
• Walls inner strip: 2 (24.6 + 9.6) x (18.2 – 16.7) = 102.6 m2.
• No formwork is needed for the slab.
• Total formwork needed: 21.7 + 19.8 + 105 + 102.6 = 249.1 m2.
• Note: Calculations are made assuming that first walls are poured than slab is poured.
159
Problem 2
The following width of road embankment is 10m. The side slopes are 2:1. The depth along
the centre line road at 50m intervals are 1.25, 1.10, 1.50, 1.20, 1.0,1.10, 1.15m calculate
the Quantity of earth work by
a. Mid sectional rule
b. Trapezoidal rule
c. Prismoidal rule
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Solution 2
• Mid Sectional rule :

b=10m, n=2.
161
Solution 2
• Trapezoidal rule
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Solution 2
• By Prismoidal rule
163
Problem 3
• Estimate the Quantity of earth work for a portion of road from the following data
• The formation level at Chainage 0 is 8.0 and having falling gradient of 1 in 100. The
top width is 12m and side slopes 1½ horizontal to 1 vertical assuming the transverse
direction is in level calculate the quantity of earth work Take 1 chain = 20m by using
trapezoidal & Prismoidol formula.
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Calculations

Method Chainage
Total
165
Solution 3
166
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Solution 3
• b = 12m
• n = 1.5
167
Solution 3
168
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Solution 3
169
Problem 4
Calculate the quantities of items of the stair case of the figure shown in below:
• Landing, Waist slab & toe wall – RCC
• Steps in Brickwork, 20mm thick plaster finish
• 2.5cm nosing
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Problem 4
Calculate the quantities of items of the
stair case of the figure shown in below:
• Landing, Waist slab & toe wall –
RCC
• Steps in Brickwork, 20mm thick
plaster finish
• 2.5cm nosing
171
0.5* 0.25*
0.15
0.5* 0.25* 0.15
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173
Problem 5
• The plan below is for a one-story

house of height 3.4m. Provide
quantities for bricks and mortar given
the following data:
• The wall is one brick thick. The size of
the windows are2m x 1m, and the
door dimensions are1.8m x 2.4m.
Wastage for bricks and mortar will
be 3% and 15% respectively. Each
m2 of wall area will require 74
bricks. 1000 bricks will require 0.29
m3 of 1:1:6 Mortar
(Cement:Lime:Sand). For 1m3 of
1:1:6 Mortar, we require 250 kg of
cement, 67 kg of lime and 1.3 m3 of
sand.
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Solution
Bricks Mortar
• Total Wall Length = 35m • Volume of Mortar required =
• Total Wall Area = 35x3.4 = 119 sqm (7500/1000) x 0.29 x 1.15 (wastage) =
2.5cu.m
• Total Area of Windows = 6x2 sqm =
12sqm • Quantity of Cement = 2.5 x 250 =
625kg
• Total Area of Doors = 2x1.8x2.4 =
8.64sqm • Quantity of Lime = 2.5 x 67 kg =
167.5kg
• Hence Total wall area to be filled by
bricks = 119-(12+8.64) = 98.36sqm
• No. of bricks required = • Quantity of sand = 2.5 x 1.3 = 3.25cu.m
98.36x74x1.03(wastage)= 7497 bricks.
You are therefore likely to order 7500
bricks.
175
Problem 6
• Prepare the bar bending schedule of the given figure for R.C.C. Lintel
Cover is 25mm
12mm Bars
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Solution
177
Solution
2x12x6
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Problem
• Prepare the bar bending schedule of the given figure for R.C.C. beam.
2-12dia
• Clear Cover
• Bottom = 25mm 500
• Top=25mm 4-16dia
• Ends=32mm 6mm dia stirrups Anchor Bars 2
@210c/c Nos – 12 dia 2-12dia 230
2-12dia +
2-16dia
500
2-16dia+
2-12 dis
600 4-16dia 500
6 dia@400c/c
2-16dia
230
179
Solution
2x12x6
180
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Problem
230
6 dia@180 c/c
Straight without hooks
8 dia@170 c/c
Bars with hooks
230 230
• Top & bottom

Cover is 13mm
• Side cover is 25mm
230
181
Solution
182
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Problem
• Excavation • 12mm Interior and Exterior Plaster
• Cement Concrete in Foundation • 10 cm thick lime terracing on the roof
• Brickwork in Foundations and Plinth Wall • Doors and Windows
• Brickwork in superstructure • 6mm thick plaster on the ceiling
• RCC work on the roof • 2.5 cm artificial stone flooring
183
Rates
Item Description Rate (Rs.) Unit of Rate

1 Excavation 7 cu.m
2 Cement Concrete 700 cu.m
3 Brickwork in Foundations and Steps 650 cu.m
4 Brickwork in Superstructure 665 cu.m
5 RCC for roof and lintel 980 cu.m
6 12mm Plaster 12.5 sq.m
7 10 cm lime terracing on roof 85 sq.m
8 Steel Door 680 sq.m
9 6 mm plaster on ceiling 10.5 sq.m
10 2.5 cm Artifical stone flooring 38 sq.m
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Single Storey Building Answer
Rate Unit of
Item Description Quantity Unit Amount
(Rs.) Rate
1 Excavation 10.422 cu. M 7 cu.m 72.954
2 Cement Concrete 3.552 cu. M 700 cu.m 2486.4
3 Brickwork in Foundations and Steps 9.616 cu. M 650 cu.m 6250.4
4 Brickwork in Superstructure 15.45 cu.M 665 cu.m 10274.25
5 RCC for roof and lintel 3.0492 cu.M 980 cu.m 2988.216
6 12mm Plaster 124.5 sq. m 12.5 sq.m 1556.25
7 10 cm lime terracing on roof 15.96 sq. m 85 sq.m 1356.6
8 Steel Door 2.52 sq. m 680 sq.m 1713.6
9 6 mm plaster on ceiling 28.08 sq. m 10.5 sq.m 294.84
10 2.5 cm Artifical stone flooring 14.4 sq. m 38 sq.m 547.2
Total Rs. 27540.71
185
Problem
186
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Problem
187
Problem
• Estimate the following quantities Sun shade length 380mm tapering

• Excavation from 150 to 100mm depth
• Concrete Insert/bearing for lintels is 15 cm
• Brick work
• DPC
• Flooring
• Wood work
• plastering
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Solution
189
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195
PROJECT COST
MANAGEMENT
PMBOK Chapter 7.1,7.2
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Project Cost Management
• Cost is a resource sacrificed or foregone to achieve a specific objective or something

given up in exchange. Costs are usually measured in monetary units like dollars
• “The processes involved in planning, estimating, budgeting, and controlling costs so that
the project can be completed within the approved budget”
• Part of triple constraint, can’t manage one without the others (scope, time, Cost and
quality)
• Plots of cost and scope against plan can help spot problems early
197
Basic Principles of Cost Management

• Most members of an executive board better understand and are more interested in financial terms
than project terms, so Construction project managers must speak their language
• Profits are revenues minus expenditures
• Profit margin is the ratio of revenues to profits
• Life cycle costing considers the total cost of ownership, or development plus support costs, for a
project
• Cash flow analysis determines the estimated annual costs and benefits for a project and the
resulting annual cash flow
• Tangible costs or benefits are those costs or benefits that an organization can easily measure in
dollars
• Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms
• Direct costs are costs that can be directly related to producing the products and services of the
project
• Indirect costs are costs that are not directly related to the products or services of the project, but
are indirectly related to performing the project
• Sunk cost is money that has been spent in the past; when deciding what projects to invest in or
continue, you should not include sunk costs 198
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Basic Principles of Cost Management (continued)
• Learning curve theory states that when many items are produced repetitively, the unit cost of
those items decreases in a regular pattern as more units are produced
• Reserves are monies included in a cost estimate to mitigate cost risk by allowing for future
situations that are difficult to predict
• Contingency reserves allow for future situations that may be partially planned for
(sometimes called known unknowns) and are included in the project cost baseline
• Management reserves allow for future situations that are unpredictable (sometimes called
unknown unknowns)
• Value analysis (value engineering)

• Looking at less costly way to do the same work within the same scope
• Law of Diminishing Returns
• E.g. adding twice resource to task may not get the task done in half cost/time
199
199
Important Terms
• Contingencies: It is defined as incidental expenses of miscellaneous character which cannot be

classified approximately under any distinct sub-head, but is added in the cost of construction
necessarily. It is 5% of the estimate and added as contingencies & petty works, e.g. medicines for
labour or purchase of tools.
• Provisional Sum: It is provided in the estimate and bill of quantities for some special work to be
done by a specialist firm whose details are not known at the time of “preparation” of estimate,
e.g. anti-termite and subsoil water treatment in basement.
• Plinth Area: It is defined as covered area of a building measured at floor level. It is measured by
taking external dimensions of the building excluding plinth offset if any.
• Floor Area: It is defined as clear covered area i.e. plinth area excluding area of walls (generally
10%–15%). Sills of the doors are not included in floor area. The floor area of every storey shall
be measured separately.
• Carpet Area: This means area in a building which is useful one i.e. Area of drawing room, dining
room, bedroom etc. Areas of kitchens, staircase, stores, verandahs, entrance hall, bath room,
basement etc. are excluded. It is generally 50% to 60% of the plinth area.
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Important Terms
• Circulation Area: Area used for movement i.e. verandah, staircase, corridor, balconies
etc. is termed as circulation area. Circulation area is approximately equal to plinth area
minus carpet area.
• Premium and Rebate: The tendered percentage rate above the notified rates is called
Premium while the tendered rate below the notified rates is called Rebate. The premium
depends upon the current price index and is decided by a team of Chief Engineers and
Superintending Engineers from time to time, and the notified rates are rates approved in
“Schedule of rates’’.
201
Wastes in Estimation
• Due to Industrial Standards

• Bricks, Wood etc come in standard dimensions.
• Need to be cut, resulting in some wastage
• Due to Material Handling and Installation

• Site management and congestion
• Quality of equipment and tools
• Worker Skills
• Storage and Theft
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COST MANAGEMENT
• A project consists of a number of activities. Each of these activities consumes resources.

Resources cost money. We can take certain steps through which we can control the costs
of these activities.
• Project cost management is all about controlling cost of the resources needed to complete
project activities. Apart from these controllable costs, there are certain aspects over
which we do not have any control. These are called uncontrollable costs and they are the
subject matter of risk management
• Includes processes required to ensure that the project is completed within the approved
budget.
• Processes involved are:
1. Cost Planning
2. Cost Estimating
3. Cost Budgeting
4. Cost Control
203

Monitoring & Cost Cost Cost
Controlling Processes Estimating Budgeting Control
Planning
Processes
Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project
Executing
Processes
Process
Knowledge
Area Monitoring &
Initiating Planning Executing Closing
Control
Cost Estimating
Cost Cost Budgeting
Cost Control
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Resource Planning
• The objective here is to prepare different resources schedule such as labour and staff
schedule, material schedule, plant and equipment schedule, and subcontractor or
specialist’s schedule. As mentioned earlier, these schedules show the quantity requirement
of each of these resources either on a weekly basis or on a monthly basis. The basis for
preparing these schedules is the project time schedule
205
1- Resource Planning
INPUTS
• Involves determining what physical resources (people, equipment, materials etc) and what
quantities of each should be used to perform project activities.
1. Work Breakdown Structure:
A deliverable-oriented grouping of project elements that organizes and defines
the total scope of the project. It Identifies the project elements that will need resources.
2. Historical Information
3. Scope Statement:
Contains the project justification and the project objectives.
4. Resource Pool Description:
Knowledge of what resources are potentially available.
5. Organizational Policies:
The policies of the performing organization regarding staffing and the rental or
purchase of supplies and equipment.
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Tools and Techniques to Resource Planning
• Expert Judgment
• Alternative identifications:
To adopt different approaches for the same problem.
OUTPUT FROM RESOURCE PLANNING

• Resource Requirements:
Description of what types of resources are required and in what quantities for
each element of the work break down structure.
207

• Project Cost Management includes the processes involved in Planning, Estimating,
Budgeting, Financing, Funding, Managing, and Controlling costs so that projects can be
completed within budget
1. Plan Cost Management (Planning Process Group)

The process that establishes the policies, procedures, and documentation for planning,
managing, expending, and controlling project costs.
2. Estimate Cost (Planning Process Group)
The process of developing an approximation of the monetary resources needed to
complete project activities
3. Determine Budget (Planning Process Group)
The process of aggregating the estimated costs of individual activities or work
packages to establish an authorized cost baseline
4. Control Costs (Monitoring & Controlling Process Group)
The process of monitoring the status of the project to update the project costs &
managing changes to the cost baseline.
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1. PLAN COST MANAGEMENT
Plan Cost Management: Inputs, Tools & Techniques, & Outputs
INPUTS TOOLS & TECHNIQUES OUTPUTS

1. Project Management 1. Expert Judgment 1. Schedule
Plan 2. Analytical Management Plan
2. Project Charter Techniques
3. Enterprise 3. Meeting
Environmental Factors
(EEFs)
4. Organizational Process
Assets (OPAs) • Plan Cost Management is the process of establishing the policies,
procedures, and documentations for planning, managing,
expending & controlling project cost.
• It’s key benefit is it provides guidance & directions on how the
project costs will be managed throughout the project
209
1. PLAN COST MANAGEMENT
3
ENTERPRISE 1
PROJECT
ENVIRONMENT Other Information
FACTORS (EEF) MANAGEMENT
PLAN
1. Org. Culture & Structure that influences cost 4
2. Market Conditions ORGANIZATIONAL
3. Currency exchange for international projects PROCESS 2 Summary Budget,
4. Published & Commercially Available Info ASSETS PROJECT Approval requirements
5. Project Management Information System (OPA) CHARTER
TOOLS &
TECHNIQUES
1. EXPERT JUDGMENT
• Financial controls procedures 2. ANALYTICAL TECHNIQUES –
• Historical information & lessons learned funding with equity, debt,
OUTPUT
• Financial databases; and OUTPU buy, rent, purchase, IRR, NPV,
• Existing formal & informal cost estimating T Payback
& budgeting policies COST 3. MEETINGS
MANAGEMENT
PLAN
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OUTPUT: COST MANAGEMENT PLAN
• Describes how the project costs will be planned, structured & controlled.
• Cost management plan can establish:
• Units of Measure : kms, sqm etc
• Level of Precision : degree to which cost to be rounded off
• Level of Accuracy : Acceptable range
• Organizational Procedures Links : WBS framework, control account
• Control Thresholds: Agreed amount of variation
• Rules of Performance Measurement: define points in WBS
• Reporting Formats : Cost reports, cash flow
• Process Descriptions : each of the processes are documented
• Additional details such as description of strategic funding choices, procedure to account for
fluctuation in currency exchange & cost reporting
211
2. ESTIMATE COSTS
Plan Cost Management: Inputs, Tools & Techniques, & Outputs
INPUTS TOOLS & TECHNIQUES OUTPUTS

1. Cost Management Plan 1. Expert Judgment 1. Activity Cost Estimates
2. Human Resource 2. Analogous Estimating 2. Basic of Estimates
Management Plan 3. Parametric Estimating 3. Project Documents
3. Scope Baseline 4. Bottom-up Estimating Updates
4. Project Schedule 5. Three-points Estimating
5. Risk Register 6. Reserve Analysis
6. Enterprise Environmental 7. Cost of Quality
Factors 8. Project Management • Estimate Cost is the process of developing
7. Organizational Process Assets Software an approximation of the monetary resources
(OPAs) 9. Vendor Bid Analysis needed to complete project activities.
10. Group Decision Making
• It’s key benefit is it determines the amount
Techniques
of cost required to complete project work.
Cost Estimating involves developing an assessment of the likely quantitative result-how much will it cost the
performing organization to provide the product or service involved.
Pricing is a business decision-how much will the performing organization charge for the product or service
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2. ESTIMATE COSTS
1. Market Conditions 6 3
1
2. Published Commercially Info ENTERPRISE SCOPE
COST 4
ENVIRONMENT BASELINE WBS Dictionary
MANAGEMENT PROJECT
FACTORS (EEF)
PLAN SCHEDULE
7
5 ORGANIZATIONAL 2
RISK PROCESS H.R.
REGISTER ASSETS (OPA) MANAGEMENT
PLAN
• Cost Estimating Policies TOOLS & 1. Expert Judgment

• Cost Estimating Templates TECHNIQUES 2. Analogous Estimating
• Historical Information, and 3. Parametric Estimating
• Lessons Learned 4. Three-point Estimating
OUTPUT 5. Bottom-up Estimating
OUTPU 6. Reserve Analysis
T
7. Cost Of Quality
PROJECT 8. Project Management Software
ACTIVITY BASIS OF 9. Vendor Bid Analysis
DOCUMENTS
COST ESTIMATES ESTIMATES 10. Group Decision Making Techniques
UPDATES
213
ESTIMATE COSTS: TOOLS & TECHNIQUES

1. Expert Judgment
2. Analogous Estimating – compare with similar past projects when limited amount of
detailed info available
3. Parametric Estimating – uses statistical relationship relevant historical data & other
variable (like square footage) to calculate a cost estimate for project work. It provides
higher level of accuracy depending on past data
4. Bottom Up Estimating – cost of individual work packages are estimated to the
greatest level for detail. Its accuracy is influenced by the size & complexity of the
individual activity or work package.
5. Three-Point Estimating
• Most Likely (cM) based on realistic effort assessment
• Optimistic (cO) based on best case scenario
• Pessimistic (cP) based on worst case scenario
• Depending on the assumed distribution of value within the range, there are 2 formulas:
• Triangular Distribution. cE = (cO + cM + cP) /3
• Beta Distribution (from PERT analysis) cE = (cO + 4cM + cP) /6
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ESTIMATE COSTS: TOOLS & TECHNIQUES
6. Reserve Analysis
Contingency Reserves are the budget within cost baseline that is allocated for
identified risks. It is often viewed as part of the budget to address the “known-
unknowns” that can affect a project. It may be a percentage of the estimated cost, a
fixed number, or may be developed by using quantitative analysis methods.
7. Cost of Quality (COQ) – it cost less to prevent quality issue than to fix it
8. Project Management Software – Computerized spreadsheets, simulation, and
statistical tools are used to assist with cost estimating.
9. Vendor Bid Analysis – Cost estimates can be based on the responsive bids from
qualified vendors
10. Group Decision-Making Techniques
Team based approaches, such as brainstorming, the Delphi or Nominal Group
Techniques are useful for engaging team members to improve estimate accuracy &
commitment to the estimates.
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ESTIMATE COSTS: OUTPUTS
ACTIVITY Quantitative assessment of the probable costs required to complete project

COST ESTIMATES work. It can be presented in summary form or in detail. Cost are estimated
for ALL resources that are applied to the activity cost estimate
PROJECT Project Documents that may be updated include, but not limited to, the risk
DOCUMENTS register.
UPDATES
BASIS OF The amount and type of additional details supporting the cost estimates vary
ESTIMATES by application area.
Supporting detail may include:
• Documentation of the basis of the estimate (how it was developed),
• Documentation of all assumptions made,
• Documentation of any known constraints,
• Indication of the range of possible estimates (like +/- 10%) to indicate
that the item is expected to cost between a range of values, and
• Indication of the confidence level of the final estimate.
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Tools and Techniques for Cost Estimating
• Analogous Estimating / Top-down Estimating: Using the actual cost of a previous, similar project
as the basis for estimating the cost of the current project. It is less costly but less accurate. (Rough-
cost Estimate). Managers use expert judgment or similar project costs [quick, less accurate]
• Parametric Modeling: Using project characteristics (parameters) in a mathematical model to
predict project costs. Use mathematical model (i.e. cost per sq ft). [accuracy varies] Two types:
• Regression analysis – based on analysis of multiple data points
• Learning Curve – The first unit costs more than the 100th, forecasts efficiency gains
• Bottom-up Estimating: Estimating the cost of individual work items, then summarizing or rolling up
the individual estimates to get a project cost. (Detailed Estimate). People doing work estimate
based on WBS, rolled up into project estimate [slow, most accurate]
• Computerized Tools: Use of computerized tools such as project management software and
spreadsheets to assist with cost estimating.
• Vendor Bid Analysis – Estimating using bids + allowances for gaps in bid scope [slow, accuracy
depends on gaps]
• Reserve Analysis – Adding contingency to each activity cost estimates as zero duration item [slow,
overstates cost]
217
Types of Cost
• Variable Costs
• Change with the amount of production/work
• e.g. material, supplies, wages
• Fixed Costs
• Do not change as production change
• e.g. set-up, rental
• Direct Costs
• Directly attributable to the work of project
• e.g. team travel, recognition, team wages
• Indirect Costs
• overhead or cost incurred for benefit of more than one project
• e.g. taxes, fringe benefit, janitorial services
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Quality/Accuracy of Cost Estimation
Estimate Accuracy
Rough Order of
Magnitude • Most difficult to estimate as very little project info is
+/- 50%
available, made during initiating process
(ROM)
-10% • Used to finalize the Request for Authorization (RFA), and

Budget Estimate
+25% establish commitment, made during planning phase
Definitive -5%
• During the project and refined
Estimate 10%
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110

Cost Planning and Management: Typical Construction Project Organization

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3/24/2022

Cost Planning and Management

Typical Construction Project Organization

• Estimating is the compilation of all the costs

Site Conditions Affecting The Overall Cost

Unforeseen Items in Detailed Estimate

Cost estimates is divided into seven types:

Design & Estimating Process

Conceptual & Preliminary Definitive

• A conceptual estimate is also known as a top-down, order of magnitude, feasibility,

Conceptual cost estimating characteristics

Importance of conceptual cost estimates

Broad Scope of Conceptual Estimates

• The unit cost per car can be calculated as given in Table

• Then, the average unit cost = 30,431.5 / 8 = 3,803.94 / car

• Determine the conceptual cost estimate of a 2700-m2 housing project.

• A detailed estimate is also known as a bottom-up, fair-cost, or bid estimate. Detailed

• Whenever you have a complete

Steps for preparing a detailed cost estimate

Types of Cost Estimates

S.No. Estimate type Comments

1 Project proposal indicative Feasibility stage

3 Detailed estimate Controlling costs during the execution of the project

4 Definitive estimate To assess cost at completion

5 Final closure cost estimate Final cost

Estimation of Preliminary Costs of Different Civil Engineering Jobs

S.No. Structure Basis for preliminary estimates

Methods of Estimating (Preliminary)

• Estimators typically turn to preliminary estimating methods to compile a budget estimate

Single-Rate Methods - Price per Unit

Single-Rate Methods - Price per Area

Single-Rate Methods - Price per Area

Single-Rate Methods - Price per Volume

Preliminary Estimate for Buildings

Preliminary Estimate for Buildings

Preliminary Estimate for Buildings

Preliminary Estimate for Buildings

Cube Rate Estimate

Single-Rate Methods - Price per Volume

Unit volume method strengths: However, the volume method does

Illustrative Cases in Preparation of Estimate- Case1:

• A municipal body of the country is planning to construct a multilevel car-parking facility in a

Plinth area calculation Layout of car parking

Cross section showing different levels of car parking

Illustrative Cases In Preparation Of Estimate- Case:

Illustrative Cases In Preparation Of Estimate- Case:

• Prepare a preliminary estimate of multi-storeyed office building having carpet area of

• Prepare a preliminary estimate of a double storeyed building having carpet area of

• Prepare a preliminary estimate for a building with the following data:

Multi-Rate Methods - Price per Typical Bay

Multi-Rate Methods - Price per Typical Bay

Typical Bay Estimate

Multi-Rate Methods - Assembly Estimates

• To achieve greater accuracy in preliminary estimating, a price-forecasting method is required that

Multi-Rate Methods - Assembly Estimates

Multi-Rate Methods - Assembly Estimates

Multi-Rate Methods - Elemental Estimates

Example on Bay Estimate

• Prepare a typical bay estimate based on the following information:

Methods of Structuring Project Costs

The prevalent structured approach

Estimating – Calculate the Volume of Excavation

• Giving different values to (= 30° , 45° 60° !