TOPIC 5 : THE

PRELIMINARY
ESTIMATING METHOD

C LO2 - Estimate the cost of construction project by

using preliminary estimating method, build-up
rate method and quantitiy measurement

EDITED BY: NORHANIZA BINTI

MOHD NOOR (PSMZA)
 SUMM ARY

This topic provide guidance to the student the importance

of preliminary estimate, uses of the preliminary
estimating methods, unit valuation method, floor
area method, cubic content method, advantages and
disadvantages of the different methods of estimation
DEFINATION AND IMPORTANCE
OF PRELIMINARY ESTIMATES

A rough estimate made in an early stage of the design

work, prior to receipt of firm bids.

▪ Defined as an activity in particular work to make

possible offer to execute task base on a stipulated
sum

▪ Technique to forecast the possible cost incurred for

a certain building or construction project via a
systematic calculation employing certain method,
prepare at early stage of the project

▪ Is a part of the cost planning process that is

controlling of the project cost at the design stage
before any drawings are embarked upon.
 U SE S OF PRELIMINARY
ESTIMATE

To obtain clients For a contractor to For design team to To know the profit
budget allocation tender for the design accordingly rate
project

As a guidance for Quotation from

the financial subcontractor to
institution general contractor
METHOD FOR PRELIMINARY
ESTIMATE

U N I T VA LUAT I O N
METHOD

FLOOR AREA
METHOD

C U B IC CO N T E N T
METHOD
 UNIT VALUATION METHOD

Estimate = Standards Units Of Accommodation X Cost/Unit

• Similar construction project is used to build a

cost model of construction costs for one new
unit.

• Suitable for similar project such as hospitals,

schools, stadium, theater, mosque etc
ADVANTAGES & DISADVANTAGES

– It can be done quickly where a

rough figure is required instantly.
– It’s not a reliable
– The estimate can be done even if method (rough figure).
there are no drawings or
specifications. – Large deviation from
– Useful for buildings where
standard-sized units (desks / beds)
the accurate value.
occupy most of the space.
– It is not based on
– Little information is required from
client (i.e. number of units) but drawings or
getting a lot of information from
the client will be helpful for the specifications.
estimator.
 Example 1
Estimate the total cost to build a mosque to house a congregation of
500 individuals.
From a suitable cost data, get the cost/ congregation of a similar
mosque that has been updated. Lets us say that the cost is R M
1400.00/ individual.
Answer:
Total cost = Number of individuals x cost/individual
= 500 individuals x RM1,400
= R M 7000,000.00
 Example 2
Based on the information
Construction cost Number of given, prepare the rough cost
Type
(RM) student
estimate of a hostel building
Hostel 2,500,000.00 1,500 which accommodate 2,000
A
students, taking into
Hostel 2,000,000.00 1,000
B consideration the rising cost of
20% due to changes in material
and labour cost.
Example 3
Based on the following information, calculate the construction cost for additional
ward which can accommodate 1800 patient at Hospital Ipoh . Estimated the
increasing of construction cost is 5% a year

Hospital Number of Bed Construction Cost [RM]

Hospital Taiping 1300 RM2,900,000.00
Hospital Teluk Intan 1100 RM2,700,000.00
Hospital Tapah 1400 RM3,150,000.00
Example 4
FLOOR AREA METHOD

Measurement of The cost is based on For building with half

length and width is the past project which wall, the floor area
acquired from the is similar design from taken is only half of
architect drawing the proposed building the total floor area

Estimate = Floor Area X Cost/Unit

 FLOOR AREA METHOD

In the calculation the floor area of a building

there are several criteria need to be taken
– All measurements are taken from the face of
external walls. No deduction is made for
internal walls, lift shafts, stairwells, etc. –
gross internal floor area.
– Where different parts of the building vary in
function, then the areas are calculated
separately
– Unrelated work to the area, for example,
external work must be priced separately
ADVANTAGES & DISADVANTAGES

– More accurate than unit ▪ Does not consider

cost method changes to plan, storey
height and the overall
– Easy to calculate and height of the building as
cost are expressed in a these factors effect the
building cost
way readily ▪ Other work which are
understood by an not related to the floor
area must be calculate
average construction separately
industry client [Easier ▪ Difficult to calculate and
to understand by all allocate the cost for
different site conditions,
parties] quality of materials,
condition of contract etc.
 Example 1
– A simple rectangular single storey plan (20m x 5m) with 230mm external brick walls
and no open space.
– The building rate is RM 8,000 per m 2.

5m
20m

Total Cost = (20.00 mx 5.00m) x RM 8,000/m2

Total Cost = 100.00 m2 x RM 8,000
Total Cost = RM 800,000.00
Example 2
Answer
 CUBIC CONTENT
METHOD

– Measurement are obtained from

architectural drawings
– Measured from external faces of extenal
walls
– The height of the building depends on the
type of building

Estimate = Volume X Cost/Unit

 Height Of Building

– Flat roof • If the building have parapet wall :

i.Parapet wall > 600mm = H + height

parapet wall

ii. Parapet wall < 600mm = H + 600mm

H
• Flat roof defined as roof with less than
10 degree pitch

Building height = H + 0.60m

 Height of building

– Pitch roof • Building height is measured from the surface

of the footing to the ceiling level plus half of
roof’s vertical height
T/2
• Pitched roof is roof with pitched exceeding 10
degrees
H

Building height = H + T/2

 ADVANTAGES & DISADVANTAGES

• The most accurate • The client will be

than other method unable to know
because considered
floor area
height of the
building • A more detailed
• Suitable for all drawing needed
types of building
• Easy calculation
process
Example 1

Estimate the total cost to build a 2-storey

bungalow if the construction cost/m3 of a
similar construction is R M 550.00/m3.
Estimate the construction cost base on

a) Pitch roof
b) Flat roof
20.00

10.00

1.50

3.50

3.50

1.00
 a) Pitch roof

Building Volume = 20.00m x 10.00m x [1.00m +2(3.50m) +

(½ x 1.50m)]
= 20.00m x 10.00m x 8.75m
= 1750m3

Total Building Cost = Volume x cost/m3

= 1750m3 x RM550.00
= RM962,500.00
 b) Flat roof

Building Volume = 20.00m x 10.00m x [1.00m +2(3.50m) +

0.60m]
= 20.00m x 10.00m x 8.60m
= 1720m3

Total Building Cost = Volume x cost/m3

= 1720m3 x RM550.00
= RM946,000.00
EXERCISE 1:
EXERCISE 2:
EXERCISE 3:

Based on the figure, calculate the

cost of the building using the Floor
Area Method , assuming that the
price rate is RM550.00/m2
EXERCISE 4:

Based on the figure, calculate the

cost of the building using the Floor
Area Method , given the rate per
unit is RM480.00/m2
EXERCISE 5:

Based on the figure, calculate the

cost of the building using the Cubic
Content Method , assuming that the
price rate is RM500.00/m2
 END OF
C H A PTE R