Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report

Rama-Chila-Adi Daro-Semema Road Project

1.0 INTRODUCTION

1.1 Project Background

The Federal Democratic Republic Ethiopia [FDRE] represented by Ethiopian Roads

Authority [ERA] has allocated funds through the Road Sector Development
Programme for Consultancy Services for Detail Engineering Design and Tender
Document Preparation for Rama-Chila-Adi Daro-Semema Road Project, with a
total length of 91.13 km which is to be upgraded to DS3 Road

All the works forming part of this consultancy will be carried out to meet the
standards of the Ethiopian Roads Authority (2013) as well as to the ISO 9001
standard. These standards are recognized by the international consulting industry

1.2 Project Description

The project road is located in the Northern part of the country, and lies entirely in
the Tigray Regional State of the Federal Democratic Republic of Ethiopia,
particularly in Central and North-Western Administrative Zone. The road project
starts at Rama town; this town is located in Mereb Lekhe Woreda at 1047.6 km
from Addis Ababa. Chila is another town which is located in the same woreda
where Rama town found. The other towns is Semema which is located south west
of Rama about 78Km away found in Tahitay Qoraro woreda. The Project Ends at
two end points, Embatizu at junction from Shire – Shiraro road to Semema town
which is located 6.4Km from Shire town and At Adi Daero town the Woreda sete
of Laelay Adiabo which is located 25.7 Km from shire town The total project
length is 91.13 km. The purpose of the project is to upgrade the part of existing
road and construct new road to the appropriate design standard and surface type
that will connect Rama Chila Semema and Adidaro towns and provide access to
villages and large rural settlement areas in between these towns.

Time for completion of the project is 1095 calendar days including 90 calendar days
of mobilization.

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Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
Rama-Chila-Adi Daro-Semema Road Project

1.3 Objective of the Consultancy Services

The consultancy assignment shall be carried out in two distinct phases, namely:

 Phase I: Feasibility study, environmental impact assessment study and preliminary

engineering design
 Phase II: Detailed engineering design, preparation of resettlement action plan and
tender documents.

The main objectives of the services stated under each phase are:

Phase I

 To conduct a sound Feasibility Study

 To carry out detailed Environmental and Social Impact Assessment including
associated mitigation measures
 To prepare a Preliminary Engineering Design

Phase II

 Detailed Engineering Design

 Prepare a Resettlement Action Plan (RAP).
 To prepare a complete set of tender documents that will serve as a basis for
tendering the project on International Competitive Bidding (ICB) or National
Competitive Bidding (NCB) procedures as to be agreed with the client, using FIDIC
conditions of contract.

02. Prices – unit rates

02.01 Methodology

This Engineer’s Estimate is derived from applying prices to the tender document’s Bills of
Quantities and summating amounts in the same style that tenderer’s will compute their
bid price. In computing the unit rate of each activity itemized in the BOQ by the design
Engineers, studied standard crew and crew output/optimum crew production rate is
used. Firstly, the direct cost of the unit rate is computed and factored by the indirect
cost factor. The direct cost is the cost of equipment, material and lab our directly
involved in execution of the work specified, measured and quantified in the technical
specification whereas the indirect cost includes computed or assumed contractor’s head
office cost, contractor’s project cost including management and site establishment,
mobilization and demobilization cost, income tax, insurance cost, nonadjustable price
escalation, some work items which the contractor may be obliged to execute but not
itemized in the BOQ and contractor’s profit.

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Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
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The unit price for each BOQ items is derived from detail Cost break down considering all
the required resources such as equipment, manpower and materials and their respective
time or quantity and cost required for the crew. Haulage distances (table 4) are
considered in determining the unit rates. The hauling distances are determined by
referring to the location of material resources such as quarry sites, borrow sites ,
production sites etc and the transportation cost to the project sites for cement,
reinforcement and bitumen have been considered. The indirect costs are included in the
cost breakdown. The up-to-date prices of materials and equipment are collected from
market to determine the rental rates of equipment, base prices of materials and hourly
rates of manpower which directly used to compute the unit rate of each bill item.

An eight hours work time per day is use for estimation of unit rate determination. Before
determining the unit rates the collected direct raw data are processed to be used in the
analysis of the unit rate. The basic salary of each labor is fist factored as shown in table 1.
The hourly cost of each equipment to be used for any activity of the specified work is
determined taking into consideration all component of cost of equipment such as
investment cost, insurance cost, fuel cost, depreciation cost, salvage cost, service and
repair cost, tire cost (if any) and interest. The equipment breakdown cost finally
categorized in to two major cost group, owing cost and operating cost.

Equipment owning costs are all these costs in which the owner of the equipment
expends throughout the economic life of the equipment whether the equipment is
working or not. These costs include mainly the depreciation costs of the equipment with
the consideration of its salvage value, erection and installation costs, major repairs and
overhauling costs, property taxes and insurance charges.

Equipment operating costs are costs in which the owner of the equipment expends
throughout the economic life of the equipment when it is working. These costs include
the cost of the fuel, oils, filters, grease, normal repairs, tires and maintenance costs.

Detailed detail equipment cost breakdown is shown under table 3.

The unit rate for provision of Engineer’s vehicles, survey equipment, and radio for
communication and other furniture’s and equipment are obtained from market prices
and factored by an appropriate contractor’s profit and overhead costs. Cost for
maintenance of vehicles is determined from associated cost while utilizing the vehicle
such as fuel, insurances, service and repair and maintenance. To determine the services
and maintenance cost for housing office and buildings the cost of generators, running
cost of generators, cost of water tanks, provision of bottled water for engineer staff,
attendance costs etc. are first determined while the cost of the buildings are taken from
studied market prices in terms of cost per area of the building and computed for each
pay item.

03. Quantities and Exchange Rate

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03.01 Computations

The cost of each work item is derived from the unit price (rate) applied to the measured
quantity. The measurable quantities for payment purposes are set down in the ‘method
of measurement’ which is embodied in the Measurement and Payment clauses for each
category of work in ERA Standard Technical Specification 2013.

The quantities of Earthwork, Subbase and Base Course and priming and surface dressing
are derived during design computations using computer software used for the geometric
design of the Road. Other quantities have been summed manually.

03.02 Units of measurement

The ISO metric system is used throughout which is based on SI (Standard Internationale,
Fr.).

03.03 Currency

This estimate uses the fallowing (current in November 2017) exchange rates of
1USD=27.5776 Birr.

4.4. A Physical Contingencies and Tax

The contingencies are provisions that would take into account anticipated expenses, such as
quantities being higher than expected and unexpected expenses which cannot be quantified in
the contract agreement or resulting from delays. A 10% contingency, applicable to the
construction (Main cost) cost is used.

The cost estimates include Tax.

04. Total Project Cost

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Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
Rama-Chila-Adi Daro-Semema Road Project

4.01 Summary

The construction works contract costs have been determined based on the tender
document’s Bills of Quantities and summed as shown under table 5: Grand summary
which is computed from all the work items from division 1000 to 11000.

04.02 Additional costs

In addition to the above construction costs, the following additional costs to the
Contracting Authority are applicable:

- Cost for procurement of both the Contractor and Engineer

- Cost for the supervising Engineer
- Compensation payment for removal of obstruction from sites such
as houses, farm land, grazing land fences, utilities etc.

No Cost Item Estimated cost (Birr)

1 Cost for procurement of both the ----------
Contractor and Engineer
2 Cost for the supervising Engineer 23,078,200.00
3 Compensation payment for removal 45,000,500.00
of obstruction from sites such as
houses, farm land, grazing land
fences, utilities etc.

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 Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
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(A BREAKDOWN OF REIMBURSABLE EXPENSES FOR THE CONSTRUCTION PERIO

Cu

Input Qty

Item No Name of Staff Proposed Position Unit For

Constructio DLP Total=Const+DLP
n Period (1)
1 Key Personnel
1.1 Resident Engineer Man-month 36 12 48 4
1.2 Deputy Resident Engineer Man-month 33 12 45 3
1.3 Pavement/Material Engineer Man-month 34 12 46 3
1.4 Structural Engineer Man-month 18 3 21 2
1.5 Geotechnical Engineer Man-month 16 4 20 2
1.6 Highway Engineer Man-month 18 3 21 2
1.7 Quantity Surveyor Man-month 33 12 45 2
1.8 Senior Surveyor Man-month 36 12 48 2
1.9 Claims Expert Man-month 12 1 13 2
1.1 Environmentalist Man-month 10 1 11 2
Hydrologist/ Hydraulic
1.11 Man-month 6 1 7 2
Engineer
Road Safety and Safety
1.12 Man-month 5 2 7 2
Audits Specialist
Right of Way Management
1.13 Man-month 36 6 42 2
Specialists
2 Supporing Staff
Soil Laboratory
2.1 To be nominated Man-month 72 24 96 1
Technicians(2)
2.2 To be nominated Material Inspector Man-month 32 12 44 1
2.3 To be nominated Surveyors(2) Man-month 72 24 96 1
2.4 To be nominated Inspector of Works(2) Man-month 64 24 88 1
2.5 To be nominated Draftsperson Man-month 32 12 44 1
2.6 To be nominated Structural Inspector(2) Man-month 64 24 88 1
2.7 To be nominated Secretary Man-month 36 12 48 1
3 Junior Assistant Staffs
Junior Pavement/Material
3.1 To be nominated Man-month 32 0 32 1
Engineer
3.2 To be nominated Junior Structural Engineer Man-month 32 0 32 1
3.3 To be nominated Junior Highway Engineer Man-month 32 0 32 1
3.4 To be nominated Junior Claims Expert Man-month 32 0 32 1
3.5 To be nominated Junior Environmentalist Man-month 32 0 32 1
4 Miscellaneous Expenses
4.1 Accommodation for the Engineersstaffs (Key M-month 26.00 1

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 Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
Rama-Chila-Adi Daro-Semema Road Project

Staffs) until the permanent facility is established by

the contractor
Accommodation for the Engineers staffs (support
4.2 and Junior Staffs) until the permanent facility is M- month 24.00 1
established by the contractor
surveying equipment for the Engineer’s staffs until
4.3 Month 4.00 1
the permanent facility is provided by the contractor

Total

(b)Breakdown of Financial Proposal by Activity

Group of Activities (Phase)

Price Item Price in ETB
Professional Fees 19,304,000.00
Reimbursable Expenses for the Construction
-
Supervision
Contingency (15%[A+B]) 764,000.00
Local Taxes (15%-VAT) 3,010,200.00
Sub-Totals 23,078,200.00

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Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
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05. Contract Lots

05.01 Number of Contracts

The Total Road project is set to be One Contracts.

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Detailed Engineering Design & Tender Documents Engineering Cost Estimate Report
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Appendix 1: Total Summary of Project Costs, Priced

Bills of Quantities for each series,
Hauling Distance, Base Material
Prices, Equipment Cost Breakdown,
Indexed Labor Salary Rate and
Detailed Cost Breakdown of Activities

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