1

Engineering Wallah Civil Engineering

Short Notes
Subject : Estimation & Costing
Basic Conversions: In this method service unit is taken for estimation
1 m = 3.28 ft 1 ft = 800 mm 1 inch = 25 mm (a) Hospital  beds
(2.54 cm) (b) School  Benchs
1 foot = 12 inch 1 gunta = 1089 Acre = 40 gunta (c) Water tank  Litre
feet = 100 m2 = 4000 m2 (d) Auditoirium  Seats
1 pound = 0.45 1 sqm = 10.76 1 gallon = 3.785 4. Typical Bay Method:
kg sq.ft kg In this cast per bay is calculated and by multiplying
1 m3 = 1000 litre 1 hectare = 2.5 1 yard = 9 feet2 number of bays we will get total cost
acre = 104 m2 (a) Railway platform
(b) Industrial shed
Chapter 01: Estimating & Costing
Estimating: (c) Building frame
Probable cost usually prepared before construction of work
to find: Plinth Area : It is the built-up covered area (courtyard and
(a) Approx cost of work plinth offset area not considered)
(b) To find approx. quantity of material tools and plants in Floor Area:
advance 1. Plinth area – Area of walls
(c) To fix up period of construction 2. Carpet area + Kitchen, store, bathroom, pantery (non-
living) area
Costing: Finding cost per item or work Carpet Area: It is the livable area where we live (Bedroom,
Detailed Estimates: hall etc.)
1. Revised  Carpet area = Floor area – (Corridore, kitchen, pantery,
2. Supplementary staircase, bathroom, lavotary, porch, plumbings etc.)
3. Revised + Supplementary NOTE:
4. Annual repaire and maintenance (Floor area includes area of balcony upto 50%)
(For 12 m height building – provide 1 lift)
Approximate/preliminary/rough estimate: Detailed Estimates:
1. Plinth Area Method: 1. Revised Estimate:- needed when
(a) One of the less accurate method among all. (a) Sanctioned estimate exceeds 5%
(b) Estimate based on basic a plinth aera and its rate/m2 (b) When work likely to be exceed by
(c) Courtyard area and Plith offset shall not be considered 10% of administrative approval (for work more
in this. than 5 lakhs)
(d) It is the area open to sky (terrace, balcony) 2. Supplementary Estimate:- for Additional Work
2. Cubic Content Method: 3. Revised & Supplementary Estimate:- Cost deviation
(a) One of the most accurate method in approx. estimate & Additional work
(b) Estimate is based on cubic content of building 4. Annual Repair and Maintenance Estimate:- to keep
(L, B, H) and by thumb sule. structure in proper order and safe condition.
3. Service Unit Method:
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Important Charges and Definitions:  Superintending engineer is the head of circle & he is
All charges made on already estimated cost: also called survey or engineer.
1. Contentgencies (3-5%): Incidental expences of Note: Measurement book is considered as a Bible of JE.
miscellaneous character which can not be classified Account Section:
2. Work charge establishment (1.5-3%): Also called as Work %
overhead charges, not given in estimate i.e. work 1. Contractor 10%
supervisor, security, temporary sheds etc. 2. Labour charge 25%
3. Centage charge: (10-15): When engineering 3. Contingences charge 3-5%
department takes up work of other department (i.e. if 4. Electrification 8%
PWD done work for irrigation) 5. Electric fan 4%
4. Muncipal taxes (10-12%): 10-12% of net income 6. Water supply & sanitary 8%
from properly 7. Water charge 1.5%
5. For building electrification (8%): 8. Departmental charge 10-15%
6. Annual repair and Maintenance (2.5%): 9. Work charge establishment 1.5-2%
7. Tools and Plants (1-1.5%): For big projects
10. Tools & plants 1-1.5%
8. Water charges (1.5-2%):
9. Supervision (5-10%):
10. Contractos profit (10%)
11. Labour charges (25%): If total estimated cost Chapter 02: Specifications & Unit of
 Labour 1 Measurement
   Opening/Deduction Rules:
 Total cost 4 
1. Rules for deducting of plastering/pointing:
12. Annual rent (5-10%): of value of building
(a) Small opening upto 0.5 m2  No deduction
Provisional sum: The money kept aside for items whose
estimate is not likely to prepare. (b) For opening between 0.5 - 3 m2  one face
Ex: Installation of servicelies, waterlines, lifts etc. deduction (internal)
Administrative approval: Formal acceptance of work by (c) For opening above 3 m2  Both face deduction
admistrative department (PMC)  Appropriate estimate 2. Rules for deduction of mansory:
and rough plans are made in this. (a) Opening upto 0.1 m2  No deduction
Technical sanction: The estimate is sactioned by (b) No deduction for ends of beam, bed plates, wall
competent authority (PWD)  detailed estimate, design plates, chhajjas, lintels, door frame, window frame.
drawing is equilized. 3. Formwork  No deduction upto (0.4 m2)
Following are the power of accepting the tender: 4. No deduction for reinforcement in concrete, volume
Designation upto occupied by small pipes etc.
Chief Engineer Full power
Superintending Engineer 50 Lakh Limit of Measurement of Degree of Accuracy:
1. Dimension, area volume shall be measured upto 0.01 m,
Executive Engineer 10 lakh
0.01 m2, 0.01 m3
Sub divisional Engineer (20-40) k
2. Weight shall be measured upto 1 kg
Junior Engineer X
3. Thickness of slab and beams measured upto 0.005 m
4. The diameter of steel reinforcement bar upto= 0.0001 m
 Chief engineer is the head of administrative
5. Length of steel reinforcement bar upto=0.005 m
department & he is directly responsible to the guest.

Units of Measurement (Principles):

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1. Mass, volumetric work  m3 19. Barbed wide: Running meter, gauge, weight
2. Shallow, thin surface work  m2 20. Steel pipe work: Running meter
3. Long and thin work  m 21. Railing: Running meter
4. Pice work job work  number 22. For fixing of glass panels/clearing glass panels:
Number
Measurements: 23. Electrical items (light, fan): Ponits
1. Excavation (m3): 24. Dado: m2
(a) Surface dressing upto 15 cm (m2)
(b) Surface excavation upto 300 m Notes:
(c) Side drains along roads 1. Diameter of domestic sewer pipe = 150 mm
(case: W = 1.5 m, D = 30 cm) 2. Hight of sink of wash basin = 75-80 cm
(d) Execavation in trenches for pipes, cables upto 3. Slope of outlet ‘p-trap’ = 14°
1.5 m (m)
2. Brick work: Some Important Points:
(a) When thickness of wall more than 10 cm m3 Sheets:
(b) Half brick wall m2  In G.I. sheet  Number of corrugations/sheets = 10
(c) Brick flat caba/soiling m2  In asbestos sheetNumber of corrugations/sheets = 7
(d) Bricks on edge m2  G.I. sheet, pitch = 75 mm
3. Flooring: (m2)  Thickness of 25 gauge sheet less than 1 mm

M3 (If thickness is more than 7.5 cm)  Industrial  For sheets important dimension is gauge of material.
flooring  White washing/colour washing is increased by (x) than
4. Wood work: plane area
(Door, window shutters/panels) m2 (a) G.I. sheet = 14%
(Door, window frames, rafters, roof, trusses, beams (b) Abestos sheet = 20%
etc.) m3  White washing and painting will have same area of
5. Steel work: m2  (1) Collapsible door (2) Rolling sheet.
shutters (3) Ventilators (4) Glazing General:
6. RCC:  Thickness of plaster is usually = 12 mm
m2  (1) RCC wall panels (2) Floor concreting (m3)  For getting wet volume 50% deduction
7. PCC: m3  Number of hold fast for door = 6 (if not given)
8. DPC: m2  In actual excavation  anything found then that’s
9. Plastering/Painting: (m2) government property.
10. Formwork: (m2)  Work costing less than 20,000  petty work
11. Skirting: (m2)  On residential building  sales tax not applicable
12. Sheet roofing: (m2)  In lintel  Bearing not given  thickness of lintel 12
13. Partition walks: (m2) cm {minimum whichever is 1}
14. Wall facing stone work/dressed stones in chhajjas:  One truck (6 m3 capacity) contains:
(m2) (a) 3000 bricks
15. Blasting of rock including stacking: (m3) (b) 200 cement bags
16. Road side brick edging: (m3) (c) 3-5 m3 sand
17. Iron work: Weight in tonne Petty work < 50,000
18. Grill work: Weight in kg Minor work: 50000 – 2,00,000
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Major work: > 2,00,000 6. 2.5 cm cement concrete floor: 7.5 m2

7. 2.5 cm DPC : 12.5 m2
8. Earth work in excavation of ordinary soil = 3 m2
Chapter 03: Rate Analysis
9. Excavation in soft/hard mourrom = 2 – 2.5 m3
 Finding rate per unit item
Standard Hook Length:
 Rate analysis is nothing but schedule of rates,
calculation of material and labour cost.
 Standard/conventional/modular size of brick 
1. Extra length for bent up bar for 30° angle = 0.1527D
19 × 9 × 9 cm  20 × 10 × 10 cm with mortar
2. Extra length for bent up bar for 45° angle = 0.414D
 Traditional size of brick  22.9 × 11.4 × 7.6 cm 3. Extra length for bent up bar for 60° angle = D
 cement = 1440 kg/m3, Gcement = 3 – 3.15, (1 m3) D = overall depth of beam
brick = 500
(1 m3) cement bags = 29 g, 1 bags = 0.0847 m3 = 50 kg Note:
Rate of Analysis of Brickwork:
wt d 2
Total volume = Volume of brickwork + Volume of mortar  (for circular bar)
m 162
(Bricks × 0.19 × 0.09 × 0.09)
wt a2
Will get wet volume of mortar  (for rectangular bar and square bar)
Increase it by 55%: m 127
Quantity of Arch Masonary:
• 35% wastage
Q = mean length × breadth × thickness
• 20% drying
Rate Analysis of PCC: 
Q=  2R  B  H
Given volume is wet volume 360
Increase by 50%: 360  2
• 30% wastage
• 20% drying
In case of RCC: Reinforcement from will get added in cost B
Laboures: H
1 Headmason  For every 5 masons
1 Mason: (a) 1 male mazdoor 
(b) 1 female mazdoor
R
Number of masons are decided from task work.
Task/out-turn: Capacity of to work by skilled labours in 8
hrs of day. Earthwork:
1. PCC: 5 m3 1. Lead: Horizontal straight practical distance through
2. RCC: 3 m3 (cement concrete 1 : 2 : 4 = 3.25 m3) which earth can be carried
3. Brickwork: standard lead = 30 m
In plinth (1.25 m3 ) Less than 500 m  50 m
In superstructure (1 m3 )
Distance 500 m - 5 km  500 m
Above 5 km  1km
4. Plastering: 
2. Lift: The vertical distance through which excavated
8 mm  2
8m earth is lifted.
10 mm
Standard lift: 1.5, 3.0, 4.5 m
5. Rubble masonary: 1 m3
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Measurement of volume: A1  Bd1  Sd12 s = slope (1 : s)

(A) Trapezoidal formula: B
Assumption:
1. End sections are parallel.
2. Mid area of pyramid is half the average area of ends.
l d1 d1 l
h
Q  A1  An  2  A2  A3  An 1 
2 S S

2 2
A1 A2 A3 A4 A5 A6 Sd 1 Bd1 Sd1
2 2

b Note: Area of sloping surface with protective embankment

a
of mean height ‘d’, length = L
h side slope s : 1 Ld  1  s2
 a b 
A  h
 2  Schedule of Rates: It is the document which contain all the
Prismoidal formula: information regarding the per unit price of all the items
Assumption: excluding their quantity detail.
A1 and A2 are the areas at the ends and Am = area of mid- Quantity Survey: This document contain details of quantity
section parallel to end of all the items.
h Factors affecting the rate Analysis:
Q= [A1 + 4Am + A2 ] 1. Specification:
6
A1 + A2  Quality
Am =  Quantity
2
 Time
 Types of work
Am A2
A1  Project cost etc.
2. If the distance between construction site & source of
h material is more than 8 km (5 mile  1 mile = 1.6 km),
For the use fo prismoidal formula at least 3 c/s should present
then transportation charge will be applicable.
and above only odd number.
Turnout:
1. Simpson’s 1/3rd rule:
It is the work done by a skilled person in 1 day:
h
Q  [A1  An  4(A2  A4  ...An – 2 )  2(A3  A5  ...An – 1 )] Quantity
3 Work
(per day per person)
2. Simpson’s 3/8th rule: 1. Work in foundation with mud mortar 1.5 m3
3. Mid-section formula: Work in foundation with lime/cement
2. 1.25 m3
Assumptions: concrete
(a) Mid-depth  average depth of two consecutive 3.
Work in superstructure with mud
1.25 m3
mortar
sections
Wok in superstructure with
(b) Area of mid-section then calculated using mean 4. 1 m3
lime/cement concrete
depth 5. Distemper (one coat) 35 m2
(c) Volume of EQ = (mid-section area) × (distance 6. White washing/colour washing (1 coat) 200 m2
between sections) 7. White washing/colour washing (3 coat) 70 m2
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8. RCC Work 3 m3  0.3 

9. Lime concrete in Roof 6 m3 =  respective material ratio  Total volume
 Sum of ratio 
10. R/F Brick work 1 m3
12 mm plastering with cement/lime
Special Condition 2:
11. 8 m2
morter 1. The calculated volume is increased by 15% due to frog
12. Lime concrete in foundation/flowing 8.5 m3 filling & wastage of material.
13. Half brick work/Partition wall 5 m2 2. For dry volume calculation we increase above
14. Brick work in foundation & plinth 1.25 m3
obtained.
Soling:
Calculation of Material:
It is the process of making the base for concrete work/other
Cement-Concrete Work: For cement concrete work, we
work. by using layers of dry brick (Stones)
divide the 1.54 by the sum of ratio of the material & multiply
Brick size,
it with the respective material ratio and total wok to get
Nominal  20 × 10 × 10 cm
quantity of that material in concrete work. (DRY VOLUME)
Modular  19 × 9 × 9 cm
Traditional 
Sum of Ratio: 
Non-std. 
Eq 1 : 2 : 4 9 m3   23 11.6  7.6 cm
Field 
 1.54  9
 1  2  4  1  1.98 m Conventional
3
 
Number of bricks used in
Edge soling = 1 m2/0.23 × 0.076 (L × H)
Note:
Flat soling = 1 m2/0.23 × 0.116 (L × H)
1. In case of lime concrete work we use 1.52 in place of
DPC - Damp proof course
1.54.
2. Volume of 1 bar of cement = 34.5 liter = 0.0345 m3 Cement sand Aggregate
3. No of bags in 1m3 of cement volume M10 1 : 3 : 6
M15 1 : 2 : 4
1
=  28.8 bags (30 bags) M20 1 : 1.5 : 3
0.0345
M25 1 : 1 : 2

Plastering Work:  DPC is measured in m2/area

 We increase the calculated volume by 30% (12 mm  It is used to prevent the moisture & provided at plinth
thickness) & 20% (20 mm thickness) due to uneven level.
surface.  The general thickness of DPC is about 2 to 2.5 cm.
 For dry volume calculation, we increase the above with suitable grade of concrete (M15 to M20) having
obtained volume by 25%. Water repellent agent (bitumen etc)
Flooring Work:
 For flooring work the calculated volume is increased Earth Work:
by 10% due to uneven surface.  Earth work is measured in m3.
 We Increase the above calculated volume by 50% for  If any valuable material found during excavation then
dry volume calculation. it will be property of government of india.
 It the depth of excavation is less than 30 cm then
Brick Work: excavation will be surface/shallow excavation & it is
Special Condition-1: measured in m2.
 The general lead & lift in excavation is about 30 m and
1.5 m respectively.
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 In foundation, we use lean/weak concrete. 1. Item rate contract: Also called as unit price/schedule
contract  Rate for individiual item
Stone & Brick Work: Method and outable for PWD/Railway departments
 3
It is generally measured in m . 2. % Rate constant: Modified version of item rate
 If the thickness of wall is 10 cm, then brick work is contract  % Above or below quoted
measured in m2.
modified version of item gate contact → % above or below quoted
 Dressing of stone is measured in m2.
(cost + percentage) cost + fixed feet (cost + variable free)
Steel and Iron Work: {actual cost + fixed fee} In this contractors fee is linked
{same % as a profit}
with cost g construction →
 Density of steel is 7850 kg/m 3
fee may increase or decrease.
 Generally amount of R/F (only in steel) is 0.6 to 1% of 3. Lump sum contract:
total RCC volume.  In this contractor undertake executive of specific
 The weight of a steel bar per meter length is calculated work with specific time for fixed amount.
be following formula  Cast of project known before completion of project.
 d2   So contractor can get more profit with proper
  kg/m
 162  planning.
4. Labour contract: Contractor quote for labours only
Where, d = dia of bar in mm
(owner will bring material)
Plastering and Pointing:
5. Negotiated contract: Mutual negotiation between two
 It is measured in m2.
parties
 The thickness of plaster is about 12 mm.
 No open competition
 Following are the deduction conditions for the area of
 In case of urgent work
opening in the plaster work.
6. Target contract: This contract is combination of (cost
(a) if the area of opening  < 0.5 m2  No
+ percentage) and (cost + variable feet)
deduction
7. Trunkey contract:
(b) If the area of opening  0.5 - 3 m2  One side
One party (Planning, designing, execution)
deduction
8. BOT project: Built operate transfer
(c) If the area of opening  > 3 m2  Both side
9. BOOT: Built own operate and transfer
deduction for the payment
10. PPT: Public private partnership
Note:
11. Departmental contract:
1. In RCC work, PCC work, R/F brick work are
Small work
measured in m3.
→ No contractor
2. Jaali work, rolling shutter, plywood, net wiring,
→ Executed departmentally
laminated board are measured in m2.
3. Generally woodwork is measured in m3.
Forms of contract:
A-1  % rate contract
Chapter 04: Contract A-2  Item rate contract
Contract: An legal document/agreement inforcable by law B-1  % rate contract (Regular)
in court, contract should be in writing and parties should be B-2  Item rate contract
competent.
Chapter 05: Tender
Types of contract:
Invitation to contractor (offer) or written offer submitted by
certain work under certain condition:
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Points covered in tender notice: 2. Bank solvancy certificate

 Tender notice number 3. List of material, equipments available with contractors
 Type or Form of tender 4. Pastwork details etc.
 Tender authority (PWD) Envelope-3: Tender form
 Name of work Envelope-4: (Envelope 1 + 2 + 3)
 Estimated cost Opening of tender:
 EMD Envelope-4  Envelope-1  Envelope-2  Envelope-3
 Time of completion of work (Opening of tender should be as per alphabetical names of
 Tender form price centractor)
Reasons to reject particular tender:
 Submission and opening date with time
1. EMD is not enclosed in tender.
Note:
2. Tender not signed by contractor.
 Schedule-A: List of material to be borrowed from PWD
3. Contractor non-reputed and inadequate experience,
 Schedule-B: Bill of quantities
equipments etc.
 Schedule-C: Specifications
Reasons to reject all tenders:
1. When fraud is detected
Various account forms to be used:
2. When reformation detected
 Measurement book- Form no. 23
3. When there and collision among contractors
 Cash book- Form no. 7
EMD (Earnest money deposite) (1-2%):
 First and final bill- Form no. 24
EMD  gaurantee from contractor
 Running account bill- Form no. 26(white)
Other than top 3  EMD returned to all others in 7 days
 Final account bill- Form no. 26(yellow)
and for 1st top 3 in 14 days.
 Muster Roll- Form no. 21
Section deposit (5-10%): After acceptance of tender 
Security deposite after 3 months of final bill or after expiry
Different types of bills
of defect liability period (DLP).
Running Account Bill – Form A: It is a type of form which
DLP: Contractors bound to do work over defects (usually 1
is used for advance payment without any measurement. It
year)
may be used for advance running bill payment for
Corrigendum: Tender notice revised/extended under
unmeasured work only
following conditions:
Running Account Bill – Form C: It is a type of form which
1. Time period to prepare tender for contractor and short.
is used for contracts both for works executed on piece work
2. When there is major change of design, drawing and
system.
specification.
First and Final Bill: When a single payment is to be made
3. When number of tender forms came less.
on the completion of the whole work or supply as final
Liquidily damage: Amount of compensation by contractor
payment, this type of form is used
due to delay  no relationship with real damage.
Hand Receipt: A hand receipt is a simple form of voucher
Uniqudily damage (ordinary damage): When contract
intended to be used for small miscellaneous payments and
has been broken, the party who suffers will get
advances for which none of the above forms is suitable.
compensation  affects the real work.
Escalation: For big project, cost of material increases day
Procedure for submitting tender
by day and contractor.
Envelope-1: EMD
Retention masonry: Engineer in charge hold some amount
Envelope-2: Contractor detail
of securely deposite.
1. Income tax certificate

Chapter 06: Valuation
Valuation: It is the art of assessing present fair value of
property.
Purpose: Rent fixation, taxation, mortgage, for selling, for
purchase, for insurance premium.
Some Important Definitions:
1. Value: Value means utility, varies from time to time
 value is different at different place  value depends
upon demand and supply.
2. Cost: Always remains constant irrespective of demand
and supply (cost of constant)
3. Price: (Cost + Profit + Interest on investment)  Price
4. Gross income: Total income
5. Outgoing: Tax, repairs, sinking fund, insurance
6. Net income: Gross income-outgoings
7. Book value: (Book value = original cost –
depreciation)  accounts book value
8. Assessed value: It is the value of property recorded in
register of municipality in order to determine
municipal tax (10-12%).
9. Market value: It is value of property at which it can
be sold in open market.
10. Potential value: When property is capable to fetching
more alternative use is called p.v.
11. Monopoly value:
12. Sentimental value: When property is sold (or)
purchase at higher value than market.
It is the highest value among all.
13. Distress value: Due to financial difficulty, fear, rumer,
insufficient knowledge of market.
14. Speculative value: Purchasing property at lower price
and sell at higher price.
15. Scrap value: Value of dismantled material of property
at the end of utility in period.
Normally 10% of estimated cost.
16. Salvage value: Estimated value of property at the end
of useful life without being dismantled.
17. Pension penpetual income: The income receivable
for an indefinite period.
18. Deferred incomes: The income recieveable after
certain period.
9
19. Deprecetaton: Lossed value of property due to wear
and tear.
20. Mortgage: Loan against security of his property  the
person who gives loan is called as mortgagor.
21. Obsolescene: Loss of value of property due to change
in fashion, design of architecture.
22. Easement: It is an non-possionary right to use real
property of another without actually posing it.
23. Free hold property: Absolute possession over infinite
period of time.
24. Leasehold property: It holds physical possession of
property for definite period under certain condition.
25. Capitalized value: (Capital value = Net income and
year’s purchase)
100
26. Years purchased: y p 
i
i = rate of interest in percentage
yp is nothing but capital sum required to be invested in
order to receive net annual income of 1 Rs.
27. Sinking fund: It is an amount which is kept aside at
fixed interval so that it will accumulate initial cost at
useful life of property.
i0
Ic 
(1  i)n  1
Si
I  I cs I
(1  i)n  1
Ic = Coefficient of annual sinking find
S = Total cost
I = Amount of annual sinking fund
i = Rate of interest on sinking fund
28. Annuity: Annuity is the net instalment of
annual/periodical payment for repayment of capital
amount invested in a property. Annuity either paid at
the beginning or at the end of each period of
instalment.
29. Annuity certain: Annuity is payment at end of each
period and payment continued for certain fixed
number of periods.
 10

30. Annuity due: Annuity is payment beginning of each  Valuation is the art of determining the fair price of a
period and payment continued for certain fixed property/building.
number of periods.  Cost means original construction price of a building but
31. Perpetual annuity: When annuity is searivable for value may increase or decrease w.r.t time.
indefinite period. Purpose of Valuation:
32. Deferred annuity: Annuin commences after few Taxation:
years from actual date of investment. Direct Tax:
Rent: We pro com in (TRICK)
1. Standard rent: Legal rent    
2. Ground rent: Ground (vacant land) rent
Wealth Property Commerical Income Tax
3. Fair rent: As per rent control act
Ex Cu SE ME ( TRICK)
4. Rack rent: Market rent
Ex  Excise
Depreciations: Method for depreciation
Cu  Custom
1. Straight line method: Most practical method
S  Service
2. Constant % method/declining balance method
E  Entertainment
3. Sinking fund method
Rent Fixation:
4. Quantity survey method
 Generally 6-10% of total value of a property is
considered as Annual Rent of the building.
Straight line method:
 Valuation is also required for long, mortage, & for the
Cs
Annual depreciation = many future planning like LIC Policy.
n
C = original value  Gross Income  Net Income + Expenditure (Saving)
S = scrap/salvage value
n = life in years Types of Expenditure:
Hence from this constant depreciation present value or 1. Taxation:
depreciated value at any time can calculated. Taxiation is about 14%
Methods of valuation: 2. Repairness:
1. Rental method of valuation  This expenditure is about 10-15% of the gross
2. Depreciation method of valuation income.
3. Valuation based on cost  It is spent of the repairness of the bounding libs
4. Valuation based on profit white whishing, crack filling etc.
5. Valuation by development method 3. Management & Collection charge:
 It is about 5-10% of total gross income.
Rent fixation:  It is used for the management of a society/home like
Total outgoings = 30% (if not given) as electricity bill, watchmen etc.
  Scrap Value:
 
 Gross rent per year = Net return on land and building + Total outgoings   It is taken as about 10% of the total value of a
   
 Rates given calculate Sinking fund, repair 
property after its utility period (guarantee period).
(When scrap value given then 1st modify total cost and
 It is the value of dismantle material.
use that further)
 The cost of dismantling & removal of rubbish
material is deducted from total receipt obtain from
sale of usable material.
Salvage Value:
 11

 It is the value at the end of utility period without n = number fo utility period
being dismantled. Book value after N year = C-(N × D)
 The cost of dismantling & removal of rubbish 2. Constant Percentage Method:
material is not deducted from the total receipt  This method is also called Balancing Decline
Note: method.
1. Salvage value & Scrap value may be positive, negative  In this method, we assume that the depreciation is
& zero. taken as fix percentage
2. For the RCC structure, scrap value & salvage value are 1/ n
C
always negligible. D = 1–  
S
Sinking Fund:
3 Sum of year’s digit Method
SL
I 4 Sinking Fund Method
(1  i)n  1 5 Quantity Survey Method
Where, S = Total Sinking Fund
Chapter 07: Building Estimate
L = Annual installment of sinking fund
i = Rate of Compound interest
Method of Building Estimate:
n = number of utility period
Following are the method for the calculation of estimation in
the buildings.
Market Value:
1. Long wall & short wall method:
It is the value of a property if it is put in open market for
 This method is also called individual wall method,
auction.
separate wall method, general method.
 In this method long wall (in longitudinal direction)
Book Value:
is measured from outer to outer. But short wall
 Book value decreases year to year gradually.
(transverse direction) is measured from inner to
 It depends upon life period of the building property &
inner.
its depreciation amount.
 This method is very simple & accurate as
 After the end of utility period, book value is equal to
compared to centre line method.
the scrap value.
 This method is time consuming.
Book value = value of the property upto that year
 In this method, length of long wall decreases as we
Depreciation allowed for that year.
more from foundation to super structure. But short
wall length increases as we move from sub-
Depreciation:
structure to super structure.
It is the gradual reduction in the price of a property/building.
2. Centre line method:
Due to obsolescence, design change etc.
Following are the method for the calculation of  This method is rapid method but not accurate.
depreciation.  In this method there is no change in total length if
1. Straight line method: In this method we assume we move from sub-structure to super structure.
depreciation in the form of fix amount.  This method is generally preferred for circular,
C-s square, octagonal (polygon) shape without any
D= cross wall.
n
Where, D = Depreciation  This method required special attention at the
S = Scrap value junction point meeting point.
C = Original cost of construction