CONSTRUCTION COST ESTIMATES AND ANALYSIS 1

TBD 4106

Bachelor of Technology in Construction

Year 3.1
INTRODUCTION
 CONSTRUCTION COST ESTIMATES AND ANALYSIS 1
TBD 4106

Course Purpose:
• The purpose of this course is to equip the learner with the skills
required for estimating and analyzing construction/civil engineering
project costs.
 Course Outline:
• Introduction to quantities: Form, order, procedure in specification
writing.
• Squaring, subtraction, billing, preliminary, preamble clauses, bills of
quantities, approximate quantities, cost planning and analysis.
• Data communication in construction industry and its application in
tendering and construction processes.
• Contracts, unit rates, estimating costing, prime cost, provisional sums,
day work, interim certificates, general economy factors, defects liability,
fluctuations, antiques, arbitration.
• Computer production of bills.
 Expected Learning Outcomes:
At the end of this course the student should be able to:
1. Describe the process of project cost estimating.
2. Analyze and calculate cost estimates of a project as per the bill of
quantities.
3. Outline various methods of data communication in construction
industry and its application in tendering and construction purposes.
4. Enumerate and explain various types of contracts.
5. Use computer techniques in production of bills.
 Course Assessment:
• Continuous Assessment Tests (CATs) - 15%
• Regular assignments - 15%
• Final Examination - 70%
• Class Attendance - Very important
 Course References:
Prescribed Text Books
1. Allan. A . & Srinath P. (2015). Cost Studies of Buildings. 6th Ed.
2. Keith P & Ankrah N. (2014). Construction Cost Management.
Rutledge
 Introduction to Quantities
• The history of quantity surveying can be traced from ancient Egyptians,
Greeks and Romans who are known for engagement in building works.
• In the ancient times, people were not interested in the final cost since
labour was provided by slaves and materials were locally available.
• The interest in the cost aspect came about during the industrial revolution
in Europe.
• Up to the middle of the 19th century, it was the practice to measure and
value the building work after it had been completed and bills of quantities
were not prepared.
 Introduction to Quantities
• As the building work increased in volume and clients became
dissatisfied with the method for settling the cost of the work, the
need for the quantity surveyor [also known as a Measurer] became
evident. At this point then, craftsmen engaged the measurers to prepare
accounts for work done.
• As the competitive tendering became more common, the general contractors
began to combine to appoint a single surveyor to prepare bill of quantities
which all the contractors would price.
• Later, around 1850’s, one quantity surveyor acting for both the
contractor and the client would be appointed to prepare accurate bill
of quantities and also to measure the variations that arose during the
progress of the project. It was at this time, that quantity surveying
became an autonomous professional field.
 Quantity Surveyors
• Quantity surveyors are construction cost consultants
engaged in financial management of construction projects
who ensure that the clients secure value for their money.
Functions of Quantity Surveyors
• Prepare approximate estimates of the cost in early stages
of a building project formulation, give advice on
alternative materials and components and types of
construction and financial aspects of the contract.
 Functions of a Quantity Surveyor
• Cost planning and value analysis – this is done during the design stage of a project
to ensure that the client obtains best value for his money
• Preparation of bill of quantities and other contract documents.
• Examining tenders and priced bills of quantities and reporting his findings.
• Negotiating rates with contractors on negotiated contracts and dealing with cost
reimbursements contracts, design and build, management and other forms of
contract.
• Valuing work in progress and making recommendations as to payments to be made
to contractor, including advising on the financial effect of variations.
• Preparing the final account on completion of the contract works. i.e. After the defects
liability period of six months.
• Advising on financial and contractual aspects of contractors claims.
• Giving cost advise and information at all stages of the contract and development
of cost analysis and cost reports.
 Measurements
• Measurement is the transformation of drawn information into
descriptions and quantities.
• It is undertaken to determine the quantity, cost and value of
construction works
• It enables effective management of construction projects.
• It is a tool that determines what the contractors should be paid for
work completed.
 Measurements
There are two sections of measurements in construction projects:-
• Pre-contract Measurement - Done at the design stage of a
project before tendering. It enables the client to estimate the
anticipated cost of the proposed project and invite bidders.
• Post-contract Measurement – It is done at the implementation
stage of a project after the contract award. It contains more
detailed dimensions that produce accurate quantities of actual
work done.
 Measurements
Who is responsible for the pre-contract measurement?
What is the importance of a pre-contract measurement?
 Purpose of Pre-contract Measurements

• It enables the client to estimate the anticipated cost of the proposed

project and invite bidders.
• Produce approximate quantities of work to be done per item
• Estimate the overall project budget
• Enables cost planning to ensure that the project is financially
feasible
• Produce estimated quantities that assist in the tendering process.
 Measurements
Who is responsible for the post-contract measurement?
What is the importance of a post-contract measurement?
 Purpose of Post-contract Measurements
• Preparation of work method statements by contractors
• Assists in procurement of materials, equipment and services
• Assists the main contractor in procurement sub-contractors
• Enables tracking of cost variations
• Assists in tracking the work progress with respect to the program of
works.
• Assists in making payments to the main and sub-contractors
• Enables accurate valuation of work
• Assist in preparation and certification of payment certificates.
 Units of Measurements

What are the principle units of measurement?

 Units of Measurements
The principles of units of measurements consist of:-

Single units work like doors, windows, trusses etc., is expressed in numbers.

Works consists linear measurements like cornice, fencing, hand rail etc., are
expressed in running meters (m).

Works consists area surface area like plastering, white washing are
expressed in square meters (m²)

Works consists cubical contents which involve volume like earth work,
cement concrete, are expressed in Cubic meters (m³)
 Process of Measurements
1. Taking – off – Involves scaling-off dimensions of works from drawing
and recording them in the dimension paper or similar computerized formats
2. Squaring - the calculation of the numbers, lengths, areas or volumes and
their entries in the squaring column on the dimension paper.
3. Abstracting - The squared dimensions are transferred to an abstract sheet
and are recorded under the appropriate section headings for billing process.
4. Billing - all the items and their associated quantities are transferred from
the abstract sheet onto the standard billing sheets or other similar
computerized formats. This enables the tenderer to price each item and count
the total tender sum.
 TAKING OFF
Taking off is the process of measuring and recording dimensions from drawings
Types of Take off
• Mensuration – Calculation of geometric quantities from dimensions and angles
that are already known.
• Perimeter computation – Linear measurements
• In-to-in and out-to-out method – Measurement using either internal or external
dimensions.
• Centre line method – Measuring from the centerline. The method is suitable for
symmetrical structures.
• Crossing method – Dimensions shown in plan are used to determine dimensions
of other items in the structure. Also suitable for symmetrical structures.
 TAKING OFF – Cont’d
• The dimensions recorded are used to determine the quantity of work.
• Quantities are recorded and calculated in an organized format called the
“Take off sheets” or “Dimension paper”.

A Take off sheet is composed of four columns:

a. Column 1 – Timesing Column
b. Column 2 – Dimensioning Column
c. Column 3 – Squaring Column
d. Column 4 – Description Column
Describe the above columns in a dimension paper
 Take off sheet Columns
1. Timesing Column – indicates the number of times an item occurs.
2. Dimensioning Column – records the dimensions of items of work.
Order of recording is Length, Width then Height or thickness.
3. Squaring Column – Multiplies the stated dimensions in column 2
to obtain the quantity of works in terms of No.s, length, area,
volume, etc.
4. Description Column - Briefly describes the work measured

N/B: Reinforcement quantities are prepared on a sperate sheet called

the bar schedule
 Example of a Take off sheet
a) Blank Take off sheet: b) Filled Take off Sheet
Example of a Bar Schedule
Example of a blank Bill of Quantities worksheet
Example of a filled Bill of Quantities worksheet