Estimation & costing

DEFINATION AND
IMPORTANCE OF
PRELIMINARY ESTIMATES
DEFINATION
 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.
 USE OF THE PRELIMINARY
ESTIMATE METHOD
 To ascertain the actual cost forecast of a
project.

 Assist the client in knowing to what extent he

need to be financially committed to a
particular project

 Estimated is also function as a design guide

whether the project to the allocation made
either
Cont’d
 If the estimate is higher that the client budget
for that particular project, the following
could be carried out :-

 The design could be altered to reduce the

cost

 Extra provisions are sought after or

requested from the client

 The project is postponed or

cancelled
Cont’d
 If the estimate is low than the
allocated sum, the following could be
done

 Accept the estimate

 To modify the design and/or the

specifications to increase the estimate
appropriate to the provision set
aside.
METHOD FOR
PRELIMINARY
ESTIMATE
 UNIT

 CUBIC

 FLOOR
AREA
 UNIT OF
METHOD WHEN IT IS USED NOTE MESUREMENT

Appropriate for project Cost/student

that have standard Cost/classroom
unit of Cost/bed
UN IT
Inception feasibility accommodation, its Cost/ chair
commonly used to
establish the cost limit
for public sector
project
Used to calculate the Cost/m3
volume of air-
CUBIC Outline proposal conditioned space or
space which is given
mechanical ventilation
Used extensively, can Cost/m2
FLOOR Outline proposal be used for almost
AREA all types of building
THE SELECTION OF THE
METHOD WILL DEPEND
ON
 The information and time to prepare the
estimate

 The experience of Quantity Surveyor

 The total and type of cost data available

 UNIT
METHOD
This method is also referred to as ‘cost according to
building function’

 Estimate the building cost base on the size depends

on the population unit

 Example: the total number of student in a

school, total number of bed in a hostel or hospital
and etc.
 Easier method but the most unrefined.

 Total population can be obtained from the client or

the design team
 USAG
E
 The cost estimate is obtained by multiplying the
number of accommodation for a new building with
the cost per unit of accommodation based on a
suitable building

 The current unit of accommodation can be

obtained by calculating from the sketch design or
by obtaining information from the client.
Example
:
Estimate the total cost to build a m osque 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 RM 1400.00/ congregation.

Total cost = Number of accommodation x cost/congregation

500 individuals x 1,400
= RM 7000,000.00
CUBIC
METHOD
 In Malaysia this method is seldom or almost
never used
 Only in certain case, it is utilized
 To calculate the space which is need to be air-
conditioned
 To calculate the space that needs mechanical
ventilation
USAG
E
 Measure the volume of the new building and
its volume is then multiplied with the suitable
price rate per m3
 Unrelated works is to be volume must be
calculated separately
 The volume of the building is calculated as
follows:
Volume = length x width x height
i. Height of pitch roof
from the top surface of the foundation to
half apex / height of roof

ii. Height of flat roof

From the top surface of foundation to 600mm
above the flat roof or parapet wall
(which is higher)
 L

Pitch roof Flat roof

 Example
Estimate the total cost to build a 2-storey bungalow if the
construction cost/m3 of a similar construction is RM
550.00. 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
roofvolume
Building = 20.00 x 10.00 x [1.00 +2(3.50) + ½
(1.50)]
=20.00 x 10.00 x 8.75
=1750m3

Total building cost = volume x cost/m3

=1750m3 x RM550.00
=RM962,500.00
 b) Flat
roof
Building volume = 20.00 x 10.00 x [1.00 +2(3.50) + 0.60]
=20.00 x 10.00 x
8.60
=1720m3

Total building cost = volume x cost/m3

=1720m3 x RM550.00
=RM946,000.00
 Floor area

method
Make a preliminary estimate as most of the cost data
are kept or are available in this form
 The measurement for GFA must be similar between
the new building and the analyzed building
 Need to consider criteria in measurement of area
 In the calculation the floor area of a building there are
several criteria need to be taken
1. The actual area of the building
2. If the project offers a standard or different type of
accommodation it is better for each to be priced separately
3. Unrelated work to the area, for example, external
work must be priced separately
 Cont’d
 The rate per m2 chosen must be current rate as
building cost often differ

 The site, external works, condition of contract, the

quantity and the quality of equipment and others that
related to the floor area must be calculated separately

 It is clear and difficulty of this method lies in

choosing the appropriate rate, which requires
experience, observation and familiarity toward varied
building types
 USAG
EThe floor area of a building to be erected. Only the
building used this floor area method. Other works
may use other method like approximate quantity.

Total cost = area x cost/m2 gross floor area (GFA)

Area – calculate the area of the building. The

measurement method differs according
to practices

Cost/m2 GFA – from similar building type and

function
EXAMPLE
Estimate the cost of the building by referring to the plans
given if the construction cost is RM 1,500/m2
25.00

25.00

5.00
8.00
10.00 15.00

10.00 10.00 3.00

7.00

5.00

Ground floor plan First floor plan

 CONT’D
Floor area
Ground floor
25.00 x 5.00 = 125.00
10.00 x 3.00 = 30.00
5.00 x 7.00 = 35.00
190.00
First floor
25.00 x 5.00 = 125.00
10.00 x 3.00 = 30.00 155.00
345.00

Total cost = area x cost/m2 Gross Floor

Area
= 1500.00 x 345.00
= RM 517,500.00
 ADVANTAGE
S UNIT CUBIC FLOOR AREA

 Fast and easy  The estimate can  The client and

 Easiest method to be prepared architect easily
obtain cost limit to quickly understand
prepare the monetary concept of floor area.
the
allocations for most work items are
several years to appropriately
come associated with the
 No necessity concept of floor area
for drawings rather than the
volume method
 Cost data easily
available as most
the data from
of
previous project most
utilize this method
DISADVANTAGES
UNIT CUBIC FLOOR AREA

 An unrefined  Does not take into  Does not take into

method and in account changes to account changes to
accurate. Only plan, height, of storey plan, height, of storey
suitable to provide and the overall and the overall
and overall height of the of
height
the building as
approximate estimate building these factors effect the
 Does not take into  Unrelated work to the building cost
account changes volume has to be Other work which are
to plan, number calculated separately not related to the
of storeys and  floor area must
other factors  Does not help calculate separately
be
related to design architect in design  Difficult to calculate
 Unrelated work work as it is difficult and allocate the
concerning unit of to predict or to know for different site
cost
accommodation has the effects of the conditions, quality of
to be calculated changes to materials, condition
separately. specifications, design, of contract and etc.
etc. to the cost per
 DETAILED ESTIMATION

The preparation of detailed estimate consists of working out

quantities of various items of work and then determine the
cost of each item.

This is prepared in two stages-:

• Details of measurements and calculation of quantities.
• Abstract of Estimated Cost.
Details of measurements and calculation
of quantities
The complete work is divided into various items of work such
as earth work concreting, brick work, R.C.C. Plastering etc.,
The details of measure- ments are taken from drawings and
entered in respective columns of prescribed proforma. the
quantities are calculated by multiplying the values that are in
num- bers column to Depth column as shown below
S.NO. Description NO M Length (L) Breadh (B) Depth/ Quantity Explanatory Notes
of Item m Height
(D/H)m
 Abstract of Estimated Cost

The cost of each item of work is worked out from the

quantities that already computed in the detals measurement
form at workable rate. But the total cost is worked out in the
prescribed form is known as abstract of estimated form. 4%of
estimated Cost is allowed for Petty Supervision, contingencies
and Unforeseen items.
The detailed estimate should accompained with
i) Report
ii) Specification
iii)Drawings (plans, elevation, sections)
iv)Design charts and calculations
v) Standard schedule of rates.
 Factors to be considered While
Preparing Detailed Estimate:
i) Quantity and transportation of materials: For bigger
project, the requirement of materials is more. such bulk
volume of materials will be purchased and transported
definitely at cheaper rate.
ii) Location of site: The site of work is selected, such that it
should reduce damage or in transit during loading,
unloading, stocking of materials.
iii)Local labour charges: The skill, suitability and wages of
local labours are considered while preparing the detailed
estimate.
 Factors to be considered While
Preparing Detailed Estimate
In order to determine the rate of a particular item, the factors
affecting the rate of that item are studied carefully and then
finally a rate is decided for that item. This process of
determining the rates of an item is termed as analysis of rates
or rate analysis.
The rates of particular item of work depends on the following.
1.Specifications of works and material about their quality,
proportion and constructional operation method.
2.Quantity of materials and their costs.
3.Cost of labours and their wages.
4.Location of site of work and the distances from source and
conveyance charges.
5.Overhead and establishment charges
6.Profit
Calculation of rates