NDDEJJE UNIVERSITY

Department of Education

Estimating and Tendering Lecture Notes

Prepared by Eng. KIBERU FAISAL

2011/2012
 Estimating and Tendering

TABLE OF CONTENTS
CHAPTER ONE ........................................................................................................................................................ 3
INTRODUCTION.................................................................................................................................................. 3
CHAPTER TWO ....................................................................................................................................................... 5
ESTIMATING AND TENDERING. ........................................................................................................................... 5
CHAPTER THREE ................................................................................................................................................... 16
TENDERING ...................................................................................................................................................... 16
CHAPTER FOUR .................................................................................................................................................... 24
ALL – IN RATE FOR RESOURCES.......................................................................................................................... 24
CHAPTER FIVE ...................................................................................................................................................... 49
CONCRETE WORKS ........................................................................................................................................... 49
CHAPTER SIX ........................................................................................................................................................ 59
BRICK/BLOCK WORK ......................................................................................................................................... 59
CHAPTER SEVEN................................................................................................................................................... 63
7.0 CARPENTRY AND JOINERY .................................................................................................................................. 63
CHAPTER EIGHT ................................................................................................................................................... 66
8.0 FINISHES ..................................................................................................................................................... 66
CHAPTER NINE ..................................................................................................................................................... 69
9.0 PROCUREMENT .......................................................................................................................................... 69

Estimating & Tendering Lecture Notes

Ndejje University Academic Year 2011/2012
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 Estimating and Tendering

CHAPTER ONE

INTRODUCTION

The cost of constructing a facility to a client/ owner/ promoter is usually very high and this
makes it a matter of great concern. This includes both initial capital cost and the subsequent
operation and maintenance cost.

The owner is interested in achieving the lowest possible overall project cost that is consistent
with investment objectives.

The capital costs for a construction project are the expenses related to the initial
establishment of a facility which include;

· Land acquisition
· Planning and feasibility studies
· Architectural and engineering design
· Cost of construction (material, equipment, labour, overheads)
· Supervision of construction works (by consultants)
· Construction financing cost (when borrowed from bank)
· Insurance and taxes during construction
· The owner’s general office overheads
· Inspection and testing fee
· Equipment and furnishings not included in construction

The magnitude of each these cost components depends on the nature, size and location of the
project as well as the management organization.

While the construction cost may be the single largest components of the capital cost, other cost
components must not be ignored. For example, land acquisition costs are the major component in
urban areas.

The operation and maintenance cost is subsequent years over the project life cycle include
the following expenses;

· Land rent if applicable

· Operating staff
· Labour and materials for maintenance and repairs
· Periodic renovations
· Insurance and taxes
· Financing costs
· Utilities
· Owner’s other expenses.

Estimating & Tendering Lecture Notes

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 Estimating and Tendering

Every stage of construction involves costs right from perception to commissioning and including
disposal.

Clients or promoters of the construction industry in the public sector such as the central
government departments, local authorities and public co-operatives (organizations) rely almost
exclusively on competitive tendering to justify the award of tenders.

Clients from the private industry (ies) try to follow the practice of the public sector practices by
advertising in the media.

The success of a project lies on a number of factors which include; accurate estimation of the
project costs, proper project planning, good management.

The process of obtaining the competitive offer for the work involves calculating approximate
quantities and inviting willing contractors to give in their prices of work and this is called
Estimation and Tendering.

Estimating & Tendering Lecture Notes

Ndejje University Academic Year 2011/2012
Email: kiberuf2011e@gmail.com, Mobile: +256-(0)772-605420 /701605420
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 Estimating and Tendering

CHAPTER TWO

ESTIMATING AND TENDERING.

Most contractors have a director who is responsible for the estimating department and this
indicates the importance of his function.

Construction contractors base tenders on estimate of the cost of the contract for executing the
work described in the contract document. This gives the estimating department a central
importance to the commercial success of the contract.

Definition

Estimating is the process of producing an approximate calculation or judgment of the size,

value, cost, duration of a project, e.t.c.

Estimation is also the prediction of what the key cost of material, land and plant, labour for
constructing a facility will be and a person who carries out estimation is called an Estimator/
Building Economist/ Quantity surveyor.

Importance of estimating

One of the keys to commercial success is the estimator’s ability to estimate to estimate the cost
of construction work and to construct that work to the estimated cost.

In competitive tendering, the tender is based on the estimated cost which represent as much as
90% of the tender. The other allowances added to are overheads and profits which are smaller to
make a contractor win a tender.

The work connected with the construction of a new structure orwith alterations and additions to
an existing structure is invariably (always) the subject of a contract agreement. The essence of
such a contract is that a builder promises to erect a structure as shown on the drawing and in
accordance with the specification in return to a specific amount of money called contract sum.

A prospective owner cannot give instructions to a contractor to erect a proposed project and
accompany it with an empty cheque to be filled later.

If these practices were to be adopted, the result would be a cost plus account with greater
advantage to a contractor and a great loss to the client.

Virtually, all contracts are obtained by competition between contractors and the subject of
builders estimating consists of the process involved in arriving at the contract sum.

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 Estimating and Tendering

Contracts without Quantities

These contracts are normally restricted to minor works and the contract documents comprise of
drawings, specifications and form of agreement.

v Drawings include plans, elevations, sections and large scale details of proposed work.
v The specification is prepared by the architect to supplement the drawings. In the specification,
the mixes of concrete, types of bricks and quantities of any other work are stated and methods
of work are normally stated.
v A form of agreement is a legal agreement signed by both parties which states the builder’s
contract to erect the structure in accordance with the drawings and specifications and the client
agrees for his part to pay the contract sum.

Formally contractors would simply study the drawings and specifications and would rely of past
data to quote the contract sum. As competition grew keener, it became difficult to use it.

It became necessary to take off measurement and prepare quantities of work involved.

Applying prices to these quantities, one would come up with the total estimate of the work. The
quantities prepared were not only those of materials but specific elements in the structure like
walls, roof, e.t.c.

Contracts with quantities

These contracts are normally prepared for major works and they are based on BoQ.

The BoQs are prepared by the quantity surveyor on behalf of the client. Several copies of BoQs
are prepared and sent out to the contractors who are interested in doing the work to enter in their
prices or rate for the execution of the work.

When the contract is signed, the BoQ and prices become part of the contract agreement and will
be used in preparation of the final accountability and in the settlement of variations.

The provision of BoQ leads to accurate tendering as all those tendering have identical conditions
on which to work and this considerably reduces the cost of estimating.

Estimating & Tendering Lecture Notes

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 Estimating and Tendering

Functions of an Estimator

The primary function of an estimator in construction work is to properly price the unit rates in a
BoQ, calculate the estimated cost of preliminary items applicable to the contract being priced
and to prepare the estimate for submission to managers for adjudication into a tender.

Parties involved in Estimating and Tendering

i. Client’s/ promoter’s staff or their professional representatives.

ii. Consultant
iii. Contractor; planners, plant managers, site management staff.
iv. Subcontractors and nominated suppliers.

Terms used in Estimating and Tendering

i. Own builder’s work

This is work carried out by builder’s own operatives; employ people to work for you e.g
National Housing employs masons, carpenters.

ii. Own subcontractor’s work

Is the work carried out by subcontractors on behalf of the owners. The estimator is sometimes
responsible for obtaining quotations from subcontractors who are capable of carrying out the
work in allocated period for the trade and to the required quality.

iii. Nominated subcontractor’s work

This is the work executed by subcontractor chosen by the architect. They are normally selected
for specialized works like installation of a lift.

iv. Nominated supplier

Supplier selected by the Architect/ client to supply particular materials (special material e.g a
lift).

v. Preliminaries

When preparing a tender for a contract based upon BoQs, there are certain items of expenditure
usually termed project overheads that cannot be satisfactorily distributed among unit rates hence
some of the items are calculated as lump sums and they are placed in the preliminary bill e.g
general foremen, site offices, storage sheds, operating costs, plant, tools, temporary roads,
rubbish removal, overtime.

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vi. Profits

Is the amount of money added to the net estimated cost as a return on investment capital
considering competition and source of capital.

vii. Accurate Bills of Quantity

A large part of the work of the quantity surveyor is the preparation of a BoQ and its accuracy
depends on the availability of full particulars of work required.

The fuller and more detailed the Architect’s drawings, the better the chance of an accurate bill
with a minimum of extras arising during the progress of the works.

viii. Overheads

These include payment of salaries to the head office staff, head office operating costs and similar
items which are necessary for the administration of the contract and which are not normally
charged directly to the actual cost of work.

ix. Approximate BoQs

These are used at times when sufficiently full information cannot be given to enable an accurate
BoQ to be prepared. It may be a foundation contract in which the depth of excavation and
thickness of contract cannot be ascertained until the bearing surfaces are exposed.

Nevertheless, it may be known fairly accurately in advance of what items are likely to occur in
measurement. A bill can therefore be prepared which though with approximate quantities can be
used for tendering subject to a complete measurement of the work as executed and revaluation at
the tender rate. For example, if volume of excavation increased, the quantity is charged but the
rate remains the same.

x. Schedule of Prices

Information may be so scanty or at times so short that not even an approximate quantity can be
given. In such a case, a schedule of probable/ possible items can be prepared giving descriptions
similar to those in a BoQ but without quantities.

There is difficult in making comparison of tenders with such schedules as there are no quantities.
Comparison however can be made between the major items.

xi. Prime cost contracts

Information may be so lacking that an adhoc (unplanned/ emergency) schedule of prices may not
be prepared and no standardized schedule may be considered suitable. In that case, a form of
prime cost contract is used; i.e one where a contractor is reimbursed his proven cost and paid an
additional sum to cover profits and overheads either as a percentage on that cost or a fixed fee.

Estimating & Tendering Lecture Notes

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 Estimating and Tendering

xii. All-in contract (Turnkey/package deal)

With this form of contract, the contractor undertakes the whole of the services required from
design so dispensing with the independent architect, consultant and quantity surveyor. Usually
barter trade is used as payment terms.

xiii. Estimate Adjudication

After estimators have done their calculation of the approximate cost of the project including
profits and overheads, the work is presented to the management for adjustment and this is the
process of converting an estimate into a tender.

It involves adjusting the estimates downwards or upwards or maintaining the same figure to
prepare the tender document.

xiv. Consultant’s Estimate

This is an average price from past record or the design estimate.

xv. Contractor’s Estimates

These are based on facts calculated from the proposed work.

xvi. Cost engineering

Is an area of engineering practice where engineering judgment and experience are utilized in the
application of scientific principles and techniques to the problem of cost estimation, cost control
and profitability.

ASSIGNMENT (READ ABOUT)

Write short notes on the following terms

v All-in rates for resources

v All-in labour rates
v Estimated costs
v Historical costs

Estimating & Tendering Lecture Notes

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Estimating Process

1. Acquisition of documents (plans, specification, BoQs, Form of agreement, Conditions of

contract) upon acquiring information from client through newspaper, internet, friends.
2. Decision to tender considering resources, manpower, profitability, location.
3. Programming the estimate.
4. (a) Collection and calculation of cost information through site visits (labour, water, raw
materials, power).
(b) Decision to tender after visit.
5. Project study.
6. Preparing the estimate having details of work and contract sum.
7. Calculation of project overheads and establishment overheads plus contractor’s profits.
8. Production of estimator’s report.

Note:

The process of preparing a tender document follows the estimating process but after production
of the estimator’s report, the following two steps are done:-

1. Presentation of the estimator’s report to directors to convert it to a tender.

2. Submission of tender.

Techniques / Methods of Estimating

i. Unit rate estimating technique

Is one which is based on the traditional BoQs approach where the quantities of works are defined
and measured in accordance with the standard methods of measurement.

ii. Operational estimating technique

This is a complex procedure based on calculating the total quantity of work involved in an
operation ( e.g excavation and concreting) and estimating the total elapse time of the operation in
weeks and combining this with the selected resources (materials, labour and plant).

This method of calculation if favored by estimators involved in plant dominated activities e.g
excavation and concrete works.

Other estimating techniques

o Global method – It is a crude estimating method which relies on the existence of data for
similar projects assessed purely on a single characteristic such as the size, capacity or
output.

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 Estimating and Tendering

o Factorial technique – It is widely used on process plants e.g water works where the key
components can be easily identified and priced and all other works are calculated as
factors of this component.
o Spot (gash) technique s– Are direct cost estimates which are not based on calculation
but based on experience.
o Man-hour technique – It is a labour based method. Work I s broken down into
unskilled, semi-skilled and skilled according to the required standards.
o Empirical cost interference and production functional approach.

Types of Cost Estimates for Tendering

These include the following:

o Pre-tender cost estimate (design estimate) – screening, preliminary, detailed, engineer’s,

estimate
o Tender/bid estimate
o Control estimate

a) Pre-tender cost estimate (design estimate)

In planning and design stages of a project, various design estimates reflect the progress of the
design.

A screening or order of magnitude estimate is one which is usually made before the facility is
designed and must therefore rely on the cost data of similar facility built in the past.

A preliminary or conceptual estimate is one which is based on the conceptual design of the
facility at the state when the basic technologies for the design are known.

A detailed or definitive estimate is one made when the scope of work is clearly defined and the
detailed design is on progress so that the essential features of the facility are identifiable.

The engineer’s estimate is one based on the completed plans and specifications when they are
ready for the owner to solicit bids from construction contractors.

In preparing the estimates, the design professional will include expected amounts for the
contactor’s overheads and profits.

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b) Bid/ Tender estimate

A bid estimate is one submitted to the owner either for competitive bidding or negotiation
consisting of direct construction cost including field supervision, plus a markup to cover general
overheads and profits. The direct cost of construction for bid estimates is usually derived from a
combination of the following approaches: sub-contractor’s quotation, quantity take-off,
construction procedures.

Contractor’s bid estimate often reflects the contractor’s desire to secure a job as well as the
estimating tool at its disposal.

If a contractor believes that the chances of success are not high, he puts in the least amount of
possible effort in making a cost estimate since always a lowest bidder will be the winner of the
contract in most bidding contests.

c) Control estimate

For monitoring the project during construction, a control estimate is derived from available
information to establish;

· Budget estimate for financing

· Budgeting cost after contracting but prior to construction
· Estimated cost of completion during the progress of construction

Both the owner and the contractor must adopt some baseline for cost control during the
construction.

For the owner, the budget estimate must be adopted early enough for planning along with
financing the facility. The detailed estimate is often used as a budget estimate as it reflects the
project scope. The budget cost must always be revised periodically as is necessary either because
of change orders initiated by owner or unexpected cost overrun.

For the contractor, the bid estimate is used as a budget estimate which will be used for control
purposes as well as for planning construction financing. Revise the budgeted cost periodically to
reflect the estimate cost to completion as well as to ensure adequate cash flow.

Importance of each of the above estimates to different parties in any construction project

To Owner

Design/Pre-tender Cost estimate Bid/ Tender Estimate Control estimate

§ Assessing best alternative § Choosing best bidder § Come up with control budget

Estimating & Tendering Lecture Notes

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To Contractor

Design/Pre-tender Cost estimate Bid/ Tender Estimate Control estimate

§ Understand scope of work § Estimating tool § Come up with control budget

§ Determine resource demand § Come up with best bid § Carryout cost analysis

§ Execute work as per schedule

To Consultant

Design/Pre-tender Cost estimate Bid/ Tender Estimate Control estimate

§ Choosing appropriate technology § To select best bidder § Valuing work done

according to quotations to according to specifications.
§ Design different facility components requirements of facility

§ Allocating prices as drawn

EXAMPLES OF ESTIMATING USING UNIT RATE TECHNIQUE

One

Compute the cost per tonne for the provision and fixing a 16mm diameter reinforcement.

Data

Material purchase cost 1923077 per ton

Wastage 5%

Tie wires and spacers 2%

Cutting and bending labour 15hrs per ton

Fixing rate labour 20hrs per ton

Bar bending machinery within on-site cost

Site transportation within on-site cost

Labour for steel fixer 3000 per hr

Solution

Purchasing …………………………………………… 1,923,077 per ton

Estimating & Tendering Lecture Notes

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Wastage of 5% of purchase……………………………… 96,154/

Add 2% of purchase for spacers and binding wires……… 38,462/

Total ……………. 2,057,693/ per ton

Labour (15+20) x 3000………….. 105,000/ per ton

Total ……………. 2,162,693/per ton

Add 20% profits and overheads ………………………... 432,539/

Total……………. 2,595,232/ per ton

Two

Compute the cost of dredging per CM if a total of 3,000,000CM of material is to be dredged

from a harbour basin and deposited off on land. From the programmed of work, dredging,
reclamation and slope protection extends over a duration of 6months.

Data

Hire rate for dredger $100,000 per month

Hire rate bulldozer $75,000 per month

Fuel cost estimated at 5% of the equipment cost (the fire rate)

Machine operator is paid $6.5 per hour for an average of 70hrs per week.

Bankman is paid $5.5 per hour for an average of 70hrs per week.

Solution

Dredging

Cost of dredger hiring for 6months……………..$100,000x6……… $600,000

Fuel cost………………………………0.05x$600,000…………….. $30,000

Cost of labour………………………. $(6.5+5.5)x70x26…………… $21,840

Total cost of dredging $651,840

Cost of disposal

Cost of bulldozer hire ……………………….$75,000x6………….. $450,000

Fuel cost…………………………………….0.05$450,000……….. $22500

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Cost of labour ………………………………$(6.5+5.5) x70x26………. $21,840

Total cost of disposal $494,340

Total cost of dredging and material disposal $(651,840+494,340)……………. $1,146,180

Cost per CM 1146180/3,000,000 = $0.382 per CM

Assuming 20% of profits and overheads giving $0.08 per CM,

The total cost per CM $(0.38+0.08) = $0.46

Estimating & Tendering Lecture Notes

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 Estimating and Tendering

CHAPTER THREE

TENDERING

This is the submission of a quotation.

A quotation is a price that a firm charges to offer a good or service.

Taking a decision to tender

Against corporate plan, senior managers will take the decision to bid for a specific contract.
Decisions are taken;

v During the pre-selection stage

v After careful examination of the contract documents
v After the estimate has been prepared and tender is ready to submit

Factors considered while taking the decision to tender

v Potential contribution of the contract to the company’s turnover in a particular sector; the
overheads recovered and the anticipated profits
v The likely demands of the contract on the company’s financial resources
v The company’s resources available e.g the working capital and human resources
v Type of work
v The location of the project
v The type of client
v Contract deal

Tendering Procedures or Methods

Open tendering

The procedure is to advertise in the press inviting any firm that wishes to do so to submit a
tender; bid or offer. The advertisement will give an outline detail of the type of work, the scale
program and any other key features.

Any interested firm applies for the tender documents and there are usually no formalities other
than a little fee for the tender documents and discourage those who are not interested in the job
or idle curiosity. This system is commonly used by public bodies. e.g local governments, public
services although it is also used by private institutions.

It’s usually stated in the advertisement and in the tender document that the employer does not
bind himself to the lowest offer as the advertisement does not bid the employer in any way but it

Estimating & Tendering Lecture Notes

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is merely an invitation to person or firms to make an offer and any offer made should be
unconditionally accepted.

Merits

· It gives a chance of tendering to a firm which wishes to dos so.

· Since there is no restriction, there can be no chance of favouritism.

Demerits

· There are a large number of tenders to evaluate hence much time and money wasted.
· There is normally pressure to accept low tenders.
· There is a high cost on the contractor’s side as he tenders for very many jobs and wins
nothing or only one.
· There is difficult in selecting the right firm.

Selective tendering

Here the procedure is to select a limited number of firms known to the architect/client and invite
them to tender and this procedure is mainly used by private firms or institutions.

Selection should be made sufficiently early for firms to be asked whether they will be willing to
tender at the required time. The criteria to be employed in drawing up the list of the selective
firms will depend to some degree on the character of the project as well as its size, location. Also
consider equipment available, standard of workmanship by firms, size of payroll, business
record, and number of strikes within the company, financial stability, and real willingness to
tender.

Merits

· It’s possible to select the most competent firm.

· Since tenders are few, there is time and cost saving.

Demerits

· The firms are sometimes overloaded as they may be reluctant to decline some tenders at
the time they have a lot of jobs.
· It breeds/ brings favoritism and corruption.
· There is always reluctance to strike off incompetent firms from the list.
· Newly formed firms that are competent cannot tender for the job.
· There is always higher quotation than obtainable by open tendering as there is less
competition.

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Single tendering

There may be circumstances in which only one firm will be able to satisfy the criteria for
selection.

This likely happens when specialist or nominated contractors e.g in installation of lifts, gas pipes
works, supply of some selected materials are involved.

Merits

· It is cheap to evaluate the tender.

· The firms with tested results are employed.

Demerits

· It’s usually expensive as a single contractor tenders.

· It’s somewhat undesirable and perhaps an un health state of affairs and can be
embarrassing is un satisfactory tender is received.

Serial tendering

Is a premeditated (deliberate) form of extension and comes essentially into the category of
tendering rather than negotiation. It applies where there a series of similar schemes which are to
be carried out over a period of time within the same area and permitting the phased utilization of
the site organization and plant e.g construction of schools.

It is useful for main contracts and can also secure the benefits of the increased size of order and
production run for component contract and specialist site installation work which become
subcontracts to a series of main contracts.

An example is where a contractor is invited to tender for one building e.g a school on the
understanding that the successful firm will build several schools at the agreed rate.

Merits

· It encourages keener prices than would project for single project.

· Experience gained on the earlier project will be useful later on.

Demerit

· Rapid inflation tends to curtail this type of contract.

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Negotiated tender

This is usually used for construction of a very difficult nature of work, where the magnitude of
the contract may be unknown at first or where early completion is most important, or where
continuation or repetition of an existing contract is considered desirable.

For this contract, there is usually no time to wait for drawings and BoQ to be prepared. One firm
is selected and negotiated with.

Merits

· It’s time saving as no documents/ drawings are prepared.

· It offers a more rational price basis for the contracts perhaps stimulate design
improvement.

Demerits

· It’s hard to satisfy the test of the public accountability.

· Suffers from higher cost due to lack of competition.

Prequalification

Is where a selection of capable firms takes place before submission of the tenders or quotations.

Merits

The same as for selective tendering.

Demerits

The same as for selective tendering except leaving out of new firms.

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PRICING OF TENDERS

Tenders are prepared on the basis of net or gross pricing.

1. Net pricing

Here, only the net site cost is included when building up a basic unit rate for an item; the quantity
(ies) are extended to their rates and totaled.

Profits and overheads are calculated as lump sum based on total net site cost and added to net site
cost to give a tender figure.

Merit

Calculation of profits and overheads can be reduced to one or two operations thus giving a more
accurate tender.

Demerit

Automatic increase in the amount included for general profits and overheads do not take effect if
variations for addition are made.

2. Gross pricing

Net site cost unit rates are calculated and a percentage is added to each unit rate to cover the
general profits and overhead.

Merit

If variations occur on the contract, they are priced at the rates inserted in the BoQ which
subsequently increases the amount with variations for addition work. This is advantageous to the
contractor.

Demerit

There is a greater margin of error when the percentage is added to each unit rate to cover profits
and overheads.

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TENDER DOCUMENTS

The Institution of Civil Engineering (ICE) Chapter 6 clause 5 states that “the several documents
forming a contract are to be taken as mutually explanatory (serving to explain)” there is no order
of preference, the engineer will have to resolve any contradictions and under the ‘contra
proferentem’ rule contradictions will be construed against the employer (who drew up the
contract)

The tender documents will comprise of;

a. Instruction to bidders.
b. From of tender.
c. Conditions of contract.
d. Form of agreement.
e. Drawings.
f. Specifications.
g. BoQ.
h. Other documents e.g Soil data, specific conditions.

Instruction to tender

This will include;

Ø Place, date, time by which tenders must be returned.

Ø Methods of dealing with queries.
Ø How qualified tenders will be dealt with.
Ø Provision for site visits.
Ø Documents to be submitted with a tender.
Ø Methods of dealing with errors.

Form of tender

This satisfies that there is an offer by the contractor and acceptance by the employer.

This has no price; this means a variation order is not required for changes in quantities. Its
appendix gives defects correction period, whether there is need for performance bond, minimum
amount of third party insurance, start date and completion date, liquidated damaged and
retentions.

Conditions of contract

These do two things:

Ø Sets out the contractual responsibilities and liabilities.

Ø Establishes the administrative arrangement.

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Form of agreement

This needs only to be signed if the employer wants to enter into a sealed contract otherwise; a
letter of acceptance is all that is needed.

Drawings

The tender documents will not usually be all that is needed to complete the works but they
should be as comprehensive as possible to ensure that the contractor’s rate truly reflect the nature
and extent of the work. These include among others; plans, sections, elevations.

Specification

In ICE6 contracts, the specification is an independent contract document provided to supplement

the drawings by giving missing information like quality of materials and states general
characteristics common to all works in the BoQ.

Bills of Quantities

These should be drawn up in accordance with Civil Engineering Standard Methods of

Measurements part 3 (CESMM 3) or any agreed standard method of measurement in the country.

Purpose of BoQ

A BoQ Consists of a schedule of the item of work to be carried out under the contract with
quantities entered against each item. The quantities inserted in a bill are normally approximate.

i. Enables the contractor tendering for a job to price on the same information.
ii. Gives itemized lists of the elements of the building with a full description and the
quantity of each item, which assist the building owner and successful contractor in
assessing materials and labour requirements for the job.
iii. Used in the valuation of work done at any time during construction of the works and
completion.
iv. Provides a basis for the valuation of the variations occurring during works.
v. After being priced, provides a basis for cost planning and cost analysis.
vi. Enables contractor to check on his accuracy and order for materials for different works.

Process of preparing a BoQ

Taking off

Is where dimensions are scaled or read from drawings and entered in a recognized form specially
ruled paper called ‘dimensioning paper’

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Working up; this comprises;

a) Squaring the dimensions, transferring the resultant length, areas and volumes to the
abstract, where they are arranged in a convenient order for billing and reduced to the
recognized units of measurement.
b) The billing operation, where the various items of work making up the complete job are
listed in fill with the quantities involved in a suitable order under section headings.

The term ‘quantities’ is the estimate amount of labour and materials required in the execution of
various items of work and together, these items give the total requirements of the building
contract.

Functions of the Building Economists or Quantity Surveyor

Besides preparing a BoQ, they also perform the following:

Ø Advise on what a project would cost.

Ø Advise on what size and standard of structure an be erected for any given expenditure.
Ø Co-operate with designers to ensure that a building is erected within an approved
expenditure.
Ø Advise on the tendering procedure and contractual arrangements.
Ø Exercise control during the construction so that the cost is not exceeded without authority.
Ø Determining compensations of those affected by the project.
Ø At with the architect or engineer to ensure that the final provisions of the contract are
properly interpreted and applied so that the client’s financial interest is safe guarded and
the builder is paid a proper price for the work.
Ø

Tender period

6 weeks is common, the range is from 4 – 12 weeks. Queries and replies are dealt with in this
time formally.

Analysis of tender

No tenders should be opened before the submission closing time and date and should all be
opened at same time. All tender’s name and bill total should be written down and witnessed by
the parties present.

First check is for arithmetical errors, and contractor’s tendering rates.

Acceptance

Prior to acceptance, it’s not common to meet the contractor to clarify points on the tender. A
letter to the contractor accepting the tender will form a binding contract.

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Bid bond/ bid security

This is the money paid by the bidder on submission of the tender document. It shows the
seriousness of the contractor to do the job.

Bid withdraw

This can happen after the contractor has obtained information about the job and realizes that he
cannot afford to carry out the work.

Before opening of the bids, the bid security will be returned to the bidder.

After bid opening, a successful bidder may not withdraw his bid unless the bidder can prove by
clear and convincing evidence that a non-judgmental mistake was made in the original bid.

Performance bond

This is the security paid by the contractor to show that he will execute the work appropriately
according to the contract details. This money is refunded to the contractor on completion of the
contract.

CHAPTER FOUR

ALL – IN RATE FOR RESOURCES

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An all-in rate refers to the total cost/price of executing a unit piece of work. In included the cost
of labour, plants, materials, profits and overheads.

Resources (land, labour, capital, entrepreneurial activities) refer to the valuable elements
required for the accomplishment of a given piece of work/task.

Analysis of Rates

This is the process of determining the rate of an item or work/ supply of the materials. A
reasonable profit, usually 10%-20% for the contractor should be included in the analysis of rates.

Factors affecting the analysis of unit rates

These are sometimes called components/constraints.

Materials – their quantities required for completion of an item are known from their
specifications and the prices are dependent on the market conditions varying from place to place.

Labour – the amount of labour required depends on the average of past works. Since capacity to
do work and wages of labour vary from place to place, the cost of labour is a variable factor;
hence, proper studying of efficiency and wages of labourers before start of rate analysis is
required.

Site conditions – difficult site conditions will usually invite slightly higher rates.

Specifications – with very rigid specifications of work, the rate will be higher.

Conditions of contract – with very strict conditions, a higher rate is invited and vice versa.

Quantum of work – if the contract is big, the rates of items are likely lower.

Special equipment – if special equipment is required for certain items, the rate of work is bound
to be higher as the cost of equipment/rent cost is added on the rate.

Place of work – if the site is situated in a highly congested area, it will not be possible to take the
materials directly on site hence, higher rates.

Profits to the contractor

Miscellaneous – factors like time of project completion, climatic conditions, and reputation of
the contracting agency also affect the rate of items.

Purposes of carrying out rate analysis

o To compute the current actual cost per unit of work at the locality.
o To examine the viability of the rates offered by the contractors.

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o To calculate the quantity of materials and labour strength required for project planning.
o To fix up labour contract rates.
o To fix profits and overheads.

How to fix up rates per unit of item

The following 5 sub heads are to be examined and the summation of these is the rate per unit of
an item.

o Quantity of materials and their cost.

o Labour costs.
o Cost of equipment and tools.
o Overhead or establishment charges.
o Contractor’s profits.

LABOUR

Labour refers to workers who provide physical effort for the execution of particular works/
physical efforts provided by work force.

Labour output is the most uncertain part of a unit rate. It can vary considerably depending upon
the skill and output of the operatives, the site organization, weather conditions and other factors
outside the control of the contractor.

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An estimator should calculate the hourly cost to the builder of the skilled and unskilled labour
which will be employed on the contract if the tender is successful, and this is classified as the
build-up of labour rate.

Factors considered in coming up with labour rates

Basic rate of pay in accordance with the working rule agreement.

Third party insurance and federation payments – autonomous (self governance).
Guaranteed time inclement (unpleasantly cold/wet) weather.
Training levy.
Graduated pension contribution.
Sickness benefit.
Holiday with pay contribution at current rate.
National insurance and redundancy (standby) contribution at current rate.
Tool allowance.
Travelling expenses.
Extra payments of discomfort, extra skill, intermittent (specialist) responsibility.
Trade supervision.
Percentage addition to cover the extra cost brought about by the operative working fewer
hours than expected.
Overtime.

EXAMPLE OF BUILDING UP LABOUR RATES

Computations are made basing on a week of 5 days, 8 hours a day giving 40 hours a week.

Consider a year of 50 weeks.

Consider the table below

Unskilled Skilled

Basic pay per day 8000/= 15000/=

Third party as a %age of basic 2.5% 2.5%

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Guaranteed time as a %age of basic 2% 2%

Graduated pension as a %age of basic 2% 2%

Sickness benefit as a %age of basic 0.5% 0.5%

Holiday with pay contribution (annually) 200,000/= 350,000/=

National insurance & redundancy (annually) 128,000/= 128,000/=

Public holiday (annually) 120,000/= 120,000/=

Training Levy per week 5,000/= 10,000/=

Calculations

Unskilled

Basic pay………………………………………………………8000/8 =1000*40 = 40000/=

Third party……………………………………………………..0.025*40000 = 1000/=

Guaranteed time………………………………………………. 0.02*40000 = 800/=

Graduated pension…………………………………………….. 0.02*40000 = 800/=

Sickness benefit………………………………………………..0.005*40000 = 200/=

Holiday with pay contribution…………………………………200,000/50 = 4000/=

National insurance & redundancy…………………………….. 128,000/50 = 2560/=

Public holiday…………………………………………………..120,000/50 =2400/=

Training Levy…………………………………………………………………………… =5000/=

Total per week =56760/=

Unskilled rate per hour 56760/40 =1419/=

Skilled

Basic pay…………………………………………………………15000/8 =1875*40 = 75000/=

Third party ………………………………………………………..0.025*75000 = 1875/=

Guaranteed time…………………………………………………..0.02*7500 = 1500/=

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Graduated pension ……………………………………………......0.02*4000 = 1500/=

Sickness benefit………………………………………………….. 0.005*7500 = 375/=

Holiday with pay contribution…………………………………….350,000/50 = 7000/=

National insurance & redundancy…………………………………128,000/50 = 2560/=

Public holiday………………………………………………………120,000/50 =2400/=

Training Levy ………………………………………………………………………........=10000/=

Total per week = 102,210/=

Skilled rate per hour 102,210/40 =2555.256/=

Extra payments

Extra payments for discomfort or risk, continuous extra skill or responsibility, intermittent
responsibility, and similar items should be added to the built up hourly rate, in accordance with
the working rule agreement.

Overtime

The estimator must decide the amount of overtime which is to be included in the labour rate for
the contract being tendered for.

Fluctuation

When the fluctuation clause is included in the conditions of contract, it is necessary for the
estimator to ascertain whether his built up rates are to be on current rates of wages if known
increases are to be included. If known increases have to be included, they are dealt with in a
similar manner to the section ‘firm price tender’

Firm price tender

When the project tendered for has had the fluctuation clause deleted from the conditions of the
contract, it’s necessary for the estimator to add or omit all known increases or decreases in
labour after the date of tender and during the estimated contract period. The estimator also needs
to make allowance for further anticipated variations in labour cost over the period.

Factors that lead to variation in labour rate

Variation in attitudes, culture, e.t.c of the individuals.

Location of work e.g height; underground works, high levels.
Weather conditions.
Workmanship expected.

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Level of supervision.
Site organization.
Skills of workers.

Factors that affect labour rates

Supervision.
Overtime.
Holidays.
Training levy.
Locality.

Example on how labour rates are affected by supervision

Consider skilled labour

ü Assume 8 brick layers who are able to lay 4m2 of a 225mm thick wall in one hour.
ü One supervisor.
ü Assume 8 working hours a day.

Use

Labour 15,000/= per day……………………………………………………..1875/= per hour

Supervision 24000/= per day…………………………………………………..3000/= per hour

Cost of 8 brick layers per hour = 8*1875………………………………………15,000/=

Cost of supervision per hour = 3000…………………………………………….3, 000/=

18,000/= per hour

Cost of labour rate per hour (labour rate) 18000/8……………………………….2250/=per hour

Labour rate = 2250/= with supervision

=1875/= without supervision

Difference = 375/=

Example on how labour rates are affected by overtime

Consider from Monday to Friday working for 8hours a day which gives 40hours a week.

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Consider also working for additional one hour per day from Monday to Friday and working for
6hours on Saturday.

Consider the factor for over time as 1.5.

Given a labour rate of 1875/= per hour for a worker.

computations

Total working hrs a week with overtime = 40 + (5*1.5) + (6*1.5) ……………..56.5hour a week

Actual working hours a week = 40+5+6…………………………………………51hrs a week

Total amount per week = 1875*56.5…………………………………………105937.5/= a week

Cost of productive hrs (labour rate) = 105937.5/51…………………………..2078/= per hour

Effect of over time =2078 – 1875……………………………………………..203/=

Note:

Where labour rates cannot be built up due to inadequate time, labour rates can be got from;

i. Past records of work.

ii. Current rates from sister companies considering inflation

Multiply past rates by a factor (1+f)n where n is the number of years that have elapsed from the
time of tendering and f is the average inflation rate.

MECHANICAL PLANT

The estimator must decide on the type of machines to be used and their respective sizes before
pricing any of the items involved.

The type of machine will depend largely on; amount of work, nature of work or material to be
excavated, weather conditions, time frame.

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Excavation plants, concrete mixers, rollers or even transport vehicles are usually charged on site
at an hourly hire rate based on a normal working week.

Any time worked over the number of hours on hire agreement is charged extra also travelling
time expenses to and from the site.

Methods of acquiring a plant

§ By purchasing
§ By hiring
§ By leasing

Depreciation of machines

Plants suffer wear, tear, and physical deterioration in constant use. Invested capital must be
recorded to remain in business.

Causes of depreciation

o Age
o Introduction of newer most efficient plant
o Lack of maintenance
o Nature of work
o Wear and tear

Methods of calculating depreciation costs

Methods for calculating depreciation costs were evolved through tradition and permitted by the
taxation authorities for the purpose of retention of the sums accumulated.

a) Straight line depreciation method

Here, the total depreciation sum (total capital spend on acquiring it minus its estimated
salvage/scrap value at the end of its useful life) is divided by the estimated useful life of the
asset.

Interest rate is not taken into consideration by convention and for the sake of simplicity.

Example

Consider purchase of a tipper lorry at £16,000. The ripper lorry has a life of 4years and salvage
value of £4,000.

Solution

The depreciation cost =£(16,000 – 4000)/4 =£3000.

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Year Amount to recover (£) Net book value (£)

0 0 16,000

1 3000 13,000

2 3000 10,000

3 3000 7,000

4 3000 4,000

b) The declining balance method

This is also called diminishing balance method/ constant percentage book value method. A
certain percentage is fixed of the cost of the equipment to be recovered per year.

The percentage depends on;

o Cost of capital
o Life of the equipment
o Inflation
o Competition
o Profit

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Example

Consider purchase of a dump truck at £16,660 with useful life of 4years. Use the method of
declining to compute the yearly amounts to recover if the fixed percentage to recover is 30 and
the salvage value is £4,000.

Year Beginning of year (£) End of year (£) Yearly amount to be recovered (£)

0.7P 0.3P

1 16,660 11662 4998

2 11662 8163.4 3498.6

3 8163.4 5714.4 2449

4 5714.4 4000 1714.4

Salvage, S = P(1-r)n

Where n = no of years (period)

r = fixed depreciation rate

P = initial cost.

c) Sinking fund method

Here, the cost of any capital is ignored until such a time when the accumulated sum equals to
original sum borrowed and the redemption of loan takes place.

P (1 + i )
n
Depreciable cost R= i
(1 + i )n - 1
Where; i = interest on capital.

n = number of years.

Compute for R using i as the interest on capital, add running cost as a percentage of R, then add
profits and over heads.

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Example

Consider purchasing an excavator at UGX 300m with a life of 3years and a resale value of
UGX100m. Interest on capital is 20%, running cost is 10%. Profits and overheads are 20%.
Calculate the cost per hour of the equipment assuming 8hours a day, 5 days a week and 50 weeks
a year.

Solution

P (1 + i )
n
Using R = i
(1 + i )n - 1
300(1 + 0.2 )
3
R= 0.2 = 142.4m
(1 + 0.2)3 - 1
Adding running cost =1.1*142.4 =156.64m

Adding profits and overheads = 1.2*156.64 =188m

Therefore cost per hour = 188,000,000/2000 = UGX 94,000

d) The sum – of - digits method.

In this method, the digit numbers representing each year of operation of the plant are added
together. The depreciation charge for each year is taken as the depreciable sum multiplied by the
ratio of the reverse year’s number to the total added digits.

Example

If a truck is purchased at 30m shillings and the resale value is 10m at the end of the 5th year, the
digits are 1,2,3,4 and 5. Determine the depreciation charge.

Solution

Total digits = 1+2+3+4+5 = 15

Depreciable sum = 30 – 10 = 20m

Depreciation in the 1st year = (5/15)*20 = 6.7m

Book value at the beginning of 2nd year = 30 -6.7 = 23.3m

Depreciation in the 2nd year = (4/15)*20 = 5.3m

Book value at the beginning of 3rd year = 30 -5.3 = 24.7m

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Depreciation in the 3rd year = (3/15)*20 = 4m

Book value at the beginning of 4th year = 30 -4 = 26m

Depreciation in the 4th year = (2/15)*20 = 2.7m

Book value at the beginning of 5th year = 30 -2.7 = 27.3m

Depreciation in the 5th year = (1/15)*20 = 1.3m

Factors that affect the cost of a plant

§ Inclement weather
§ Lack of supervision
§ Inexperienced operator
§ Lack of maintenance
§ Use of inappropriate machine (poor selection)
§ Haulage distance

Question (Practice by the course participant)

Compute the cost per hour of a tipper lorry purchased at UGX 40m. The truck was bought
through a loan scheme with 15% interest and has 5years useful life after which, it can be sold for
UGX 10m. Assume the operating cost to be 10% and the owner’s profit 5%. Use the four
methods and compare the results.

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MATERIALS

The cost of materials varies considerably depending upon the firm which supplies and the
purchaser.

Factors determining cost of material (unit rate of materials)

Quantity to be purchased
Inflation
Annual turnover of the supplier
Law of demand and supply
Speed with which the purchaser settles the account
Wastages to be encountered e.g cutting waste, application waste, stock pile waste, residue
waste, transit waste and theft & vandalism.

Sources of information for the prices of resources

Press on radios, TVs by technical teams.

Site visits
Manufacturers
Institutions set up as the source of cost information centers e.g UBOS.
From sister companies and dealers
From sub contractors and suppliers
Contacting local people

PROFITS AND OVERHEADS

A profit is a return on business.

Factors considered before assessing the profits

Quantity commitment (amount of work to handle at a particular time

Future commitment
Placing in previous tendering
Possibility of future work from the same client/ owner
Assessment of the degree of competition
Terms of payment
Expected working conditions
Source of capital e.g if borrowing money from the financial institutions)
Complexity of the work

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PRELIMINARY & GENERAL WORKS THAT NEED PRICING

Plant
Compound and hoarding
Watching, lighting and security
Water works supplies
Temporary road
Site offices
Removal of rubbish

e.t.c.

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EXCAVATION AND EARTHWORKS

Earthworks refer to engineering works created through the moving of massive quantities of soil
or unconfined work.

Before pricing which unit rates for excavation works are needed, the estimator should visit the
site to ascertain what anticipated conditions will be at the time the work is to be carried out.

Examples of earthworks

v Site stripping
v Clearing and grabbing
v Cut & fill site balancing
v Rough and fine grading
v Earth moving and stock pilings
v Earth compaction
v Field survey and layout
v Building temporary roads
v Soil stabilization
v Park development
v Site rehabilitation
v Top soil placement

There are two methods of excavation that is the manual and mechanical method.

Factors considered when choosing the method of excavation

i. Volume of work to be done

ii. Availability of labour
iii. Time frame to complete excavation
iv. Nature of the material to be excavated
v. Depth of excavation
vi. Haulage distance

Factors that affect excavation rate

i. Weather conditions e.g rainy season

ii. Nature of the soil; clay, sandy/rocky
iii. Water content (effects when loading the machine)
iv. Bulking which is the increase in volume due to disturbances during excavation.
v. Cost of tip and haulage distance
vi. Method of excavation; manual/mechanical
vii. Required width and depth of excavation
viii. Operator’s skills
ix. Level of site organization and supervision

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Use of mechanical plant

Factors considered in acquiring a plant are:

ü Availability of funds
ü Utilization (how much work is available to keep the plant working?)
ü Time scale of the project

Ways of acquiring of mechanical plant

ü Hiring; the advantage is that a plant can be hired for a minimum period required and the
disadvantage is being expensive if it’s to be hired for a long time.
ü Purchasing; the owner of the plant must have sufficient work for the plant to avoid
idleness leading to financial loss. This is through firm’s own contracts or through public
hire business.
ü Leasing agreement

How to compute for the cost of using a plant per hour

Hiring; negotiable on how much to pay per day or week and dividing by the total working hours.

For purchased plant, a built up of hourly rate is done

Costs to consider when purchasing

ü Purchase rate
ü Interest on capital
ü Recovery of purchase price
ü Operating cost (operator, fuel)
ü Maintenance
ü Insurance
ü Taxes

Information required before purchase

ü Have knowledge of the life cycle of the plant

ü Hours that the plant will be utilized by annum
ü Output of plant
ü Maintenance and repair requirements

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Examples on excavation and earthworks

One

To excavate a basement starting at ground level to reduced level to a maximum depth not
exceeding 2m using a 0.25m3excavator which load directly to lorries for disposal costs 24,000/=
per hour. The excavator outputs 9m3 per hour. Assuming a bank man is paid 1200/= per hour,
compute the cost per cubic metre.

Solution

Total cost is 24000+1200 = 25200/=

Therefore, cost per cubic metre = 25200/9 = 2800/=

Two

A CAT 973 Crawler excavator of bucket capacity 2.5m3 and cycle time 2 minutes is to be used
to excavate a 48x36x4m basement and load into a 15m3 Volvo Euclid R32 tipper Lorries of
speed 40km/hr and 55km/hr loaded and empty respectively. The travel distance from the
basement to the dumping site is 2.7km and the time for maneuvering at both ends is 2minutes,
tipping time is 2minutes and waiting time is 1 minute. Job efficiency is 85% and bulking is 25%.

Assuming 5 days in a week and 8 working hours a day,

a) Estimate the excavator’s work out put in m3 per day.

b) The contract period in weeks.
c) Number of Lorries required to match the excavator.

Solution

QxCEx60 xTxFxE
a) Output of excavator
Cm
Where; Q = Capacity

CE = Bucket fill factor

T = Time period for which production is done.

F = Soil factor

E = Job efficiency

Cm = Cycle time

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2.5 x1x60 x1x1x 0.85

= 63.75m 3 / hr
2

\ Output per day = 63.75 x8 = 510m m / day

b)
Volume of excavation 48x36x4 = 6912m3

Volume to be transported = 6912x1.25 = 8640m3

Number of weeks = 8640/510 = 17 days = 17/5 = 3.4weeks. Say 4 weeks.

æ 15 ö æ 2. 7 ö æ 2.7 ö
c) Cycle time for lorries = 1 + 2 + 2 + ç x2 ÷ + ç x60 ÷ + ç x60 ÷ = 24 min
è 2.5 ø è 40 ø è 55 ø

QxCEx60 xTxFxE 15 x1x60 x1x1x 0.85

Output of Lorry = m
= = 31.9m 3 / hr
C 24

Number of Lorries = (63.75/31.9) = 2 Lorries.

Three

Estimate the cost per CM of a 7m wide road sub-base supposed to be filled to a 600mm thickness
in layers of 150mm and compacted using a 10 tonnes roller costing 800,000 per day of 8 working
hours. A grader hired at 600,000 per day is to be used for spreading the marrum; the marrum
shall be excavated using a 2.5m3 excavator and it’s assumed to have just the original moisture
content for maximum compaction and will be loaded directly into lorries of 15m3 capacity for
disposal at the site 3km away. Travel speed for the lorry is 40km/hr loaded and 55km/hr empty.

The excavator is able to excavate and load in 2 minutes per every bucket. The maneuvering time
at both ends is 2minutes, waiting time is 1minute and tipping time is 2minutes. Bulking factor is
25%.

The excavator and lorry were purchased at 400m UGX and 120m UGX respectively and have
useful lives of 10 years.

The cost of capital is 15% and as a prospecting contractor, the other figures for maintenance,
insurance, taxes, profits and overheads are to be assumed. Use the method of depreciation of
your choice to determine the total cost of the sub-base per a km.

Solution

Volume of earth work in a km = 0.5x0.6x (7+7+1.2) x1000 = 4560m3

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Adding 30% consolidation, Volume to be transported = 4560x1.30 = 5928m3. Say 6000m3

QxCEx60 xTxFxE
Output of excavator ; Assume efficiency of 85%
Cm

2.5 x1x60 x1x1x 0.85

= 63.75m 3 / hr
2

\ Output per day = 63.75 x8 = 510m m / day

Number of days required = 6000/510 = 12 days

æ 15 ö æ 3 ö æ 3 ö
Cycle time for Lorries = 1 + 2 + 2 + ç x 2 ÷ + ç x 60 ÷ + ç x 60 ÷ = 24.8 min
è 2.5 ø è 40 ø è 55 ø

QxCEx60 xTxFxE 15 x1x60 x1x1x 0.85

Output of Lorry = m
= = 30.85m 3 / hr
C 24.8

Number of Lorries = (63.75/30.85) = 2.1. Say 3 Lorries.

Assuming that a grader can spread 510m3/day and the roller can compact 510m3/day.

Required equipments and labourers are;

No of equipment No of skilled labourers No of Unskilled labourers

Excavator 1 1 1

Lorry 3 3 3

Grader 1 1 1

Roller 1 1 1

Add one supervisor for both skilled and for unskilled and 2 watch men, 2 flag men plus one
standby for skilled and unskilled.

Total skilled = 1+3+1+1+1 = 7

Total Unskilled = 1+3+1+1+1+2+2 = 11

Assume 3000 for supervisor 2000 for skilled and 1500 for unskilled per hour

Total = (3000 + 2000x7 + 1500x11) x8 = 268,000/ per day

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Equipment

Excavator

Initial capital 400m

Interest on capital = 15%

Assume all other rates (profit, overheads, running) = 20%

Using sinking fund method

é (1 + i )n i ù
R = Pê ú
ë (1 + i ) - 1û
n

é (1 + 0.15)10 0.15 ù
R = 400 ê ú = 79.7 millions
ë (1 + 0 .15 )10
- 1 û

Adding others 1.2x79.7 = 95.64millions

Recoverable amount per day = 95,640,990/50x5 =382,354/= per day.

Lorry

Initial capital 120m

Interest on capital = 15%

Assume all other rates (profit, overheads, running) = 20%

Using sinking fund method

é (1 + i )n i ù
R = Pê ú
ë (1 + i ) - 1û
n

é (1 + 0.15)10 0.15 ù
R = 120ê ú = 23.91millions
ë (1 + 0.15) - 1 û
10

Adding other 1.2x23.91 = 28.69millions

Recoverable amount per day for one Lorry= 28,692,000/50x5 =114,769/= per day

Recoverable amount for 3 Lorries = 114,768x3 = 344,304/= per day

Grader

Hire rate per day 600,000x1.2 = 720,000/= per day

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Roller

Hire rate per day 800,000x1.2 = 960,000/= per day

Total cost is 268,000 +382,354 + 344,304 + 720,000 + 960,000 = 2,674,658/= per day

Cost per CM = 2,674,658/510 = 5,244/= per CM

Cost per km = 5,244x6000 =31,464,000/= per km.

LABOUR AND LABOUR CONSTANTS

Labour output is the most uncertain part of a unit area. It varies considerably depending on the
operatives, site organization, weather conditions and other factors outside the control of the
contractor. Records of labour outputs of each operative involved in construction have been kept
for many years, taking into account varying conditions and a comprehensive list of skilled and
unskilled times has been prepared. These records which give the average unit times for each
operative is what is called labour constant.

Factors considered in the use of manual labour in excavation

ü Government policy e.g labour base for rural road construction.

ü Depth of excavation
ü Availability of labourers
ü Volume of excavation
ü Urgency of work
ü Haulage distance

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The following are average labour constants for hand excavation under normal conditions and in
ordinary grounds like heavy soils or medium clay.

Description Unit Un skilled labour

Lifting and stacking turf SM 0.3

Exc. Veg. av.150mm SM 0.3

Surface exc.av.dp.150mm SM 0.45

Surface exc. to reduce level CM 2.4

Exc. Basement n.e 1.5m deep CM 2.9

Exc. Basement exceeding 1.5 n.e 3.0m deep CM 5.9

Exc. Basement exceeded 3m, n.e 4.5m deep CM 7.25

Exc.fdn trench exceeding 1.5m, n.e 3.0m deep CM 6.5

Exc.fdn exceeding 3m, n.e 4.5m deep CM 8.125

Exc.isolated stanchion fdn n.e 1.5m deep CM 5.0

Exc.isolated stanchion fdn exceeding 1.5m, n.e 3m deep CM 10.0

Wheeling exc. Mtrl by barrow per 100m CM 1.0

Spread & level exc mtrl in layers 150mm thick CM 1.3

Load exc mtrl into lorry as dug CM 2.0

For excavation in other materials than medium or heavy soils, adjust the above labour constants
as follows:

Loose sand …………………………………………………………………………………..x0.7

Stiff clay or gravel …………………………………………………………………………x1.50

Soft rock ……………………………………………………………………………………x3.00

Hard rock ……………………………………………………………………………………x8.00

Below are the increases in bulk of various types of soils after excavation

Gravel ……………………………………………..% increase ………………………………..10

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Sand ……………………………………………………………………………………………12.5

Ordinary earth……………………………………………………………………………………25

Clay…………………………………………………………………………………………….33.3

Chalk …………………………………………………………………………………………..33.3

Rock …………………………………………………………………………………………….50

Example 1

Lifting and stacking turf (SM)

0.30 unskilled hours @500/……………………………………………………………………150/

Cost per SM……………………………………………………………………………………150/

Example 2

Surface excavation av.150mm deep to reduce level (SM)

0.45 unskilled hours @ 500……………………………………………………………………225/

Cost per SM of surface excavation…………………………………………………………….225/

Example 3

Excavate trench to receive fdn exc. 3m, n.e 4.5m deep (CM)

8.1256 unskilled labour hour @500………………………………………………………4062.5/

Cost per CM…………………….………………………………………………………..4062.5/

The labour constant above has been based on the following:

Two labourers excavating and taking 1.625 gang hours per CM to excavate and stage 1.5m

One labourer at every other 1.5m stage taking 1.625 hours per CM to excavate and stage 1.5m

One labourer clearing back at top of excavation taking 1.625hours per CM

Summary

Excavate and stage 4.5 to 3.0 =2*1.625…………………………………………………….3.250

Stage 3 to 1.5m………………………………………………………………………………1.625

Stage 1.5 to ground level……………………………………………………………………..1.625

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Clearing back at top………………………………………………………………………......1.625

Total …………………………………………………………………………………………8.125

8.125 hour per CM = 8.125 @ 500…………………………………………………………4062.5/

Example 4

Calculate the unit rate of excavation of over site 150mm and deposit at a distance 100m from the
excavation.

A SM of surface excavation takes unskilled labour 0.45 hours

Say an hour labour rate is 500/=

Cost of excavation for 0.45 @ 500 …………………………………………………………225/=

Deposit 100m away by barrow takes 1 hour @ 500*0.15……………………………………75/=

300/=

The cost of excavating surface to average depth of 150mm and depositing 100m is 300/=.

This excludes the contractor’s profits and overheads.

Example 5

Calculate the unit rate of excavation of over site 250mm and deposit at a distance 200m from the
excavation.

Since the depth and haulage distance has changed, we can use proportion.

Cost of excavation 250mm is 0.25/0.15*225….……………………………………………..375/=

Deposit 200m away by barrow takes 2 hour @ 500*0.25……………………………………250/=

625/=

The cost of excavating surface to average depth of 250mm and depositing 200m is 625/=.

This excludes the contractor’s profits and overheads.

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 CHAPTER FIVE

CONCRETE WORKS

Factors that affect the cost of concrete

There are three main initial factors to be considered in the costs of concrete:

· Method of mixing
· Materials being used, their specifications and grade of concrete
· Site transportation, placing and compaction

Other factors are:

· Type of mixer to be used
· Whether cement is supplied in bag or in bulk
· Workmanship and finishing expected
· Position of mixing in relation to the areas and quantities of concrete to be placed
· Whether in-situ mixed concrete or ready mixed concrete is to be supplied
· Site organization
· Work continuous or intermittent

CALCULATIONS FOR COST OF CONCRETE

Correction factors for concrete and for mortar

For concrete

The voids in concrete take up 40%

(V + ¶ v )0.6 = V
V + ¶ v = 1.667V
¶ v = 0.667V
E. g withV = 7,
Total Volume = (7 + 0.667 x7 )0.6 = 7.0014 » 7CM

For mortar

The voids in mortar take up 25%

(V + ¶ v )0.75 = V
V + ¶ v = 1.333V
¶ v = 0.333V

Question One
 Estimating and Tendering

Concrete of mix grade 20 (1:2:4).

Calculate using volume batching, the unit rate of concrete and prepare the materials delivery list given the
following information considering a slab of 7m by 15m of 150mm thick:

Cement…………………………………………..@ 36,000/ per 50kg bag

Transport for cement………………………………500/ per bag

Unloading cement………………………………….50/ per bag

Sand ……………………………………………….15,000/ per CM delivered

Aggregate………………………………………….40,000/ per ton delivered

Densities

Cement……………………………………………..1.3ton/CM to 1.4 (1300kg/m3 to 1400kg/m3)

Moist sand………………………………………….1.3

Dry sand…………………………………………….1.5

Aggregate …………………………………………..1.6

Solution

1400kg of cement are contained in 1CM

1kg…………………………….. …CM/1400…………………………………..(i)

50kg of cement are contained in 1bag

1kg…………………………………bag/50…………………………………….(ii)

From (ii)/(i)

1CM of cement contains 1400/50 = 28bags.

1CM of cement……………………………28bags @ 36,0000……………………1,008,000/

Transport for 28 bags @ 500……………………………………………………….14,000/

Unloading of 28 bags @ 50…………………………………………………………1,400/

2CM of sand delivered @ 15,000………...................................................................30,000/

4CM of aggregates delivered …..4x1.6x40,000……………………………………256,000/

Total 1………………………………..1,309,400/

Cost of 1CM of dry concrete with ………(1,309,400 + 0.667x1,309,400)/7……….311,824/

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Voids catered for

Allow 5% waste……………………………………………………………………..15,591/

Concrete mixer 0.5hrs @ 6250……………………………………………………….3125/

Unskilled labour 6 @ 1000…………………………………………………………...6000/

Total 2…………………………………333,422/

Add 25% profits and overheads………………………………………………………..83356/

Total 3…………………………………..416778/

Cost per CM of concrete of grade 20 is ……………….416778/

Cost per SM of floor slab is……0.15x416778…………62517/

Therefore the unit rate for the floor slab is 62,517/ per square metre.

Preparation of materials delivery list

There are 28 bags of cement in 1CM and this was used to produce 7CM.

After mixing with water, volume of concrete = 7x0.6 =4.2CM due to 40% shrinkage.

Therefore, 1CM of concrete requires 28/4.2 = 6.7 bags. Say 7 bags of cement.

4.2CM of concrete were given by 2CM of sand

Therefore, 1CM of concrete requires 2/4.2 = 0.48CM of sand

4.2CM of concrete were given by 4CM of aggregates

Therefore, 1CM of concrete requires 4/4.2 = 0.95CM of aggregates….0.95x1.6 = 1.52tons

Volume of the slab = 0.15x7x15 = 15.75CM

Materials required for the 15.75CM of concrete

Cement = 7x15.75………………110.25 bags. Say 110 bags

Sand = 0.48x15.75………….7.56 CM. Say 8CM.

Aggregates = 1.52x15.75………23.94 tons. Say 24 tons.

Item Description Unit Qty Rate Amount

1 OPC Bag 110 36000 3,960,000

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2 Sand CM 8 15000 120,000

3 Aggregates Ton 24 40000 960.000

Total 5,040,000

Question Two

A 150mm thick reinforced concrete slab is to be cast in-situ in concrete grade 30 (1:1.5:3).

a) Compute the unit rate for concrete ignoring the cost of reinforcement and formwork.
b) Produce a material delivery list if the slab required 100m3of concrete.

Data

OPC delivered and offloaded per bag of 50kg cost 29,000/

1 ton of lake sand delivered cost 15,000/

1 ton of 20mm aggregates from Namanve cost 40,000/

Concrete mixer of capacity 2CM per hour is hired at 40,000/ per day of 8 working hours

Porker vibrator is hired at the rate of 24,000/ per day of 8 working hours

Allow 40% of voids in concrete

Unskilled labour constant for concrete is 6hours

Skilled labour constant is 0.3hours

Unskilled labour rate is 625/

Skilled labour rate for concrete is 1500/

Allow 20% for profits and overheads

Solution

(a) Unit rate of concrete

Volume batching in the ratio 1:1.5:3

1CM of cement……………………………28bags @ 29,000………………………812,000/

1.5CM of sand each ton @ 15,000………...........1.5x1.3x15000 delivered................29250/

3CM of aggregates delivered …..3x1.6x40,000……………………………………...192,000/

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Total 1………………………………..1,033,250/

Cost of 1CM of dry cement with ………(1,033,250 + 0.667x1,033.250)/5.5………..313,169/

Voids catered for

Allow 5% waste…………………………………………………………………………156581/

Concrete mixer (40000/8)x0.5hours…………………………………………………….2500/

Porker vibrator (24000/8)x0.5hours……………………………………………………..1500/

Unskilled labour 6 @ 625…………………………………………………………..........3750/

Skilled labour 0.3x1500/………………………………………………………………….450/

Total 2…………………………………….337,027/

Add 20% profits and overheads……………………………………………………………67405/

Total 3……………………………………404,432/

Cost per CM of concrete of grade 30 is ……………….404432/

Cost per SM of floor slab is……0.15x404432…………60665/

Therefore the unit rate for the floor slab is 60665/ per square metre.

(b)Preparation of materials delivery list

There are 28 bags of cement in 1CM and this was used to produce 5.5CM.

After mixing with water, volume of concrete = 5.5x0.6 =3.3CM due to 40% shrinkage.

Therefore, 1CM of concrete requires 28/3.3 = 8.5 bags.

3.3CM of concrete were given by 1.5CM of sand

Therefore, 1CM of cement requires 1.5/3.3 = 0.45CM of sand ….0.45x1.3 = 0.59tons

3.3CM of concrete were given by 3CM of aggregates

Therefore, 1CM of cement requires 3/3.3 = 0.9CM of aggregates….0.9x1.6 = 1.45tons

Materials required for the 100CM of concrete

Cement = 8.5x100………………850 bags.

Sand = 0.59x100……………..59 tons.

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Aggregates = 1.45x100…………145 tons.

Item Description Unit Qty Rate Amount

1 OPC Bag 850 29000 24,650,000

2 Lake Sand Ton 59 15000 885,000

3 20mm machine crushed aggregates Ton 145 40000 5,800,000

Total 31,335,000

FORM WORK

Before pricing the unit rates for form work, the estimator will consider the following items:

· Whether metal or timber form work

· The design of the form work to be used
· The estimated number of times the form work can be used.
· The labour involved in making, fixing and stripping.

Timber form work

The following is a typical method of building up:

Cost of material in making, plus cost of labour in making, divide by the estimated number of uses.

Add the following;

ü Labour for fixing and stripping

ü Treatment of shutter face with soap oil, shutter paint or any other treatment after stripping
ü Repair and cleaning after each use
ü Beam hungers, wall ties, and the like, bearing in mind that bolts can be use several times
ü Column cramps, steel prop and similar items
ü Cost of ply wood sheets including unloading and waste of 7% divided by the number of uses

CALCULATIONS ON FORM WORK

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Question One

Compute the cost per square metre of a 225x225x3 column box to be made from 250x25x4.2m soft
boards and braced with 50x50 timbers. The cost of timber per CM is 500,000/ delivered and offloaded.
The formwork shall be supported using eucarlyptus poles costing 2000/ delivered to site. One carpenter
and one assistant are expected to fabricate two column boxes ready for concrete per day.

Solution
25
100mm 275mm 100mm 225

3m Brace 225

225mm 225mm

Braces

Using a spacing of 500mm

L = 100+275+100 = 475mm = 0.475m

Volume = 0.475x0.05x0.05 = 1.1875x10-3CM

Cost of braces = 1.1875x10-3x500000x7x4 = 16625/=

Boards

3x0.025x0.275x500000x4 = 37500/=

Cost of eucalyptus poles = 4x2000 = 8000/

Total cost = 16625 + 37500 + 8000 = 62125/

Add 10% wastage = 6212.5/

Total cost of one column boxes = 68338/

Cost of two columns boxes =68338x2 = 136676/

Adding labour = (15000+10000) =25,000/

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Total cost of two columns boxes = 161676/=

Area of column box 0.25x3x4 = 3SM x 2 for 2 column boxes

Cost per SM = 161676/3 = 53892/ per SM for two columns

For one column box = 53892/2 = 26946/= per SM of one column box

The course participant can add cost for treatment and then add 20% profits and over heads to get
the actual cost per SM of a column box.

Question Two

What will be the cost of reinforced concrete column of 225x225x3 if it requires 16mm bars of 6No. per
column and 8mm stirrups at 200mm centres are to be used. Reinforcement costs 2,000,000/ per ton
delivered to site. Use example two on calculations for cost of concrete to get the cost per CM of plain
concrete (404432/=)

Data

Wastage =5%

Tie wires and spacers =2%

Cutting and bending rate =15hrs/ton

Fixing rate = 20hrs/ton

Bar bending machinery = within on-site cost

Site transportation = with in on-site cost

Labour for steel fixer = 3000/hr

Solution

Compute the volume of the column = 0.225x0.225x3 = 0.1485CM

Using the unit cost of concrete (404432/), compute the cost of concrete required for the column as
0.1485x404432 = 60,058/=

Reinforcement

Purchasing 2,000,000/ per ton

Wastage of 5% of purchase 100,000/

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Add 2% of purchase for spacers and binding wire 40,000/

Labour (15+20)x 3000 105,000/ per ton

Total 2,245,000/per ton

25
3m 0.8m
225

Starter bar

Length of links = 225 -50 = 175x4 = 700 + 100(bending) = 800mm.

Assume a spacing of 200 as in question

No of links = 3000/200 = 15 + 1 = 16

Total length of stirrups = 16x800 = 12,800mm = 12.8m of 8mm bar.

Length of 16mm bars = 3+0.8 = 3.8x6 = 22.8m

Computing the weight per linear metre ( Õ r 2 r )

For 8mm bar; using density of steel as 7800kg/m3

2
æ 4 ö
Õç ÷ x 7800 = 0.39kg / m
è 1000 ø

For 16mm bar

2
æ 8 ö
Õç ÷ x7800 = 1.57kg / m
è 1000 ø

Computing the weight of 8mm and 16mm bars

For 8mm bars

12.8x0.39 = 4.992kg

For 16mm bars

22.8 x 1.57 = 35.796

Total weight = 4.992 + 35.796 = 40.788kg = 0.041tonnes.

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Cost of reinforcement = 2,245,000x0.041 = 92,045/=

Therefore, total cost of a reinforced column = (60058+92045) = 152,103/=

N.B: Add 20% Profits and Overheads on the 92045/=

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CHAPTER SIX

BRICK/BLOCK WORK

Factors that affect the costs of brick/block work

§ Wall thickness
§ Workmanship or finishing expected
§ Height of workplace
§ Whether activity is continuous or intermittent
§ Specification of building unit
§ Skills of masons
§ Level of supervision and site organization

In order for the estimator to price the unit rate for brick or block, it is necessary for him to know the
following:

· How to build up the price per cubic metre for the mortar to be used
· The number of bricks or block in a SM
· The percentage to be added for waste
· Amount f skilled and unskilled hours required for each unit operation

CALCULATIONS FOR UNIT RATE OF A CONCRETE BLOCK/BRICK WALL

Question One

A 225mm thick wall is to be constructed out of 350x225x150mm concrete blocks and bonded using
20mm thick mortar joints of mix 1:4. Compute the unit rate for concrete block wall and produce a
material delivery list for a plinth wall shown below. Assume all walls as 230mm.

5909 Concrete
Sitting 230
Bed Room room
100
7500 150
5909
HardCore

420

230 Strip fdn 0f mix 1:3:6

12500
690
GROUND PLAN Section thru the fdn

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Solution

Determining the cost of 1CM mortar

1CM of cement 28 @ 29,000……………………….812,000/

4CM of sand 1.3x4x15000……………………….78,000

Total 890,000/=

Cost of 1CM of dry mortar with (890,000x1.33)/5 = 236740/=

with voids catered for

Add 5% waste = 11837/=

Concrete mixer (40000/8)x0.5hrs = 2500/=

Unskilled labour 625x6 = 3750/=

Total 254,827/=

Therefore the unit cost of mortar is approximately 300,000/=

Coordinated block = 370x225x170 1m

1m
Area of one block =0.37x0.17 = 0.0629SM

No of blocks in 1SM = 1/0.0629 = 16blocks.

Volume of mortar = 0.225x1x1 – (16x0.35x0.15x0.225) = 0.04CM 150

225 350

Mortar 0.04 @ 300,000………………………………......... 12,000/

16 blocks delivered @ 2000………………………………. 32,000/

Add 5% waste for cutting of blocks………………………. 1600/

Unskilled hours 1.2 @ 625………………………………. 750/

Skilled hour 0.6 @ 1500……………………………… 900/

Total 47250/=

Add 20% profits and overheads…………………………… 9450/

Total 56700/=

Therefore the unit cost of a 225mm thick block wall = 56700x0.225 = 12,758/=

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 Estimating and Tendering

Adding water to mortar of 1:4 with the voids of 25%, the wset volume becomes 5x0.75 = 3.75CM

Therefore, 1CM of mortar requires 28/3.75 = 7.5 bags.

3.75CM of mortar were given by 4CM of sand

Therefore, 1CM of mortar requires 4/3.75 = 1.07CM of sand ….1.07x1.3 = 1.391tons

Total wall length is 57.93m and total wall height is 0.57m, therefore area = 33SM and the volume is
7.61CM.

1SM of a 225mm wall contains 0.04CM of mortar

1SM of a 230mm wall contains (0.04x230)/225 = 0.041CM of mortar

1SM of a 230mm wall contains 0.041CM of mortar

33SM of a 230mm wall contains 0.041x33 = 1.353CM of mortar

1SM of a 225mm wall required 16blocks

1SM of a 230mm wall requires (16x230)/225 = 16.4blocks

33SM of wall requires 16.4x33 = 541.2blocks say 542 blocks

Materials required

Cement = 7.5x1.353………………10.1 bags. Say 11bags.

Sand = 1.391x1.353……………..1.9 tons. Say 2 tons.

Item Description Unit Qty Rate Amount

1 OPC Bag 11 29000 319,000

2 Plaster Sand Ton 2 15000 30,000

3 Blocks No 542 2000 1,084,000

Total 1,433,000

Question Two (For the course participant to practice)

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A 150mm thick wall is to be constructed out of 230x150x100mm common bricks and bonded using
20mm thick mortar joints of mix 1:4. Compute the unit rate for common brick wall and produce a
material delivery list for a plinth wall shown below. Assume all walls are 230mm thick.

7665 Concrete
Toilet 230
Office 125
10000 200
7655
HardCore

450

230 Strip fdn 0f mix 1:3:6

16000
690
GROUND PLAN Section thru the fdn

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CHAPTER SEVEN

7.0 CARPENTRY AND JOINERY

Timber for carpentry and joinery works can be purchased from the timber merchants in a sawn state,
planed or planed and moulded. The basic selling unit is the cubic metre but joinery rails, e.t.c are normally
quoted for per linear metre. If sawn sections and lengths are required which correspond exactly to the
members that are supplied by the manufacturers, the price will be cheaper than if the builder requires
specific length and sections which requires to be reduced to the required sizes on site. The emphasis in
modern construction is to fabricate the components in a specialist’s sub-contractors workshop wherever
possible and reduce the site labour to a minimum. Examples of such items are roof trusses, doors and
frames, windows, staircases, cupboard units e.t.c.

Waste

The cutting and waste factor on insitu carpentry and joinery can be generally at about 10% but for certain
members in some situations, it may be higher.

Factors that are considered in estimating for any carpentry and joinery work

§ The size of sections required

§ Labour involved
§ Type of item being made e.g roof trusses, door and windows
§ Purpose of structure

CALCULATIONS FOR UNIT RATE FOR ROOFING

Example One

Calculate the unit rate of a piece of 150mm x 50mm timber if each cubic metre of timber costs UGX
500,000.

Solution

Unit rate = 0.15 x 0.05 x 500,000 = UGX 3750.

Example Two (Roofing in Tiles)

Compute the unit rate for roofing in Kiwa tiles of size 400 x 225 with side laps of 25mm and end lap of
75mm if one tile costs 1600Ushs delivered. The tiles are hooked on 50x38 battens converted from
150x50x4200 pine timber. Each piece of 150x50x4200 costs 24,000Ushs delivered to site. The battens are
to be fixed using 76mm nails each costing 30Ushs. What is required for a roof area of 300m2 ? Galvanized
iron sheets costs 5000

Solutions

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Tiles

Exposed area of tile ……………………………………..(0.4 -0.075)(0.225 – 0.025) = 0.0625m2

Number of tiles in a SM ……………………………………………………..1/0.0625 = 15.38

Add 2.5% waste………………………………………………………………………. = 0.38

Total number of tiles …………………………………………………………….…………16

16 tiles @ 1600 delivered ……………………………………………………………….25,600/

Unskilled labour for offloading 0.3hrs @ 1000 ……………………………………………300/

Total 1 25900/

Battens

Consider spacing of 325mm

Number (length) of battens in a SM 1/0.325 ……………………………………………….3.08

If 150x50x4200 costs 24,000Ushs, then 38x50x3.08 costs 4,458/=

0.05 x 0.038 x 500,000 x 3.08…………………………………………………………….. 2926/

Allow 10% cutting waste …………………………………………………………………..293/

Total 2 3219/

Nails

Consider a spacing of 600mm

Number of nails 3.08/0.6 ……………………………………………………………………..5

5*30 …………………………………………………………………………………………150/

G32 iron sheet @ 6000 …………………………………………………………………….6000/

Unskilled labour 0.3 @ 1000 ………………………………………………………………..300/

Skilled labour 0.6 @ 2500 …………………………………………………………………1500/

Total 3 7950/

Total cost 37069/

Allow 20% profits and overheads……………………………………………………………7414/

Final cost 44,483/

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The cost of roofing 1 SM of a roof in mangalore roofing tiles is 44,484/

The cost of roofing 300m2 44,483 x 300 = 13,344,900/=

Notes: produce a materials list if required

Example Three (Roofing in Corrugated Iron Sheets)

Compute the unit rate for roofing in corrugated iron sheets of size 3000 x 900 with side laps of 114mm (in
an iron sheet each corrugation measures 76mm = 76x1.5 = 114mm) and end lap of 150mm. The iron
sheets are fixed to timber purlins with nails and washers. The roofing sheet costs 15000Ushs per SM,
roofing nails costs 5000Ushs per a kilogram having 50 nails. There are 10 nails in a SM of roof surface
and the washers cost 50Ushs each.

Solution

Exposed area is (3 – 0.15)(0.9 – 0.114) ……………………2.24SM

Cost of 2.24SM @ 15000 …………………………………………………………………33,600/
Add cutting waste 5% ……………………………………………………………………….1680/
35,280/
Roofing nails 2.24 x 10 x 5000/50 …………………………………………………………..2240/
Add 5% waste………………………………………………………………………………….112/
37,632/
Washers 2.24 x 10 x 50 ………………………………………………………………………1120/
Add 5% waste ………………………………………………………………………………….56/
38,808/
Unskilled labour 0.3 @ 1000 ………………………………………………………………….300/
Skilled labour 0.3 @ 2500 …………………………………………………………………….750/

39,858/

Add 20% profits and overheads 7,972/

47,830/

The unit rate for roofing in iron sheet of gauge 28 pre-painted is 47,803/

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CHAPTER EIGHT

8.0 FINISHES

8.1 Plaster work and other floor, wall and ceiling finishes and beds

Lime plaster has backing and rendering of course stuff and a finishing or setting coat of fine stuff. Before
the price of lime plastering can be analyzed, the basic cost of course, stuff and fine stuff must be
ascertained.

The labour in mixing plastering materials is covered by the time of the attendant labourers in the
plastering gang, as two labourers can supply 3 plasterers with all the materials they require and do all the
mixing. Generally, the mixing is carried out by mixing machines.

CALCULATIONS FOR UNIT RATE FOR FINISHES

Example One

Courses stuff (1:2:9 mix for render backing for lime plaster)

Consider 1Cm of cement of 28bags @ 28,000 ………………………………………..784,000/

2CM of Hydrated lime including unloading @ 450,000 ………………………………900,000/

Plaster sand 9tons @ 15000 ……………………………………………………………135,000/

1,819,000/

Allow for shrinkage, consolidation and waste of 50% …………………………………909,500/

2,728,500/

The cost of 1CM of plaster 2728500/12 …………………………227,375/

The labour for mixing is included in the plastering gang, profits and overheads can be added to the net
price.

Example Two

Calculate the unit rate for plaster in cement-lime-sand mix of 1:2:9 to a thickness of 20mm. First coat be
12mm thick, second coat be 6mm thick and finishing coat be 2mm (this is normally lime-cement mix).

Cement-lime-sand mix of 1:2:9 costs 227,375/

First cost 12mm…………0.012 x 227375…………………………………………………..2,729/

Compression of 50%................................................................................................................1,365/

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Second coat 6mm……...0.06 x 227375……………………………………………………..1,364/

Compression of 20%................................................................................................................273/

5,371/

Finishing coat cement - lime (1:10) of 2mm

28 bags of cement ………………………………………………………………………784,000/

56 bags of lime (25kg/bag)……………10 x 2 x 28000…………………………………560,000/

1,344,000/

Allow for voids and waste of 10% 134,400/

1,478,400/

Cost per CM 1,478,400/11……………………………………………………………134,400/

Therefore cost of finishing coat 0.002 x 134,400…………………………………………….269/

Unskilled labour 0.75 x 2500 ………………………………………………………………..1875/

Skilled labour 1.5 @ 1000 …………………………………………………………………...1500/

3,375/

Total is 5731 + 269 + 3375 9,375/

Allow 20% profits and overheads 1,857

11,250/

The cost of plastering a SM of wall is 11,250/

8.2 Floor Screed

Specifications: 40mm thick mix of 1:4 cement – sand

0.04CM @ 300,000………………………………………………………………………12,000/

Waste of 10%.......................................................................................................................1,200/

Cement slurry of 0.5mm thick @ 784,000…………………………………………………392/

Skilled labour 1.5 @ 2500………………………………………………………………….3750/

Unskilled labour 1.5 @ 1000……………………………………………………………….1500/

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18,842/

Add 20% profits and overheads …………………………………………………………...3768/

22,610/

The cost of screeding 40mm thick concrete in cement-sand mix of 1:4 is 22,610/

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CHAPTER NINE

9.0 PROCUREMENT

Definition

Procurement is the acquisition through purchase, rental, lease, hire way or any other legal means of
works, services, and supplies.

Aims and Objectives of procurement

A construction project will normally require technical and managerial staff, materials, plant and
manpower. If the client cannot have an in-house team and resources, then these items have to be procured
(or bought from elsewhere).
The main objective of procurement is to ensure that the resources needed for the project are acquired in
the most efficient and effective way, with emphasis on time, cost and quality.
The main resources to be procured are summarized below:

CONSULTANT CONSTRUCTIO CLIENTS’

S N PROJECT RESOURCES

Sub-contractor CONTRACTO
Supplier
Procurement Methods RS s
There are two categories of construction resources that need to be procured in any project, namely:
1. Technical and managerial expertise
2. Man power, plant & equipment and material
These resources can be procured in several different ways but the main methods include:
Ø Standard approach
Ø Early selection approach
Ø Design and construct approach
Ø Divided contract approach
Ø Direct labour approach

A. Standard approach
In the standard approach, the client procures the resources on two occasions namely; by appointing
consultants and then later contractors.
The role of the main contractor is to implement all the construction work.

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Briefing Designing Tenderin Constructio Commissionin

Stage Stage g Stage n Stage g Stage

Appointment of Appointment of
Consultant (By main contractor (By
the client) the client on the
reclamation of the
consultant)
The consultants have to prepare complete work drawings and specifications before calling for tenders.
The standard approach is one of the most commonly used procurement approach. The standard approach
is however known to delay initial project implementation time.

B. Early selection approach

In the early selection approach, site operations are started earlier than normally possible. This is achieved
by overlapping the designing and construction stages.

Appointment
Appointment of
of consultant
main contractor

Briefing Designing Tenderin Constructio Commissionin

Stage Stage g Stage n Stage g Stage

Since drawings and specifications are not yet ready by the time the main contractor is appointed, it is
difficult to obtain a fixed rate for the works. This can increase the risk of disagreement between the client
and the main contractor.
The early selection approach is suitable for projects consisting of a series of similar sub-projects.

C. Design and construct approach

This approach is also sometimes known as a ‘package deal approach’ or ‘turnkey project’. Here the
contractor is responsible for both design and construction. Better coordination can sometimes be
achieved.
The approach is difficult to combine with competitive tendering procedure. The client has to rely heavily
on the integrity and competence of the contractor.

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Appointment of
design or construct

Briefing Designing Tenderin Constructio Commissionin

Stage Stage g Stage n Stage g Stage

D. Divide contract approach

In the divide contract approach, a separate contractor is appointed for the part of work (e.g. earthworks) so
that site operations can be started earlier than would otherwise be possible.
The number of contracts may be increased and procurement will then be phased between the several
different contractors.
Appointment of
main contractor

Briefing Designing Tenderin Constructio Commissionin

Stage Stage g Stage n Stage g Stage

Appointment
· Earthworks
of consultant
· framework
· Mechanical .work
· electrical .work
The disadvantage of divide contract approach is that the project manager will face greater problems of
coordinatio0n than with standard approach since responsibility on the construction site will be divided
between several contractors.

E. Direct labour approach

Direct labour is often used for smaller projects which are technically simple. The approach is normally
unsuitable for larger projects as construction capacity is li8mited by lack of plant and skilled staff.

Appointing of consultants
For technical expertise, it is often necessary to appoint consultants such as:
· Architects
· Engineers
· Quantity surveyor
Consultants should be asked to provide the following information to enable proper selection is made.
· Capacity of the firm
· Earlier experience in similar projects
· Proposed methods to be used for coordination and control

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· Proposed project organization (including names and qualifications of key staff)

· Proposed activity plan
· Fees structure
Capacit
y

Experien
Applying ce APPOINTED
SELECTION
Consultants CONSULTA
NT
Methods

Organizatio
n
A formal contract should be signed between the client and the consultant. It can be based on one of the
standard terms of agreement prepared by either:
o IGRA - International General Rules of Agreement between client and consulting Engineer (1976)
o FIDIC - International Federation of Consulting Engineers
Payments to consultant are based on scale of fees determined as a percentage of the final construction
cost. The actual percentage varies with the service provided and the type of the project.

Appointing contractors
The recommended procedure for appointment of contractors is by competitive tendering. Tendering itself
is a process which involves several stages, namely;
· Selection of tenderers
· Invitation of tender
· Preparation of tender documents
· Tendering
· Evaluation of tenders
· Award of contract
· Notification to tenderers
Competitive tendering is governed by strict rules. The aim is to guarantee fair competitive and unbiased
tender evaluation. Tenders for government projects are usually submitted to a tender board ot its
equivalent.
Contract documents should normally include the following:
· Agreement between the client and contractor
· Tender
· Standard conditions of contract
· Special conditions of contract
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· Bill of quantities
· Schedule of prices
· Drawings and specifications

PROCUREMENT PROCESS

Procurement cycle

This encompasses a variety of tasks and responsibilities which begin with the determination of the need of
the products or services.
The cycle embraces several procurement and logical operations and is a key to better understanding of the
various inter-related activities in the procurement process.
Steps that take place in the procurement cycle
Ø Recognition of the demand or need which is done by the procurement departments at different levels of
management
Ø The detailed requirements are identified and described by reaching the local people who use the
services.
Ø The budget is prepared and confirmed by the contracts committee.
Ø The specifications and references or scope of works are developed by the committee.
Ø The methods of procurement are decided on by the committee so as to favor every one and not to incur
looses.
Ø The bid documents are prepared by the procurement department. Examples of bid documents include:
BoQs, Specifications, Drawings, Form of agreement e.t.c.
Ø The contracts committee then announces in the press asking willing firms to pay a non-refundable
bidding fee. Upon payments, bidders obtain documents which the fill and return back to the contracts
committee on the stipulated time and date.
Ø The documents are opened by the contracts committee in presence of the firms’ representatives. This
exercise involves checking all the bid documents handed in by each bidder and checking the
arithmetical error.
Ø Evaluation of the bids then takes place and this is in two parts; the preliminary and technical evaluation
and financial evaluation.
Ø Each bid is attributed to a preliminary evaluation to determine the responsiveness as per the table
below before they are considered for technical evaluation.

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Bi Nam Contac Physica Genera Valid Income VAT Certificate Power Remark
d e of t l l tradin tax registratio of of s
No bidde addres address receipt g clearanc n registratio attorne
r s origina licens e certificate n y
l e

Ø Each bidder must fulfill all the above requirements in the table before passing preliminary evaluation.
Failure to have any of the requirements, the bidder is can not be considered for technical evaluation.
Ø Any firm that forges any of the documents or shares receipts with another firm is disqualified
automatically.
Ø Technical evaluation is carried out on firms that pass the preliminary evaluation and still bidders have
to present enough requirements in order to qualify for selection as a successful bidder. In this part,
marks are awarded and any bidder with marks below 50% does not qualify for selection.

Below is a sample of technical evaluation form for pre-qualification

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KIRA TOWN COUNCIL TECHNICAL EVALUATION COMMITTEE

Technical Evaluation Pre-Qualification Form
Name of Bidder:………………………………………………………
Item: Deep Borehole Drilling
Criteria Weight Possible total Rating Total score Comments
score
Organization
Company experience 5 20
Personal 5 20
Gender balance 2 8
Local experience 3 12
Subtotal 60
Equipment
1. Rig 5 20
2. Test pumping equipment 4 16
3. Support transport 4 16
Subtotal 52
Personnel suitability
1. Contract manager 4 16
2. Field manager 5 20
3. Driller 4 16
Subtotal 52
Local establishment
Local company staffs 5 20
Subtotal 20
Finance
Drilling permit 5 20
Power of attorney 3 12
Finance security 5 20
Subtotal 52
TOTAL 236
% SCORE
Rating: Excellent – 4; Good – 3; Fair – 2; Acceptable – 1; Poor – 0
Evaluator……………………………….Date………………………….

For the organization, a company is supposed to have completion certificates in order to get marks for
experience, academic documents in order to get marks for personnel, women and men in order to get
marks for gender.
For equipment, a company is expected to either be owning or hiring but for hiring, a hiring agreement is
required.
For personnel suitability, academic documents are considered basing on the information given by the
bidder.
The company is supposed to have some good amount of money on the account and this can be verified by
presenting a bank statement.
Upon fulfilling all the above requirements and obtaining 50% and above, a firm has passed the technical
evaluation and is included on the list of firms that will be invited to tender for different works under
selective tendering.

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The successful firms are invited to tender whenever work arises and they are required to submit in their
rates for executing the works plus the form of agreement.
Evaluation is carried out by the contracts committee and always the lowest bidder takes it all.
The winner then signs an agreement with the owner and this forms a contract between them.

A Sample of Pre-Qualification Notice Sent to Contractors

Check out for the draft on next page

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DEPARTMENT OF CIVIL AND BUILDING ENGINEERING – KYAMBOGO UNIVERSITY

INVITATION FOR PRE-QUALIFICATION FOR PROVISION OF INTERNET SERVICCES

The department of Civil and Building Engineering has received funds from the ministry of ICT for the
improvement of the academic standards in the department.
In accordance with the above, the office of the head of department invites firms to submit bids for pre-
qualification for the provision of internet services.
Interested forms are expected to meet the following minimum criteria.
· Be registered and practicing members.
· Have no conflict of interest in provision of services to the office of the head of department.
· Have fulfilled obligations to pay taxes, social security contributions and other statutory/ regulatory
responsibilities
· Are not subject to suspension by the civil and building department, Public Procurement and Disposal
of Public Assets Authority (PPDA) and other regulatory/ government bodies
· Have a valid trading license
· Are not subject to legal proceedings in respect of bankruptcy, or questionable business dealings
The firms are expected to provide the following with their proposals
· A copy of trading license or equivalent
· A copy or certificate of registration or equivalent
· A copy of income tax clearance certificate or equivalent (where applicable)
· A copy of evidence of VAT registration
· A signed statement that the bidder does not have a conflict of interest in providing such services to the
department
· Evidence of certification of members/ partners by regulatory organization
· Any other relevant documents or statements

More details are in the tender documents obtainable from the head of department’s office upon payment
of a non refundable fee of 150,000/=.

The firms may indicate the types and volume/size of services carried out in the last three years, number
and qualifications of staff employed both technical and support, location and braches, and other aspects
deemed relevant.

The firms are required to submit their proposals not later than 30th October 2011 at 5:00 pm; to:
The Secretary, academics committee,
Office of the Head of Department Civil, Room 5.0A, Civil Building,
Kyambogo University
P.O Box 1, Kampala (U)
Note: Late submissions will not be accepted

Mrs. Ann. Babirye

For: Head of Department Civil

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Bibliography

Ferry. D.J and Brandon, P.S., 1980, Cost Planning, 4th Edition.

Otim, G., 2009, Estimation and Tendering Lecture notes, Department of Civil Engineering, Kyambogo
University.

Howard. W.W, Wood. A. A. B., 1981, Practical Builder’s Estimating, 4th Edition.

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