Introduction to Costing & Estimation
AP_329
ALPNA ROHATGI
PROFESSOR, MBS SPA.
What is costing or Estimation?
Cost estimating involves calculating cost as well as
visualization of how the project will be built.
What is an Estimate?
osts of construction work are classified as:
Materials costs.
Labor costs.
Equipment costs.
Overhead (general and job) costs.
Profit.
ata on all of these costs are required to develop or prepare an
timate.
What is the Purpose of Estimating?
The true value of the project will not be known until the
project has been completed and all costs have been recorded
Therefore,, the estimator does not establish the cost of a
project; he simply establishes the amount which the contracto
will receive for constructing the project.
What is the Role of the Estimator?
The estimator’s job is to prepare estimates of building project costs.
The success of a contractor’s business depends on the accuracy of these estimate
The estimator’s success will be based on his previous experience and knowledge
the construction industry.
A contractor or estimator lacking this experience may over, or under-estimates
under hi
project costs.
cost data is acquired from experience.
n estimator does not have cost data from his own experience, he must use cost
a from price books and handbooks.
Role of
stimator
What the Estimator Must Know (Skills)?
He must have a thorough knowledge of the building trades.
This includes types of construction and methods of construction.
He must be able to read building plans and notes, and understand
the specifications.
If he finds any discrepancies between the plans and specifications
he will bring them to the attention of the architect or owner for
solution.
When all the questions are answered and problems are solved, he
can then prepare and furnish the cost estimate.
What the Estimator Must Know?
He must keep up with the development of new building
construction technologies and materials.
Keep up with current market trends, business ventures and trade
houses alongwith subscriptions.
Equipped with latest softwares used in the industry for the job in
hand.
He has to have at his fingertips reference materials, books,
books tables
and tabulating equipments.
Possible Sources of Errors in Estimates
Provisions to have estimates checked/revisions.
Insufficient allowance for overhead/contingencies.
Omission of profit.
Need for Estimate
It help to work out the approximate cost of the project in order to decide its feasibility with respect to
the cost and to ensure the financial resources, it the proposal is approved.
Requirements of controlled materials, such as cement and steel can be estimated for making
applications to the controlling authorities.
It is used for framing the tenders for the works and to check contractor's work during and after the
site execution for the purpose of making payments to the contractor.
contractor
From quantities of different items of work calculated in detailed estimation, resources are allocated
to different activities of the project and ultimately their durations and whole planning and scheduling
of the project is carried out.
SITE CONDITIONS AFFECTING THE OVERALL COST
Each type of work requires a different method of construction. Construction may be of an
ordinary house or office and it may also be of a Dam, Tunnel, Multistory building, Airport, Bridg
or a Road, already in operation. Each of these works requires totally different construction
techniques, type of machinery, and formwork.
Quality of labour and labour output varies in different localities.
Weather conditions greatly affect the output and, hence, the overall cost.
cost
Ground conditions vary and change the method of construction. For example, excavation may be
ry, wet, hard, soft, shallow or deep requiring different efforts.
UNITS OF MEASUREMENTS
units of measurements are mainly categorized for their nature, shape and size and for making payments to th
contractor .
principle of units of measurements normally consists the following:
Single units work like sanitary fittings, Electrical points, electrical appliances, etc., is expressed in numbers.
Works consists linear measurements involve length like cornice, fencing, hand rail, pipe length with details,
bands of specified width and skirting etc., are expressed in running meters (m)
Works consists areal surface measurements involve area like plastering, white washing, partitions of specifie
thickness, glass of specified thickness, flooring upto the thickness of 40mm, Tiles flooring, wall tile finishing
painting of doors and windows, A.C Sheet roofing, Weathering tiles,
Doors and windows shutter with required specifications.
Half brick work, Honey comb Brick work, Brick on edge work etc., are expressed in square meters (m2)
Works consists cubical contents which involve volume like earth work, Earth fill, cement concrete,
Masonry etc are expressed in Cubic metres.
Steel for RCC works is expressed in Kilogram, Kilo Newton or tonne.
RULES FOR MEASUREMENT
asurement shall be made for finished item of work and description of each item shall include materials,
transport, labor, fabrication tools and plant and all types of overheads for finishing the work in required shape
size and specification. In booking, the order shall be in sequence of length, breadth and height or depth or
thickness.
All works shall be measured subject to the following tolerances.
linear measurement shall be measured to the nearest0.01m.
Areas shall be measured to the nearest 0.01sq.m
Cubic contents shall be worked-out out to the nearest 0.01cum and Wood for door and window frames to the
accuracy of 0.0001 m.
Kilogram to the accuracy of 0.01
Same type of work under different conditions and nature shall be measured separately under separate items.
The bill of quantities shall fully describe the materials, proportions, workmanships and accurately represent t
work to be executed.
In case of masonry (stone or brick) or structural concrete, the categories shall be measured separately and th
heights shall be described:
From foundation to plinth level
From plinth level to first floor level
From First floor to second floor
EQUIREMENTS OF ESTIMATION AND COSTING
Estimate gives an idea of the cost of the work and hence its
feasibility can be determined i.e. whether the project could be
taken up with in the funds available or not.
Estimate gives an idea of time required for the completion of
the work. Estimate is required to invite the tenders and
Quotations and to arrange contract.
Estimate is also required to control the expenditure during the
execution of work. Estimate decides whether the proposed
plan matches the funds available or not.
Thank you !
