Professional Practices

Prepared by Gargi Sojitra

Unit 1 # Estimation

Introduction
Building construction estimating is the probable construction costs of
any given project.
Many items influence and contribute to the cost of a project; each
item must be analyzed, quantified, and priced.
Because the estimate is prepared before the actual construction,
much study and thought must be put into the construction
documents.
If the estimated cost is greater than the money available, then
attempts are made to reduce the cost by reducing the work or
changing the specifications.
Specifications - general or/and detailed - nature, quality of work;
materials; workmanship, execution methods of work etc.

Purpose of Estimates
To know beforehand the cost of work

Types of Estimates
1. Preliminary Estimate / Approximate or Abstract or Rough cost
Estimate
2. Plinth Area Estimate
3. Cube Rate Estimate or Cubical Content Estimate
4. Approximate Quantity Method Estimate
5. Detailed Estimate or Item Rate Estimate
6. Revised Estimate
7. Supplementary Estimate
8. Supplementary and Revised Estimate
9. Annual Repair or Maintenance Estimate

Influential Factors
Project type
Delivery system
Nature of delivery system contracts

Preliminary / Approximate
Estimate

Approximate Estimate
Prepared as design develops
Informs whether design meets the budget
Used to decide the financial position and policy for
administrative sanction by the competent administrative
authority.
In case of revenue generating projects, preliminary
estimate helps in justifying the investment.
Prepared from practical knowledge and cost of similar
works

Approximate Estimate

Shows approximate cost of all important items of work like

o
o
o
o
o

Cost of land
Cost of each building
Cost of roads
Water supply and sanitary works
Electrification etc.

Accompanied by

o Site plan or Layout plan

o Brief report about necessity of project showing how cost of
separate items have been arrived at.

5% to 10% added as contingencies

Approximate Method of Costing Buildings

Per Unit Basis
o
o
o
o
o
o

School per classroom

Hostels per student
Hospitals per bed
Cinema and theatre halls per seat
Factories, barracks, dormitories per bay
Residential buildings per tenement

Plinth area basis

Cubic content basis

Approximate quantity method

Approximate Method of Costing

Sewerage Project and Water Supply Project

On basis of per head of population served

o Ex Approx. cost of water supply project for a population of
75000 people @ Rs. 90 per head comes to Rs. 67.5 lakhs

On the basis of area covered i.e. per hectare basis

Plinth Area Estimate

Prepared on the basis of plinth area of the building

Rate is deduced from the cost of similar building having similar

specification, height and construction in the locality.

Plinth Area Estimate = Plinth area of the building x Plinth area rate

For storeyed buildings Plinth area is calculated for each storey.

Cube Rate Estimate

Prepared on the basis of cubical contents of the building.

Cubical content = length x breadth x height

Cube rate is deduced from the cost of the similar building having
similar specifications and construction in the locality.

Length and Breadth external dimensions of buildings at floor level

Height floor to floor height

Foundation, Plinth and parapet not taken into account

Approximate Quantity Method Estimate

Approximate estimate = Approximate total length of walls in running

meters x rate of wall per running meter

Structure divided into two parts

o Foundation and plinth
o Superstructure

For foundation approx quantities of excavation, foundation,

brickwork upto plinth are calculated and multiplied per running
meter rate of the same.

Line plan or plan of the structure is needed to use this method.

Building Cost Index / Construction Cost

Index
Construction Cost Index is a device which shows the relative changes
in the cost of specific or group of items over a certain period of time.

Indicates the increase or decrease of cost above the cost at the

certain base year and is expressed by percentage rise or fall.

Example Taking 1960 as the base year, during 1989 the BCI was
360% above the base year.

Building cost index depends mainly on the cost of materials, labour

transport etc. and may be above or below according to their costs.

Procedure for preparing BCI

Select base period

Decide critical items comprising the index

Assign weight to each item

Collect periodic unit prices

BCI is then worked out using the following equation (Laspeyres

equation)
In = (P1Q2 / P2Q2) x 100
where In = Construction cost index for nth year
P1 = Current year price for nth year
P2 = Base year price
Q2 = Base year weights (quantities)

The term weight is used to mean the relative importance of different

materials and items of work in the construction of an index.

All materials and items not of equal importance. So necessary

weightage is attached to each item in proportion to the influence it
exerts in final result.

The weights may be fixed on the basis of quantity or value. Here the
values are considered.

Relative importance of an item is greatly affected b various factors

such as structural design, specifications, better planning, economy in
construction costs etc.

Detailed Estimate

Detailed Estimate

Accurate estimate prepared for technical sanction of the competent

authority for arranging contract and for execution of work.

Dimensions, length, breadth and height of each item are taken out
correctly from drawing and quantities of each item are calculated
and abstracting and billing are done.

Prepared in two stages

o Details of Measurement and Calculation of Quantities
o Abstract of Estimated Cost

Details of Measurement and Calculation of

Quantities
Details of measurement of each item of work are taken out correctly
from plan and drawing and quantities under each item are computed or
calculated in a tabular form named as Details of Measurement
Form.

Abstract of Estimated Cost

Cost of each item of work is calculated in a tabular form from the

quantities already computed and total cost is worked out in
Abstract of Estimate Form.

Rates of different items calculated as per schedule of rates / current

workable rates / analyzed rates for finished items of work.

Estimated cost of work = Rates of all items of work + 3%

contingencies + 2% work charged establishment.

Detailed Estimate

Prepared work-wise, under each sub-work such as admin building,

engineering building, hostel, boundary walls etc.
Detailed estimate is accompanied with
o Report
o General Specifications
o Detailed specifications
o Drawings
o Calculations and Designs structural details
o Analysis of rates if rates are not as per schedule of rates or for
non-scheduled items

Revised Estimate

Detailed estimate required to be prepared under any one of the

following circumstances
o When the original sanctioned estimate is exceeded is likely to
exceed by more than 5%.
o When the expenditure on a work exceeds or is likely to exceed
the amount of administrative sanction by more than 10%.
o When there are material deviations from the original proposal,
even though the cost may be met from the sanctioned amount.

It should be accompanied by a comparative statement showing the

variations of each item of works, its quantity, rate and cost under
original and revised, the excess or saving and reason for variation

Supplementary Estimate

Detailed estimate prepared when additional works are required to

supplement the original works or when further development is
required during the progress of work.

Supplementary estimate = detailed estimate of additional work +

original estimate

Abstract should show the amount of the original estimate and total
amount including the supplementary amount for which sanction is
required.

Annual Repair and Maintenance Estimate

Detailed estimate prepared to maintain the structure or work in

proper order and safe condition.

Example
o Building whitewashing, painting, lift maintenance, minor repairs
etc.
o Road Works Patch repairing, repair of bridges and culverts etc.

Complete Estimate

Prepared after adding an estimated cost of all items of the project to

the main detailed estimate.

Includes
o Cost of land
o Cost of legal expenses required between owner and contractor
o Engineering fees
o Architects fees
o Cost of work supervision
o Detailed estimate with contingencies

During the construction of a project considerable number of skilled

supervisors, work assistants, watchmen etc., are employed on
temporary basis. The salaries of these persons are drawn from the lump
sum amount allotted towards the work charged establishment i.e,
establishment which is charged directly to work. A lump sum amount of
1 to 2% of the estimated cost is provided towards the work charged
establishment.

Contingencies an incidental expense For miscellaneous petty items

which do not come under any classified head of items of work, yet
pertain to work as whole.

Administrative Approval and Technical

Sanction
PWD Public Works Department looks after construction works of
government.

R&BD Roads and Buildings Department at Gujarat level.

As the name signifies, the R&B Department is in charge of all

activities pertaining to planning, Construction and maintenance of all
categories of Roads and all Government owned Buildings in the State
of Gujarat.

How R&BD Operates

Proposal is sent to R&BD by other department for its requirements.

R&BD studies the proposal and if it is found sound, a report along

with a preliminary estimate is sent to the concerned department for
approval.

This approval is known as the Administrative Approval. it

indicates the formal acceptance by the concerned department.

After administrative approval, R&BD prepares detailed estimate and

sanction of competent authority is obtained which is termed as
Technical Sanction.

Competent Authority Government or officers of R&BD who are

given necessary powers to carry out the work.

How R&BD Operates

Initiative can be taken by R&BD too. In this case the proposal along
with preliminary estimate and report is sent to the concerned
department.

For major changes where the cost may exceed 10% of the original
cost, the administrative approval and technical sanction have to be
obtained again.

For petty works (not exceeding Rs. 1000) the administrative approval
and technical sanction are not needed.

THANK YOU