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## UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF ENGINEERING &

SCIENCE

BACHELOR OF SCIENCE (HONS) QUANTITY SURVEYOR

UEBQ 3153 ESTIMATING

Name Students ID Year of Study
Chua Sin Joo 1003713 Y5S1
Kenneth Tan Tay Sir 1205856 Y3S1
Ng Min Yi 0903995 Y5S1
Tan Chow Yang 0908124 Y5S1
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Table of content
Introduction.. 3
Methods.4
Results....7
Discussion11
Reference.13

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INTRODUCTION

In accordance to the parameters outlined in the assignment question for UEBQ3153
Estimating, this report analyses cost data from a Bill of Quantities. By this way, our
group found the Bill of Quantity of a project at Lot PT 585 and PT 586, Mukim
Kuala Lumpur which including 1 block penthouse apartment 3 storey, 1 storey
public facilities, 1 storey of car park and 4 unit of 3 storey bungalow villa. After
discussion among our group, we decided to select the apartment unit D on bill no.2 to
carry out the analyses. Base on the outlined in the assignment question, the analyses
cost data is to determine the 'Actual Total Bill Value (RM)', 'Mean Bill Value (RM)',
'Total Bill Value of Cost Significant Elements (CSE) (RM)', 'Number of Total
Elements (TE)', 'Number of CSE in Total', 'CSE/TE (per cent)', 'Total Bill Value of
CSE/Actual Total Bill Value (per cent)', 'Total Bill Value of Cost Significant Work
Packages (CSWP) (RM)', 'Number of Total Work Items (WI)', 'Number of CSWI in
Total', 'CSWI/WI (per cent)', 'Total Bill Value of CSWP/Actual Total Bill Value (per
cent)', and 'Cost Model Factor (CMF)' from the Bill of Quantity.

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METHODS

Actual Total Bill Value (RM)
The total sums of the cost all elements in the Bill of Quantities.
Mean Bill Value (RM)
According to Tas, E., and Yaman, H. (2005), the mean value is calculated as the total
bill value of the project divided by the number of items contributing to total bill
value.
Total Bill Value of Cost Significant Elements (CSE) (RM)
In principle, the total bill value of cost-significant items is the total bill values of all
items whose individual value is greater than the Mean Bill Value. From the research
by professional, 80-90% of total project costs were consumed by 10-20% of the BnQ
items which is cost significant element (CSE).
Number of Total Elements (TE)
Quantity of all elements in the Bill of Quantities.
Number of CSE in Total
Quantity of all Cost-Significant Elements in the Bill of Quantities (i.e. above Mean
Bill Value).
CSE/TE (per cent)
The ratio of the (Quantity of all Cost-Significant Elements)/(Quantity of all elements)
by percentage.
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Total Bill Value of CSE/Actual Total Bill Value (per cent)
The ratio of the (Total Bill Value of all Cost-Significant Elements)/(actual Total Bill
Value) by percentage.
Total Bill Value of Cost Significant Work Packages (CSWP) (RM)
Smith, N. J. (Ed.). (1995) states that typically 10-20% of the significant items in the
bill of quantities represent 80-90% of the total value then if the insignificant items
could be identified and eliminated from the bill of quantities, which would then be
known as a 'simplified bill', the estimator's task would be simplified. Once the items
of small value have been eliminated, the remaining significant items can be packaged
with similar items without any adverse effect on accuracy. The remaining groupings
of items are known as 'work packages'. A standard set of work packages holds a
fixed proportion of the contract sum for a certain type of job.
Thus, for the purpose of this report, the total bill value of cost-significant work
packages are the total bill values of all work items whose individual value is greater
than the Mean Bill Value.
Number of Total Work Items (WI)
Quantity of all work items in the Bill of Quantities.
Number of CSWI in Total
Quantity of all Cost-Significant Work Items in the Bill of Quantities (i.e. above
Mean Bill Value).
CSWI/WI (per cent)
The ratio of the (Quantity of all Cost-Significant Work Items)/(Quantity of all Work
Items) by percentage.
Total Bill Value of CSWP/Actual Total Bill Value (per cent)
The ratio of the (Total Bill Value of all Cost-Significant Work Items)/(actual Total
Bill Value) by percentage.

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Cost Model Factor (CMF)
The ratio of the value of packages in the model to the total bill value is known as the
cost-model factor.
Thus, the mean value of the ratio (value of CSEs)/(total bill value) or (value of
CSWPs)/(total bill value).

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RESULTS
Question 6

Based on the BQ found, find the:

a. Actual Total Bill Value (RM)

Item RM
1 Substructure 172,917.40
2 Frame 496,458.16
3 Upper Floors 386,521.07
4 Roof And Roof Plumbing 224,190.51
5 Lift Wall 65,967.57
6 Staircase 69,701.62
7 External Walls 67,597.00
8 Windows and Doors 22,078.00
9 Internal Walls 93,881.00
10 Wall Finishes 283,733.21
11 Floor Finishes 256,062.87
12 Ceiling Finishes 146,314.65
13 Sanitary Wares And Fittings 16,113.60
Actual Total Bill Value 2,301,536.66

b. Mean Bill Value (RM)

Actual Bill Value Number of Item = Mean Bill Value (RM)

2301536.66 13= RM

177,041.28

c. Total Bill Value of Cost Significant Elements (CSE) (RM)

Item RM
1 Frame 496,458.16
2 Upper Floors 386,521.07
3 Roof And Roof Plumbing 224,190.51
4 Wall Finishes 283,733.21
5 Floor Finishes 256,062.87
Total (RM) 1,646,965.82

d. Number of Total Elements (TE) = 13

e. Number of CSE in Total = 5
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f. CSE/TE (per cent)

5/ 13 x 100% = 38.46%

g.
Total Bill Value of CSE/ Actual Total Bill Value (per
cent)

(RM 1,646,965.82 RM 2,301,536.66) x 100%

= 71.56%

h. Cost Model Factor (CMF)

(Total Bill Value of CSE / Actual Total Bill Value (per cent) / 100%

71.56% 100% = 0.7156

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Question 7

Based on the BQ found, find the

a. Actual Total Bill Value (RM)

Item RM
D Excavation and Earthwork 6,531.10
F Concrete Work 1,196,492.56
G Brickwork and Blockwork 157,398.00
K Waterproofing and Asphalt work 78,463.78
L Roofing 90,546.00
N Structural Steelwork 36,695.00
P Metalwork 7,489.00
Q
Plumbling and Mechanical
Engineering Installations 12,742.60
S Floor, Wall and Ceiling Finishing 713,628.62
U Painting and Decorating 1,550.00
Total of 10 Threats 2,301,536.66

b. Mean Bill Value (RM)

Actual Total Bill Value (RM) / No. of Threats
RM 2,301,536.66 10 =
RM
230,153.67
c.
Total Bill Value of Cost Significant Work Packages
(CSWP)(RM)

Item RM
F Concrete Work 1,196,492.56
S Floor, Wall and Ceiling Finishing 713,628.62
Total 1,910,121.18

d.
Number of Total Work Items
(WI) = 10

e. Number of CSWI in Total = 2

f. CSWI/WI (per cent)

2/10 x 100% = 20.00%

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g. Total Bill Value of CSWP/Actual Total Bill Value (per
cent)
RM1,910,121.18 / RM2,301,536.66
x100% = 82.99%

h. Cost Model Factor (CMF)

(Total Bill Value of CSE / Actual Total Bill Value (per cent) /
100%

82.99% 100% = 0.8299

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DISCUSSION

The calculation we did based on the same bills and contracts in the different
calculation methods, as the result show, different method had carried out different
result.
Question 6, is the Cost Significant Methods, the items we carried straight
forward from the summary page of the BoQ. The highest cost is the 2nd element
Frame, which normally are the major work in a construction project. The lowest cost
is the 13th element Sanitary Wares and Fittings, which the works are normally,
conduct by the sub-contractor.
After calculated the mean value in Question No.6, we get an amount of RM
177,041.28. We carried the amount to get the Total Bill Value of Cost Significant
Elements (CSE). There are total of 5 items which had over 50% compare with the
Mean Value.
From the Paretos law we can know that, the theory concluded that 20% of
the total cost in a BoQ was occupied by 75% to 95% of the BoQ items. It is widely
accepted that BoQs contain many low value items, and it is preferable to apply in
the details work. The results we get in the Question 6 are not really meet to the
Paretos law theory which advocates 80-20 rule.
Question 7 is slightly different compare with Question 6. Before proceed to
the calculation work, we need to group all the low value items based on the thread
of SMM2 (Standard Methods of Measurement 2). After we the grouping works, we
get a total of 10 groups for whole BoQ which are listed below:

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D. Excavation and Earthwork
F. Concrete Work
G. Brickwork and Blockwork
L. Roofing
N. Structural Steelwork
P. Metalwork
Q. Plumbling and Mechanical Engineering Installations
S. Floor, Wall and Ceiling Finishing
U. Painting and Decorating
From the list we sorted out in the calculation part, Group F considered the
highest amount compare with other groups. This is because the majority work such
as concrete, formwork, reinforcement work and etc. are under the F. Concrete Work
according to the SMM2. The 2
nd
highest amount is Group S Floor, Wall and
Ceiling Finishing, generally this group also consider large amount of works compare
with other bills. The lowest amount is Group U Painting and Decorating.
The mean value of Question 7 is RM 230,153.67. There are only two threads
/ groups exceed 50% of this amount which are Group F and S. The results carried out
by Question 7 nearly to meet with the Paretos law which there are 20% which
become the cause of the 80% of effects.
Although we are using the same BoQ to carry both of the calculations, but its
show the different result. Question 6 is based on the partial work grouping, and
Question 7 is based on the work packages. The different number of groups and
amount affected the result. The Question No.7, as applied in the construction project
it can be said that 20% of the work items contribute to 80% of the total building
cost.

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References:

1) Barnes, N. M. L., & Thompson, P. (1971). Civil engineering bills of
quantities. Construction Industry Research and Information Association.
2) Branco, F. A., & De Brito, J. (2004). Handbook of concrete bridge
management. ASCE Publications.
3) Moyles, B. F. (1973). An analysis of the contractors estimating process.
Department of Civil Engineering, Loughborough University of Technology.
4) Short GS (1970). Summing Up. Second Conference on Contracting in Civil
Engineering since Banwell. EDC for Civil Engineers and Municipal
Engineers, National Economic Development Office.
5) Smith, N. J. (Ed.). (1995). Project cost estimating. Thomas Telford.
6) Tas, E., & Yaman, H. (2005). A building cost estimation model based on cost
significant work packages. Engineering, Construction and Architectural
Management, 12(3), 251-263.