An estimate is a calculation of the quantities of various items

of work, and the expenses likely to be incurred there on. The

total of these probable expenses to be incurred on the work is

known as estimated cost of the work. The estimated cost of a

work is a close approximation of its actual cost.

The agreement of the estimated cost with the actual cost will

depend on accurate use of estimating methods and correct

visualization of the work, as it will be done.

Importance of correct estimating is obvious.Under-estimating

may result in the client getting an unpleasant shock when

tenders are opened and drastically modifying or abandoning

the work at that stage

Over-estimating may lose the engineer or estimator his client

or his job, or in any case his confidence.

CONTD…..

Estimating is the most important of the practical aspects of

construction management, and the subject deserves the

closest attention of one aspiring to a career in the profession.

It is a comparatively simple subject to understand; however,

as it brings one up against practical work, methods and

procedure, knowledge of it cannot be acquired without close

application.

Purpose of Estimating
To give a reasonably accurate idea of the cost

An estimate is necessary to give the owner a reasonably accurate

idea of the cost to help him decide whether the work can be

undertaken as proposed or needs to be curtailed or abandoned,

depending upon the availability of funds and prospective direct and

indirect benefits

For government works proper sanction has to be obtained for

allocating the required amount.

1.Estimating Materials

From the estimate of a work it is possible to determine what

materials and in what quantities will be required for the work so

that the arrangements to procure them can be made.

2. Estimating Labour

The number and kind of workers of different categories who will

have to be employed to complete the work in the specified time

can be found out from the estimate.

CONTD….

3. Estimating Plant

An estimate will help in determining amount and kind of

equipment needed to complete the work.

4. Estimating Time

The estimate of a work and the past experience enable one to

estimate quite closely the length of time required to complete

an item of work or the work as a whole.

Whereas the importance of knowing the probable cost needs

no emphasis, estimating materials, labour, plant and time is

immensely useful in planning and execution of any work.

Qualifications of an Estimator

A good estimator should possess the following

quanlifications:

1. A thorough understanding of architectural drawings.

2. A sound knowledge of building materials, construction methods and

customs prevailing in the trade.

3. A fund of information collected or gained through experience in

construction work, relating to materials required, hourly output of

workers and plant, overhead expenses and costs of all kinds.

4. An understanding of a good method of preparing an estimate.

5. A systematic and orderly mind.

6. Ability to do careful and accurate calculations.

7.Ability to collect, classify and evaluate data that would be useful in

estimating

Methods of Approximate Cost

Estimate Preparation

Methods of preparation of preliminary or approximate

construction cost estimation for studies of various aspects of

work of project and its administrative approval is discussed.

This estimate can decide, in case of commercial projects,

whether the net income earned justifies the amount invested

or not.

The approximate estimate is prepared from the practical

knowledge and cost of similar works. The estimate is

accompanied by a report duly explaining necessity and utility

of the project and with a site or layout plan

A percentage 5 to 10% is allowed for contingencies.

Methods of Approximate Cost

Estimation

The following are the methods used for

preparation of approximate construction cost

estimates:

Plinth area method

Cubical contents method

Unit base method

Plinth area method:

The cost of construction is determined by

multiplying plinth area with plinth area rate.

The area is obtained by multiplying length and

breadth (outer dimensions of building).

In fixing the plinth area rate, careful

observation and necessary enquiries are made

in respect of quality and quantity aspect of

materials and labour, type of foundation,

height of building, roof, wood work, fixtures,

number of storeys etc.

As per IS 3861-1966, the following areas include while calculating the plinth

area of building :

Area of walls at floor level.

Internal shafts of sanitary installations not exceeding 2.0 sqm, lifts,

air-conditioning ducts etc.,

Area of barsati at terrace level: Barsati means any covered space open on one

side, constructed on one side, constructed on terraced roof which is used as

shelter during rainy season.

Porches of non-cantilever type.

Areas which are not to include

Area of lofts.

Unenclosed balconies.

Architectural bands, cornices etc.,

Domes, towers projecting above terrace level.

Box louvers and vertical sun breakers.

Example 1 .1: Prepare an approximate estimate of building project with total plinth area of all
building

is 800 sqm. and from following data. i) Plinth area rate Rs. 4500 per sqm
ii) Cost of water supply @7.5 %of cost of building.

iii) Cost of Sanitary and Electrical installations each @ 15�% of cost of building.

iv)Cost of architectural features @1% of building cost. v)Cost of roads and lawns @5% of building

cost. vi) Cost of contingencies @4% of building cost.

Determine the total cost of building project.

Solution:

Plinth area = 800m2 Plinth area rate = Rs. 4500 per Sq.m

Cost of building = 800 x 4500 = Rs. 36,00,000=00

Cubical Contents Method

This method is generally used for multi-storeyed

buildings. It is more accurate that the other two

methods viz., plinth area method and unit base

method.

The cost of a structure is calculated approximately as

the total cubical contents (Volume of buildings)

multiplied by Local Cubic Rate. The volume of building

is obtained by Length x breadth x depth or height.

The length and breadth are measured out to out of

walls excluding the plinth offset.

The cost of building = volume of buildings x rate/ unit

volume.

Prepare the rough estimate for a proposed commercial complex for a municipal corporation for the
following

data.

Plinth Area = 500m2/ floor Ht of each storey = 3.5m

No. of storey's = G+2

Cubical

content rate = Rs. 1000/m3

Provided for a following as a percentage of structured cost

a) water supply & Sanitary arrangement -8% b)Electrification -6%

c) Fluctuation of rates - 5% d)Contractors profit - 10% e)Petty supervision & contingencies - 3%

Sol :

Cubical content = No. of storey's (Plinth Area x height of each storey) = 3(500x3.5) = 5250m3

Structural cost = Cubical content x cubical content rate= 5250 x 1000 = 52.5 Lakhs

Unit Base Method

According to this method the cost of structure

is determined by multiplying the total number

of units with unit rate of each item. In case

schools and colleges, the unit considered to

be as ‘one student’ and in case of hospital, the

unit is ‘one bed’.

The unit rate is calculated by dividing the

actual expenditure incurred or cost of similar

building in the nearby locality by the number

of units.

Prepare an approximate estimate or rough cost estimate of a hospital building for 50 beds. The cost
of

construction altogether for each bed is Rs. 60,000/ -. Determine the total cost of hospital building.

Solution:

No. of beds = 50

Cost of construction = Rs. 60,000/-

Total Cost of Hospital building = 50x 60,000= Rs. 30,00,000/-

To prepare the rough cost estimate of a hostel building which accommodate 150 students. The

cost of construction including all provisions is Rs. 15,000/- per student. Determine total cost of

building.

Solution :

No. of students= 150

Cost of construction including all L.S. provisions = Rs. 15,000/- Total Cost of hostel building

=150 x 15000 = Rs. 22,50,000/- (Rupees twenty two lakhs, fifty thousand only)

Revised and Supplementary Estimate

Revised Estimate:

This is required when the sanctioned amount is exceeded due to change

of rates or addition of works fairly dependent on the work at first

sanctioned. So, a revised estimate is due to material deviation from the

original proposal.

Revised estimate is prepared when original sanctioned estimate is likely to

exceed more than 5%.

When expenditure on work is likely to exceed amount of administrative

sanction by more than 10%

When there are material deviation from original proposal even though

cost may be met from sanctioned cost.

It is accompanied with a comparative statement abstract from showing

the probable variations for quantity, rate and amount against each item of

work involved in the project.

Supplementary Estimate:

This is required due to supplementary works which are fairly independent

of the work at first sanctioned. So, supplementary estimate is due to

material deviation of a structural nature from the design originally

approved.

No comparative abstract form is required. This is an estimate for

additional works only. The abstract shows the original estimate and total

amount of the sanction required including supplementary amount.

Supplementary estimate is required due to some new works or due to

change of design, so additions or revisions of drawings may be necessary.

Methods of Detailed Construction

Estimation Preparation

The preparations of detailed construction estimate consist of

working out quantities of various items of work and then

determine the cost of each item. This is prepared in two

stages.

i) Details of measurements and calculation of quantities:

ii) Abstract of Estimated Cost:

Details of measurements and calculation of quantities:

The complete work is divided into various items of work such as earthwork concreting,

brickwork, reinforced concrete, plastering etc. The details of measurements are taken

from drawings and entered in respective columns of prescribed Performa.

The quantities are calculated by multiplying the values that are in numbers column to

Depth column as shown below:

Details of measurements form

Abstract of Estimated Cost:

The cost of each item of work is worked out from the quantities that already

computed in the detailed measurement form at workable rate. But the total
cost is worked out in the prescribed form is known as abstract of estimated

form. 4%of estimated Cost is allowed for Petty Supervision, contingencies and

unforeseen items.

Abstract of Estimate Form

The detailed estimate should be accompanied with:

Report

Specification

Drawings (plans, elevation, sections)

Design charts and calculations

Standard schedule of rates.

Factors to be considered while Preparing Detailed Estimate:

i) Quantity and transportation of materials: For bigger project, the

requirement of materials is more. Such bulk volume of materials will be

purchased and transported definitely at cheaper rate.

ii) Location of site: The site of work is selected, such that it should

reduce damage or in transit during loading, unloading, stocking of

materials.

iii) Local labour charges: The skill, suitability and wages of local labours

are considered while preparing the detailed estimate.

TERMINOLOGY

Contingencies – Indicates incidental expenses of miscellaneous character

which cannot be classified under any distinct item. (3% to 5% of the

estimated cost is provided to allow for contingencies)

Work-charged Establishment – Work-charged employees are temporary

staff whose services are terminated at the expiry of sanctioned period but

usually one month notice is given. (1.5% to 2% of the estimated cost is

added)

Tools and Plants – Normally contractor has to arrange tools and plants.

(1% to 1.5% of estimated cost is provided)

Centage charges or Departmental charges – Also known as Supervision

charges for works. To meet the expenses of establishment, designing,

planning, supervision etc. (10% to 15% of the estimated cost) . When

engineering department takes up work of other department.

Schedule of Rates – It is a list of rate of various items of works maintained by

engineering department under the name “ Schedule o f Rates Book ” . “Road

Metal Rate Book ” is also maintained by PWD.

Administrative Sanction/ Approval – It is the formal acceptance by the

department concerned of the proposal. After the approval, design, estimates

etc. are prepared and thereafter execution of work.

Expenditure Sanction – It represents allotment of money to meet the

expenditure. It is usually accorded by Finance Department.

Technical Sanction – It is the sanction of the detailed estimate, design

calculation, quantities of work etc. Technical sanction is accorded by

engineering department and execution of work is carried out thereafter.

Quantity Survey – It means estimating of quantities of different items of

works.

Floor Area – It is obtained after deducting area of walls from the plinth area of

building. It should include:

Door and other openings

Intermediate pillars and supports

Circulation Area – It is the floor area of verandas, passages, corridors,

balconies, staircases, lift etc. which are used for movements of persons using

the building. It is further classified into Horizontal and Vertical .

Carpet Area – It is the useful area of the building. It is determined after

deducting :

Circulation Area

Sanitary Accommodations

Kitchen, Pantry, Stores

For office building approximate 60% to 75% of plinth area

For residential buildings approximate 50% to 65% of plinth area.

Site Plan – Plan showing orientation of building, boundaries of land, position of

roads, drains, sewer line, water pipelines and adjoining plots of lands. North

direction is also shown on one corner of site plan).

Layout Plan – Plan showing proposed buildings, structures etc. showing their

locations, size and orientations. Roads, drains, pipe lines , electric lines, parks

etc are shown. The boundary, main approach roads and adjoining areas are

also indicated.

Index Plan – Plan is usually drawn for Colonies,Roads, Irrigation, Water supply

etc.

It shows alignment with position of culverts, main outline of whole work

to give idea of the project

For big project it is drawn with much small scale and is known as key plan.

Index map of S.A.S Nagar (Mohali)

Index map for irrigation project