Overview CM, Estimation

SESSION 1 (Pre Lunch)
Adaptation Program in Quantity Surveying (APQS)
PART 1-Quantitification of Works during

various stages
PART 2 Overview of Methods of
Measurements
DAY 5
22 May 2020
Adaptation Program in Quantity Surveying

(APQS)
LEARNING OUTCOMES
• On completion of this portion participants will be

able to understand and apply the knowledge about
the following:
 Quantification of Works in various stages and
QUANTITY Take Offs
 Details of IS 1200 Code on Measurements
 Overview of Global Standard Methods of
Measurements

(APQS)
Questions?
Advanced Certificate Course on Planning Skills

(ACCOPS)
PART ONE
Quantification of Works during
various Stages of works

(APQS)
HIERARCHY OF ESTIMATES
PROJECT INCEPTION COST PER

UNIT
RATE BED/SEAT/PUPIL
…
ELEMENT COST PER SQM/WALL/FLOOR
OUTLINE DESIGN ELEMENT UNIT RATIO/GROSS/NET SPACE RATIO
COSTS
COST PER SQ M OF
ELEMENTAL COST INDIVIDUAL ELEMENTS
DESIGN
DEVELOPMENT
COMPOSITE ITEMS &
APPROX. QTYS OR BUILDER’S RATES
QUANTITIES
DETAILE DETAILED ITEMS &

D DESIGN BILLS OF QUANTITIES DETAILED RATE
BUILD UP
SOURCE: Introduction to Estimating for
Construction by Brian Greenhalagh

(ACCOPS)
Level Of Detail
Depends on information and time available

1. Project definition stage
2. Concept design stage
3. Schematic Design stage
4. Design Development
5. Final Design

(APQS)
Accuracy of Estimates
Establish budget for project Budget Budget Budget

Revie Revie Revie
Initiation Feasibility w Design w w
Client Preliminary Developed Construction

Brief Design Design Drawings
Cost Plan Cost Plan

1 2
+/- 20 – 100%
+/- 20 – +/- 10 – +/- 5 – 15%
50% 25%
Contingencies 20%-30% 15-20% 5-10% 2-5%

Adaptation
(ACCOPS) Program in Quantity Surveying
(APQS)
COST ESTIMATING--
PRINCIPLE OF COSTING

(APQS)
Terminologies
Base Cost Estimate- Element- Major part of a Elemental Method of

Does not take into group element- example- Budgeting/Estimate-
account the risk factors Group Element- Internal Work/Project is perceived as a
and uncertainties finishes; Elements- Wall set of Group and individual
finish, Floor Finish, elements. Estimate prepared on
Ceiling finishes the basis of calculation of
Element Quantities and Rates
Estimate Base date- Date RIBA (Royal Institute

which depicts the time @ of British Architects) OGC (Office of Government
which the costs of various Plan of work- Basic Commerce) Review- Stages
elements/ items are valid. steps in decision making of inspection / review points
Basis for calculating inflation/ of a medium size in the lifecycle of a project.
variance etc. building projects.
Indirect Costs
• Main Contractor’s Overheads- Cost of maintaining the head office + Return on capital
investment
• Main Contractor’s Preliminary- Cost of maintaining the site establishment+ Cost not
Adaptation
attributable directly to work+ Program
insurance bondsin,Quantity Surveying
warranties etc.
(APQS)
What is a Cost Estimate??
A guess work - but an informed one !
Evaluation of the cost of the resources we use.
An estimate is the anticipated or probable cost of a work and is usually prepared before
construction is taken up
The estimate is prepared by identifying the scope of work, computing / calculating the
quantities of items of work required and then calculating the cost at suitable rate –accuracy
depends on (the accuracy of Data and the Rate)
Impacts the effectiveness of cost control
Needs substantiation of the figures used ( previous works, experience, database maintained
etc.)
Leads to a better understanding of the problem (Narrow Down the Unknown area and have
judicious approach),
Improves management insight into resource allocation ( remain cautious in problemetic
area)
Provides an objective baselineAdaptation
to measureProgram
progress.
in Quantity Surveying
(APQS)
Cost Estimate Cannot:
Be applied with
Substitute for sound
cookbook precision,
judgment, or
but must be tailored
management control
to a particular system
Produce results that

Make the final
are better than input
decisions.
data

(APQS)
Cost Estimating and Pricing
Cost Estimating involves

Pricing is a business decision-
developing an assessment of the
how much will the performing
likely quantitative result-how
organization charge for the
much will it cost the performing
product or service. It is based on
organization to provide the
estimate and normally includes
product or service involved.
profit.

(APQS)
Different Types of Estimate
Conceptual Estimate Based upon experience of the

Estimator for similar type of
buildings or works.
Generally used to carry out
Feasibility studies. Also
known as parametric
Preliminary Plinth Area Estimate Based upon established
Estimate or Rough plinth area rates printed by
Cost Estimate - Government organizations
Prepared at Concept i.e. CPWD Plinth Area Rates.
Design Stage May be used for Preliminary
Approvals.
Based upon cubic content of

the building –Used in Multi
Cube Rate Estimate story construction
(APQS)
Different Types of Estimate (Contd..)
Approximate Quantity Estimate - Prepared at Schematic Design

Stage. Gives a better estimation of cost compared to the above type of
estimates.
Detailed Estimate or Item Rate Estimate – Prepared at Detailed

Design Stage. Returns most accurate estimate of cost.
Supplementary Estimate – Required to add costs to an estimate due

to design changes during design development stages.

(APQS)
Methods of Cost Estimates ( Specified by RICS)
Floor Area Method

• Total gross internal floor area X Cost per m2 ( for constructing similar building)
Functional Unit Method

• Building is defined as different functional units
• If one building is being used for different purposes (Personal, commercial etc.) then the cost
per square meter for each functional area will be different and the total cost shall be the sum
total of the Floor area of a functional area multiplied with its unit cost as per its functional
use.
Elemental Method
• Building / Project is divided into various elements- Group elements such as super structure
and sub elements such as Frames, floors, roofs etc. Estimated cost of each element is added
to find out the estimated cost of the building

(APQS)
Factors affecting Cost Estimate /Plan
• Cost Information
• Source of cost data
• Supplier’s / Sub-contractor’s quotations
• Use of previous cost data
• Use of previous cost analysis
• Application of tender price indices
• Reasonable % allowances
• Inclusions & exclusions
• Market Information
• Market conditions (e.g. inflation / deflation etc.)
• Rapid change of material (e.g. huge variations in Cement)
• Change of labour costs (e.g. geography/ time)

(APQS)
Area Definitions, Terms & Processes (RICS)
• A. CLASSIFICATION OF AREAS
• NET FLOOR AREA (NFA)
In most countries, NFA is the area contained within
the external walls of the building measured at each
floor level (including any floor below the level of the
ground), together with the area of balconies and the
thickness of external walls (for submission to
Planning Authorities) Note : Carpark & plant room
areas are usually excluded, but this is NOT a fixed
rule. It depends on country specific regulations, bye
laws/Rules

(APQS)
Area Definitions, Terms & Processes
• A. CLASSIFICATION OF AREAS
• CONSTRUCTION FLOOR AREA (CFA) or BUA

CFA is the covered areas fulfilling the functional
requirements of the building measured to the
outside face of the external walls or external
parameter.
Areas occupied by partitions, columns, internal
structural walls, bay windows, stairwells, lift
shafts, plant rooms, water tanks, car parks, open
covered areas and the like are included.
(APQS)
Pre-contract Cost Planning
A. Preliminary Cost Estimate
B. Elemental Cost Estimate
C. Pre-Tender Cost Estimate

(APQS)
INITIATION STAGE
• STAGE-AS THERE IS NO PLANNING AT THIS STAGE-IT IS

BETTER TO CALL IT “COSTING THE BRIEF”
• PRINCIPLE-USE PROJ CHARACTERISTICS & COMPARE
WITH SIMILAR PROJECTS PREVIOUSLY CONSTRUCTED.
BASED ON ACTUAL SIZE OF BUILDING: TOTAL SQUARE
METER AREA. HENCE DIFFERENT FROM:
“ORDER OF COST ESTIMATE” WHICH IS BASED ON
AVERAGE COST PER
FUNCTIONAL UNIT.
• ESTIMATES ON “ELEMENTAL FORMAT”. COSTS BASED
ON HISTORICAL RECORDS DULY UPDATED…TO
LOCATION, CURRENT & FUTURE DATES.
(APQS)
“ORDER OF COST ESTIMATE”
• STAGE-DURING BUSINESS JUSTIFICATION STAGE ESTIMATE FOR

CONSTRUCTION AN ESSENTIAL INPUT. NO DRWGS, SPECS/OTHER
DOCUS.
• PRINCIPLE- SIMILAR PROJECTS, TIME & LOCATIONS SIMILAR. VARIOUS
ALTERNATIVES; EACH SKETCHED OUT AND ESTIMATED…
• BASIS- AVERAGE COST OF FUNCTIONAL UNIT? CONTRACT PRICE
(NOT TENDER) FOR SAME SCOPE FROM PUBLIC DOMAIN AND DATA
BASES-BUILDING COST INFORMATION SERVICE (UK)…
• PROCESS: ALSO KNOWN A PARAMETRIC ESTIMATING:”PROCESS OF
USING VARIOUS FACTORS” TO DEVELOP AN ESTIMATE (BUILDING
SIZE, TYPE, FOUNDATION, EXT ENVELOPE MTRL, NO. FLORS,
ROOF TYPE/MTRL, FUNCTIONAL SPACE REQMNTS, INTERIOR
UTILITY SYSTEM REQMNTS)

(APQS)
Preliminary Cost Estimate
Total Constrn Costs = Constrn Floor Area (CFA) x Unit Rate (Rs/CFA)
CFA
• Land & development conditions (e.g. site area, plot ratio, site coverage, height limitation &
NFA)
• Maximum buildable area = site area x approved plot ratio
• Approx. CFA = site coverage area x no. of floor (for building with full site
coverage)
• Approx. CFA = NFA x conversion factor (1.15-1.30 for residential, 1.25-
1.35 for office) or as per Bye-Laws
Unit Rate
• Location factors
• Specification level
• Construction methods
• Cost analysis of previous similar projects
• Adjustment of price index

(APQS)
INITIATION-ORDER OF COST ESTIMATE (TYPE A)
• Total Construction Costs = Functional Area x Functional Rate

• Functional parameters
•100 Bedded Hosp = 60m2 to 120m2 per bed x Rs /bed. Rs A 40 Lacs/bed= Rs 40 Cr
• 200 Room Hotel (3*)= 55m2 to 100m2 per room/key x Rs B/Key. @ 60L= Rs 120Cr
•500 Auditorium = 1.5m2 to 2m2 per seat x Rs C/seat. 10 L/seat= Rs 50 Crores
• 500 Carpark= 30m2 to 40m2 per carpark x Rs D/carpark.5L/car= Rs 25 Crores
• 100 Km 2 Lane Highway=Rs 15 Cr/Km= Rs 1500 Cr
• 100 Km 4 Lane Highway= Rs 39/Km = Rs 3900 Cr

(APQS)
INCEPTION STAGE
“ORDER OF COST ESTIMATE”
• BUSINESS JUSTIFICATION STAGE: NO DRWGS, SPECS/OTHER

DOCUS.
• PRINCIPLE- SIMILAR PROJECTS, TIME & LOCATIONS SIMILAR.
• BASIS- AVERAGE COST OF FUNCTIONAL UNIT?
CONTRACT PRICE (NOT TENDER PRICE) FOR SAME SCOPE
[PUBLIC DOMAIN AND DATA BASES-BUILDING COST
INFORMATION SERVICE (UK)]
• PROCESS: ?

(APQS)
EXAMPLE: ORDER OF COST ESTIMATE (TYPE C)
You have to prepare Approx Estimate for CONSTRUCTION of a Hostel

building project with total plinth area of all building is 1000 sqm. from
following data.
i) Plinth area rate Rs. 16000 per sqm
ii) Cost of Water Supply, Sanitary installations and Sewage/drainage @
12.5% of cost of building.
iii) Cost of Electrical installations each @ 7.5% of cost of building.
iv) Cost of architectural features @1% of building cost.
v) Cost of External works, roads and lawns @5% of building cost.
vi) Cost of contingencies @4% of building cost.
• How much will be the Tender Price with additional amounts as OH and
supervision and a reasonable Profit.?
• How much should the Developer/Owner have the Budget for same?

(APQS)
SOLUTION
PLINTH AREA COST: 1000x16000= Rs 1,60,00,000

Add WS, San, Sew/drainage @ 12.5% of cost of b.. = Rs 20,00,000
iii) Cost of Elect inst each @ 7.5% of cost of building= Rs 12,00,000
iv) Cost of architectural features @1% of building cost. Rs 1,60,000
v) Cost of Ext works, roads/lawns @5% of building cost. Rs 8,00,000
vi) Cost of contingencies @4% of building cost. Rs 6,40,000
TOTAL (A) Rs 2,08,00,000
Add 10% Cost for HO Overheads & Supervision Rs 20,80,000
Add Finance Cost & Legal Fees 5% Rs 10,40,000
Add 10% Profit Rs 20,80,000
PRICE TOTAL (B) Rs 2,60,00,000
Add Income Tax on Profit @ 25% Rs 5,20,000
Likely Bid Price Rs 2,65,00,000

(APQS)
ELEMENTS OF A SIMPLE BUILDING

(APQS)
PURPOSE: ELEMENTAL COST STATEMENT
• PROVIDES A WORK BREAK DOWN

STRUCTURE AND
• COST BREAKDOWN STRUCTURE-BY
CODIFYING IT
• CAN BE USED TO DISTRIBUTE WORKS IN
ELEMENTS TO CONSTR PACKAGES FOR
PROCUREMENT

(APQS)
Elemental Cost Estimate
Elemental Quantity
• Design information (e.g. Architect’s first sketch design)
• Analysis of previous similar projects
Elemental Unit Rate
• Location factors
• Specification level
• Construction methods
Allowance for
• Preliminaries
• Contingencies

(APQS)
Elemental Cost Estimate
Total Construction Costs = Sum of (Elemental Quantity x Elemental

Unit Rate)
Standard Elements
• Site preparation : demolition, site formation, site investigation
• Foundation & substructure : piling, basement
• Shell : structural frame, door, window, curtain wall, shop front, skylight
• Finishing : roof, floor, internal wall, ceiling, external wall
• Fixture & fittings : metal work, built-in furniture, equipment
• Services : sanitary fitting, plumbing, electrical, fire services, HVAC, security,
gas, communication, automation, swimming pool filtration plant, sewage,
refuse disposal
• Miscellaneous work : external work, landscaping, drainage, utilities
connection
• Preliminaries (% allowance)
• Contingencies (% allowance)

(APQS)
Steps to Prepare an Estimate
May Use Check Determined by

lists from RICS Experience
Techni
cal
specifi Labor
cations
Plant
Client’s Qualit How to
y Estimat Materi Cost per
Requir do the unit
Requir e Inputs al- Estim
ement job
ement Calcul e
ate
Quanti
Site ty
Conditi Sub-
ons contrac
Degree of Approximation tors Accuracy
Geography, Law of the land, Currency and its possible

fluctuation , Availability of labour, machines (alongProgram
Adaptation with repairin Quantity Surveying
facility) and specified material, adjoining
(APQS)structures enabling
works required
Trade Off between Cost and Accuracy
Cost ( Amount
Accuracy
of Effort)
High Cost Items Inexpensive Items
Ease of Difficult to
Measurement measure
Difficult Quantity Easy Quantity

Monitoring Monitoring

(APQS)
Cost of Risk, Inflation and Currency exchange
Risk Avoidance – Having serious consequences for project completion
Risk Reduction- Risk is unacceptable but mitigating steps can be taken which would reduce risk
Risk Transfer- Example Insurance
Risk Sharing- Owners retain some percentage of risk
Risk Retention- Risk which is not controllable and hence resides with the owner
Inflation- to be accounted for projects running for long time
Currency exchange – to be taken into account for overseas projects
RICS recommends allowance to be made for following risks

• Design Development risks
• Construction risks
• Employer change risks
• Employer other risks- handover postponement, owner change etc.

(APQS)
QUESTIONS?

(APQS)
SESSION 1 (Pre Lunch)
PART 2-OVERVIEW OF MEASUREMENT

RULES AND CODES
VINOD NAKRA, FRICS, FIE,FIS,FITP,FIV

(APQS)
Modern quantity surveyor
• The training and knowledge of the QS - evolve over time

into new areas, covering all aspects of procurement,
contractual and project cost management.
• Success of the QS depends upon ability to measure and

value.
• It is on the aspect of measurement that this session

concentrates

(APQS)
Need for measurement
• Various stages - feasibility stage through to the final

account.
• Required - to establish a budget price, give a pre-tender

estimate, provide a contract tender sum or
• Evaluate the amount to be paid to a contractor at

various stages/activity based.
• Responsibility of Measurement – Architect/ QS/

Contractor?

(APQS)
Need for rules
• Consistency
• Enable comparison between schemes & options
• Same items in each element-avoid payment more than once due to overlap
• Contractor needs to know the basis of measurements in inclusions/
exclusions in an item.
• Provided by standard methods of measurements in various forms worldwide
• Minimise disputes later
• Helps reconciliation of materials and costs
• Control payments to sub contractors!!

(APQS)
Purpose: Standard methods of measurements
 to standardize the layout and contents of Bills of

Quantities prepared according to the standard method of
measurement
 to provide a systematic structure of bill items leading to
more uniform itemization and description
 to review the subdivision of work into items so that a more
sensitive and balanced description of the value of work in a
contract is provided
 to take account of new techniques in civil engineering
construction and management, their influence on the work
itself and on the administration of contracts.

(APQS)
Divisions of bill preparation
• Taking Off - measurement of dimensions and the

compilation of the descriptions from the drawings and
specification.
• Squarring- calculation of volumes, areas etc.
• Abstracting - Entering the descriptions and the squared

dimensions to collect similar items together and present
them in a recognised bill order.
• Billing - The draft bill written from the abstract.

(APQS)
TAKING OUT QUANTITES

(APQS)
QUANTITY TAKE OFF: OWNER’S PERSPECTIVE
• Initial (preliminary) estimate of the project costs at

the different stages of the project.
• Preparing the BOQ as a requirement of the contract
documents.
• Estimating the work done for issuing the contractor
payments.

(APQS)
QUANTITY TAKE OFF: CONTRACTOR’S
PERSPECTIVE
• Pricing different work items

• Identifying the needed resources
(Labour, Materials, Equipment, etc.)
• Project schedule-Preparing invoices for
work done
• Subcontractors’ payments
• Review and control of productivity rates.

(APQS)
TAKING OUT QUANTITIES
Measurements are taken off from the drawings and

entered on measurement sheet or dimension paper.
The measurements to be taken out would depend upon
the unit of measurement. For example:
 in case of stone masonry in superstructure,
length, thickness and height of the walls above plinth
level would be taken out from the drawings and entered
on the measurement sheet (Cum)
 in the case of plastering only the lengths and
heights of the walls would be entered. (Sqm)

(APQS)
IMPACT OF TECHNOLOGY ON QTY TAKE OFF?
• CHANGE IN METHOD: Computerisation inevitable for larger

construction companies
• CAD & BIM: Revolutionised building industry. Modern projects built
TWICE-Virtual model removes bugs and reduced RISKS in real
construction. Estimation SPEED & ACCURACY. Improved
PRODUCTIVITY. REDUCED WASTE.
• HUMAN ELEMENT. Not replaceable. Quantity take off takes skill,
patience and powers of observation. Also lot of experience. Quantity
surveying: high skill and a vital component to support project
proposals. Material data estimation a critical part of construction
specialized and independent Quantity Take Off specialists retained.
• DIGITAL TAKEOFFS. At the mercy of human operators and interpreters
just as manual take offs are. Today, we still rely on two quantity takeoff
methods — manual and digital.
• SKILLS NEEDED. Take off technician being properly trained and
proficient with the software application AND also highly attentive to
applying the takeoff information into cost-based results.

(APQS)
QUANTITY TAKE OFF PROCESS:INPUT
• CRUCIAL STEP-INPUTTING. Precise and Accurate Information

into plans. Whether manually drawn blueprints or your CAD
operator creates multi-layered, three-dimension building
models. Take Off technician paramount to managing data.
This starts by inputting precise information onto the
blueprints or into the computer-assisted take-off software.
• GARBAGE IN GARBAGE OUT: Take off personnel only have
control over what they’re given. Normally, a designated
estimator won’t prepare the original concepts, working
drawings or CAD layouts. Others in the building chain usually
design and specify projects. However, an astute take off tech
can spot irregularities and account for them during their data
management. This is a critical control in the input stage.

(APQS)
QUANTITY TAKE OFF-OUTPUT
• MATERIAL TAKE OFF: Core to the data management output stage.

Output turns concepts into physical entities: this is where accurate
material estimation is essential. Here is where your takeoff person or
team has control.
• DATA MANAGEMENT: Setting aside errors and omissions, your
material takeoff relies on a system of identifying materials,
quantifying them and then attaching data to a price schedule.
• PRICING STRUCTURES & SCHEDULES: Construction data
management professionals take material takeoff output and put this
information into schedules based on valid pricing structures. Small
scale projects. Local. Large Scale. NATIONAL OR GLOBAL pricing.
• SOURCING QUALITY DATA FOR QUANTITY TAKE OFF: Takeoff
professionals know where to look for quality data to use in a quantity
takeoff. This systematic approach: Fair and accurate proposal to
move the project forward. Putting out hard figures from software
printouts creates solid estimates, which are the foundation for
successful bids. Adaptation Program in Quantity Surveying
(APQS)
IS 1200: Basis
• Variation in measurement practices by Contractors/ Central/ State
• IS 1200 unification of systems technically to permit a wider range
of civil engineering operations
• Eliminates ambiguities, misunderstanding (inadequate
information, knowledge)

(APQS)
IS 1200 : Features
• Based on trades
• Divided into sections based on trades
• Identifies measurements rules for measuring various scenarios
• Specifies that Bills of Quantities - The bills of quantities shall
fully describe the materials and workmanship, and accurately
represent the work to be executed
• The item descriptions are elaborate
• Seldom linked to detailed specifications and drawings
• Does not fully cater to the requirements of modern construction
methods
• Does not give any guidance on preliminaries, cost planning
principles, presentation of bills of quantities
• Elaborate on MEP services and other non-building related works

(APQS)
SALIENT POINTS : IS-1200 MEASUREMENTS
• IS 1200-1972 PART 1-EARTHWORK

• IS 1200-1974 (PART 2)-CONCRETE
• IS 1200-1976 (PART 3)-BRICKWORK
• IS 1200-1982 (PART 5)-FORMWORK)

(APQS)
PART 1-EARTHWORK
• Measurements: (Is 1200 Part 1, Page no.- 1 Cl 2.3)

• Each dimension shall be measured to the nearest 0.01 m.
• Areas shall be worked out to the nearest 0.01 sq.m. and
• Cubical contents shall be worked out to the nearest 0.01 Cu.m.
• Work to be Measured Separately (Is 1200 Part 1,
Page no.- 1 Cl 2.4)
• Work in or underwater,
• Work in or under foul situations,
• Work under tidal conditions,
• Work in snow

(APQS)
PART 1-EARTHWORK
• Authorized working space unless specified otherwise: the

following shall apply. (Is 1200 Part 1, Page no.- 3 Cl 4.2.5.1)
• 600 mm measured from the face of substructure (including protective
measures, if any) at the lowest level, where extra working space is
required. In trenches, which are to receive post-tensioned concrete ground
beams, the extra length at each the end shall be 1.5 m.
• When the measurement of excavation in Sq.m /Surface
Excavation (Is 1200 Part 1, Page no.- 3 Cl 4.6)
• Excavation exceeding 1.5 m in width as well as 10 sqm on a plan but
not exceeding 300 mm in depth shall be described as ‘surface
excavation’ and measured in square meters.
• That is: Excavation upto 1.5 m in width as well as upto 10Sqm on a plan but EXCEEDING
300 MM will be measured in Cum.

(APQS)
PART 2-CONCRETE WORKS
• Measurements/Dimension: (Is 1200 Part 2, Page no.- 3

Cl 2.4)
• Unless otherwise stated, all work shall be measured NET in the
decimal system as fixed in its place as given in below point no 1. to
below point no 3. Any work is done extra over the specified
dimensions shall be ignored.
• Dimensions shall be measured to nearest 0·01 m except for the
thickness of SLAB which shall be measured to nearest 0·005 m,
• Areas may be worked out to the nearest 0·01 square meter.
• Cubic contents shall be worked out to the nearest 0·01 cubic meter.
• Not Consider in MB /Work to be Measured Separately (Is
1200 Part 2, Page no.- 4 Cl 2.6)
• Same as Earthwork but also
• Work in liquid mud

(APQS)
PART 2 CONCRETE WORKS
• No deduction shall be made for the following (Is 1200 Part 2,

Page no.- 6 Cl 4.1.8)
• Ends of dissimilar materials, for example, beam, posts, girders, purlins,
trusses, corbels, and steps up to 500 cm in cross-section.
2
• Opening up to 0.1 m or as specified.

2
• The volume occupied by reinforcement.

• The volume occupied by pipes, conduits, sheathing, etc., not exceeding
100 cm Square each in cross-sectional area or as specified.
• Small voids, such as the shaded portions in as per below fig., when these
do not exceed 40 cm each in cross-section.
2
• Stops, miters, returns, rounded ends, junctions, dishing, etc., in connection

with linear or super labors,
• Note: In calculating the area of an opening. The thickness of any separate

lintel or sill shall be included in the height. No extra labour for forming such
an opening or voids shall be measured.

(APQS)
PART 3-BRICKWORK
• Measurements: (Is 1200 Part 3, Page no.- 4 Cl 2.3): To the nearest-

• Same as Earthwork
• Work to be Measured Separately (Is 1200 Part 3, Page no.- 5 Cl 2.7)
• Same as Concrete
• No deductions or additions shall be made on any account for the
following: (Is 1200 Part 3, Page no.- 7 Cl 4.1.4)
• Ends of dissimilar materials (that is, joists, beams, lintels, posts, girders, rafters, purlins,
trusses, corbels, steps, etc.); up to 0.1 sq.m. in section.
• Opening up to 0.1 sq.m. in the area ( see Note ).
• Wallplates, bed plates, and bearing of slabs, CHAJJAS, and the like, where thickness does
not exceed 10 cm, and the bearing does not extend over the full thickness of the wall.
• Cement concrete blocks as for holdfasts and holding down bolts.
• Iron fixtures, such as wall ties, pipes up to 300 mm diameter, and holdfasts for doors and
windows. and
• Chases of section not exceeding 50 cm in girth.
• Note- In the calculating area of an opening, any separate lintel or sills shall be included with the size
of the opening, but end portions of lintel shall be excluded, and the extra width of a rebated reveal, if
any, shall also be excluded.

(APQS)
PART 3 BRICKWORK
• Circular brickwork (Is 1200 Part 3, Page no.- 8 Cl 5)

• Brickwork circular on a plan to a mean radius not exceeding 6 m shall be
measured separately and shall include all cutting and waste and templates.
• Brickwork circular on a plan to a mean radius exceeding 6 m shall be measured separately
and included with general brickwork.
• Broken glass coping in Brickwork (Is 1200 Part 3, Page no.- 10
Cl 18)
• Broken glass coping laid along with brickwork shall be measured in square
meters and described stating the thickness of mortar and weight of broken
glass per square meter of coping.
• Filleting in Brickwork (Is 1200 Part 3, Page no.- 10 Cl 17)
• Filleting is a mortar, as in flashings on roofs, shall be described and
measured in running meters stating shape and the sectional area of fillets.

(APQS)
PART 5-FORMWORK
• Measurements in formwork (Is 1200 Part 5, Page no.- 4 Cl 2.4)

• All works shall be measured net in the decimal system, as fixed in its place:-
• Dimensions shall be measured to the nearest O.Ol m.
• Areas shall be worked out to the nearest 0.01 m . 2
• Work to be Measured Separately (Is 1200 Part 5, Page no.- 4 Cl 2.5)

• As with Brickwork
• Formwork shall be generally classified as follows and measured
separately unless specified otherwise:(Is 1200 Part 5, Page no.- 6 & 7 Cl
5.1)
• Foundation, footings, bases of columns, etc., and mass concrete.
• Flat surfaces, such as soffits of floors, roofs landing, and the like where floors exceed
200 mm in thickness, the formwork shall be measured separately, stating the thickness.
• Vertical surfaces, such as walls, partitions and the like, including attached pilasters,
buttresses, plinth and string courses and the like, etc.;
• Sloping or battering surfaces, including folded plates;
• Where inclination to the horizontal plane does not exceed 30 (Requiring shuttering only on the
0
underside)
• Where inclination to horizontal plane exceeds 30 (where shuttering may be provided both on the
0
underside and upper side if required ) (The only underside area to be measured).

(APQS)
PART 5-FORMWORK
• Arches
• Up to 6 m span
• Above 6 m span
• Cylindrical Shells ( Area of Underside lo be Measured)
• Radius less than 3 m
• Radius above 3 m
• Waffle or ribbed slabs where shuttering is required for the bottom
inclined surface;
• Dormer vaults and shell roofs having curved surfaces in both
directions (Only the area of underside shall be measured)
• Sides and soffits of beams, beam haunchings, cantilevers, girders,
bressummers, and lintels; beams and girders 1 m deep and over
shall be measured separately;
• Sides of columns, piers, pillars, posts and stanchions and struts
(square/rectangular/polygonal/circular/curved to be measured
separately)
• Edges of slabs and breaks in floors and walls (To be measured in
running meters where under 203 mm width or thickness).
(APQS)
PART 5-FORMWORK
• Cornices and moldings.
• Small surfaces, such as cantilever ends, brackets and ends of

steps, caps, and bases to pilasters and columns and the like
• Challah hoods, weather shades, Chhajjas, corbels, etc, including
edges.
• Staircases with sloping or stepped soffits, including risers and
stringers, excluding landing.
• Spiral staircases.
• Chimneys and shafts.
• Elevated water reservoirs.
• Well, steining.
• Fins.
• No deductions (Is 1200 Part 5, Page no.- 8 Cl 6.4)
• No deductions shall be made for openings up to 0.4 m2. Ko
deduction shall be made for any opening/cutouts when the slip-
form technique is used

(APQS)
SMM7 – Standard Method of Measurement
• Used for general construction works (primarily building)

• BoQ shall fully describe the quantity and quality of the
works
• Direct linkage with specifications (same section
categories followed in specifications)
• More detailed information to be provided where
necessary in order to define the precise nature and
extent of the required work
• Item description – more functional in lesser number of
words
• Items defined according to construction methodology
• Detailed break down provided to assist contractors
(APQS)
NRM
• To provide a link between the measurement for cost

planning or early estimates with the measurement for bills
of quantities
• To introduce a common standard for the cost planning and
procurement of maintenance work.
The three volumes of the NRM suite are:
• NRM1 – Rules for order of cost estimating and elemental
cost planning
• NRM2 – Rules for works procurement
• NRM3 – Rules for maintenance and operation cost
planning and procurement
62

(APQS)
NRM
• NRM 1 - initially published in March 2009 well received

and adopted by many.
• NRM2 developed as a set of detailed measurement rules
for the preparation of either bills of quantities or
Schedules of Rates for either capital or maintenance
projects.
• Deal with the quantification of non-measurable work
items, contractor designed works and risks.
• Guidance provided on the content, structure and format
of bills of quantities, as well as the benefits and uses of
bills of quantities.

(APQS)
NRM2
• NRM2 is divided into three parts with supporting appendices:

• Part 1: General - measurement for works procurement (with RIBA Plan Of
Work and the OGC Gateway Process); and explains the symbols,
abbreviations and definitions used in the rules.
• Part 2: Rules for detailed measurement of building works –
• outlines the benefits of detailed measurement,
• describes the purpose and uses of NRM2;
• explains the function of BoQs,
• provides work breakdown structures for BoQs,
• defines the information required to enable preparation of BoQs,
• describes the key constituents of BoQs,
• explains how to prepare BoQs.
• Considerable space is given over to the codification of BoQs and the use of the bills for cost
management.
• Part 3: Tabulated rules of measurement for building works -comprises the
majority of NRM being the tabulated rules for the measurement and
description of building works for the purpose of
works Procurement of building and maintenance works

(APQS)
CESMM4
• Civil Engineering Standard Method of Measurement (4th
edition)
• intended to be used only for civil engineering works and
simple building works incidental to civil engineering works
• does not deal with the preparation of Bills of Quantities for
complex mechanical or electrical engineering work, or
complex building work or work which is seldom encountered
in civil engineering contracts
• This defines
• how work is to be divided into separate items in the Bill of
Quantities
• the information to be given in item descriptions
• the units in which the quantities against each item are to be
expressed
• how the work is to be measured for the purpose of calculating
quantities Adaptation Program in Quantity Surveying
(APQS)
CESMM4
• 26 Main Classes (A to Z) - 3 division each – upto 8
descriptive features e.g. Precast Concrete Unit Type,

Dimension, Mass
• To avoid unnecessary length, item descriptions for

permanent works shall generally identify the component of
the works and not the tasks to be carried out by the
contractor,
Describe as ‘Plain round mild steel bar reinforcement to nominal size 20 mm’, not
as ‘Supply, deliver, cut, bend and fix plain round mild steel bar reinforcement to
nominal size 20 mm’
• Work -specifically limited, limitation stated in item
description,
Example “Plain round mild steel bar reinforcement to nominal size 20mm
excluding supply and delivery to the Site”
• Should prepare two separate items for different features – No
mixing Adaptation Program in Quantity Surveying
(APQS)
Difference between SMM & CESMM
SMM7 CESMM4
• Document for • Defines procedure for
measurement BOQ preparation &
• Does not set out rules pricing, expressed and
for production of BoQ measured
• Requires more detailed • Many items deemed
items of BoQ included in one item
• Suitable for building • Suitable for Civil
projects (more items, Engineering works
less quantities) (Less items, more
quantities)

(APQS)
POMI
• Principles of Measurement (International)
• Assists in preparation of tenders by providing

measurements of quantities in a uniform basis
• 16 sections (A to R)
• Simplistic presentation of BoQ. Less items and Less
descriptions
• Many items deemed included in one item
• Provides a basis for financial control, in accordance
with standard contract conditions
• Section Headings & Classifications do not impose
restrictions upon the format & presentation of bills of
quantities
• Extensively used in building works
(APQS)
Measurement process
• The main purpose of a BOQ - tendering.

• Contractor price the work on exactly the same information
with a minimum of effort - fairest competition.
• 99% private agencies work in India – BoQ based
• 50% building work in UK is still let using lump-sum
contracts with firm or approximate quantities.
• Other procurement routes (D&B, Management contracting
etc.) also involve quantification of the work
• Computerised measurement systems – still need detailed
understanding of the traditional method of setting down
dimensions and framing descriptions
• BIM- potential exists to generate quantities. NRM?

(APQS)
QUESTIONS?

(APQS)
DAY 5
POST LUNCH

(APQS)
DAY 5
SESSIONS (POST LUNCH)
DEVELOPMENT OF ESTIMATES-PRE
TENDER
PART 3
• Approximate Estimate: including Cost capacity
factors and cost Indices during Feasibility stage;
• Pre Tender Estimate including first principle
analysis during Planning stage
• Prime Cost Sum and Provisional Sum
(APQS)
LEARNING OUTCOMES
At the end of this session participants will be

able to understand and apply:
• Approximate method of estimation based on
cost indices, cost capacity and parametric
factors during feasibility stage.
• Detailed estimate-pretender estimate
• Prime cost Sum and Provisional Sum

(APQS)
PART 3- Approximate Estimate: including Cost

capacity factors and cost Indices during
Feasibility stage

(APQS)
Outline
Conceptual & Preliminary Estimates (Contd)

 Cost indices
 Cost capacity factor
 Parameter Cost
 Detailed Estimates
 Estimates
 Cost classification
 Calculation

(APQS)
COST INDICES
SHOW CHANGES OF COSTS OVER TIME

BY UPGRADING THE COST OF SIMILAR
FACILITIES FROM THE PAST TO THE
PRESENT
Cost indices show the changes of a certain facility’s costs over time
Year 1913 = 100, …Year 2007 = 4432
If Facility A is similar to my ‘wish’ facility and I know the value of Facility A at 1913,
I can assume my ‘wish’ facility’s value at 2007.
Source: http://www.enr.com/features/conEco/

(APQS)
COST INDICES
• USED TO DETERMINE THE GENERAL

CONSTRUCTION COSTS OF STRUCTURES
• PUBLISHED PERIODICALLY BY
ENGINEERING NEWS RECORD (ENR) AND
OTHER PUBLICATIONS. ENR’S BUILDING
COST INDEX (BCI): CHANGES OF
FACILITY’S COSTS OVER TIME

(APQS)
Building Cost Index Data (Prior to 1990)

Adaptation
(ACCOPS) Program in Quantity Surveying
(APQS)
Building Cost Index Data (1990–Date)
ANNUAL
JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC.
AVG.
1990 2664 2668 2673 2676 2691 2715 2716 2716 2730 2728 2730 2720 2702
1991 2720 2716 2715 2709 2723 2733 2757 2792 2785 2786 2791 2784 2751
1992 2784 2775 2799 2809 2828 2838 2845 2854 2857 2867 2873 2875 2834
1993 2886 2886 2915 2976 3071 3066 3038 3014 3009 3016 3029 3046 2996
1994 3071 3106 3116 3127 3125 3115 3107 3109 3116 3116 3109 3110 3111
1995 3112 3111 3103 3100 3096 3095 3114 3121 3109 3117 3131 3128 3111
1996 3127 3131 3135 3148 3161 3178 3190 3223 3246 3284 3304 3311 3203
1997 3332 3333 3323 3364 3377 3396 3392 3385 3378 3372 3350 3370 3364
1998 3363 3372 3368 3375 3374 3379 3382 3391 3414 3423 3424 3419 3391
1999 3425 3417 3411 3421 3422 3433 3460 3474 3504 3505 3498 3497 3456
ANNUAL
JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC.
AVG.
2000 3503 3523 3536 3534 3558 3553 3545 3546 3539 3547 3541 3548 3539
2001 3545 3536 3541 3541 3547 3572 3625 3605 3597 3602 3596 3577 3574
2002 3581 3581 3597 3583 3612 3624 3652 3648 3655 3651 3654 3640 3623
2003 3648 3655 3649 3652 3660 3677 3684 3712 3717 3745 3766 3758 3694
2004 3767 3802 3859 3908 3955 3996 4013 4027 4103 4129 4128 4123 3984
2005 4112 4116 4127 4167 4188 4194 4196 4209 4218 4265 4312 4329 4203
2006 4333 4338 4330 4335 4332 4340

2007 4432 Base: 1913=100

(APQS)
COST INDICES TIME CONVERSION
• EXAMPLE:
• WAREHOUSE ESTIMATE: ASSUME YOU HAVE AN

ESTIMATE TO A SIMILAR WAREHOUSE LOCATED NEARBY
AND COMPLETED IN 1993 FOR A COST OF $4,200,000.
• WE ARE PLANNING TO BUILD A NEW WAREHOUSE IN
FEB. OF 2007. THE BUILDING COST INDEX FROM ENR
FOR 1993, RELATIVE TO THE BASE DATE OF 1913, WAS
2996% AND BUILDING COST INDEX FROM ENR FOR FEB.
2007 IS 4432%. WHAT IS THE ESTIMATED PROJECT COST
IF YOU ESTABLISH THE ESTIMATE USING BUILDING COST
INDEX FROM ENR? (ENGG NEWS RECORD)?
Adapted from: Barrie & Paulson, 1992

(APQS)
COST INDICES TIME CONVERSION
WHAT INFORMATION DO WE NEED?
• CURRENT BUILDING COST INDEX (FEB. 2007) = 4432
• BUILDING COST INDEX FOR YEAR 1993 = 2996
• SIMILAR FACILITY’S COST AT YEAR 1993 = $4,200,000
• ESTIMATED FACILITY COST IN YEAR 2007= X
• COST INDEX=4432/2996=1.479
• WE CONVERT FROM ONE BASE PERIOD TO ANOTHER
• $X =1.479*$4,200,000 = $6,213,084

(APQS)
COST INDICES COMPONENT CALCULATIONS
• ENR’S CONSTRUCTION COST INDEX:

• USED WHEN LABOR COSTS ARE HIGH IN PROPORTION OF

TOTAL COST
• COMPONENTS:
• 1,088 BOARD FEET OF LUMBER (2X4, 20-CITY AVERAGE)

• 1 BOARD FEET = 1’ X 1’ X 1” = 144 IN3
• 2,500 POUNDS OF STRUCTURAL-STEEL SHAPES (20-CITY AVERAGE,

BASE MILL PRICE BEFORE 1996, FABRICATED AFTER 1996)
• 1.128 TONS OF PORTLAND CEMENT (BULK, 20-CITY AVERAGE)
• 200 HOURS OF COMMON LABOR (20-CITY AVERAGE)
costIndexes/constIndexHist.asp

(APQS)
COST INDICES USE AND ACCURACY
• ACCURACIES WITHIN 20% TO 30% OF
ACTUAL COSTS
• NEGLIGIBLE TIME AND EFFORT
• VALUABLE FOR PRELIMINARY PLANNING

(APQS)
COST INDICES - LIMITATIONS
• PROBLEMS COULD ARISE IF THE PROPORTIONS OF THE

INPUT COMPONENTS (E.G., LUMBER) IN A BUILDING

TYPE. COST INDEX DO NOT REFLECT THE RESOURCES
USED ON THE PROJECT IN QUESTION
• E.G., ABOUT 40 % OF THE COSTS IN A PETROCHEMICAL
PROJECT IS IN PIPING (PIPE AND PIPE FITTERS)
• PROBLEMS COULD ARISE IF THE PROJECT ON WHICH
THE INDEX BASE HAS VERY LITTLE IN COMMON WITH
THE PROJECT UNDER CONSIDERATION
• SOME TYPES OF INDICES DO NOT CONSIDER FACTORS
SUCH AS: PRODUCTIVITY, CHANGES IN TECHNOLOGY,
AND COMPETITIVENESS OF CONTRACTORS
• ONLY TIME TAKEN INTO ACCOUNT

(APQS)
Outline
Conceptual & Preliminary Estimates

 Cost indices
 Parameter Cost
 Estimates
 Calculation

(APQS)
COST-CAPACITY FACTOR
• APPLY TO CHANGES IN SIZE, SCOPE, OR

CAPACITY OF PROJECTS OF SIMILAR TYPES
• REFLECT THE NONLINEAR INCREASE IN COST
WITH SIZE (ECONOMIES OF SCALE, LEARNING
CURVES)
• C2 = C1 (Q2/Q1) X
• WHERE
• C2 = ESTIMATED COST OF THE NEW FACILITY
W/CAPACITY Q2
• C1 = KNOWN COST OF FACILITY OF CAPACITY Q1
• X = THE COST-CAPACITY FACTOR FOR THIS TYPE
OF WORK Adaptation Program in Quantity Surveying
(APQS)
COST-CAPACITY FACTOR
• Q IS A PARAMETER THAT REASONABLY REFLECTS THE

SIZE OF THE FACILITY (E.G., BARRELS PER DAY
PRODUCED BY A REFINERY, TONS OF STEEL PER DAY
PRODUCED BY A STEEL MILL, GROSS FLOOR AREA FOR A
WAREHOUSE)
• X IS AN EMPIRICALLY DERIVED FACTOR BASED ON WELL-

DOCUMENTED HISTORICAL RECORDS FOR A VARIETY OF
DIFFERENT TYPES OF PROJECTS
• ONLY CAPACITY TAKEN INTO ACCOUNT
Source: Barrie & Paulson, 1992

(APQS)
COST-CAPACITY FACTOR EXAMPLE
 EXAMPLE REVISIT:
 WAREHOUSE ESTIMATE: ASSUME YOU HAVE AN ESTIMATE TO A

SIMILAR WAREHOUSE LOCATED NEARBY AND COMPLETED IN 1993
FOR A COST OF $4,200,000. WE ARE PLANNING TO BUILD A NEW
WAREHOUSE IN FEB. OF 2007. THE ENR INDEX FOR 1993, RELATIVE
TO THE BASE DATE OF 1913, WAS 2996% AND THE ENR INDEX FOR
2007 IS 4432%.
 CONSIDER THE COST-CAPACITY FACTOR X = 0.8 FOR A

WAREHOUSE.
 THE ABOVE WAREHOUSE HAS A USABLE AREA OF 120,000 SQUARE
FEET
 THE PROSPECTIVE OWNER FOR THE NEW WAREHOUSE WANTS A
(APQS)
STRUCTURE WITH A USABLE AREA OF 150,000 SQUARE FEET
COST-CAPACITY FACTOR EXAMPLE
 What Information Do We Need?
 Q2/Q1 = 150,000/120,000 = 1.25
 Cost-capacity factor x = 0.8
 Known cost = $4,200,000
 C2 = $4,200,000 * (1.25)0.8 = $5,020,851
 A 25% more capacity implies only 20% more costs (Non

linear)

(APQS)
COMBINING COST INDICES & COST-CAPACITY FACTOR
• COMBINE COST INDICES & COST CAPACITY

FACTORS TO TAKE INTO ACCOUNT CHANGES IN
BOTH TIME & CAPACITY
• C2 = C1 (Ib / Ia) (Q2 / Q1)x
• Where
• Ib = Index number “Now” or present time.
• Ia = Index number at that time
• 4,200,000 = Capacity now required
• Q1= Capacity at earlier time
Source: Barrie & Paulson, 1992

(APQS)
COST INDICES & COST-CAPACITY FACTOR EXAMPLE
 EXAMPLE REVISIT:
 WAREHOUSE ESTIMATE: ASSUME YOU HAVE AN ESTIMATE TO A

SIMILAR WAREHOUSE LOCATED NEARBY AND COMPLETED IN
1993 FOR A COST OF $4,200,000. WE ARE PLANNING TO BUILD A
NEW WAREHOUSE IN FEB. OF 2007. THE ENR INDEX FOR 1993,
RELATIVE TO THE BASE DATE OF 1913, WAS 2996% AND THE
ENR INDEX FOR 2007 IS 4432%.
 CONSIDER THE COST-CAPACITY FACTOR X = 0.8 FOR A

WAREHOUSE.
 THE ABOVE WAREHOUSE HAS A USABLE AREA OF 120,000
SQUARE FEET
 THE PROSPECTIVE OWNER
Adaptation FOR
Program in THE NEW
Quantity WAREHOUSE WANTS
Surveying
(APQS)A USABLE AREA OF 150,000 SQUARE FEET
A STRUCTURE WITH
COST INDICES & COST-CAPACITY FACTOR EXAMPLE
• C1= 4,200,000 (Known Cost)
• C2 = UNKNOWN COST;
• Q2 = CAPACITY REQUIRED
• Q1 = EARLIER CAPACITY
• C2 = 4,200,000 * (4432/2996) * (150,000/120,000)0.8 =

$7,188,731
• 25% INCREASE IN CAPACITY ENTAILS 71% INCREASE
IN COST

(APQS)
Pre Tender Estimate including first principle

analysis

(APQS)
Outline
Conceptual & Preliminary Estimates

 Cost indices
 Estimates
 Calculation

(APQS)
DETAILED ESTIMATES - METHODOLOGY
 Stage 1: Quantity takeoff

 Decomposition into items, measurement of quantities
 Challenges: tremendous detail complexity
 Stage 2: Direct Cost contribution
 Σ[Quantity] × [Unit Price]
 Challenge: determination unit price (based on historical data)
 Example:
Item unit quantity Unit price price
Reinforced steel lb 6,300 0.60 $ 3,780

(APQS)
LABOR COSTS
• CATEGORIZED BID ESTIMATE (NOT OVERALL UNIT
PRICES)
• BASIC UNIT LABOR COST = P / LP (RS/UNIT)
• P = PRICE OF ALL MONEY ELEMENTS (RS/HOURS)
• LP = LABOR PRODUCTIVITY (UNITS/HOUR)
• TOTAL LABOR COST = Q * P/LP
• Q = TOTAL QUANTITY OF WORK
• ESTIMATION OF LABOR COSTS PARTICULARLY

TRICKY
• PRICES: IN ANY COUNTRY, HIGHLY DETAIL INTENSIVE
• PRODUCTIVITY: HIGHLY VARIABLE(?); MANY QUALITATIVE

COMPONENTS
LABOR COST COMPONENTS- PRICES RELATED
• WAGES (VARIES BY AREA, SENIORITY, …)

• INSURANCE (VARIES W/CONTRACTOR
RECORD, WORK TYPE)
• SOCIAL SECURITY BENEFITS
• FRINGE BENEFITS (HEALTH…)
• WAGE PREMIUMS (E.G., OVERTIME, NIGHT,
SHIFT-WORK DIFFERENTIALS, HAZARDOUS
WORK)
• MANY MORE?

(APQS)
LABOR COST - PRODUCTIVITY
DIFFICULT BUT CRITICAL
HIGH IMPORTANCE OF QUALITATIVE FACTORS

(ENVIRONMENT, MORALE, FATIGUE, LEARNING, ETC)
THE PRIMARY MEANS BY WHICH TO CONTROL LABOR
COSTS
HISTORICAL DATA AVAILABLE
FIRM UPDATED DATABASE
DEPARTMENT OF LABOR, PROFESSIONAL

ORGANIZATIONS, STATE GOVERNMENTS

(APQS)
PRODUCTIVITY CONSIDERATIONS
• CONSIDERATIONS
• LOCATION OF JOBSITE (LOCAL SKILL BASE,
JURISDICTION RULES – HIRING & FIRING)
• LEARNING CURVES
• WORK SCHEDULE (OVERTIME, SHIFT WORK)
• WEATHER
• ENVIRONMENT
• LOCATION ON JOBSITE, NOISE, PROXIMITY TO
MATERIALS
• MANAGEMENT STYLE (E.G., INCENTIVE)
• WORKSITE RULES

(APQS)
Definitive Estimates
• Definitive estimate - forecast the final project cost with
little margin for error…

• Minimized through the proper addition of an evaluated
contingency
• Engineer’s estimates can complete this process
• The proper time to classify an estimate as ‘definitive’ will

vary according to the characteristics of the project. For
example:
• Traditional
• Unit-price
• Professional CM
• Design-Build (APQS)
Definitive Estimates: Types & Timing
• Lumpsum
Preliminary design Detailed design

Start Contract
• Unit Price

Start Contract
• Design-Build

Start Contract

(APQS)
Pre-tender Estimates
• Based on B.Q.
• Priced in current unit rates
• Supplier’s / Sub-contractor’s quotations
• Recent returned tenders

(APQS)
PURPOSE OF PRE TENDER ESTIMATE?
• LAST COST CHECK OF THE PROJECT BEFORE IT IS

ISSUED TO TENDER.
• DESIGN SHOULD BE SUFFICIENTLY DEVELOPED TO
ALLOW SPECIFICATION LEVELS AND CONSTRUCTION
METHODOLOGY TO BE DETERMINED
• IN THIS WAY THE ESTIMATE SHOULD BE A VERY
ACCURATE REFLECTION OF THE WORKS.
• DURING DETAILED DESIGN PROCESS SEVERAL
FACTORS THAT MAY HAVE INFLUENCED THE FINAL
DESIGN AND AS A RESULT THE PRE-TENDER
ESTIMATE COULD BE OUTSIDE THE COST PLAN
RANGE. EXAMPLES??

(APQS)
FACTORS INFLUENCING DESIGN
• ADDL SITE ISSUES-GROUND/SITE INCESTIGATIONS (TYPE OF

SOIL/ROCK, UNDERGROUND WATER, OBSTRUCTIONS IN THE
GROUND, CONTAMINATION, UTILITY SERVICE LINES, ETC)
• CLIENT DESIRE/INSTRUCTIONS-ALTERING SCOPE OF WORKS
• ARCHITECTURAL DESIGN ELEMENTS SINCE DETAILED & DO
NOT REFLECT INTENT AT COST PLAN STAGE.
• STRUCT ELEMENTS INCREASED IN SIZE DUE TESTING OF
PRELIM DESIGN
• SERVICES INSTALLATIONS ALTERED DUE TO DEVELOPMENT
OF SOLUTIONS
• UNFORESEEN CONTINGENCY REVIEW BASED ON LEVELS OF
INFORMATION
• REVIEW OF THE CURRENT STATE OF THE MARKET AGAINST
INFLATION ALLOWANCES

(APQS)
“Unknown items” - “Contingencies”
Contingency 1: Changes to the clients brief.

The details of the clients requirements may change during the
design process.
Contingency 2: Unknowns and errors in the design

documents.
Contingency 3: Changes in market prices.
105
Contingencies reduce as the project progresses

(APQS)
PRE TENDER ESTIMATE
• SITS SOMEWHERE BETWEEN COST PLANNING

AND POST CONTRACT COST CONTROL.
• QUANTITY SURVEYORS FINAL COSTING OF
WORKS BEFORE TENDERS RECEIVED.
• AT THIS STAGE THE WORKS CAN BE
BENCHMARKED AGAINST AVAILABLE COST
DATA TO PROVIDE COMPARISONS AGAINST
THE PROVISIONS ON OTHER PROJECTS AND
RELATED TO UNIT VALUES.

(APQS)
PRE TENDER ESTIMATE
• THE PRE-TENDER ESTIMATE ALLOWS A

RECONCILIATION OF THE COST PLAN WITH THE
TENDER INFORMATION FROM WHICH ANY DEVIATIONS
TO BE IDENTIFIED.
• IF CHANGES HAVE OCCURRED WITHOUT THE
CLIENT’S APPROVAL THEN THIS IS THE FINAL
OPPORTUNITY TO CAPTURE THESE BEFORE IT IS TOO
LATE.
• ALSO IDENTIFIES WHETHER CHANGES TO THE
DESIGN ARE ADDITIONS OR REQUIRE THE
IMPLEMENTATION OF VALUE ENGINEERING.

(APQS)
PRE TENDER ESTIMATE
• THE PRE-TENDER ESTIMATE ALSO GIVES

A BENCHMARK BY WHICH THE RETURNED TENDERS
CAN BE MEASURED. THIS IS PARTICULARLY
PREVALENT WHEN THE PROCUREMENT ROUTE IS
SINGLE CONTRACTOR NEGOTIATION.
• WHEN UNDERTAKING A PRE-TENDER ESTIMATE IT IS
IMPORTANT TO CONSIDER THE FORM OF CONTRACT
THAT WILL BE REFLECTED IN THE TENDER RETURN.
MUCH OF THIS COMES DOWN TO RISK ALLOCATION.
• THERE ARE 6 OPTIONS WHICH ARE:

(APQS)
Bid Detailed Estimates
• Contractor’s estimate low enough to obtain the work, yet high enough to
make profit
• Who? – contractor
• More detail depending upon the contractor’s own procedures
• Overall unit prices (past) → detailed categories (present)
• Often relies on
• Historical productivity data for company

• Intuition on speed of movement
• Quantity takeoff for most important items
• Subcontractor bids
• Sometimes less detailed than engineer’s estimates - subcontractors
from 30% to 80% of the project

(APQS)
OPTIONS

(APQS)
Pricing
Main option Contract type mechanism Risk allocation
PRICED
CONTRACT WITH
ACTIVITY
A SCHEDULE LUMP SUM CONTRACTOR

PRICED
CONTRACT WITH
BILLS OF
B QUANTITIES REMEASUREMENT CLIENT
TARGET COST
CONTRACT WITH REIMBURSEMENT
ACTIVITY WITH PAIN-GAIN
C SCHEDULE MECHANISM SHARED
TARGET
CONTRACT WITH COMBINATION OF
BILLS OF REMEASUREMENT AND
D QUANTITIES PAIN GAIN.. SHARED
COST RE-
IMBURSEMENT COST RE-
E CONTRACT IMBURSEMENT CLIENT
MANAGEMENT COST RE-
F CONTRACT IMBURSEMENT CLIENT
(APQS)
CALCULATING PRE TENDER ESTIMATE
• ESTIMATE BASED ON BEST INFORMATION AVAILABLE

AT THAT TIME, IDEALLY A QUANTIFIED BILL OF
QUANTITIES.
• IF NO QUANTIFIED PRICING
SCHEDULES/DOCUMENTATION-NECESSARY TO
MEASURE THE ELEMENTS OF THE WORK TO ALLOW
FOR PRICING (AS AVAILABLE FROM ASSOCIATED
COST PLAN).
• METHOD OF CALCULATING PRE-TENDER ESTIMATE
SAME REGARDLESS OF CONTRACT TYPE AND
WHETHER SUITE OF DOCUMENTS INCLUDE FULL BILL
OF QUANTITIES OR NOT.

(APQS)
CALCULATING PRE TENDER ESTIMATE
• PACKAGE THE WORKS INTO TRADES-ALLOWS MAJOR ELEMENTS

AND SPECIALIST ITEMS TO BE SENT OUT TO TRADE
CONTRACTORS FOR MARKET TESTING/ PRICING CHECK.
• COMPARE AGAINST OTHER TENDER RETURNS-WHERE POSSIBLE
COMPARE PROJECT AND ESTIMATES WITH SIMILAR PROJECTS.
COMPARISON OF ELEMENTS OF PROJECT SIMILAR TO ANOTHER
PROJECT EVEN IF WHOLE PROJECT NOT COMPARABLE.
• REVIEW THE STRUCTURE OF THE WORKS-DETERMINE HOW THE
STRUCTURE OF THE WORKS WILL BE REFLECTED IN THE
ESTIMATE. IN MANY INSTANCES THIS WILL AFFECT THE UNIT
RATES OF SPECIFIC ITEMS. IN SOME CASES THE EFFECT WILL BE
PURELY ORGANIZATIONAL
• INFLATION
• AVAILABLE INFORMATION

(APQS)
PRE TENDER CHECK LIST
• BOQ/PRICING DOCUMENT-IF NOT AVAILABLE-WE NEED TO QUANTIFY

EXTENT OF WORKS TO ALLOW FOR PRICING SCHEME.
• CLEAR SCOPE-ELEMENTS OF WORK TO MATCH BOQ/PRICING
DOCUMENT
• DRAWINGS/SPECS-FULL SET WITHOUT AMBIGUITY.
• PRINCIPLE LOCATION FOR THE PROJECT, FOR EXAMPLE, CITY,
COUNTRY
• SITE LOCATION-BROWN FIELD OR GREEN FIELD OR COMBINATION
AREA? WORK FACE LOCATION-ESTABLISHING THE LOGISTICS
ASSOCIATED WITH CARRYING OUT THE ACTUAL WORK. FOR
EXAMPLE, IF THE WORKS TAKE PLACE ON THE EIGHTH FLOOR
• UTILITIES-SURFACE, UNDERGROUND, OVERHEAD
• LOCAL MATERIALS

(APQS)
• SITE INVESTIGATIONS AND PHOTOGRAPHS-

REPORT ON THE EXISTING SITE
(GEOTECHNICAL REPORTS?)TO DETERMINE
THE EXTENT OF TEMPORARY MEASURES
REQUIRED (DEWATERING AND PROPPING). FOR
REFURBISHMENT OF EXISTING BUILDINGS, THE
INTERNAL STRUCTURAL INVESTIGATIONS WILL
HIGHLIGHT WHAT TEMPORARY AND
PERMANENT STRUCTURES REQUIRED TO
FACILITATE THE PROPOSED SCHEME
(STRENGTHENING WORKS AND REPAIRS)

(APQS)
• PROGRAMME-SCHEDULE FOR THE WORKS. IF THERE

IS A SHORTENED PROGRAMME THEN THIS WILL
DICTATE HOW THE WORK IS CARRIED OUT AND
WHETHER SPECIAL MEASURES NEED TO BE
EMPLOYED;
• OTHER RESTRICTIONS-PHASING, OCCUPIED
PORTIONS OF THE SITE, LIMITED WORKING HOURS-
FACTORED IN EITHER AS LINE ITEMS OR AS
ENHANCEMENT TO THE MEASURED WORK RATES;
• METHODOLOGY- PREVIOUS CONTRACTOR
ADVICE/METHODOLOGIES TO HELP DEFINE THE
PROPOSED APPROACH TO CARRYING OUT THE
WORKS; AND AVAILABLE RELEVANT COST DATA.

(APQS)
IMPORTANCE OF PRELIMINARIES
• EXAMPLE IS BASED ON A TRADE PACKAGE-UNDER A

CONSTRUCTION MANAGEMENT CONTRACT.
• SITE LOCATION: CENTRAL LONDON
• WORK LOCATION: RETAINED BASEMENT SLAB;
WORKING AROUND EXISTING STRUCTURE
PACKAGE: CONCRETE WORK
DURATION: 36 WEEKS
• WHEN ESTIMATING THIS WORK PRELIMINARIES NEED
SPECIFIC ATTENTION. THE PRICING SCHEDULE
BREAK DOWN THE PRELIMINARIES INTO HEADINGS.
IN ORDER TO PRICE THESE, THE HEADINGS NEED TO
BE ASSESSED FOR THE WORKS REQUIRED.

(APQS)
MEASURED WORKS
MEASURED CONCRETE WORK £5,804,186.49
• CRANE BASES (LEVEL B3); LEVEL B3 BASES AND PITS; LEVEL B3 SLABS;
LEVEL B3 LINING WALLS; LEVEL B3 COLUMNS; LEVEL B3 STAIRS (STEPS
FOR CHANGE IN LEVELS); LEVEL B3 SERVICE TUNNEL
• LEVEL B2 SLABS; LEVEL B2 UPSTANDS;
• LEVEL B1 SLABS; LEVEL B1 UPSTANDS
• GROUND FLOOR SLABS; GROUND FLOOR UPSTANDS
• CORE A (LEVEL B3 TO ROOF)
• CORE B (GROUND TO LEVEL 4)
• CORE C (LEVEL B2 TO ROOF)
• CORE CAPPING SLABS
• BELOW SLAB DRAINAGE
• ANCILLARY ITEMS - EARTHING PITS, COLUMN STRENGTHENING, ETC.

(APQS)
PROVISIONAL SUM
PRIME COST SUM

(APQS)
PRIME COST SUMS
• PRIME COST (PC) SUMS, OR ITEMS, (AS WELL AS PROVISIONAL

ITEMS, COSTS & QUANTITIES) CAN BE USED AS ALLOWANCES FOR
ITEMS OF WORK REQUIRED AND ARE TO BE INCLUDED IN THE
CONTRACT, BUT THAT ARE YET TO BE SPECIFIED, IDENTIFIED,
CONFIRMED, QUOTED, FULLY DETERMINED OR DOCUMENTED. IF
USED WISELY, THEY ARE A HANDY TOOL FOR COST MANAGEMENT.
• PRIME COST SUM ITEMS NEED TO BE CAREFULLY THOUGHT
THROUGH AND CLEARLY DOCUMENTED. THEY SHOULD BE WELL
DESCRIBED AND THE $ ALLOWANCES ALLOCATED TO THEM SHOULD
BE CREDIBLE.
• SUCH ITEMS COULD ALSO BE UNDER THE SCOPE OF NOMINATED
SUBCONTRACTOR
• ENSURE THAT GST, IF APPLICABLE, IS CLEARLY NOTED (I.E.
INCLUDED OR EXCLUDED) IN THE AMOUNT SPECIFIED.

(APQS)
PRIME COST SUM????
• A FITTING OR ITEM PART OF THE CONTRACT (OF

WORKS)-BUT SPECIFIC TYPE, MODEL OR BRAND
OF THE ITEM HAS EITHER NOT BEEN SELECTED,
OR ITS PRICE CANNOT BE CONFIRMED AT THE
TIME THE CONTRACT IS ENTERED INTO.
• THE BUILDER IS ALSO TO MAKE A REASONABLE
ALLOWANCE FOR THE SUPPLY, STORAGE,
SUPERVISION, INSTALLATION AND DELIVERY OF
THESE ITEMS, AS APPROPRIATE, WITHIN THE
CONTRACT PRICE.

(APQS)
PROVISIONAL ITEMS & PROVISIONAL SUM
• PROVISIONAL
NOT FULLY WORKED OUT, AGREED UPON OR FINAL AND
IS PROVIDED TO SERVE OR ACT AS SUFFICIENT FOR
THE TIME BEING-SUBJECT TO REVIEW, ADJUSTMENT
OR CHANGE.
• PROVISIONAL SUM
A REASONABLE ESTIMATE OF THE COST (OR PRICE) OF
CERTAIN WORKS, IF THE BUILDER, AFTER MAKING
REASONABLE INQUIRIES, CANNOT GIVE A DEFINITE
PRICE WHEN THE CONTRACT IS SIGNED

(APQS)
SUPPLY ONLY
• KITCHEN WHITEGOODS – OVENS ETC.,

• LIGHT FITTINGS,
• WALL AND FLOOR TILES,
• LETTER BOXES,
• SANITARY FITTINGS AND TAP SETS,
• HOT WATER SERVICE.
• FANS
• HARDWARE

(APQS)
SUPPLY AND INSTAL
• HEATING,
• AIR CONDITIONING,
• LANDSCAPING,
• REPAIRS
• DAMP-PROOFING COURSES IN EXISTING
MASONRY WALLS WHERE THE EXTENT OF THE
PROBLEM IS YET TO BE UNCOVERED OR
DETERMINED.

(APQS)
CAUTION
• NOT WISE TO BLINDLY ACCEPT PC SUMS

PROPOSED BY A BUILDER AT THE TIME OF
TENDERING, OR SIGNING A CONTRACT,
WITHOUT INVESTIGATING THEIR VALIDITY (I.E.
ACCURACY) …
• THESE PC’S, IF INADEQUATE AND IF NOT
CHECKED, CAN BE THE CAUSE OF MANY
PROBLEMS, COST BLOW-OUTS, VARIATIONS
AND ULTIMATELY, DISPUTE.

(APQS)
CONCLUDING REMARKS
• FUNCTIONS OF ESTIMATING
• COULD ASSESS COST OF CONSTRUCTION FROM THE

CONCEPTUAL DESIGN PHASE (OWNER, DESIGNER &
SOMETIMES CONTRACTOR ). FEEDBACK TO
• CONCEPTUAL DESIGN FOR ALTERNATIVE ARCHITECTURE
• FEASIBILITY OF THE PROJECT
• PROJECT / COMPANY ALIGNMENT OF OBJECTIVES,

CONSTRAINTS, STRATEGIC GOALS AND POLICIES
• PROVIDE THE BASIS FOR BIDDING & CONTRACTING

(CONTRACTOR)
• PROVIDE A BASELINE FOR COST CONTROL AND POST
PROJECT EVALUATION (OWNER & CONTRACTOR)
(APQS)
CONCLUDING REMARKS
• IN CONVERTING AN ESTIMATE TO A CONTROL

BUDGET, CONSIDER:
• THE ORGANIZATION AND CATEGORIZATION
OF COSTS SUITABLE FOR PREPARING AN
ESTIMATE ARE OFTEN NOT COMPATIBLE
WITH REALISTIC FIELD COST CONTROL (E.G.,
MIGHT BE CONVENIENT FOR THE OWNER)
• ESTIMATES NECESSARILY DEAL IN
AVERAGES, WHEREAS TIGHTER STANDARDS
ARE SOMETIMES DESIRABLE FOR CONTROL
PURPOSES

(APQS)
QUESTIONS?

(APQS)
ACKNOWLEDGEMENT & REFERENCES
References:
A project manager’s guide to cost estimating and cost planning by-
Karl Medak Frame’s General Manager Solution & Delivery
Introduction to Estimating for Construction by Brian Greenhalgh, Routledge, London (2013)
 Dr. SangHyun Lee. lsh@mit.edu, Department of Civil and Environmental Engineering

Massachusetts Institute of Technology, Project Management, Spring 2007, Lecture 6,
Estimating,
 osp.mans.edu.eg Cost Estimating 21 Dr. Emad Elbeltagi CHAPTER 2 QUANTITY TAKE-
OFF

(APQS)

Overview CM, Estimation

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SESSION 1 (Pre Lunch)

Adaptation Program in Quantity Surveying (APQS)

PART 1-Quantitification of Works during

Adaptation Program in Quantity Surveying

• On completion of this portion participants will be

Adaptation Program in Quantity Surveying

Advanced Certificate Course on Planning Skills

Adaptation Program in Quantity Surveying

PROJECT INCEPTION COST PER

DETAILE DETAILED ITEMS &

Advanced Certificate Course on Planning Skills

Depends on information and time available

Adaptation Program in Quantity Surveying

Establish budget for project Budget Budget Budget

Client Preliminary Developed Construction

Cost Plan Cost Plan

Contingencies 20%-30% 15-20% 5-10% 2-5%

Advanced Certificate Course on Planning Skills

Adaptation Program in Quantity Surveying

Base Cost Estimate- Element- Major part of a Elemental Method of

Estimate Base date- Date RIBA (Royal Institute

Evaluation of the cost of the resources we use.

Impacts the effectiveness of cost control

Produce results that

Adaptation Program in Quantity Surveying

Cost Estimating involves

Adaptation Program in Quantity Surveying

Conceptual Estimate Based upon experience of the

Based upon cubic content of

Approximate Quantity Estimate - Prepared at Schematic Design

Detailed Estimate or Item Rate Estimate – Prepared at Detailed

Supplementary Estimate – Required to add costs to an estimate due

Adaptation Program in Quantity Surveying

Floor Area Method

Functional Unit Method

Adaptation Program in Quantity Surveying

Adaptation Program in Quantity Surveying

Adaptation Program in Quantity Surveying

• CONSTRUCTION FLOOR AREA (CFA) or BUA

A. Preliminary Cost Estimate

B. Elemental Cost Estimate

C. Pre-Tender Cost Estimate

Adaptation Program in Quantity Surveying

• STAGE-AS THERE IS NO PLANNING AT THIS STAGE-IT IS

• STAGE-DURING BUSINESS JUSTIFICATION STAGE ESTIMATE FOR

Adaptation Program in Quantity Surveying

Adaptation Program in Quantity Surveying

• Total Construction Costs = Functional Area x Functional Rate

•100 Bedded Hosp = 60m2 to 120m2 per bed x Rs /bed. Rs A 40 Lacs/bed= Rs 40 Cr

•500 Auditorium = 1.5m2 to 2m2 per seat x Rs C/seat. 10 L/seat= Rs 50 Crores

• 500 Carpark= 30m2 to 40m2 per carpark x Rs D/carpark.5L/car= Rs 25 Crores

• 100 Km 2 Lane Highway=Rs 15 Cr/Km= Rs 1500 Cr

• 100 Km 4 Lane Highway= Rs 39/Km = Rs 3900 Cr

Adaptation Program in Quantity Surveying

• BUSINESS JUSTIFICATION STAGE: NO DRWGS, SPECS/OTHER

Adaptation Program in Quantity Surveying

You have to prepare Approx Estimate for CONSTRUCTION of a Hostel

Adaptation Program in Quantity Surveying

PLINTH AREA COST: 1000x16000= Rs 1,60,00,000

Adaptation Program in Quantity Surveying

Adaptation Program in Quantity Surveying

• PROVIDES A WORK BREAK DOWN

Adaptation Program in Quantity Surveying

Adaptation Program in Quantity Surveying