Q. 1 what is meant by preliminary estimate?

Explain under which

circumstances approximate estimate is prepared.
Preliminary estimate is an approximate estimate to find out an
approximate cost in a short time and thus enables the authority
concerned to consider the financial aspect of the scheme for according
sanction to the same. Such as estimate is framed after knowing the rate
of similar works and from practical knowledge in various types of works
such as:i)
ii)
iii)
iv)
v)
vi)
vii)

Plinth area or square-meter method

Cubic rate or cubic meter method
Service unit or unit rate method
Bay method
Approximate quantities with bill method
Cost comparison method
Cost from material and labor

The required circumstances to prepare an approximate estimate are

explained below:
i)

ii)

iii)

To investigate feasibility: An approximate estimate of a project

gives an idea for the probable expenditure in a short time.
From the outline idea of expenditure the practicability to take
up such a project considering availability of fund can be
ascertained.
To save time and money: Before having any rough idea of
financial implications if detailed drawings, specifications and
details estimate are prepared, spending much time, labor and
money and finally the project is rejected due to unexpected
difference between the amount of the detailed estimate and
the availability of fund then the entire time and money are
lost. So it is a general procedure to prepare a preliminary
estimate before drawing up a detailed estimate for a project.
To investigate benefit and comparison of cost with utility:
When there is no paucity of funds but it is required to know
readily whether the investment shall be ideal, then
approximate estimated cost of the project is drawn up and
compared with the income or benefits availed from such
expenditure. In case, the preliminary studies from the
preliminary estimate show the investment returns more than
the investment then sanction is given for expenses to prepare
the detailed estimate of the project.
For non-commercial or welfare projects preliminary estimate is
drawn to compare the proportionate cost of similar projects
1

iv)

v)

vi)

undertaken previously, necessity and utility of expenditure,

etc.
Adjustment of planning: For unavoidable projects approximate
estimates for a number of alternatives for the original work
after adjustment of sketch of the intention along with sketch
reports are required for study.
From these approximate comparative estimates a decision is
made to select the sketch for preparation of its detailed
estimate.
To obtain administrative approval: for government or public
body projects approximate estimate with a brief report and
site plan or layout plan has to be submitted to obtain
administrative approval for detailed investigation and
preparation of detailed estimate. In the report the necessity,
utility and the basis of costing shall be explained.
For insurance and tax schedule: for insurance and tax
schedules the value of a property or a project is drawn up
from the approximate estimated cost.

Q. 2 What is the purpose of estimating? Write its requirement and

types of estimate.
Estimate for any construction work may be defined as the process of
calculating the quantities and costs of various items required in
connecting with the work.
The purposes of estimating are as follows.

To ascertain the necessary amount of money required by the owner

to complete the proposed work for public construction works,
estimate are required in order to obtain administrative approval
allotment of fund and technical sanction.
To ascertain quantities of materials required in order to program
their timely procurement. To procure controlled materials, if any like
cements, steel etc quantities of such materials are worked out from
the estimate of the work and attached with the application for
verification
To calculate the money of different categories of works that are to
be employed to complete the work with the schedule time of
completion.
To access the requirement of tools, plants and equipment required
to complete the work according to the programme.
To fix up the completion period from the volume of works involved in
the estimate.
To draw up a construction schedule of programme and also to
2

To justify the investment \from benefit cost ratio

To invite tender and prepare bills for payments
An estimate for an existing property is required for valuation

The requirements of estimating are as follows

Drawings
The drawing is the basis from which quantities of various items for a
work are calculated. So fully dimension drawings must be prepared
showing plans different sections and other relevant details for the work.
For plans, section and elevation 1 cm equals to 0.5m to 1 cm =1cm to 1
cm =20cm are the scale normally used.
Specification:
1. General specification: In this nature and class of work and the
names of material should be used are described. This forms a
general idea for the project.
2. Detailed specification: It describes every item of work in the
estimate. These specify the quantities, qualities and proportion and
execution for different items of work in a project.
3. Rates: Quantities of different items of work are estimated from the
drawings and these are multiply by the rates. So, rates for different
items of works are vital factor to determine the estimated cost.
Normally the engineering department provide with the comment
schedule of rates per unit of work, materials, wages of labour,
transport etc.
4. Updates mode of measurement: For standard deduction or addition
are also necessary to determine the current quantities of works
5. Standing circular for taxes and insurance etc are required to fix up
rates of those items which are not in the schedule of rates.
There are different types of estimate
1. Detailed estimate:
This include the detail particulars for the quantities rates, cost of all
items involved for satisfactory completion of a project.
A detailed estimate is accompanied by
i.
ii.
iii.
iv.
v.

Report
Specification
detail drawing showing plan, section etc.
design ,data and calculation
Basis for rates adopted in the estimate
3

Such a detailed estimate is prepared for technical sanction,

administrative approval and also for the execution of a contract with
the contractor
2. Preliminary or approximate or rough estimate:
This is an approximate estimate to find out an approximate cost in
short time and thus enables the authority concerned to consider the
financial aspect of the scheme, for according sanctum to the same
such an estimate is framed after knowing the rate of similar work
and from practical knowledge in various ways for various types of
work such as :

Plinth area or square meter method

Cubic rate or cubic meter method

Service unit or unit rte method

Bay method

Approximate quantity with bill method

cost comparison method

Cost from materials and labour

3. Revised Estimate:
Revised estimate is detail estimate for the revised quantity and rate
of items of work originally provided in the estimate without material
derivation of a structural nature from the designed originally
approved for a project.
4. quantity estimate/quantity survey
This is a complete estimate or cost of quantity for all items of works
required to complete the concerned project.
5. supplementary estimate
While a work is in progress, some changes or additional work due to
material derivation of a structural nature from the design originally
approved may be thought necessary for the development of a
project. An estimate is then prepared to include all such work. This
is known as supplementary estimate.
6. Revised estimate and supplementary estimate due to reduction of
cost
In cases where a substantial section of project costing not less than
5% of the total sanction cost of the project is abandoned or well
material derivation from the original proposals are expected to
result in substantial saving the estimate is revised by the
department and intimated to the engineer in change for execution
of the work.
7. complete estimate
4

This is an estimated cost of all items which are related to the work
in addition to the main contractor to the detailed estimate. One may
think that an estimate of the structure includes only the cost of land
and the cost of the main contracts or labor, materials and
supervision, In addition there are many other cost items to be
included.
8. Annual maintenance or repair estimate
After completion of wok it is necessary to maintained the same for its
proper function and for the same, an estimate is prepared for the items
which required renewal replacement repaired in the form of detail
estimate.
An idea if the amount to be prepared is taken from the actual figure
of expenditure incurred during the last year. The total estimated
cost for maintenance of the structure is generally kept within the
prescribed limit so on percentage basis of the cost of construction of
the structure and its importance .

Q. 3 Explain the procedure of preliminary estimate of various

structure of work.
The following are the common methods used to estimate buildings
1. Plinth area or square-meter method
For this method, the plinth area of the building shall be determined
first which have to be worked out from floor area, or carpet area or
covered area or rentable area of a building. Similarly the circulation
area should be known in order to calculate th plinth area of a
building.
2. Cubic rate or cubic meter method.
This method is more accurate than above as the cost depends not
only on its plinth area but also on the volume of building, By this
method the volume or cubic content of the proposed building is
worked out and multiplied by the rate per cubic volume of similar
building in that locality, constructed recently.
3. Approximate quantities with bill method.
Multiply the total length of wall by the cost of construction per
meter length .the total length of the wall of building is worked out
5

from plan considering separate sections which includes all items of

work from foundation concrete to roofing. The cost of wall below and
above the plinth level are kept separately, in order to spread the
proportionate cost for items of work
a. Cost of wall including foundation and surface finishing
b. Cost of wood work.
c. Cost of flooring
d. Cost of roofing
Adding above sub headings, The amount of approximate estimate is
calculated ,But it is not as accurate as plinth area or cubic rate
estimates.
4. Service unit or unit rate method
In this method all cost of unit quantity such as per km for highway,
per m for span of bridge, per classroom for school, per bed for
hospital are considered first and estimate in prepared by multiplying
the cost per corresponding unit by the no of units in the structure. It
is ordered quickly but requires record of the unit current rates for
similar designed structure having same specification at that locality.
This method is adopted to prepare preliminary estimates mainly for
public works.
5. Bay method
In this method, the approximate estimated cost=No of bays in the
proposed structure*cost of one such bay.
Bays are compartments or similar portion of a structure consists of
similar parts such as go-down, railway platform, factory shades etc
which have been built up with intermediate columns or with a roof
trusses on wall placed as equal distance with the same roofing on
the top, then the area may be divided from c/c for the supports.
Each such division are treated as bay.
This is the most reliable estimate that can be made but the
following points should be considered
a. End bay should be considered separately due to its end wall.
(Gable wall)

b. Current rate per bay should worked out from the previous
recorded rate.
c. The location, specification and drawing should be same.

6. Cost comparison method

By this method approximate estimates are prepared for prototype
structures or units considering several works after comparing with
the past records of expenses for such works .Such an estimate can
prepare quickly, even during meetings, But expect knowledge is
necessary to estimate the present cost of construction as compared
to the previous recorded cost.
7. Cost form material and labors
In this method approximate quantities of materials and labour
required per m of the plinth area for a proposed building are worked
out arbitrarily or with the help of the Empirical equations developed
by central building Research Institute (EBRI) Roorkee and multiplied
by the total plinth area of the building.

Q. 4 Prepare a preliminary estimate of a join storied building

having carpet area 2000 m2 for administrative approval of the
government. It is assumed that 40% of the area will be taken by
consider verandah, toilet, etc, 10% of built area is taken for wall.
Plinth area rate is Rs. 9000.00 per m2. Extra due to deep
foundation at rate 1.5% of the building cost extra especial
architectural treatment, 3% of the building work. Extra for
sanitary & water supply installation 6% of building cost. Extra for
internal electricity installation 8% of the building cost
contingency 5% supervision charges 10%.
Soln.
Built up area I.e. the plinth area = carpet area + circulation area + area
occupied by walls & columns
Let x sq. m be the plinth area,
Or,

x= 2000 + 40% of x + 10% of x

Or,

x= 2000 + 40x/100 + 10x/100

Or,

x= 2000 + 0.4x + 0.1x

Or,

x - 0.4x 0.1x = 2000

Or,

0.5x = 2000

X = 4000 sq. m
Now, ground floor 4000 sq. m cost @ Rs 9000 per sq. m = Rs
36,000,000
1st, 2nd & 3rd floor 3 x 4000 sq. m cost @ Rs 9000 per sq. m = Rs
108,000,000
Total cost for super structure = Rs 144, 000, 000
Extra for deep foundation = Rs 2,160,000
Extra for especial architectural treatment = Rs 4,320,000
Extra for sanitation & water supply installation = Rs 11,520,000
Extra for internal electricity installation = Rs 11,520,000
Overall cost = Rs 173,520,000
Add contingency chares @ 5% of overall cost = Rs 8, 676,000
Add supervision charge @ 10% of overall cost = Rs 17,352,000
Ground total of estimated cost = Rs 199,548,000

Q. 5. How are the following terms measured and write the unit of
measurement and payment. Write also the coefficient, rule for the
deduction in measurement sketch the figure if necessary.
a) Earthworks in excavation:
Earthworks for the following conditions shall be measured
separately
i)
ii)
iii)
iv)

Work
Work
Work
Work

in or under water
in or under foul position
under tides and
in show

No separate measurement and allowance for following works shall

be made, but the same shall be deemed to have been made in the
description of main item:
8

i)
ii)
iii)
iv)
v)
vi)
vii)
viii)

ix)

Setting out works, profiles, etc.

Site clearances
Unauthorized battering or benching of excavation
Leaving or forming
Leaving steps insides of deep excavation
Removing slips or falls in excavation
Bailing out or pumbing of water in excavation from rows
In or under waters case earthwork, its measurement, no
further allowance and measurement shall be made in bailing
out or pumping.
Slinging or supporting pipes

Method of measurement:The measurement of earthwork shall be done in cubic meters,

unless otherwise mentioned. The measurements to be taken shall
be those of the authorized dimensions from which soil has been
taken out and shall be measured without allowance for increase in
bulk.
The measurement of excavation is earthwork including rock cutting
shall be made as follows:i)

ii)

iii)

iv)

Where the excavation is in trenches or from borrow pits in

fairly uniform ground, the measurements of cutting in
trenches or borrow pits shall be made after determining the
average depth of excavation from Dead men or tell-tale
left our during excavation at outside intervals.
Where the ground is not uniform, levels shall be taken before
the start, after site clearance and after the completion of the
work at suitable intervals and the quantity of work shall be
worked out from differences of levels.
Where the excavation is made in mixed type of rock or soil,
the measurement for the total quantity shall be made by any
one of the above two methods whichever is applicable. From
the total quantity deduction of the volume of one type of rock
or soil must be made. To arrive at such volume, the rock or soil
shall be stacked and measured in stack. The quantity stacked
shall be arrived at by applying pre-accepted deductions, for
voids.
Wherever it is not possible or convenient to take
measurements from borrow pit or cutting, excavation shall be
worked out from filling after giving specific deduction for
voids.

v)

vi)

Dressing or trimming sides of excavation and leveling or

grading and ramming of bottoms shall be described and
included in the item.
Except hillside cutting, where no lift is involved, all
excavations shall be measured in successive stages of 1.5m
starting the commencing level.

b) Cement concrete in foundation:

Units:- Cement concrete in foundations in measured in cubic meter

Formwork:- Unless otherwise specially mentioned, formwork shall be
measured in square metre as the actual surface in contact with the
concrete.
Reinforcement:- unless otherwise specially mentioned,
reinforcement shall be meacured separately. In case, concrete and
reinforcement are measured as a composite item, they shall be fully
described including supply of reinforcement.
Finishes: No separate measurement for fair finishing of exposed
surfaces of concrete and hacking of roughening surfaces of concrete
shall be made but these shall be included in the item. Special
finishes other than those obtained through formwork shall be so
described and measured separately in square meter.
No deduction shall be made for the following:
i)
Volume occupied by reinforcement
ii)
Openings upto 0.1 sq.m.
iii)
End of dissimilar structures such as beams, rafters, girders,
etc upto 500 sq. m. in cross section
iv)
Volume occupied by pipes, conduits, etc not exceeding 100sq.
m. in cross sectional area
v)
Small voids, no exceeding 40sq. m. in cross-section.
vi)
Chamfers, moulds, drip moulding, splays rounded, grooves
and rebates upto 10cm in width or 15cm in girth, covered
angles.
vii) Meters, returns, stops, rounded ends, etc.
Foundations, bases for columns, footing are classified under
same category.

c) Brickwork in cement sand mortar:

The general brickwork includes:
Raking out joints, preparing tops of existing walls and the like for
raising, leaving holes for pipes, etc, plumbing to angles, buildings
holdfasts, on bricks, fixing bricks, etc., building in ends of beams, joists,
slabs, lintels, sills, etc, rough cutting and waste for forming gables, splays
at eaces, cores or arches, and all rough cutting is the body of brickwork,
10

unless otherwise stated, forming opening and flues for which no deduction
is made, leaving chases of sections for exceeding 50cm in girth, forming
reveals to jambs where face cutting on exposed faces is not involved,
bedding wall plates, lintels, sills, corrugated sheets, roof tiles, etc. in or
wall if not covered in respective trade.
Following categories of brickwork includes in general brickworks
i)
ii)
iii)
iv)
v)

Foorings
Eaves or beam fillings, no decuction being made for joists,
farters, etc.
Plain copings, sills and plasters
Battered, battened surfaces.
Brickwork in chimney breasts, chimney stades, airflues.

Brickwork shall generally be measured in cubic meter not, unless specially

mentioned.
Thickness of brick: Brick walls one brick thick (20cm) and less shall each
be measured separately in sq m stating thickness.
Brickwalls exceeding one brick thick but not exceeding three bricks in
thickness shall be measured in multiples of half-brick which shall be
deemed to be inclusive of mortar joints, measurements shall be taken as
follows:
i)
ii)
iii)

Upto brick thick - actual measurements

Exceeding brick thick - full half brick
Walls more than 3 bricks - actual thickness

No deductions or additions shall be made on any account of the

following:
i)
ii)
iii)

iv)
v)
vi)

Opening upto 0.1 sq m in area

Ends of dissimilar materials like beams, lintels, posts, joists,
rafters, steps, etc. upto 0.1 sq m in section.
Wall plates, bed plates and bearing of slabs, chajjas and the like,
where thickness does not exceed 10cm and bearing doesnot
extend over the full thickness of walls.
Chases of sections not exceeding 50 cm in girth
Cement concrete blocks for holdfasts and holding down bolts.
Iron fixtures, such as holdfasts for doors and windows, pipes upto
300 mm diameter, wall ties.

d) 45 mm DPC (1:2:4) mixed with water proof cement

The unit of measurement of DPC is sq m

The unit of rate of measurement is per sq m
11

The measurement shall be taken stating the thickness

DPC of cement concrete should have a mix of 1:2:4 or 1:1:3 usual

thickness 2.5cm to 4cm. It consists of
a)
b)
c)
d)

Mixing
Preparation of base
Laying
Curing

Alternatively, the damp proof coarse may also be of 2cm thick layer of
cement mortar (1:2) mixed with water-proofing compound of with 5 %
of pullo by weight of cement. In this case only specification should be
given of sand and cement.
e) RCC, PCC for RCC slabs and lintels:

The unit of measurement is cu m

The rate of unit of measurement is per cu m
The mode of measurement
Each class of work shall be measured separately. Unless otherwise
stated, framecork and reinforcement shall be measured separately.
Where concrete and reinforcement are measured as a composite
item they shall be fully described indicating the supply of
reinforcement is included in the item. No deduction shall be made
for the volume occupied by a) Reinforcements, b) Pipes, conduits,
etc. not exceeding 100 sq cm each in cross sectional area, c)
opening upto 0.1 sq m d) ends of dissimilar materials upto 500 sq m
e) chamfers splays grooves and rebate.

f) Painting:
Painging unless otherwise mentioned shall be measured in sq m stating
the number of coats. The item of work shall fully describe materials and
truly represent the work to be done. Preparatory work such as stopping,
knotting, rubbing down, and burning after stripping shall be stated.
Work on different surfaces as absorbent surfaces (plaster, concrete, brick,
stone, etc) semi-absorbent surfaces ( wood, fibre-board) and nonabsorbent surfaces ( steel and other metals) shall be stated and measured
under separate item.
No deduction shall be made for openings upto 0.5 sq m each, and no
addition shall be made for painting to jambs, soffits, sills, edges,
mouldings, etc. of such openings.

12

Priming coat of paing for fabricated structural steel and iron work shall be
included with fabrication. But subsequent coats of paing shall be
measured separately on the basis of, width of steel work and iron work or
in sq m. In case rivet heads, bolt heads, nuts are picked out in a tint
different from that of adjacent work, these shall be enumerated and
measured as extra over.
Painting work or surfaces not exceeding 10cm in width or in girth and not
in conjunction with similar painted work shall be measured in running
meters and cutting to line if required shall be included in the item. Cutting
to line, where not included in the item, shall be measured separately in
running meters.
Small particles up to 0.1 sq m of painted surfaces, where not in
conjunction with painted stork, shall be enumerated.
Corrugated sheet surface and initial pattern roof surfaces shall be
measured flat in sq m after increasing their areas by the same percentage
as that of white working, distempering work.
Painting on rainwater pipes, soil and ventilating pipes, steel poles and
eaves gutters shall be measured in running meters stating the size or
girth. All pipe fittings such as bends, branches, heads, shoes, etc. shall be
included in the length.
Painting on small articles, such as metal ceiling roses, metal switch-blocks,
heads and nuts or bolts, turn straps, articles of builders hardware and the
like when painted separately in a different colour or not in conjunction
with similar painted work shall be enumerated.
Painting is repair work not exceeding 1 sq m shall be enumerated in the
following categories:
i)
ii)
iii)

Upto 1 sq m
Exceeding 0.1 sq m and upto 0.1 sq m
Exceeding 0.5 sq m and upto 1.0 sq m

g) 12mm cement sand plaster (1:6)

The unit of measurement is sq m stating thickness, mortar and its

mix.
The unit of rate of plaster in per sq m
The description shall include internal rounding angles, external
chamfers and as rounding angles upto 80mm in girth. Removal of
plastering by scraping or otherwise shall be measured in sq m
Plastering on roofs, ceiling and walls shall be kept separate
13

Plastering in isolated width or in width not forming a part of general

plaster work or in the case of cornices, bands panels, etc., and also
in the cases of chamfers, rounded angles more than 80mm in girth
shall be measured as below:
i)
Width or girth below 30 cm in sq m
ii)
Width or girth below 30 cm in running meters
Plastering at a height more that 10m above ground level shall be
kept separate and shall be measured in stages of 5m height except
interior plastering in the case of building measured separately for
each storey.
Ceiling shall be measured between walls or partition dimensions
shall be taken before plastering. Soffit of stairs shall be measured as
plastering on ceiling. Ribs and mounding on ceilings shall be
measured as for cornices, deduction being made from plastering
width or girth exceeds 15cm
Plastering on walls shall be measured taking width between walls or
partitions before plastering and height from to of floor or skirting to
ceiling. Depth of cornices or eaves, if any, shall be deduced. Side of
plasters, projections, etc shall be added to plaster or walls. Cornices,
moldings and the like on plaster and around opening, etc shall be
measured separately.
Deductions:

No deductions or additions shall be made for ends or joists,

posts, steps, etc. and opening nor exceeding 0.5 sq m each
For opening exceeding 0.5 sq m but not exceeding 3 sq m and
when both faces are plastered with the same plaster,
deduction shall be made for one face only and no additions
shall be made for joints, soffits, sills, etc.
For openings of area exceeding 3 sq m each deduction shall
be made for the openings on each face, but jambs, soffits and
sills shall be measured.
Plastering bands upto 30cm as below shall be measured
separately in r m

h) Door window frame work:

The unit of measurement is cu m

The rate of measurement is per cu m
Modes of measurement is measurement shall be taken as per
opening and including the length for joints, horns, etc. No
Deductions shall be made for rebating, chamfers, etc. For
14

shuttering, centering it is measured in sq m and the measurement

shall be taken on area is actual contact with concrete, the
description of framework shall include all supports, struts, braces,
battens, nails, etc.
Length and width shall be measured to the nearest 1 cm. Width of a
plank shall be measure to the nearest 2mm. Thickness shall be
measured to the nearest 2mm. Areas shall be calculated to the nearest
0.01 sq m and cubical contents to the nearest 0.001 cu m.
Each kind of wood shall be measured separately describing kind of
wood and workmanship. The work shall be measured in cubic meters
unless specially mentioned for some other items mentioned hare in
after. All work shall be measured not as fixed and framed and fixed
work. No extra measurement shall be allowed per shape, joints,
chamfering, etc. except that scantling, battens, etc. in sections, other
than rectangular shall be measured as the least rectangle from which
the section can be obtained. In case of varying section of members,
largest section shall be measured.
i) Handrail Sisham:

The unit of measurement is r m

The rate of unit of measurement is per r m
The mode of measurement is that all measurements must be taken
along top center line

j) Wood for door window shutter:

The unit of measurement is sq m

The rate of unit of measurement is per sq m
The mode of measurement is the net measurement shall be taken
as per opening in the framework including rebate but excluding
extra width for rebated or splayed meeting styles of doors and
windows.

k) Site clearance:
Clearing of shrubs, bush, wood and small trees is done in sq m and the
clearing not exceed 30cm girth is included in the item.
The cutting of trees (exceeding 30 cm girth), its measurement is done in
number and girth shall be measured one meter above GL.
l) Apron and apron drain

15

unless otherwise specified all pipes and fittings shall be classified

according to their nominal diameter ,kind of material ,quality and the
method of jointing , and unless otherwise stated all pipes shall be
measured net ,length as laid or fixed shall be measured over all fittings
like bends, junctions etc. which shall be not be measured separately in
running meters. The length shall be taken along the center line of the
pipes and fittings . the method of laying ,jointing and fixing shall be fully
stated.
All cutting and waste of pipes, cutting threads, plumbing and also the
testing of water supply shall be designated by the largest diameter.
Pipes laid or fixed in ducts, chases, trenches, embedded in floors, fixed to
walls, etc. with support shall be measured separately.
In apron and apron drain, its measurement is done in r m and the length
shall be measured along the center line of the pipes and fittings. Length
as laid or fixed shall be measured over all fittings such as bends,
angles,etc. which shall not be measured separately. The diameter should
be nominal diameters of the internal bore.

Q. 6 List the principal of measuring of various items of work on

one stoey building.
The principles of measuring of various items of work on one story building
are as follows:
a. Each item shall be fully described and shall include whenever
necessary all materials, transport, unloading, storing, waste,
handling, return of packing, necessary scaffolding, safety
appliances, light at place of work, all labour required for finishing to
its shape, size setting, fitting, and fixing is position, cutting, waste
and all other shall be in the sequence of length, breadth or width,
and height or depth or thickness and all other incidental operations
where necessary.
b. In booking dimensions, the order shall be measured as fixed in
position
i.
Unless otherwise stated all works shall be calculated to the
nearest 0.01 cu m
ii.
Areas shall be worked out to the nearest 0.01 sq m
iii.
Cubic contents shall be calculated to the nearest 0.01 cu m
iv.
Weight shall be worked out to the nearest 0.0001 tone
v.
Dimensions shall be measured to the nearest 0.01 m
c. Work to be measured separately ( where applicable)
i.
Work in or under water
16

ii.
Work in liquid mud
iii.
Work in or under foul position
iv.
Work under tides and
v.
Work in snow.
d. Items of work for bills of quantities shall fully describe the materials
and workmanship and accurately represent the work to be
executed.
e. Some work done under different conditions or stages shall be
measured separately stating the condition, the height or depth or
distance whichever is applicable.

Q. 7 Write the complete estimate of project work

Project means a full scheme or proposal undertaking a task and may
consists of several types of work along with details of each work.
A project or major scheme consists generally of the following works.
i) Preliminary investigation, Reconnaissance survey, location survey,
traffic survey for road projects, soil testing by trial boring, etc as
the case my be
ii) Preparation of preliminary estimate to five an idea of the cost
involved and obtaining administrative approval.
iii) Detailed surveying of site or alignment by traverse surveying,
leveling, contouring, plane table surveying, etc as the case may be
iv) Plotting or drawing work, preparation of topographic map or Basic
map showing the location of residential, commercial, industrial
building, location of sewers etc. as the case may be preparation of
longitudinal and cross sections for a road or land project
v) Selection of site or alignment in the drawing.
vi) investigation and working out the accommodation or requirement of
plinth area, no, type and size of building of various kind in case of
building project, width and type of road, basin area and capacity of
canal for an irrigation project.
vii)
land acquisition: Calculation for area of land to be
acquired for road or canal project, the area of Homestead and
Arable land per km and preparation of land acquisition plan.
viii)
Preparation of layout plan or basic map to layout the
proposed building structures or making formation in of road or
formation line bed of canal and drawing cross-section of the road or
canal, etc
ix) Structural detailed design with design data and detailed calculation
x) Preparation of working drawings consisting of plan, section,
elevation and structural details.
17

xi) Preparation of site plan or Index plan for a building project and in
case of a road or irrigation project preparation of key map, index
map, detailed location, survey plan and longitudinal sections,
detailed cross-section for building, rest houses, etc
xii)
Quantity estimated of different items of work involved
in the project from the working drawing
xiii)
Collecting data required for preparing estimate from
sponsoring departments.
xiv)
Preparation of detailed specifications for the items of
works which are not provided in the department schedule.
xv)
Calculations of quantities for road and irrigation works,
the detailed calculations of earth works calculation for each item of
works.
xvi)
Preparation of detailed estimate and abstract of cost for
different sub head of items.
xvii)
Preparation of general abstract of cost. This includes the name
of the project and cost of different sub-heads along with
contingency work changes, Tool and plants, Operation and
maintenance during construction, etc
xviii)
Working out the cost benefit ratio specially for irrigation
project.
xix)
Purchase of different material and equipments. The particulars
of different materials for the projects as bricks, stone chips, bitumen
M.S rounds, cement, spun, pipes, etc and equipments required to be
purchased and supplied departmentally to contractors.
xx)
Accommodation of field staff. This includes temporary
accommodation of staff quarters, site office ,arrangement for water
supply ,sanitation, electrification, approach road etc.
xxi)
Project report or general report and report as estimate.
xxii)
Bar-chart showing the phasing, the physical and financial
performance for the entire plan period of the project.

The following papers should be submitted according to the following order

as serially arranged.
1.report
2.Design data and calculation fo design
3.specifications
4.The detailed estimate in specified form and
5.Plan and drawings.

18

In case of a project consisting of several works, the report may be a single

document, all works but details of measurement and abstracts of costs
should be prepared for each work, supplemented by a general bringing
the whole together fraction of rupee should be omitted.

Q. 8 Prepare a preliminary estimate of school building for 40,000

students in order to the amount of fund based on the following
particulars.
a. Carpet area required per student is 1.3 m2.
b. Area of corridor, veranda and lavatories etc. as 20% of plinth
area. Consider the plinth area rate is 40,000 per m2.
c. Consider the plinth area rate is 40,000 per m2.
d. Cost water supply 5% of the building cost.
e. Cost of sanitation 1% of the building cost.
f. Cost of electrification 12% of the building cost
g. Cost of approach road and boundary wall 3% of the building
cost
h. Contingency and work charge establishment be 5% and 2%
of the total cost respectively.
Let x be the plinth area.
Now, Given as in b by question, area of wall,

X x 20
100

Now, plinth area (x) = 1.3 x 40,000 +

X x 20
100

i.e. X = 5200 + 0.2x

or, 0.8x = 5200
5200
x 0.8
=6500 m2
. . plinth area (x) = 6500 m2
Carpet area = 1.3 x 40,000
19

= 5200 m2
Total cost of plinth = 6500 x 40,000
= 260000000/Cost of water supply = 260000000 x

5
100

= 13000000/Cost of sanitation = 260000000 x

1
100

= 2600000/Cost of electrification = 260000000 x

=

12
100

31200000/-

Cost of approach road and boundary wall = 260000000 x

3
100

= 7800000/Cost of building = 260000000/- + 13000000/- + 2600000/- + 31200000/+ 7800000/= 314600000/Contingency established = 5% of 314600000
= 15730000/Work charge establishment =

5
2

% of 314600000

= 7865000/Total cost = 314600000/- + 15730000/- + 7865000/= 338195000/-

Q. 9 Describe how you will prepare detail estimate of office

building project.
20

The unit quantity method is followed to prepare a detailed estimate; the

procedure for the preparation of a detailed estimate is dived into two
parts:
a) Details of measurement and calculation of quantities
b) Abstract of estimate forms.
a) Details of measurement and calculation of quantities
Respective measurement for dimension of all individuals items involved in
the whole work are taken off from the drawing of the work and entered in
the respective columns of a standard measurement form as shown below.
Multiplying item wise respective dimensions quantities of all items are
worked out in the measurement form.
Measurement form:
Item No.

Descripti
on or
particular
s

No.

Length

Breadth

Height/dep
th

Content
or
quantity

c) Abstract of estimated cost

In the second part is the preparation of a detailed estimate. The cost
of each and every individual item of work is calculated by
multiplying the quantity completed in the measurement form with
the specified rate in a tabular form known as Abstract form as
shown below and are added all together to get the actual estimated
cost of work. This estimated cost is increased by 3% to 5% for any
unforeseen expenditure and is called contingency fund.
To maintain additional supervising staff at the work site and called
the work charged establishment , a further amount of 21/2 % (as
mostly followed in various public works departments) is directly
charged to the estimate prepare from the item of work . this by
summation of
a) Cost obtained by adding all item priced
b) Contingencies 5% and
c) Work charged establishment 21/2 %
a)Detailed estimate is prepared . For big projects an amount 1% to 11/2%
of the estimated cost is also provided to purchase special tools and plants
for specified purposes.
Abstract of estimated form:
21

S.No

Descripti
on or
particular

Quantity

Unit

Rate

Unit of
rate

Amount

The detailed estimate is generally accompanied by

a) Report
b) Specification
c) Drawing consisting of plans, section, and elevations, site plan or
layout or index plan.
d) Design charts and calculations.
e) Particular of rates : in case of schedule of departmental rates this is
to be mentioned, otherwise analysis of rate is required,
The detailed estimate thus prepared is submitted for technical sanction
and for the grant of the necessary fund.

Q. 10 When and where the following terms are used :1)approximate estimate
it is an estimate to find out an approximate cost in a short time and thus
enables the authority concerned to under the financial aspect of the
scheme for according sanction to the same . such an estimate is framed
after knowing the rate of similar works and ----practical knowledge in
various ways for types of works such as
i) Plinth area or square meter method
ii) Cubic rate or cubic meter method
iii) Service unit or unit rate method
IV) Bay method
v) Approximate quantities with bill method
vi) cost comparison method
vii) Cost from materials and labor
2)detail estimate
it includes the detailed particulars for the quantities rates and costs of all
the items involved for satisfactory completion of a project.

22

Quantities of all items of works are calculated from their respective

dimensions on the drawings on a measurement sheet. Multiplying these
quantities by their respective rates in a separate sheet, the cost of all
items of work are worked out individually and their summarized i.e.
abstracted (which is the detailed actual estimated cost of work). All other
express required for satisfactory completion of the project are added to
the cost to frame the total of a detailed estimate. This is the best and
most accurate estimate that can be prepared.
A detailed estimate is accompanied by :a)report
b)specifications
c)detailed drawings showing plans , different sections, key plan ,etc.
d) Design data and calculations
e) Basis of rates adopted is the estimate such a detailed estimate is
prepared for technical section ,administrative approval and also for the
executive of a contact with the contraction .the method of preparation of a
detailed estimate has been described properly.
3) Revised estimate:A revised estimate is a detailed estimate for the revised quantities and
rates of items of works originally provided in the estimate without
materials deviation of a structural nature from the design originally
approved for a project. It is accompanied with a comparative with
statement abstract from showing the probable variation for quantity rate
and amount for each item of work of the project as compared with the
original estimate side by side stating the reason of variations. A revised
estimate is prepared and submitted for fresh technical sanction. It is
required to be prepared for the following reasons

When a sanctioned estimate is likely to exceed by more than 5%

either from the rates being found insufficient or from any cause
whatsoever except important structural alterations.
When the expenditure of work exceed or is likely to exceed by more
than 10% of the administrative approval ( for more than Rs 5 lakhs )
When there is material deviation from the original proposal but not
due to material deviation of a structural nature.
When it is found that the sanctioned estimate is more than the
actual requirement.

4) Supplementary Estimate:23

While a work is in progress, some changes or additional works due to

material deviation of a structural nature from the design originally
approved may go thought necessary for the development of a project. An
estimate is then prepared to include all such works. This is known as
supplementary estimate. The method of preparation of a supplementary
estimate is the same as that of a detailed estimate and it should be
accompanied by a full report of the circumstances which render its
necessity. The abstract must show the amount of the original estimate
and the total of the sanction required including the supplementary
amount.
5) Plinth Area Estimate:To prepare an estimate by this method, the plinth area of a building shall
be determined first. But plinth area may also have to be worked out from
floor are, or carpet area or covered area of rentable area of a building.
Similarly the circulation area should be known in order to calculate the
plinth area of a building.

Plinth Area Built up area, covered area measured at the floor level
of the basement or of any story of a building.
Floor area the plinth area less the area of the walls. In the
calculation of wall area the thickness of the wall shall be inclusive of
finishing and dado if the height of such finish is more than 1m from
floor finish.
Carpet area-floor area less the area of the following portion
verandah, corridor and passage, entrance hall and porch, staircase
and stair cover, bathroom and lavatory and unusable are for living,
kitchen and pantry, store, canteen, shaft and machine room for lift,
air conditioning duct and plant room, shaft for sanitary piping
Rentable area for residential buildings the area shall be the carpet
area along with the carpet are o f kitchen, pantry, store, lavatory,
bathroom, 50% of carpet area of unglazed and 1005 of glazed
verandah. Following shall not be considered rentable area: storage
space on the top, landing of staircase, under first landing and waist
slab on floor are and 50% of the area of balconies.
Circulation area or free space area- A certain amount of free space
area is required for movement and access to different room, sitting
room, kitchen, etc for those who use buildings. This includes
verandah, balconies, passages, corridors, porches, entrance hall,
and staircase. Circulation area may be horizontal or vertical (4% 5%
of
whole
area
of
building)
estimated cost = plinth area of building x plinth area rate of the
locality for similar building constructed recently.
24

6) Annual repair and maintenance estimateAfter completion of a work it is necessary to maintain the same for its
proper function and for the same, an estimate is prepared for the items
which require renewal, replacement, repairs,etc in the form of a detailed
estimate.
For buildings, such items of work like white washing, color washing and
painting of doors and windows etc quantities are based on the previous
measurements recorded in the measurement book as standard
measurement books. For petty works such as replacement of glass
panes, repairs of floors, patch repairs to cement plaster to walls and
changing of roof tiles or similar nature of work whose repairs cannot be
estimated in the beginning, only lump sum provision is made for different
items in the estimate. An idea of the amount to be provided is taken from
the actual figures of expenditure incurred
During the last year.
The total estimated cost of maintenance of a structure is generally kept
within the prescribed limits on percentage basis of the cost of the
construction of the structure and its importance.

Q. 11 What do you understand by rate analysis? Write their

procedure of items of works for analysis rate.
The determination of rate per unit of a particular item of work, from
the cost of quantities of materials, the cost of laborers and other
miscellaneous petty expenses required fro its completion is know as the
analysis of rates. Rates of materials are usually taken as the rates
delivered at the site of work and include the first cost, cost of transport,
railway if any taxes, etc. If the materials are to be carried from a distant
place more than 8km, then the cost of transport is also added. So, rate of
materials vary place to place. The rate of materials depends upon
following:

Specification of works and materials, quality of materials, proportion

of mortar, method of constructional operation etc.
Quantities of materials and their rates, no. of different types of labor
and their rates.
Location of site of work and its distance from the sources of
materials and the rate of transport, availability of water.
Profit & miscellaneous & overhead expenses of contractor. From the
informations regarding out turn, materials requirement, rates, etc,
25

the analysis of rates of different items of work may be worked out.

The no. of laborers may be adopted from general. For mortar and
concrete, the ingredient materials lime, cement , sand , surkhi,
stone & brick aggregates, etc have voids varying from 40% to 50%
& the finer ingredient to fill up the voids in the warser ones. For rich
mortar of rich concrete the finer ingredients are in excess of the
volume of voids in the warses ones, hence the volume of the
finished mortar or concrete will increase. Dry volumes of materials
of mortar or concrete as taken in calculation of analysis or rates ,
means sum total volume of each ingredients added together.

Q. 12 Calculate the quantities of materials required for following

items of work.
a) 175 m3 of P.C.C ( 1: 3: 6)
soln
Volume of mortar = 175 m3
Dry volume = 1.56 x 175
= 273 m3
Quantity of cement = 273/10 = 27.3 m3 x 30 = 819 bags
Sand 3 x 27.3 81.9 m3
Quantities of aggregate = 6 x 27.3 = 163.8 m3
Water = 810 x 0.5 x 50 20475 kg = 20475 liters
b) 112 m3 of brick work on cement sand mortar ( 1: 6)
Soln
Size of brick = 55 x 110 x 230
Size o fbrick with mortar 65 x 120 x 240
Now,
No. of bricks = 112/ (0.065 x 0.12 x 0.240)
= 59830

26

Consider 5% of wastage = 5/100 x 59830

= 2991.5= 2992
So, total no of brick = 59830 + 2992 = 62,822 nos.
Now,
Volume of bricks = (621822 x 0.23 x 0.11x 0.555)
=87.41 m3
Volume of mortar = 112 81.41
=24.58 m3
Let wastage be 20%
So 1.2 x 24.58 = 29.5 m3
Volume of cement 28.5/7 = 4.21 x 30 126.3 bags
Volume of sand = 4.21 x 6 = 25.26 m3
Water = 0.5 x 126.3 x 50 kg = 3157.5 kg = 3157.5 liters
c) 75 m3 of P.C.C ( 1:1:21 in R.C.C Column)
soln
materials = 75 m3
here,
Dry volume = 75 x 1.56
= 117 m3
Cement = 117 / 4 = 29.25 x 30 = 877.5 bag
Sand = 29.25 x 1 = 29.25
Aggregate = 29.25 x 2 = 58.5
Water = 0.5 x 877.5 x 50
=21937.5 kg
=21937.5 liters

Q. 13 Prepare analysis of sale for

27

a) Brick work in cement sand mortar (1:6) per m3

.. solution:
Brick dimension = 230 X 110 X 55
Let mortar joint = 10mm
.. Brick = (240 X 120 X 65)
Let wastage = 5%
Number of brick
.. N = 1/ (0.24 X 0.12 X 0.065) =534; here wastage considered = 5%
i.e. = 534 X 5/100 = 26
.. total no. of bricks
n = 560 (i.e. 534 + 26 = 560)
.. vol. of mortar = 1- (0.23 x 0.11 x 0.055 x 534)
= 0.257 m3 0.26m3
For dry vol, V=0.26 x 1.8 = 0.468
Now, C=0.06685m3 (i.e.

0.468
7

= 0.06685 m3)

=0.67 x 30 2.01bags = 100.5 kg

S = 0.402 m3
w/c = 0.5
w = 0.5 x 100.5 = 50.25kg = 50.25 litre
A. Material:
i)
Cement = 2.01 x 60
= 1206/ii)
Sand = 0.402 x 1750
= 703.5/iii)
Water = 50.25 x 0.1
= 5.025/B. Labours:
i)
Skilled 1.5 x 400/- = 600/ii)
Unskilled 2.2 x 275/- = 605/iii)
Unskilled 0.7 x 275/- = 192.5/C. Scaffoldings = 3 / 100 x 60 = 1.8
28

b) Salwood for doors and windows frame (per m3)

V= 1m3
Materials:
1. Salwood, vol = 1m3
Add 5% wastage = 1.05 m3
= 1.05 x Rs. 42000
= Rs. 44,100
2. M.S hold fast,
Total length = 2.1 x 2 + 1 = 5.2 m
Cross-section = 0.075 x 0.1
.. V = 5.2 x 0.075 x 0.1
= 0.039 m3
Vol. of one door = 0.039 m3
= 4 hold fast = 0.039 m3
1m3 = 102 H.F.
= 102 x Rs. 20
= Rs. 2040
3. Screws: (102 x 2) X 15
Skilled = 3.4 x 350
Unskilled = 3.4 x 250
c) P.C.C. (1:2:4) in foundation per m3
vol. of mixed concrete = 1m3
wastage = 54%
.. V = 1.54 m3
C

1.54
7

= 0.22 m3 = 6.6 bags = 330 kg

1.54
7

x 2 = 0.44 m3

1.54
7

x 4 = 0.88 m3

d) P.C.C. (1:1:2) for R.C.C. per m3

Vol. of mixed conc. = 1m3
Dry vol. = 1.54 m3

29

1.54
4

0.385 m3 = 11.55 bags = 577.5 kg

S 0.385 m3 .962
A 0.77m3 1078
w = 346.1 lit = 34.6
L 1 x Rs. 350
4 x Rs. 200

e) Steel Reinforcement for R.C.C. work per MT.

Materials:
Amt. of steel = 1 Mt
5 % wastage = 1.05 MT x 72000 / MT
L 12 ( 350 + 200 ) = 6600
f) 12mm cement sand plaster ( 1:3 in ceiling per 10 m2 )
V = 12 / 1000 x 10 = 0.12 m3
Dry vol. = 1.5 x 0.12
= 0.18 m3
C 0.18 = 0.045 1.35 bags = 67.5 kg
S 0.135 m3
w/c = 0.8 w = 0.8 x 67.5 = 54 lt
L 1.4
1.9

Q. 16 Define and explain the purpose of valuation and explain the

principles of valuation.
Valuation is an art of judgment based on experience and relevant
statistical data to forecast the value of a property at present. The
30

estimated price (value) of a property depends upon its power to serve

mans need (i.e. its utility) location, amenities, purpose and last but not
the least depending upon the supply and demand of a type of property. It
continuously varies with age, physical state and characteristics of the
property itself.
Purpose of Valuation:
Purpose for which valuation is being done has a great impact on the value
of a property because the value considerably differs with the purpose for
which it is required. Valuation is done for the following purposes:
i)

ii)

iii)

iv)

v)

For buying or selling, valuation of the property is always done

both by the seller and prospective buyer so as to arrive at a
reasonable price. It is a matter of common experience that every
willing seller fixes a reserve price below which he doesnt sell the
property. This reserve price is arrived at through valuation.
Similarly, a buyer before bidding his offer will like to know the
amount he is going to part with against the value of property
which is again the process of value.
For mortgage, security of loans etc:
While advancing any sum of money on the mortgage or security
of a property, the mortgage estimates the cost of that property.
Determination of a rest:
The return of property is judged from the amount of rest it can
fetch if let out. The valuation of property is done so as to work
out the amount of fair rent of a building etc., especially when it is
requisitioned by the government or semi-government
organization.
Assessment of tax:
The value of the newly built property for the purpose of assessing
the amount of expenditure incurred that is determined by income
tax authorities so as to ensure that the expenditure
commensurate with the known sources of income of the owner.
Similarly, to determine property tax, house estate duty, gift tax,
wealth tax etc., valuation of property is done before levying
these taxes. This is because if a man has got wealth in excess of
a certain amount he has to pay tax. Therefore for determining
the exact amount of wealth, valuation of land, building, etc., in
possession becomes necessary. Similarly, when a person dies
leaving behind a considerable wealth consisting of shares, cash,
jewellery, buildings, etc, estate duty or death duty has to be paid
to the government by his heirs, thus valuation of property is
needed.
Acquisition:
31

vi)

Sometimes, a property is compulsorily acquired by the

government. Suitable amount as compensation shall have to be
paid to the owner for which valuation of a property has to be
done.
Similarly, there are many other occasions when the probable
value of the property is required:
a) Insurance against fire of a building
b) Compensation for any loss due to war, earthquakes etc.
c) Borrowing money from insurance company, banks or the state
industrial finance corporate or such other institutions
d) Auction bids

Principles of Valuation
When resorting to valuation of any property or value must be expert in the
trade. He must have sound knowledge of planning designing and
construction of property. He should be quite aware of administrative laws
like town planning laws, rent restriction act, local taxes, etc.
Following principles should be observed at the time of evaluating a fair
and reasonable value of property:
i)
ii)
iii)
iv)
v)

vi)
vii)

Cost depends upon supply and demand of the property.

Cost depends upon its design, specifications of the materials
used and its location.
Cost varies with the purpose for which valuation is to be done.
Cost is affected by the age of the property and its physical
conditions.
In valuation, a vender must be willing to sell as also the
purchaser willing to purchase. There should be no compulsion on
either of them so as to deside honest value of the property.
Similarly, there should be no urgency or compulsion on the
purchaser or seller. No reduction or increase in cost should be
done on these accounts.
Present and future use of any property should be given due to
weightage in valuation.
Cost analysis must be based on statistical data as it may
sometime require evidence in a court of law.

Q. 19 A building is situated on an important road of a town on

land measuring 600 m2. Built up area is 20m x 15m. The building
has provided water supply sanitation and electrification. The life
may be assumed to be 100 years. Age of the building is 30 year.
Work out the value of the property if land cost per m2 = Rs.
40,000/32

Solution:
Plinth area of building = 20 x 15 = 300 sq m
Cost of building = 300 x 40,000
= Rs. 12000,000/The depreciated value of building, D= P(

100rd
)n
100

Where, P = Rs. 12000000

n = 30
rd = 1.0 considering life of the building as 100 yrs.
1001
D = 12000000 x ( 100
)30
99
= 12000000 x ( 100 )30
= Rs. 8876404.48/Cost of land = 600 x 450000
= Rs. 270000,000
Total valuation of property
= 8876404.48 + 270000000
= Rs. 278,876,405 (approx.)

Q. 20 An old building has been purchased by a person at the cost

of Rs. 50,000. Excluding the cost of land. Calculate the amount of
sinking fund if rate of compound interest for sinking fund is 4%.
Assuming the future life of the building is 30 yrs and scrap value
as 10% of cost of purchase.
Solution
Cost of building = Rs. 50,000

33

Scrap value @ 10% =

50,000 x 10
100
= Rs. 5,000

Total amount of sinking fund to be accumulated in 30 years = Rs. (50,000

5,000)
= Rs.
45,000
Annual installment of sinking fund
S = SR/(1 + R)n 1
= (45,000 x 0.04)/((1 + 0.04)30 1)
= Rs. 802

Q. 21 A building is an A class. It is let out for rent @ 5000 per

month. Total outgoing of the property is estimated to be 15% of
the gross income. Calculate the capitalized value of the property
if the present rate of interest is 6% and life of property is 50
years.
Solution:
Gross rent = 5000 x 12 = Rs. 60,000 per year
Outgoings = 15% of gross rent
= 15/100 x 60,000
= Rs. 9000/- per year
Net rent = 60,000 9,000
Rs. 51,000
Since the life expectancy is quite lengthy. Therefore, the income is
considered to be perpetual hence,
Y.P = 1/R = 1/0.06 = 16.67
.. capitalized value = 51,000 x 1/0.06
= Rs. 8,50,000/-

34

In case sinking fund allowance is also to be accounted for then,

1
R+ Sc

Y.P =

but

Sc=

R
n
(1+ R) 1

0.06
30
(1+0.06) 1

= 0.0034
1
0.06+0.0034

Y.P =

= 15.77

Capitalised value = 51,000 x 15.77

= Rs. 8,04,270/-

Q. 22 Describe briefly the procedure of valuation by depreciation

method.
According to this method of valuation, the building should be divided into
four parts vic i) Walls ii) Roofs iii) floor and iv) Doors and windows; and the
cost of each part should first worked out on the present day rates by
detailed measurements. The life of each of the four parts should then be
ascertained, and the depreciated value of each part is ascertained by the
formula D = P

100rd n
D=P(
) ,
100

Where,
D = depreciated value
P = cost at present market rate
Rd = fixed percentage of depreciation
r = rate of depreciation
d = depreciation
n = no. of years the building had been constructed.
The value of rd may be taken as below:
35

Strs. With 100 yrs. Life, rd = 1.0

75 yrs. Life, rd = 1.3
50 yrs. Life, rd = 2.0
25 yrs. Life, rd = 4.0
20 yrs. Life, rd = 5.0
The value arrived at, will be exclusive of cost of land, water supply,
electric and sanitary fittings, etc. and will apply to those buildings only
which have been properly maintained. If the repairs had been neglected in
the past and the present condition is bad or dilapidated, suitable
deduction should be made from the values as deducted above, for
neglected repairs.
The present value of land and water supply, electric and sanitary fittings,
etc. should be added to the valuation of the building to arrive at total
valuation of property.

Q. 23 A building costing Rs. 350,000 has recently been

constructed in Lagankhel area. The plot measuring 450 m2 was
purchased at the rate of Rs. 150,000 per m2. Work out the rent of
the property assuming 8% as a net return on the cost at
construction and 4 % on the land value. All expected outgoing is
Rs. 10,000 per year.
Solution:
i)
ii)

Cost of construction = Rs. 350,000/Value of land = 450 x 150 = Rs. 67500/-

Net return:
i)

ii)

On cost of construction =

On value of land =

3,50,000
100

x8

= Rs. 28,000/67500 x 4.5

100

= Rs. 3037.5
Net return = Rs. (28000 + 3037.5)
= Rs. 31037.5
Outgoings = Rs. 10,000/Gross income = Rs. 31037.5 + 10,000
= Rs. 41037.5
36

Rent per month =

41037.5
12

= Rs. 4320/- Approx.

Q. 24 A RCC framed structure building having estimated future

life 80 yesrs, fetches a gross annual rent of Rs. 2,000 per month.
Work out the capitalized value of the property on the basis of 6%
net yield. The rate of compound interest for sinking fund may be
taken 4%. The land plot of above building measure 1400 sq m and
cost of land may be taken to be Rs. 120 per month. The other
outgoing are:
i) Repair and maintains 1/12th of gross income
ii) Municipal taxes and property tax 25% of gross income
iii)Management and miscellaneous charge 7% of gross income.
The plinth area of the building 800 m 2 and plinth area rate of
the above type of building may be taken Rs. 8000 per m2.
Soln,
Gross income per year = Rs 2000 x 12 = Rs 24000
Outgoing per annum =

Repair and maintenance 1/12 of gross income = Rs 24000/12 = Rs

2000
Municipal taxes & property tax at 25% = Rs ( 24000 x 25 ) / 100 =
Rs 6000
Management and miscellaneous charges at 7% = Rs ( 24000 x 7 )
100 = Rs 1680
Sinking fund required accumulating the cost of the bldg (which is at
the rate of /Rs 8000 per sq. m of plinth . Are ( A ) = 800 x 8000 =
Rs 6400000 in 80 yrs @ 4% interest
= 64, 00,000 X 0.0018
= 11.520

Where (0.0018 = sinking fund co efficient) .

i.e. 0.0018 = Sc
= R/ (1+ R)

= 0.04 / (1+ 0.04)

80

= 0.0018
37

Total outgoing per annum = Rs 21, 200

Net annual return = Rs (24000 = 21200) = Rs 2, 800
Capitalized value of bldg
= Net income x years purchase.
= Rs 21,800 x 100/6
= Rs 4666.67
Cost of land @ Rs 120 per sq. m (1400 x 120) = Rs 168,000
So Total = Rs (4666.67 + 168,000)
= Rs 214666.67
So, total value of whole property = Rs 214666.67

38