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ESTIMATION AND VALUATION 10CV73

1.INTRODUCTION

DEFINITION OF ESTIMATING AND COSTING

Estimating is the technique of calculating or Computing the various quantities and

the expected Expenditure to be incurred on a particular work or project. In case the funds
avilable are less than the estimated cost the work is done in part or by reducing it or
specifications are altered, the following requirement are necessary for preparing an
estimate.

a ) Drawings like plan, elevation and sections of important points.

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b) Detailed specifications about workmenship & properties of materials etc.

c) Standard schedule of rates of the current year.

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NEED FOR ESTIMATION AND COSTING

1. Estimate give an idea of the cost of the work and hence its feasibility can be
determined i..e whether the project could be taken up with in the funds available or not.
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2. Estimate gives an idea of time required for the completion of the work.

3. Estimate is required to invite the tenders and Quotations and to arange contract.
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4. Estimate is also required to control the expenditure during the execution of work.

5. Estimate decides whether the proposed plan matches the funds available or not.

PROCEDURE OF ESTIMATING OR METHOD OF ESTIMATING.

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Estimating involves the following operations

1. Preparing detailed Estimate.

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2. Calculating the rate of each unit of work

3. Preparing abstract of estimate

DATA REQUIRED TO PREPARE AN ESTIMATE

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1. Drawings i.e.plans, elevations, sections etc.

2. Specifications.

3. Rates.

DRAWINGS

If the drawings are not clear and without complete dimensions the preparation of
estimation become very difficult. So, It is very essential before preparing an estimate.

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SPECIFICATIONS

a) General Specifications:

This gives the nature, quality, class and work and materials in general terms to be
used in various parts of wok. It helps no form a general idea of building.

b) Detailed Specifications:

These gives the detailed description of the various items of work laying down the
Quantities and qualities of materials, their proportions, the method of preparation

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workmanship and execution of work.

RATES:

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For preparing the estimate the unit rates of each item of work are required.

1. For arriving at the unit rates of each item.

2. The rates of various materials to be used in the construction.

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3. The cost of transport materials.

4. The wages of labour, skilled or unskilled of masons, carpenters, Mazdoor, etc.,

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LUMPSUM:

While preparing an estimate, it is not possible to workout in detail in case of petty

items. Items other than civil engineering such items are called lumpsum items or simply
L.S.Items. The following are some of L.S. Items in the estimate.
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1. Water supply and sanitary arrangements.

2. Electrical installations like meter, motor, etc.,

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3. Architectural features.

4. Contingencies and unforeseen items.

Ingeneral, certain percentage on the cost of estimation is alloted for the above L.S.Items.
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Even if subestimates prepared or at the end of execution of work, the actual cost should
not exceed the L.S.amounts provided in the main estimate.

WORK CHARGED ESTABLISHMENT:

During the construction of a project considerable number of skilled supervisors,

work assistance, watch men etc., are employed on temporary basis. The salaries of these
persons are drawn from the L.S. amount alloted towards the work charged establishment.
that is, establishment which is charged directly to work. an L.S.amount of 1½ to 2% of
the estimated cost is provided towards the work charged establishment. EXERC

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Measurement of Materials and Works

2.UNITS OF MEASUREMENTS:

The units of measurements are mainly categorised for their nature, shape and size and for
making payments to the contractor and also. The principle of units of measurements
normally consists the following:

a) Single units work like doors, windows, trusses etc., are expressed in numbers.

b) Works consists linear measurements involve length like cornice, fencing, hand rail,

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bands of specified width etc., are expressed in running metres (RM)

c) Works consists areal surface measurements involve area like plastering, white washing,
partitions of specified thickness etc., are expressed in square meters (m2 )

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d) Works consists cubical contents which involve volume like earth work, cement
concrete, Masonry etc are expressed in Cubic metres.

Sl. No. Particulas of item Units of Measurement Units of payment

I Earth work:
1. Earth work in Excavation
2. Earthwork
foundation trenches
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fillingin Cum
Per%cum
Per%cum
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3. Earth work in filling in plinth Cum Per%cum

II Concrete:
1. Lime concretre in foundation Cum Percum
2. Cement concrete in Lintels Cum Percum
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3. R.C.C.in slab Cum Percum

4. C.C. or R.C.C. Chujja, Cum Percum
Sunshade
5. L.C. in roof terracing Sqm perSqm
(thickness specified)
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6. Cement concrete bed Cum Percum

7. R.C. Sunshade (Specified Cum 1m
Width & Hight

III Damp ProofCource (D.P.C) Sqm Persqm

(Thickness should be mentioned)
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IV Brick work:
1. Brickwork in foundation Cum Percum
2. Brick work in plinth Cum Percum
3. Brick work in super structure Cum Percum
4. Thin partition walls Sqm persqm
5. Brick work in arches Cum Percum
6. Reinforced brick work Cum Percum
(R.B.Work)
V Stone Work:
Stone masonry Cum PerCum

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VI Roofing
1. R.C.C. and R.B.Slab roof Cum PerCum
(excluding steel)
2. L.C. roof over and inclusive of Sqm persqm
tiles or brick or stone slab etc
(thickness specified)
3. Centering and shuttering form Sqm persqm
work 4. A.C.Sheet roofing Sqm persqm

VII Plastering, points&finishing

1. Plastering-Cement or Lime Sqm persqm

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Mortar (thickness and proportion
specified) Sqm persqm
2. Pointing Sqm persqm
3. White washing, colour

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washing, cement wash (number
of coats specified) Sqm persqm
4. Distempering (number of coats Sqm persqm
specified)

RULES FOR MEASUREMENT :

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The rules for measurement of each item are invaribly described in IS- 1200. However
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some of the general rules are listed below.

1. Measurement shall be made for finished item of work and description of each item
shall include materials, transport, labour, fabrication tools and plant and all types of
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overheads for finishing the work in required shape, size and specification.

2. In booking, the order shall be in sequence of length, breadth and height or thickness.

3. All works shall be measured subject to the following tolerances.

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i) Linear measurement shall be measured to the nearest 0.01m.

ii) Areas shall be measured to the nearest 0.01 sq.m

iii) Cubic contents shall be worked-out to the nearest 0.01 cum

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4. Same type of work under different conditions and nature shall be measured separately
under separate items.

5. The bill of quantities shall fully describe the materials, proportions, workmanships and
accurately represent the work to be executed.

6. In case of masonary (stone or brick) or structural concrete, the categories shall be

measured separately and the heights shall be described:

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a) from foundation to plinth level

b) from plinth level to First floor level

c) from Fist floor to Second floor level and so on.

METHODS OF TAKING OUT QUANTITIES:

The quantities like earth work, foundation concrete, brickwork in plinth and super
structure etc., canbe workout by any of following two methods:

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a) Long wall - short wall method

b) Centre line method.

c) Partly centre line and short wall method.

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a) Long wall-short wall method:

In this method, the wall along the length of room is considered to be long wall
while the wall perpendicular to long wall is said to be short wall. To get the length of long
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wall or short wall, calculate first the centre line lengths of individual walls. Then the
length of long wall, (out to out) may be calculated after adding half breadth at each end to
its centre line length. Thus the length of short wall measured into in and may be found by
deducting half breadth from its centre line length at each end. The length of long wall
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usually decreases from earth work to brick work in super structure while the short wall
increases. These lengths are multiplied by breadth and depth to get quantities.

b) Centre line method:

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This method is suitable for walls of similar cross sections. Here the total centre
line length is multiplied by breadth and depth of respective item to get the total quantity at
a time. When cross walls or partitions or verandah walls join with mainall, the centre line
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length gets reduced by half of breadth for each junction. such junction or joints are
studied caefully while calculating total centre line length.The estimates prepared by this
method are most accurate and quick.

c) Partly centre line and partly cross wall method:

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This method is adopted when external (i.e., alround the building) wall is of one
thickness and the internal walls having different thicknesses. In such cases, centre line
method is applied to external walls and long wall-short wall method is used to internal
walls. This method suits for different thicknesses walls and diffeent level of foundations.
Because of this reason, all Engineering departments are practicing this method.

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I. Example 1: From the given figure below calculate the detailed and abstract estimate for
the single roomed building (Load bearing type structure) by a) long wall & short wall
method (b) Centre Line Method

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FIXING OF RATE PER UNIT OF AN ITEM:

The rate per unit of an item includes the following:

Quantity of material and cost:

The requirement of mateials are taken strictly in accordance with standard data
book(S.D.B). The cost of these includes first cost, freight, insurance and transportation
charges.

ii) Cost of labour: The exact number of labourers required for unit of work and the

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multiplied by the wages/ day to get of labour for unit item work.

iii) Cost of equipment (T&P): Some works need special type of equipment, tools and
plant. In such case, an amount of 1 to 2% of estimated cost is provided.

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iv) Overhead charges: To meet expenses of office rent, depreciation of equipment
salaries of staff postage, lighting an amount of 4% of estimate cost is allocated.

METHODS OF PREPARATION OF APPROXIMATE ESTIMATE:

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Preliminary or approximate estimate is required for studies of various aspects of
work of project and for its administrative approval. It can decide, in case of commercial
projects, whether the net income earned justifies the amount invested or not. The
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approximate estimate is prepared from the practical knowledge and cost of similar works.
The estimate is accompanied by a report duely explaining necessity and utility of the
project and with a site or layout plan. A percentage 5 to 10% is allowed for contingencies.
The following are the methods used for preparation of approximate estimates.
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a) Plinth area method

b) Cubical contents methods

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c) Unit base method.

a) Plinth area method:

The cost of construction is determined by multiplying plinth area with plinth area
rate. The area is obtained by multiplying length and breadth (outer dimensions of
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building). In fixing the plinth area rate, carefull observation and necessary enquiries are
made in respect of quality and quantity aspect of materials and labour, type of foundation,
hight of building, roof, wood work, fixtures, number of storeys etc.,

As per IS 3861-1966, the following areas include while calculating the plinth area
of building.

a) Area of walls at floor level.

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b) Internal shafts of sanitary installations not exceeding 2.0m2 , lifts, airconditionsing

ducts etc., c) Area of barsati at terrace level:

Barsati means any covered space open on one side constructed on one side
constructed on terraced roof which is used as shelter during rainy season.

d) Porches of non cantilever type.

Areas which are not to include

a) Area of lofts.

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b) Unenclosed balconies.

c) Architectural bands, cornices etc.,

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d) Domes, towers projecting above terrace level.

e) Box louvers and vertical sunbreakers.

b) Cubical Contents Method:

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This method is generally used for multistoreyed buildings. It is more accurate that
the other two methods viz., plinth area method and unit base method. The cost of a
structure is calculated approximately as the total cubical contents (Volume of buildings)
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multiplied by Local Cubic Rate. The volume of building is obtained by Length x breadth
x depth or height. The length and breadth are measured out to out of walls excluding the
plinth off set.

The cost of string course, cornice, carbelling etc., is neglected.

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

c) Unit Base Method:

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According to this method the cost of structure is determined by multiplying the

total number of units with unit rate of each item. In case schools and colleges, the unit
considered to be as 'one student' and in case of hospital, the unit is 'one bed'. the unit rate
is calculated by dividing the actual expenditure incured or cost of similar building in the
nearby locality by the number of units.
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3.ANALYSIS OF RATES

Definition :

In order to determine the rate of a particular item, the factors affecting the rate of
that item are studied carefully and then finally a rate is decided for that item. This process
of determining the rates of an item is termed as analysis of rates or rate analysis. The rates
of particular item of work depends on the following.

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1. Specifications of works and material about their quality, proportion and constructional
operation method.

2. Quantity of materials and their costs.

3. Cost of labours and their wages.

4. Location of site of work and the distances from source and conveyance charges.

5. Overhead and establishment charges

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6. Profit

Cost of materials at source and at site of construction.

The costs of materials are taken as delivered at site inclusive of the transport local

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taxes and other charges.

Purpose of Analysis of rates:

1. To work out the actual cost of per unit of the items.

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2. To work out the economical use of materials and processes in completing the
particulars item.
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3. To work out the cost of extra items which are not provided in the contract
bond, but are to be done as per the directions of the department.

4. To revise the schedule of rates due to increase in the cost of material and labour
or due to change in technique.
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Cost of labour -types of labour, standard schedule of rates

The labour can be classified in to

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1) Skilled 1st class

2) Skilled IInd Class

3) un skilled
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The labour charges can be obtained from the standard schedule of rates 30% of the skilled
labour provided in the data may be taken as Ist class, remaining 70% as II class. The rates
of materials for Government works are fixed by the superintendent Engineer for his circle
every year and approved by the Board of Chief Engineers. These rates are incorporated in
the standard schedule of rates.

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4.ROAD ESTIMATION
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Introduction:-

Generally all the Civil Engineering projects like roads, railways, earth dams, canal
bunds, buildings etc. involves the earth work.This earth work may be either earth
excavation or earth filling or Some times both will get according to the desired shape and
level.
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Basically the volume of earthwork is computed from length, breadth, and depth of
excavation or filling.

Lead and Lift:

Lead:

It is the average horizontal distance between the centre of excavation to the centre
of deposition. The unit of lead is 50m.

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Lift :

It is the average height through which the earth has to be lifted from source to the
place of spreading or heaping.

The unit of lift is 2.00m for first lift and one extra lift for every 1.0m. for example when
earth is to be lifted for 4.5m, Four lifts are to be paid to the contractor.

i.e. Upto2.0- 1 lift

1.0 - 1 Lift

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1.0 - 1 lift

Total 04 lifts 0.5 - 1 lift

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Calculation of earth work for Roads:

case 1) volume of earth work in banking or in cutting having "no longitudinal slope".

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Case 2:

When the ground is in longitudinal slope or the formation has uniform gradient for a
length the earth work may be calculated by the following methods.

1. By Mid Section or Mid ordinate method.

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5.CONTRACTS

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Agreements between two entities, creating an enforceable obligation to do, or to refrain fr
om doing, a particular thing.

Nature and Contractual Obligation

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The purpose of a contract is to establish the agreement that the parties have made and to fi
x their rights and duties inaccordance with that agreement. The courts must enforce a vali
d contract as it is made, unless there are grounds that barits enforcement.
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Statutes prescribe and restrict the terms of a contract where the general public is affected.
The terms of an insurancecontract that protect a common carrier are controlled by statute i
n order to safeguard the public by guaranteeing that therewill be financial resources availa
ble in the event of an accident.
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The courts may not create a contract for the parties. When the parties have no express or i
mplied agreement on theessential terms of a contract, there is no contract. Courts are only
empowered to enforce contracts, not to write them, forthe parties. A contract, in order to
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be enforceable, must be a valid. The function of the court is to enforce agreements only ift
hey exist and not to create them through the imposition of such terms as the court conside
rs reasonable.

It is the policy of the law to encourage the formation of contracts between competent parti
es for lawful objectives. As ageneral rule, contracts by competent persons, equitably mad
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e, are valid and enforceable. Parties to a contract are bound bythe terms to which they hav
e agreed, usually even if the contract appears to be improvident or a bad bargain, as long
as itdid not result from Fraud, duress, or Undue Influence.

The binding force of a contract is based on the fact that it evinces a meeting of minds of t
wo parties in Good
Faith. Acontract, once formed, does not contemplate a right of a party to reject it. Contrac
ts that were mutually entered into betweenparties with the capacity to contract are binding

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obligations and may not be set aside due to the caprice of one party or theother unless a s
tatute provides to the contrary.

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