Example-1

As an example material break down for 1m3 of plain cement concrete of

C-25 (1:2:3 mix) grade is given below

Materials required for 1:2:3 cement concrete mix – a commonly used grade of
concrete for structural works.
Wet (fresh) concrete mix ……….……= 1m3
Quantity for dry base analysis...= 1.55m3
A. Volume of cement…………………= 1/6*1.55 = 0.258m3
= 0.258m3/0.035m3 per bag = 7.4 bags of cement
B. Sands ………………………….........= 2/6* 1.55 = 0.517m3 of sand
C. Coarse aggregate………………….= 3/6 *1.55 = 0.775m3 of coarse aggregate.
D. Water …………………………….….= 0.16 m3 ( assuming w/c 0.62)
Note: - 1.5 to 1.6 times dry volume of the materials is required to get 1m3 of
compact dense fresh concrete mix.
 Example:-2
using data from Example-1, Calculate the Unit price for ‘’C -25 concrete’’ per m3
of work (formwork and reinforcement rated separately). Assume 15% overhead
and 20 % profit
Solution: -
 Total cost (TC) = Direct Cost (DC) + Indirect cost(IC)
 whereas IC = (15% + 20%) of DC = 35 % of DC
 Direct Cost (DC) = Material Cost (MC) + Lab our Cost (LC) + Equipment Cost (EC)
 Material cost (MC) – using the material breakdown shown in example-1
Materials required for 1:2:3 cement concrete mix – a commonly used grade of
concrete for structural works.
According to EPSILON TECHNOLOGY CORP Portland Cement Conversion.
 Amount: 1 kilogram (kg - kilo) of Portland cement mass
 Equals: 0.00066 cubic meters (m3) in Portland cement volume measures for
cement, gravel and sand:
 Cement (Portland): 1506 kg per cubic meter
 Gravel (loose, dry): 1522 kg per cubic meter
 Sand (dry): 1602 kg per cubic meter
0.5m3 sand + 1m3 gravel + 8 bags x 50kg cement + water
= 1m3 Concrete C25 grad
 cement = 7.4 Bags/ m3 * 180/2 Birr/Bags = 666.00 Birr/ m3

sand = 0.517 m3 * 120 Birr/ m3 = 62.04 Birr / m3

aggregate = 0.775 m3 * 100 Birr/ m3 = 77.50 Birr/ m3

water = 0.16 m3 * 0.25 Birr / m3 = 0.04 Birr/ m3

Total = 805.58 Birr/ m3

A=Total Direct material cost

B=Total Direct Labor hourly cost
C.Total Direct Equipment cost
D-hourly crew product Data
E-direct material cost A
F-direct labor cost BD
G-direct equipment cost CD
H –direct unit cost E+F+G
I-site overhead cost KI+H
J-head office overhead cost KJ+H
K-indirect unit cost I+J
L-Risk allowance R1*E+R1*F+R1+G+R4I+R5*J
M-gross profit P%0.7*(H+K+L)
N-total unit price with out vat H+K+L+M
O-value added tax 0.15*N
P-total unit price with vat N+O

Assuming the crew consists of a site engineer, foreman, mason, and four daily
laborers and a productivity of 0.50 m3 per hr:

Personne Salary per hr Utilization Factor (UF) LC/ hr

 l

Site Engineer = 4,000 Birr/ Month / ( 22 days * 8 hrs/day) = 1/10 = 0.1 ( Assuming 10 foreman 2.27
= 22.73 Birr/hr underSite Engineer)

Foreman = 60 Birr/Day * 1/8 Day/ hr = 7.50 Birr/ hr = 1/4 = 0.25 ( Assuming 4 crew under 1.88
foreman)

Mason = 45 Birr/Day * 1/8 Day/ hr = 5.63 Birr/ hr =1 5.63

Daily = 4 * 20 Birr/Day * 1/8 Day/ hr = 10.00 Birr/ hr = 1 10.00

laborers(4)
Mixer = 32 Birr/Day * 1/8 Day/ hr = 4.00 Birr/ hr =1 4.00
Operator Total LC ( Birr/ hr) ( i.e. 0.5 m 3 ) = 23.78

Total LC ( Birr/m3) = 23.78 Birr / hr / (0. 5 m3 / hr) = 47.56

Equipment Cost (EC)

Assuming a mixer with an hourly rate of 20.00 Birr / Hr and productivity of 0.5 m3 per
hour

DC = MC + LC +EC

DC = 805.58 + 47.56 + 40.00 = 893. 14 Birr/m3

IC = 35/100 * 893.14 = 312.599 Birr/m3
TC = (893.14 + 312.599) Birr/m3 = 1205.739 ≅ 1, 210 Birr/m3

Personnel Hourly rate

Mixer = 20 Birr/hr * 1/0.5 m3/hr = 40.00 Birr / m3
Total EC = 40.00 Birr/ m3
Example

(A) Calculation of material cost

1) Calculation of the material costs of 1m3 concrete C-25 grade given.

 1Qtl of cement -355 Birr

 1truck of Sand (6 m3) from source to Site 1500 Birr
 1 truck of gravel (6m3) from source to site 1200 Birr
 1m3 water 10 Birr
 Transportation cost 5 Birr/Qtl/Km
 Wastage 5%
 Type of material Unit Qty Unit rate Cost/unit

Cement Qtl 3.6 355 1278 birr

Sand M3 0.5 250 125 birr
Gravel M3 0.75 200 150 birr
Water M3 0.3 10 3 birr
Sum=1556

Solution:

(B) Calculation of Labour cost

Example2.
Calculation of labor cost for a m3 of concrete; production rate 1.25 m3 /hr

Lab our No UF Index hourly cost Hourly cost (Birr)

Forman 1 ½ 10 5
Plasterer 2 1 5.5 11
Carpenter 1 ¼ 7.5 1.85
Bar bender 2 ¼ 7.5 3.75
D. Laborer 18 1 4 72
Total 93.6

(C) Calculation of Equipment cost

Example 3:

Calculation of equipment cost for m3 of concrete

 Mixer - Original cost = 500,000 Birr

 Useful life = 3yrs

 Monthly repair cost with supplies: - 700 Birr

 Vibratory- Original cost = 350,000 Birr

 Useful life = 7yrs

 Repair cost monthly = 450 Birr

 Assume 8 working hours per day and 22 days per month

Solution

 Two methods of calculation are followed

I) with charges accounted for depreciation, interest return and monthly repair costs

II) With monthly rental charges.

 Hourly equipment cost

(I) Mixer

 Depreciation (d) =500,000 Birr = 78.9 Birr/hr

3x12(22x8) hr

 Hourly repair cost = 700/8x22 = 3.98 Birr/hr

 Hourly Mixer cost = 78.9 + 3.98 = 82.88 Birr/hr

ii) Vibratory

 Depreciation (d) = 350,000/(7x12x8x22) =23.6Birr/hr

 Repair cost = 450/(8x22) = 2.5 Birr /hr

Hourly vibrator cost = 23.6+ 2.5 = 26.1 Birr/hr

Types of No UF Hourly rental Hourly cost

Equipment cost
Mixer 1 1 23.6 23.5
Vibrator 1 1 2.5 2.5
Total hourly cost (Birr) = 26.1

Equipment cost for (1m3 concrete) 26.1/1.25 = 16.70 Birr/ m3

 Equipment cost using monthly rental changes

 Mixer= 500,000 Birr Month rental charge

 Vibrator = 350000 Birr month rental charge

Hourly cost

 Mixer 500000/22x8 = 2841 Birr/hr

 Vibrator = 350000/22x8 = 1988 Birr /hr

Total = 4824Birr/hr

 equipment cost for 1 m3 of concrete = 4824/1.25

= 3863.2Birr/ m3

Eg. Given the following detail for the construction of 5Om long fence around a site.

1/ List of items quantities and direct itemized costs are as given in the table.

No work Unit Qnt Direct cost

1. Excavation to a depth of 1m M3 - 20
2. 50 cm thick masonry wall M3 - 50
 3. Concrete for tie beam M3 - 500
4. Dia 14 dc formed ban Kg - 8.5
5. Dia 8 stirrups Kg - 4.5
6. Formwork tie beam M2 - 70
7. 20cm thick HCB wall m2 - 50
Direct cost 703,000

2) Site overhead costs

 Site facilities (office, store---) -------------------2500 birr

 Electricity, water & telephone --------------------800 birr

 Salary professionals -----------------------------2000 birr

 Secretarial service ---------------------------300 birr

3) General overhead cost ----------------10 % direct cost

4) Risk & profit ---------------------------7% of direct cost

 Question: Establish bid sum and unit prices for the itemized works.

Step 1: Establish production cost. (Direct cost + Site overhead cost)

 Direct cost :- 703,000 birr

 Site overhead cost :- 5,600 birr

 Production cost 708,600 birr

Step 2: Establish bid sum [production cost + General overhead cost + risk & profit]

 Production cost -------------------------- 708,600 birr

 General overhead cost = 10%(708,600)=70860 birr

 Risk & profit ---------------7 %(708,600)= 49602 birr

 Bid sum without vat = 829062 birr

 vat 15% = 124321.3

 Bid sum with vat = 953421.3 birr

Step 3: Surcharge on direct itemized cost

 Surcharge = Bid sum without vat

Direct itemized cost= 829062/ 703,000 = 1.2

Step 4: Establishing unit prices

Unit price = Surcharge x direct itemized cost

No work Unit Qnt Unit price Amount

1. Excavation to a depth of 1m M3 40 24 960
2. 50 cm thick masonry wall M3 25 60 1500
3. Concrete for tie beam M3 5 60 3000
4. Dia 14 dc formed ban Kg 245 10.2 1479
5. Dia 8 stirrups Kg 132 5.4 712.8
6. Formwork tie beam M2 20 84 1680
7. 20cm thick HCB wall m2 90 60 5400
Bid sum without vat 14731.8
Add 15 % vat 2209.77
Bid sum with vat 16941.57birr