TVET CERTIFICATE V in MASONRY

TTTSR103 COST ESTIMATION

MASCE501 Estimate the cost

Credits: 9 Learning hours: 90

Sector: Construction and building services
Sub-sector: Masonry

Module Note Issue date: June, 2020

Purpose statement
This module describes the skills and knowledge to prepare small budget. They can keep
basic business financial records

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Table of Contents

Elements of competence and performance criteria Page No.

Learning Unit Performance Criteria
1. Examine the work 1.1. Proper determination of the work extent 3
1.2. Proper analysis of complexity of the work
1.3. Proper identification of the location where
the work will be performed
1.4. Accurate determination of the work duration
2. Determine the required 2.1. Proper identification of materials needed 11
resources 2.2. Proper determination of quantities in terms
of size and shape
2.3. Proper identification of quality of materials
needed
2.4. Proper determination of human resource
required
3. Calculate the cost 3.1. Proper survey on actual prices of materials 35
estimation and human resources
3.2. Accurate determination of unit and total
prices of each item
3.3. Precise calculation of the labour cost
considering taxes, transport, equipment, benefit
and other charges
3.4. Neat filling in the bill of quantities layout
3.5. Accurate preparation of invoice

Total number of pages: 57

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Learning unit 1 – Examine the work
LO 1.1 – Determine the work extent

 Content/Topic1: Determination of work extent

During the process of determining the work to be carried out in any construction project
you must first access some of the following key points:

1. Working place: the project must be implemented in known and safe place. This place is
known as site. The condition of site affects deeply the work to be carried out, in works plan
project manager may take into consideration of site conditions (availability of welfares
facilities such as water, electricity, roads…)

2. Duration: The length of time taken to complete a given work is known as work duration,
the work has to be carried out effectively and efficiently as the desire of customer (client).
The PM (project manager) must focus on time taken to complete the work.

3. Outdoor location (External factor)

4. Indoor location (internal factor)

5. Complexity: the work is said to be complex if it requires the followings

- Advanced skilled workers

- High level of skills to perform the works

- Work duration is long

- High quantity of resources

6. Maintenance cost: In order the work in proper condition annual repair must be carried
out for that reason the maintenance cost must be considered before work began.

In cost estimation the respect of dimension as required by the clients is also an important
issue that the estimator must follow as it is required in tender:
These dimensions to be followed are the following:

 Length
 Width
 Height
 Thickness
 Accuracy
 Clearness
 Completeness

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LO 1.2 – Analyze the complexity of the work

 Content/topic 1: Analysis of complexity of the work

The estimator to ensure the success of the project he/she must understand clearly the
complexity that may influence the performance of the project.
Some of these complexities are the following:

 Quantity of materials
 Shape (size…): The shape and size of material must be respected as
required by the owner of the work
 Specification: For the work to be done as desired by the customer,
specification must be clearly shown. The two type of specification are
general specification and detailed specification

 Quality of material used: Material is anything made of matter, constituted of one or

more substances. Cement, Steel, Nails, Aggregates and Water are all examples of
materials. Sometimes the term "material" is used more narrowly to refer to substances
or components with certain physical properties that are used as inputs to production
or manufacturing.

 Human resources, materials

-Labour availability
The labor force required on any project need to be planned at an early stage. The aim of
labour force planning is to establish not only what is to be done out but also who is to do
it.
From the overall project programme together with the methods statement it is possible to
forecast the amount, the type and flow of labour. The amount of labour on site should be
planned to avoid unnecessary wastage of money. This can be achieved for example by
moving no critical activities on the programme to attain more balanced labour pattern.
Correct forecasting on early stage avoids problems and prevents delays occurring later.
The availability of labour will depend up on the following factors:
 National economy
 Activity in the construction industry
 Training and education
 Technology to be used
 Complexity of the project
 Location of the project

-Materials

A material management system has been described as having the aim of ensuring that all
materials are delivered to the site to enable incorporated in the work at the right time in
the correct quantity at the best cost and of the correct quantity.

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After the breaking down the job into activities and after making plan and schedule you are
able to estimate or calculate the quantities of materials required. Using the bill of quantity
or specification and drawing, the procurement offices will take and schedule all the
materials requirement for the project, the quantity of material depends on the importance
of the project.
To meet these aims good management of materials and tools should therefore follow the
following steps:
 Planning and scheduling of materials
 Requesting those materials
 Ordering
 Receiving and handling
 Storage and security
 Issuing
 Incorporating

Example of typical materials

 Cement
 Reinforcement
 Bricks
 Nails
 Paints

-Availability of funds
Finance is one of the resources available, to contract control of finance is important as it is
affected by everything that the company does. It is also affected by the management of
other resources, such as plant, materials and labour. In order for the company to survive it
must at least break even to preferably make profit.
At project level there are a number of importance steps which can be taken to enable that
cost of materials, plants and labour is controlled there by maximizing return on the finance
used. Cost control at project level is concerned with making sure that the costs do not
exceed the budgeted costs.

LO 1.3 – Localize work location

 Content/topic 1: Discussion on construction workplace/site

Working location: One of the essential for a construction project is the land that becomes
the building site. Site selection and financing would be the responsibility of the owner of the
project. Site means a workplace at which construction work is done and includes any
adjoining area where plant or other materials used or to be used in connection with that
work are located or kept and over which the main contractor has control for the purpose
of doing the construction work.
Before the design works begin, you need to learn as much about the proposed building site
as possible.
This may be done by:
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 1. Considering the suitability of the site for its intended purpose
2. Investigating the site in persons
3. Surveying the site
4. Digging trial holes

Investigating the site:

When the client identifies a site, then the building surveyor investigates it to find out the:
o The strength of the soil, because this affects the design of the foundations
o Type of the soil which will be excavated
o Amount of the water in the ground because this affects the design of the
foundations and working procedures.
o Amount of clean or contaminated ground
o Amount that the ground slopes
o Access to services such as mains water, electricity and drainage
o Best position for the building in terms of the local climate
o Position of natural features such as trees, rocks, and streams.
o Position of other buildings near the site
o Location of site boundaries and access road.
FACTORS TO BE CONSIDERED WHEN SELECTING A BUILDING SITE
- Elevation of site, elevated sites are generally preferable to low lying ones, being
drier and easier to drain.
- Availability of facilities e.g. hospital, transport etc.
- Availability of services e.g. water, electricity, sewage, etc.
- Types and conditions of subsoil e.g. gravel, sand, clay etc.
- Before any building work can commence, the area must be levelled i.e. reducing
levels

After all those factors governing the selection of site (work location) ,the work location can
be one the following:

 Indoor location
 Outdoor location
 Out-country location

LO 1.4 – Determine work duration

Content/Topic 1: Steps of work duration determination

 Time of each task

 Determination of concurrent tasks
 Total time

Estimate the work duration

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 To estimate the work duration needed to complete a given activity you must have
successful information on:
 Productivity hour per day
 How many resources on each activity
 Available work days
 Delays-lag time(effort hours)
 Resources constraints (activity done sequentially or parallel)
 Maintenance days

Methods for the Estimation of Activity Duration in Project Management

When you create project plans, you need to assess the time required to complete
individual activities. Use duration estimates to get an idea of this time and determine the
schedule you need to adhere to in order to complete projects. You can use various
methods to estimate

PERT Method

The Program Evaluation and Review Technique, or PERT, estimation method is a weighted
average of three scenarios. First, compute the averages for optimistic, pessimistic and
most likely time scenarios. PERT gives more weight to the most likely scenario, so multiply
that average by four. Combine this result with the optimistic and pessimistic averages, and
divide the result by six to come up with a final estimate. The optimistic scenario presumes
all goes well, and you can complete the activity without issues. Conversely, with the
pessimistic scenario, you imagine everything will go wrong and it’ll take longer to complete
the activity. The most likely scenario assumes you can complete the activity without
surprises. The PERT estimation method is a good

Below are 3-point estimate or PERT

 Uses 3 estimates (optimistic (O), most likely (M), pessimistic (P))

 Triangular distribution = (O + M + P) / 3 – used infrequently
 Beta Distribution = (O + 4M + P) / 6 – use most often

How to estimate activity duration?

 Involve the team, project managers and work package owners.

 Examine historical information and previous practice
 Decide how you want to quantify the work
 Don’t forget resource requirements and capabilities
 Determine which estimation method to use
 Modify constraints and assumptions from other planning processes
 Verify accuracy of estimates
 Consider the need for time reserve

PERT Three Point Estimating

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PERT technique (Project Evaluation & Review Technique)

Uses three estimates, to define an approximate range for an activity’s duration

Σ = Expected Time or Expected Duration

O = Optimistic P = Pessimistic M = Most Likely

Sigma σ

The standard deviation of an activity

 Degree of variation from the average - (mean)

 Indicates the standard error in the estimate and provides an idea of its accuracy
 the larger the standard deviation (spread between the optimistic and pessimistic
estimates), the larger the risk in the estimate

± 1 standard deviation = 68.26%

± 2 standard deviations = 95.46%
± 3 standard deviations = 99.73%
± 6 standard deviations = 99.999998% - also known as Six Sigma

Statistical Concepts

Normal distribution curve

 Standard Deviation = σ
 How close the data points (measurements) are to the mean (m) when plotted on a
graph

Variance and Standard Deviation

Variance of the activity = square of the standard deviation = Sigma squared

Variance and the standard deviation measure variability, and are measures of how spread
out a distribution is (from the mean)

Another term – heuristics (simple rule of thumb) – six sigma is an example

Question:

Your project has a critical path equal to 30 days and a standard deviation of 2½ days. What
will be the earliest finish and latest finish estimates for this project within a 95%
confidence level?

Answer

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The question gives you:

 a standard deviation of 2½,

 your confidence level is 95% which is two standard deviations,
 therefore, you multiply the 2½ by 2 to get 5.

You add the resulting 5 to the project duration to give you the upper end of the variance
range = 35

You subtract that 5 from the project duration to give you the lower end of the variance
range = 25

Your answer:

 will be the option which states Earliest finish estimate of 25 and latest finish
estimate of 35.

Exercise
Calculate The PERT Duration of the Critical Path Activities, Standard Deviation (σ), Variance
(σ²), Project’s PERT Duration, and Standard Deviation (σ Project =√ Σ variances))

If all the activities above are on the Critical Path, what is the project’s mean duration and
σ?

Answer:

Project’s mean duration = 170.99 days and σ=10.1 days

Analogous Estimation

The analogous, or top-down, estimation relies on information from similar projects to

determine the activity duration for a current project. You’ll need historical data and a
degree of expertise about the similar projects, because the reliability of your estimation
depends on how closely the activities match the projects you're using as comparisons. Use
this method at the beginning of a project when you don’t have all the details. Adjust the
estimates as you learn more about the tasks and how long they can be expected to take
with the resources available.

Parametric Estimation

The parametric estimation is similar, but more accurate, than the analogous estimation. To
use it, multiply the number of units you need by the time it takes to produce the units.
You’ll need historical information about similar activities to complete your estimate. The
method is scalable. This means if your historical data tells you that it takes one person an
hour to produce one unit, you can reasonably estimate that you can complete three units
within one hour if you allocate three workers to the task. When you use this method, it's
important to account for all tasks that impact the activity. For example, if the workers
spend part of the time preparing materials, account for that time in your estimates.

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Expert Judgment

If your project is complicated and a number of factors can influence the duration of your
activities, you might want to use expert judgment to estimate activity duration. Experts
knowledgeable in a particular area can judge the time and resources you’ll need to
complete activities in that area. Be careful when choosing experts or using their estimates,
because they may have certain biases that might influence their estimates. You also can
gather estimates from external experts. If you can get external estimates at reasonable
cost, it might be prudent to rely on them instead of generating estimates internally.

The Delphi Technique

The Delphi technique makes use of group intelligence to determine activity duration. The
technique involves gathering opinions from several experts and then sending the
responses back to the experts for their review. They can change their opinions after
reviewing the responses. The process might involve several rounds, as you want to
investigate differences of opinion and get to a consensus. To reduce bias and prevent
individual experts from overly influencing results, experts submit their opinion
anonymously. You can use a third party to gather the opinions.

Work Breakdown Structure

Certain activities might be too large or complex for a reliable duration estimate. If an
activity takes up more than 10 percent of the project schedule, you might want to break it
into several different tasks. You can use a work breakdown structure to reduce these
activities into smaller, more manageable tasks. Doing this enables you to set priorities and
estimate the duration of tasks more accurately. A work breakdown structure also is useful
for building accountability, because you can assign specific tasks to designated project
participants.

N.B in daily life the useful methods is Parametric

Activity Duration=(Quantity of work)/(Number of

Crews*Resource Output)
Activities Cost=Activity Duration* Cost of the Crew per Unit Time
Example:
1.If the daily production rate for a crew that works in an activity is 175units/day and the
total crew cost per day is 1800 F. The material needed for daily work is 4.5units at
100F/unit.
a. Calculate the time and cost it takes the crew to finish 1400 units
b. Calculate the total unit cost. Consider an eight hours work day.

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ANS1.
a) Duration (units of time) =Quantity/Production per unit of time x number of crews

= 1400/175x1=8days

Cost (labor cost) =Duration (units of time) x crew cost per unit of time
=8daysx1800 F/ day=14400 F

Total direct cost=14400 F+4.5 units of materialx100 F/dayx8days

=18000 F/2marks

Unit cost=total cost/quantity

=18000 F/1400=12.86 F/unit

2. What is the duration in days to install 6000 square feet of walls shuttering if:
a. Crew of 2 carpenters is used with output of 200 square feet/day
b. Productivity is measured as 0.008man-hour/square feet. Number of
carpenters=3,and number of working hours/day=8hours

ANS2.
a. Duration=6000/ 200=3days
b. Total man-hours needed=6000x 0.008=48man-hours (if one man used)

Duration=48/8=6 days (if one man used)

Duration using 3 men=6/3=2days

Learning unit 2: Determine required resources

LO 2.1 – Quantify materials

Content/Topic 1: Identification of materials

Types of materials

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 Material is anything made of matter, constituted of one or more substances. Cement,
Steel, Nails, Aggregates and Water are all examples of materials.
Sometimes the term "material" is used more narrowly to refer to substances or
components with certain physical properties that are used as inputs to production or
manufacturing.

Type of materials used

1. Cement: Used as binding material

2. Lime: Used as binding material and also for painting
3. Building units: burnt bricks, mud blocks and cement blocks for walling and paving
4. Water: used for mixing of concrete, watering and curing.
5. Boards or timbers: Used for formwork, scaffolding and also for the construction of
foundation, floors, walls, roofs, pillars, and frames.
6. Nails: Are available in different sizes and are used to joint boards, timber, ceilings and
profiles.
7. Steel: Is used for reinforcement of concrete. E.g: column, beam and slab.
8. Binding wire: used for binding of steel bars
9. Aggregates: Fine aggregates and coarse aggregates
A. Fine aggregates are those which pass a standard 5mm sieve. They are generally called
sand.
B. Coarse aggregates: are those which are retained on a standard 5mm sieve, crushed
stone or gravels to 60mm grains.
10. Stones: these are pieces of all classified of natural rocks which are finished as small
building units for masonry construction, used in foundation bases, filling up on the floors
as hardcore, and for fencing works.

LO 2.2 – Quantity of materials in terms size and shape

Content/Topic 1: Discussion on quantity survey

Quantity survey means estimating of quantities of different items of work.
A quantity surveyor is a professional working within the construction industry concerned
with building cost. The main role of quantity surveyor is to estimate the cost of civil
engineering work. Each building can be divided into different parts, costs of each part can
be estimated and adding to cost of all parts of building together will give contractors an
estimated cost for the whole work.
Every good quantity surveyor must have a good knowledge of building materials and
construction (should provide correct calculation) and be able to visualize drawings and
details. A quantity surveyor is a descriptive title in which despites the role provided by a
profession in producing a bill of quantity.

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Quantity surveying is important in:
Determination of quantities of items of civil engineering works
Preparation of estimate of civil engineering works
Preparation of tender documents for civil engineering works
Determination of labor requirement for civil engineering items

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

Single units work like doors, windows, trusses etc, is expressed in numbers.
Works consists linear measurements involve length like cornice, fencing, handrail,
bands of specified width are expressed in running meters (RM)
Works consists a real surface measurements involve area like plastering, white
washing, partitions of specified thickness etc.
Works consist of cubical contents which involve volume like earthwork, cement
concrete; Masonry etc are expressed in Cubic meters.

Table 7.2 Units of measurement for various items of works and

materials

Item No. Particulars of items Unit of measurement Unit of payment

1 Earthwork in excavation
m3(cum) Per m3

2 Stone masonry
m3 perm3

3 Damp proof course(DPC)

m2(sqm) per m2

4 Brickwork
m3 Per m3

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 5 Cement concrete (C.C) or
m3 Per m3

6 LimeConcrete (L.C), R.C.C

Flooring
m2 per m2

7 Roof
m2 per m2

8 Door and window fitting number

per number
9 Plastering, pointing ,and painting
m2 per m2

10 Rainwater pipe m per m

 Principles of deciding unit of measurement

The most important principles of selection of unit of measurement:
1.The unit of measurement should be simple and convenient to measure ,record and
understand
2. It should be one, which provides for fair payment for the work involved
3. In the result it should be yield quantities which are neither too minute nor too large
4. The price per unit should not be a very small figure or a very large one, that is
generally costlier items will be measured in small units, cheaper ones in larger units
5. The unit of measurement may sometimes depend upon the unit for the raw
material and / or labour and important dimensions.

 Rules for measurement

The rules for measurement of each item are invariably described in IS 1200.However 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 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

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tolerances.
i) Linear measurement shall be measured to the nearest
0.01 meter
ii) Area shall be measured to the nearest 0.01 square meter
iii) Cubic contents shall be worked-out to the nearest 0.01 cubic meter
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 masonry (stone or brick) or structural concrete, the categories shall be
measured separately and the heights shall be described:
a) From foundation to plinth level

b) From plinth level to first floor level

c) From First floor to second floor level and soon.
 Purpose of estimating idea of the cost to help him decide whether the work can be
undertaken as proposed or need to be curtailed or abandoned, depending upon the
availability funds and prospective direct and indirect benefits
 Estimating in construction is to ensure that work is carried out
according to correct plan and specification
 Estimator must be in a position to know exactly how much
expenditure is going to incur on estimating of materials,
labour, plant and time
 The estimator comes up with approximate cost. The actual cost of
a project will be determined after completion of the project.

Qualifications of an estimator
A good estimator should possess the following qualifications:
1. A thorough understanding of architecture drawings
2. A sound knowledge of building materials, constructions methods and
customs prevailed in the trade
3. A fund of information collected or gained through experience in
construction work, relating to materials required hourly, output of labour

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and plant, overhead expenses and cost of all things
4. An understanding of a good method of preparing an estimate
5. A systematic and orderly mind
6. Ability to do careful and accurate calculations
7. Ability to collect, classify and evaluate data that would be useful in
estimating.
Steps in preparation of a detailed estimate
There are three clearly defined steps in preparation of a detailed estimate
i. Taking out quantities
In the first step of taking out quantities, the measurements are taken off
from the drawing and entered on measuring sheet. The measurement to
be taken out would depend upon the unit of measurement.
For example, in the case of stone masonry in foundation; length,
thickness, and height of the trench would be taken from the drawing and
entered on the measurement sheet; the unit of measurement is cubic

meter (m3); whereas, in the case of plastering, only the length and height
of the wall would be entered on the measurement sheet; the unit of

measurement is square meter(m2).

ii. Squaring out
The second step consists of working out volumes, areas, etc., and costing
up to their total in recognized units.
iii. Abstracting
In the third step, all the items along with the net results obtained in
the second step are transferred from measurement sheets to specially
ruled sheets having rate column ready for pricing.
The second and third steps above are known as working up.
All calculations in these stages and every entry transferred
should be checked by another person to ensure that no
mathematical or copying error occurs.

Example1: estimate the quantities of brickwork and plastering in a wall 4m long,3m height

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and 30cm thick. Calculate also the cost if the rate of brickwork is Rs.320per m 3and of

plastering is Rs.8.50 per m2.

Answer:

Quantity of brick work: L x B x H =4mx3mx0.30m = 3.6 m3

Quantity of plastering (2faces): 2 x L x H =2 x4m x3m= 24 m2

Cost of brickwork: 3.6 m3 x320 Rs/ m3 =Rs.1152.0

Cost of plastering: 24 m2x8.50 Rs /m2=Rs.204.0

Total cost =Rs.1152.0 +Rs.204.0=Rs.1356.0

Example 2 : Prepare a detailed estimate of part a wall of building from the given plan and
section and general specification.

GENERALSPECIFICATIONS

Foundation concrete shall be of lime concrete

Foundation and plinth shall be of 1stclass brickwork in lime mortar.

Damp proof course-2.5 mm c.c1:11/2: 3with water proofing compound.

Superstructure 1st class brickwork in lime mortar.

Wall finishing–inside wall 12mm cement plastered 1:6 and whitewashed 3 coats.

Outside wall 12mm cement plastered 1:6 including 10 cm below ground level and finished
with two coats of color over one coat of white washing. Assume local current rates.

Plan and section of the building are shown below.

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Page 18 of 57
SOLUTION
Detailed estimate of measurement and calculation of quantities
Quantity
S no. Description of items No L
Dimensions B H Quantities
Earth work in Length Breadth Height
1 excavation in 1 6m 0.8m 0.9m 4.32cu.m
foundation
2 Limeconcreteinfoundation 1 6m 0.8m 0.3m 1.44cu.m
3 1stclass brickwork in
1stfooting
limmortarinfoundationandplin 1 6m 0.6m 0.20m 0.72cu.m
th
2ndfooting 1 6m 0.5m 0.2m 0.60cu.m

Plinth wall up to GL 1 6m 0.4m 0.2m 0.48cu.m

Plinth wall above GL 1 6m 0.4m o.6m 1.44cu.m

Total 3.24cu.m
4 2.5cmdampproofcoursec. 1 6m 0.40m - 2.4sq.m

1:11/2:3
5 First class brickwork in 1 6m 0.3m 3.5m 6.3cu.m
lll l limemortarforsuperstructur
6 12mm
e plaster of cement, san
d Inside
Outside including 10 cm below 1 6m - 3.5m 21sq.m
GL
1 6m - 4.2m 25.0sq.m
7 Colour washing 2 coats over one 1
Whitewashing3coats(inside) 6m - 3.5m 21sq.m
8 coat of white 1 6m - 4.1m 24.6sq.m
washing(outside above GL)

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  Content/ Topic 2 : Methods of calculating quantity of materials
METHODS OF TAKING OUT QUANTITIES
The calculation of quantity of materials can be done using various methods of estimates. The
application of an individual method depends upon the design and shape of the building. The
different methods are as under:
a) Long wall-short wall method (out to out & in to in)
b) Centre line method.
c) Crossing method.
d) Bay method
e) Service unit method
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 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 maybe found by deducting half
breadth from its centre line length at each end. The length of long wall usually decreases from
earth work to brickwork in superstructure while the short wall increases. These lengths are
multiplied by breadth and depth to get quantities.

b) Centre line method

This method is suitable for walls of similar cross sections. Here the total center 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 main all, the center line length gets
reduced by half of breadth for each junction .Such junction or joints are studied carefully
while calculating total center line length. The estimates prepared by this method are most
accurate and quick. This method is suitable only if the offset are symmetrical and the
building is more or less rectangular in shape. The center line of the building is determined
carefully after doing deductions for repeated measurements. This center line acts as length
for the complete calculations of the estimate. If the deduction is not cared for the results of
estimates may be wrong. All the walls should have the same section

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c) Crossing method (Partly centre line and partly cross wall method)
This method is adopted when external (i.e., all-round the building) wall is of one thickness
and the internal walls having different thicknesses. In such cases, centreline 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 different level of foundations. In this
method, lengths and breadths of the masonry walls at plinth level are taken (internal
dimension of the room + thickness of the walls) for calculating quantities.
e) Bay method This method is useful and is generally followed in case of building having
several bays. The cost of one bay is worked out and then multiplied by the number of bays in
that building. The extra cost of the end walls and difference in framing. If there is any, should
be made, so as to arrive at the correct cost
f) Service unit method
This method is followed in cases such as school building where there are so many classrooms. The
cost of one classroom is worked out and then multiplied by the number of classrooms to be
constructed. In case of hospitals, the service unit is a bed ,in case of water tank ,it is a litre ,in case of
cinema hall ,the service unit is a seat.
Example1: The plan presents the plan of superstructure wall of single room building of 5mx4m, and
sections represent the cross-sections of the walls with foundation. Estimate by using long and short wall
method and center line method the quantities of:
1) Earthwork in excavation in foundation,
2) Concrete in foundation
3) Brickwork in foundation and plinth,
4) Brick work in superstructure

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Page 22 of 57
 SOLUTION
1. Long and short wall method
Details of measurement and calculation of quantities

Item Description of item No Length Breadth Height quantity Explanatory

No. . notes
1 Earthwork in excavation
Long wall 2 6.20m 0.90m 0.90m 10.04 L=5.3+0.90
Short wall 2 3.20m 0.90m 0.90m 5.51 B=4.3-0.90
2 Concrete in foundation
Total 15.55m3
Long wall 2 6.20m 0.90m 0.30m 3.35 L=same as
Short wall 2 3.40m 0.90m 0.30m 1.83 above
3 Brickwork in foundation
Total 5.18 m3
and plinth
Long walls

1stfooting
2 5.90m 0.60m 0.30m 2.13 L=5.3+0.6
2ndfooting
2 5.80m 0.50m 0.30m 1.74 L=5.3+0.5
Plinth walls
2 5.70m 0.40m 0.60m 2.74 L=5.3+0.40
Short walls
4 Brickwork in
1stfooting
2 3.70m 0.60m 0.30m 1.33 L=4.3-.60
superstructure
2ndfooting 2 3.80m 0.50m 0.30m 1.14 L=4.3-50
Long Walls
Plinth walls 2 3.90m 0.40m 0.60m 1.87 L=4.3-0.4
Short walls 2 5.60m 0.30m 3.50m 11.76 L=5.3+0.30
Total 10.95m 3
2 4.0m 0.30m 3.50m 8.40 L=4.3-0.30
Total 20.16m3

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 2. Centre line method
Long wall centre to centre length = 5m+0.15m +0.15m= 5.3m
Short wall centre to centre length = 4m+0.15m +0.15m= 4.3m
Total centre line length=2(5.3m+4.3m) =19.2m

Details of measurement and calculation of quantities

Item Dimension
No. Description of item No. L B H Quantity unit Explanatory notes
Earthwork in Total centreline
1 Excavation 1 19.2 0.9 0.9 15.552 cu.m length= 19.2m
Lime concrete in
2 Foundation 1 19.2 0.9 0.3 5.184 cu.m
3 Brickwork in foundation and plinth
1st footing 1 19.2 0.6 0.3 3.456 cu.m
2nd footing 1 19.2 0.5 0.3 2.88 cu.m
plinth wall 1 19.2 0.4 0.6 4.608 cu.m
Brickwork in
4 superstructure 1 19.2 0.3 3.5 20.16 cu.m

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Example 2: Estimate the quantities of the following items of two roomed building from the given
plan and section by using long and short wall method, and centre line method:
1. Earthwork in excavation in foundation,
2. Lime concrete in foundation,

3. 1stclass brickwork in cement mortar 1:6 in foundation and plinth,

4. 2.5 cm c. c damp proof course, and

5. 1stclass brickwork in lime mortar in superstructure.

SOLUTION
1. Long and short wall method
Long wall centre to centre length = 4m+6m+ 0.3m+ 0.15m +0.1m = 10.6m

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Short wall centre to centre length= 6m +0.15m + 0.15m =6.3m

Details of measurement and calculation of quantities

Item Dimension
L B H
No. Description No. Quantity unit Explanatory notes
1 Earthwork in excavation in foundation
Long Wall 2 11.7 1.1 1 25.74 cu.m L=10.6+1.1=11.7
Short Wall 3 5.2 1.1 1 17.16 L=6.3-1.1=5.2
2 Lime concrete in foundation
Long Wall 2 11.7 1.1 0.3 7.722 cu.m same as above
Short Wall 3 5.2 1.1 0.3 5.148 cu.m same as above
3 1st class brickwork in 1:6 cement mortar in foundation and plinth
Long Wall
1st footing 2 11.4 0.8 0.2 3.648 cu.m L=10.6+0.8=11.4
2nd footing 2 11.3 0.7 0.1 1.582 cu.m L=10.6+0.7=11.3
3rd footing 2 11.2 0.6 0.1 1.344 cu.m L=10.6+0.6=11.2
4th footing 2 11.1 0.5 0.1 1.11 cu.m L=10.6+0.5=11.1
Plinth wall above footing 2 11 0.4 0.8 7.04 cu.m L=10.6+0.4=11
Short Wall
1st footing 3 5.5 0.8 0.2 2.64 cu.m L=6.3-0.8=5.5
2nd footing 3 5.6 0.7 0.1 1.176 cu.m L=6.3-0.7=5.6
3rd footing 3 5.7 0.6 0.1 1.026 cu.m L=6.3-0.6=5.7
4th footing 3 5.8 0.5 0.1 0.87 cu.m L=6.3-0.5=5.8
Plinth wall above footing 3 5.9 0.4 0.8 5.664 cu.m L=6.3-04=5.9
4 Damp proof course2.5 cm c.c
Long Wall 2 11 0.4 8.8 sq.m same as plinth
Short Wall 3 5.9 0.4 7.08 sq.m same as plinth
Deduct door sills 2 1.2 0.4 0.96 sq.m
Net Total 15.88 sq.m
5 1st class brickwork in 1:6 cement mortar in superstructure
Long Wall 2 10.9 0.3 4.2 27.468 cu.m L=10.6+0.3=10.9
Short Wall 3 6 0.3 4.2 22.68 cu.m L=6.3-0.3=6
Deduct
Door opening 2 1.2 0.3 2.1 1.512 cu.m
Window 4 1 0.3 1.5 1.8 cu.m
10cm back of
Lintel
Shelvesover doors 2 1.5
1 0.3
0.2 0.15
1.5 0.135
0.6 cu.m 15cm
Shelvebearing
Lintel over window 4 1.3 0.3 0.23 0.3588 cu.m 15cm bearing
Lintel over Shelves 2 1.3 0.3 0.15 0.117 cu.m 15cm bearing
Total deduction 4.5228 cu.m
Net Total 45.625 cu.m

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2. Centre line method
Centre line length for long wall=4m+2(0.15m)+6m+2(0.15m)=10.6m

Centre line length for short wall=6m+ 0.15m+0.15m =

6.3m Total Centre line length of
wall=2x10.6+3x6.3=40.1m Number of T-junction=2
Centre line diagram

Details of measurement and calculation of quantities

Item Dimension
L B H
No. Description of item No. Quantity Unit Explanatory note
Earthwork in
1 Excavation 1 39 1.1 1 42.9 cu.m L=40.1-2*1.1/2=39
2 Lime concrete 1 39 1.1 0.3 12.87 cu.m same as above
3 1st class brickwork in 1:6 cement mortar in foundation and plinth
1st footing 1 39.3 0.8 0.2 6.288 cu.m L=40.1-2*0.8/2=39.3
2nd footing 1 39.4 0.7 0.1 2.758 cu.m L=40.1-2*0.7/2=39.4
3rd footing 1 39.5 0.6 0.1 2.37 cu.m L=40.1-2*0.6/2=39.5
4th footing 1 39.6 0.5 0.1 1.98 cu.m L=40.1-2* 0.5/2=39.6
plinth wall above
footing 1 39.7 0.4 0.8 12.704 cu.m L=40.1-2*0.4/2=39.7
4 Damp proof course 1 39.7 0.4 15.88 sq.m same as plinth wall
Deduct sill 1 1.2 0.4 0.96 sq.m
Net total 14.92 sq.m
5 1st class brickwork in 1:6 cement mortar in superstructure
1 39.8 0.3 4.2 50.148 cu.m L=40.1-2*0.3/2=39.8
Deduct
Door opening 2 1.2 0.3 2.1 1.512 cu.m
Window 4 1 0.3 1.5 1.8 cu.m
Shelves 2 1 0.2 1.5 0.6 cu.m 10cmback of shelve
Lintel over doors 2 1.5 0.3 0.15 0.135 cu.m 15cm bearing

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 Lintel over window 4 1.3 0.3 0.23 0.3588 cu.m 15cm bearing
Lintel over Shelves 2 1.3 0.3 0.15 0.117 cu.m 15cm bearing
Total deduction 4.5228 cu.m
Net Total 45.625 cu.m

Example3. From the given figure below calculate the details estimate for the single storied
residential building by Centre Line Method.

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SOLUTION

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Page 30 of 57
WORKED EXAMPLES
1. Calculate the number of bricks of20×9.5×7 cm and the quantity of mortar in a wall of

8m long, 2m height and20cm thick.

2. Estimate the quantities of brick work and plastering in a wall4m long, 3mheight and

30 cm thick. Calculate also the cost if the rate of brickwork is 320 dollars per m3and

Of plastering is 8.50dollars per m2

3. Calculate the number of bags of cements in 2, 1 m3of cement sand mortar if the ratio is

1:5 and one bag of cement occupies 0.035m3

4. Estimate the quantities of bricks of215mmx65mmin the following wall

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LO 2.3 – Identify the quality of materials

 Content/Topic 1 : Quality of materials needed

Specification
a) General Specifications: This gives the nature, quality, class, work and materials in general
terms to be used in various parts of wok. It helps to 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 workmanship and execution of work.

Examples of specification: given the section below and its specification

-Foundation concrete shall be of lime concrete

-Foundation and plinth shall be of 1stclass brickwork in lime mortar.

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-Damp proof course-2.5 mm c.c1:11/2: 3with water proofing compound.

-Superstructure1 st class brickwork in lime mortar.

-Wall finishing–inside wall 12mm cement plastered1:6andwhitewashed3coats.
Outside wall 12mm cement plastered 1:6 including 10 cm below ground level and finished with
two coats of color over one coat of white washing. Assume local current rates.
Description of materials
Type of materials used

1. Cement: Used as binding material

2. Lime: Used as binding material and also for painting
3. Building units: burnt bricks, mud blocks and cement blocks for walling and paving
4. Water: used for mixing of concrete, watering and curing.
5. Boards or timbers: Used for formwork, scaffolding and also for the construction of
foundation, floors, walls, roofs, pillars, and frames.
6. Nails: Are available in different sizes and are used to joint boards, timber, ceilings and
profiles.
7. Steel: Is used for reinforcement of concrete. E.g: column, beam and slab.
8. Binding wire: used for binding of steel bars
9. Aggregates: Fine aggregates and coarse aggregates
A. Fine aggregates are those which pass a standard 5mm sieve. They are generally called sand.
B. Coarse aggregates: are those which are retained on a standard 5mm sieve, crushed stone or
gravels to 60mm grains.
10. Stones: these are pieces of all classified of natural rocks which are finished as small
building units for masonry construction, used in foundation bases, filling up on the floors as
hard-core, and for fencing works.
Materials testing
Construction Materials testing (CMT) is a vital process that help builders and sites owners
identify potential problems before committing resources to the project.
Materials testing ensure that the structural materials used during construction meet all
necessary quality benchmarks.
Importance of materials testing
A building structure is much more than floors walls and a foundation. virtually all building rely
on a variety of support materials, including layers of soil and cement, to maintain long-term
stability
It is essential for keeping the structure in line with applicable legal requirements including
occupational safety and environmental regulation. Material testing helps avoid expensive
repair
It include field examinations and laboratory test.

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LO 2.4. – Determine human resources

Content/ Topic 1: Factors for human resources determination

The following are the factors to be considered when determining the quantity of labour:
-Variety of task: It means the degree to which the job requires that the employee perform a wide
range of tasks
-Extent of work: The size of work affect primarily the quantity of labour to perform it. The higher size
of the work, the higher quantity of labour
-Duration of task: it refers to the time required to complete a specific task or activity
-Emergency work: It may happen that the site needs the labour for emergency and unexpected works
which is not planned during planning of work
-Working place: The site may affect the performance of labour according to its conditions. Normally in
hot area the productivity is higher than cold area
 Labour classification
Labour are classified into the following class
- Skilled labour first class: They have special skills training, knowledge and ability in their work. They
are trained, educated and experienced segment of workforce that can complete more complex mental
or physical tasks on the job. They are characterized by advanced education ex: Engineer
- Skilled labour second class: They are having or requiring less training than skilled labour and more
than unskilled labour. Semi-skilled career requires some level of judgement, which exceeds the little no
judgement required in unskilled jobs. Examples of them are tradesmen, technician
-Unskilled labour: They are employed for carrying out such jobs which don’t requires any specialized
professional skills

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Learning unit 3: Calculate the cost estimation
LO 3.1. – Actualize the prices

 Content / Topic 1 : Cost survey prices

Before deciding any price for any items it is recommended to perform survey on current prices
on the market, and some of the surveys conducted are the following:

 Material survey prices

(Window shopping comparison)
Perform invoice
 Human resources survey price
(Window shopping comparison)
 Equipment survey price
(Window shopping comparison)
 Transport survey price
(Window shopping comparison)

Price survey methodology

 Performa format
 Surveys templates

LO 3.2. – Determine the units’ price and total cost of materials

 Content / Topic1: Determination of units and total price of each items

Definition of estimate and its different types
An estimate is an approximate calculation of the cost of works to be done. For all engineering
work, it is required to know beforehand the probable cost of construction work known as”
Estimated cost”. If the estimated cost is greater than the money available, then attempts are
made to reduce the cost by reducing the work or by changing the specifications.
In preparing an estimate, the quantities of different items of work are calculated by simple
measurement methods and from these quantities the cost is calculated.

Estimating is the technique of calculating or computing the various quantities and the
expected expenditure to be incurred on a particular work or project. The following
requirements are necessary for preparing an estimate.
A) Drawings like plan, elevation and sections of important points.
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B) Detailed specifications about workmanship & properties of materials etc.
C) Standard schedule of rates of the current year.
i. Need for estimation and Costing
gives an idea of the cost of the work and hence its feasibility can be determined i.e
whether the project could be taken up within the funds available or not.
gives an idea of time required for the completion of the work.
is required to invite the tenders and Quotations and to arrange contract.
Estimate is also required to control the expenditure during the execution of work.
Estimate decides whether the proposed plan matches the funds available or not.
Estimating involves the following operations:
Preparing detailed Estimate.
Calculating the rate of each unit of work
Preparing abstract of estimate
ii. Data required in preparation of an estimate
Drawings (plans, elevations, sections etc ):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.
Specifications:
a) General Specifications: This gives the nature, quality ,class ,work and materials in general
terms to be used in various parts of wok. It helps to 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 workmanship and execution of work.
Rates: 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.

3. The cost of transport materials.
4. The wages of labour, skilled or unskilled of masons
, carpenters , etc.

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iii. Complete estimate
Most of people think that the estimate of a structure includes cost of land ;cost of materials and
Labour ,but many other direct and indirect costs included and are shown below

The complete estimate of a projector building structure should include all items of expenditure
from the beginning up to the end.

iv. LUMPSUM:

While preparing an estimate,it is not possible to work out in detail in case of petty items. Items
other than civil engineering such items are called lump sum items or simply L.S. Items.
The following are some of L.S. Items in the estimate.
Water supply and sanitary arrangements.
Electrical installations like meter, motor, etc.,
Architectural features.
Contingencies and unforeseen items.
In general, certain percentage on the cost of estimation is allotted for the above L.S. Items
Even if sub estimates prepared or at the end of execution of work, the actual cost should
not exceed the L.S. amounts provided in the main estimate.
Contingencies indicates incidental expenses of miscellaneous character which cannot be
classified under any distinct item sub-head, yet pertain to work as whole. Provision for

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contingencies 3%to 5% of estimated cost, is made in the estimate to cover the
miscellaneous petty expenditures which do not come under any item of work

v. WORKCHARGED ESTABLISHMENT

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

assistance, watchmen etc, are employed on temporary basis. The salaries of these persons are
drawn from the L.S. amount allotted towards the work charged establishment.
That is, establishment which is charged directly to work. A L.S. amount of 1½ to 2% of the
estimated cost is provided towards the work charged establishment.
Meaning of technical words
 Profit: Amount of money which can be gotten after work
completion and payment of labour.
 Overhead: Amount of money given on site so that the work
continue more quickly
 Contingency: Amount of money used on the site like money of
telephone
 Bid cost (estimated cost):the cost obtained by adding on the cost;
Profit, overhead, and contingency.

 Approximate cost: the cost of a project which you need before works
begin.
 Actual cost: the cost of a project used for completing all
construction works.

Types of estimate

Before undertaking the construction of a project it is necessary to know the probable cost
which is work out by estimating. The primary object of the estimate is to enable one to know
beforehand, the cost of the work .The estimate is the probable cost of a work and is
determined theoretically by mathematical calculations based on the plans, drawings and
current rates. Approximate estimate may be calculated by various methods but accurate
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 estimate is prepared by detailed estimate method. Normally, there are two types of estimate:
Detailed estimate and Approximate estimate.
1. Approximate estimate/rough cost estimate/Preliminary estimate

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 approximate
estimate is prepared from the practical knowledge and cost of similar works .The estimate is
accompanied by a report explaining necessity and utility of the project and with a site or
layout plan. A percentage of 5 to 10% is allowed for contingencies. The following are the
methods used for preparation of approximate estimates.
a) Plinth area method
b) Cubical contents methods

a. Plinth area method

Plinth area is the built up covered area of a building measured at floor level of any storey. The
plinth area is calculated by taking the external dimensions of a building at the floor level
excluding plinth offsets if any. Court-yard, open areas, balconies and cantilever projections are
not included in the plinth area .Supported porches(other than cantilever)are Included in the
plinth area .The cost of construction is determined by multiplying plinth area with plinth area
rate .The area is obtained by multiplying length and breadth(outer dimensions of building).In
Fixing the plinth area rate ,careful observation and necessary enquiries are made in respect of
quality and quantity aspect of materials and labour ,type of foundation ,height of building ,roof,
wood work, fixtures, number of stories etc.,
The following areas include while calculating the plinth area of building:

a) Area of walls at floor level.

b) Internal shafts of sanitary installations not exceeding2.0m2, lifts, air-conditioning ducts etc.,
c) Area of barsati at terrace level: Barsati means any covered space open on one side
constructed on one side on terraced roof which is used as shelter during rainy season.
d) Porches of non-cantilever type.

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Areas which are not to include:
a) Area of lofts.
b) Un enclosed balconies.
c) Architectural bands, cornices etc.,
d) Domes, towers projecting above terrace level.
e) Box louvers and vertical sun breakers.
Examples:
Example1: Prepare an approximate estimate of
building project with total plinth area of all
building is 800 sqm, and from following data:
i) Plinth area rate Rwf. 4500 per sqm
ii) Cost of watersupply@7½%of cost of building.
iii) Cost of Sanitary and Electrical installations each @ 7½%ofcost of building.
iv) Cost of architectural features @1%of building cost.
v)Cost of roads and lawns @5%of building cost.
vi) Cost of Petty Supervision (P.S)and contingencies @4%of building cost.
Determine the total cost of building project.

Example2: The plinth area of an apartment is 500sqm.Determine the total cost of building
from the following data:

a) Rate of construction =Rwf. 24,600/per m3.

b)The height of apartment = 16.25 m
c) Water Supply, Sanitary and Electrical installations each at 6%of building cost.
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d) Architectural appearance@ 1%ofbuildingcost.
e) Unforeseen item @2%of Building cost.
f) P.S. and contingencies@4%of building.

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Page 42 of 57
 b. Cubical content method

This method is generally used for multi storied buildings .It is more accurate than the other two
methods like plinth area method and unit base method. The cost of a structure is calculated
approximately as the total cubical contents (Volume of buildings)multiplied by Local Cubic Rate
.The volume of building is obtained by Length x breadth x depth or height .The length and
breadth are measured out of walls excluding the plinth offset.
The cost of building= volume of buildings x rate/ unit volume.

Examples:

c. Unit base method

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

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

2. DETAILED ESTIMATE

The preparation of detailed estimate consists of working out quantities of various items of work
and then determines the cost of each item. This is prepared in two stages:
a) Details of measurements and calculation of quantities
The complete work is divided into various items of work such as earthwork concreting, brick work
,R.C.C. Plastering etc ,The details of measurements are taken from drawings and entered in
respective columns of prescribed preformat .The quantities are calculated by multiplying the values
that are in numbers column to Depth column as shown below:

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b) Abstract of Estimated Cost
The cost of each item of work is worked out from the quantities that already computed in the
details measurement format workable rate .But the total cost is worked out in the prescribed form is
known as abstract of estimated form.

Table7.1 ABSTRACT OF ESTIMATED FORM

Item No. Description of item Quantity Unit Rate Amount

Rate analysis
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
depend on the following:
1. Specifications of works and material about their quality, proportion and constructional
Operation method.
2. Quantity of materials and their rates
3. Number and Cost of labours;
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4. Location of site of work and the distances from source and conveyance Charges.
5. Overhead and establishment charges
6. Profit
Overhead costs: Overhead costs include general office expenses, rents, taxes, supervision and other
costs which are indirect expenses and not productive expenses on the job.
The miscellaneous expenses on overheads may be under the following heads:
A-General overheads-
Establishment (office staff),
Stationary, printing, postages, etc…

Travelling expenses, Telephone

Rent and taxes
B-Job Overheads-
Supervision (salary of engineers, supervision…)
Handling of materials,
Repairs,
Amenities of labours
Workman’s compensation, insurance, etc…
Interest on investment
The contactor may be allowed a net profit of 6 to 8%, and the miscellaneous overhead expenses
may come to about 5 to 10%.For overhead expenses and contractor’s profit 15% of the actual cost
may be reasonable amount but it is usually practice to add 10% for all these under the head profit.
For small works overhead cost may be very little .A provision for water charges @1.5% of the total
cost is made in the rate.4% of estimated Cost is allowed for Petty Supervision, contingencies and
Unforeseen items .A percentage of 1.5% to 2% is also added to meet the expenditure of work-
charged establishment .The grand total thus obtained is estimated cost of the work.

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The detailed estimate should be accompanied with:
Report,
specification,
Drawings (plans, elevations, sections),
designs charts and calculations,
Standards schedules of rates.
Factors to be considered During Preparation of Detailed Estimate

Quantity and transportation of materials: For bigger project, the requirement of materials
is more .Such bulk volume of materials will be purchased and transported definitely at
cheaper rate.
Location of site: The site of work is selected, such that it should reduce damage or in
transit during loading, unloading, stocking of materials.
Local labour charges: The skills, suitability and wages of local labours are considered while
preparing the detailed estimate.
Units of dimensions for materials and works and mode of measurement for different
items of works and materials
To find out the quantities of any items in construction it is recommended to have the
international unit to express that quantity, and then deduce the cost per unit of
measurements

 Per cubic meter

 Per linear meter
 Per square meter
 Per unit of mass
 Per pieces
 Lump sum

Total cost

The total cost is usually equal to unit price x quantity of each item

Example: Calculate the cost of brickwork having 4.5cu.m and plastering having 25m2 if the

rate of brickwork is Rs.320per m 3and of plastering is Rs.8.50 per m2.

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Answer:

Cost of brickwork: 4.5 m3 x320 Rs/ m3 =Rs.1440

Cost of plastering: 25 m2x8.50 Rs /m2=Rs.212.5

Total cost =Rs.1440.0 +Rs.212.5=Rs.1652.5

LO 3.3 – Perform calculation of charges and benefits

 Content/Topic1: Calculation of charges and benefits/Price per unit breakdown

To establish the grand total for any project you must first calculate the total cost and
associate to its other cost that will not be classified among material cost and some of these
costs are:

 Labour cost
 Maintenance cost
 Taxes
 Equipment
 Benefits
 Transport
 Other unforeseen charges

Hence the grand total cost of the project is the sum of these listed above items plus the total
cost of materials

Example: Calculate the grand total cost of the following work given in the table below

Abstract of estimated cost

Items Description quantity unit Rate Amount

No Rs. Rs.
1 Earth work in excavation in foundation 4.32 Cu.m 350.0 1512.0
2 Lime concrete in foundation 1.44 Cu.m 220.0 316.80
3 1stclass brickwork in lime mortar in 3.24 Cu.m 300.0 972.0

foundationandplinth
4 2.5cmdampproofcoursec.c1:11/2:3 2.4 Sq.m 20.0 48.0
5 First class brickwork in lime mortar for 6.3 Cu.m 320.0 2016.0
Superstructure
6 12mm plaster of cement sand 1:6 46.0 Sq.m 8.50 392.70

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 7 Whitewashing 3 coats(inside) 21.0 Sq.m 0.75 15.75
8 Colour washing 2 coats over one coat 24.6 Sq.m 0.82 20.17
Of whitewashing

Total cost= Rs 5293.42

Add for contingencies 3% of total cost= Rs 158.80
Add for work charged establishment 2% of total cost= Rs 105.86
Add for labour cost 30% of total cost= Rs 1588.02
Add for benefits and taxes 10% of total cost= Rs 529.34
Add for Equipment and transport 5% of total cost = Rs 264.67
Grand total= Rs 86547.1

Bill of quantities

In order to represent clear how you find out the cost of each items it is necessary to
represent it in table form and that table is known as bill of quantities or simple (B O Q). A
bill of quantity is a document which quantifies in details the scope of construction project
using a standard method of measurement and is typically used in the tender process for
pricing and analysis purpose
Layout of bills of quantity
This is simple form of bill of quantity

S/ Descripti No Length Breadth Height Quantity Rate/unit Total Explanatory

N on of (LXBXH) cost notes
items

LO 3.4 – Fill in bill of quantity

Content/Topic1:Types of bill of quantity:

 Firm bill of quantities: used to obtain lump sum price of a project

 Approximate bill of quantities: contain provisional quantities

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  Specified bill of quantities: contain items and its specification

Bill of quantity contents:

 Item number
 Item description
 Unit of measures on each item
 Quantity of each item
 Rate per unit
 Total cost(Amount)
 Observation(explanatory notes)

Main purpose of bills of quantity

 Enable all contractors tendering for contract to price on exactly the same
information with minimum effort.
 Allow for better comparison
 Ordering of materials
 Cost analysis for use in future
 Reference particularly on site during construction
 Planning and progressing by the contractors’ site planer.
 Final accounting
 Quality by reference to the technical specifications

Layout of bills of quantity

This is simple form of bill of quantity

S/ Descripti No Length Breadth Height Quantity Rate/unit Total Explanatory

N on of (LXBXH) cost notes
items

LO 3.5 – Prepare an invoice

 Content /Topic 1: Types of Invoices

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If you’re like many small business owners, you send customers’ bills after you provide a
product or service. An effective invoicing system gives customers more flexible payment
options. You need to know which types of invoices to send customers for different situations.

Types of invoices

There are many different types of invoices you can send to customers. Each type of invoice
has a specific purpose. The following are six types of invoices in accounting that you might
send to customers.

1. Performa invoice

A pro forma invoice is not a demand for payment. You can think of this document like a pre-
invoice. You send a pro forma invoice before completing work for a customer.

The pro forma invoice shows the customer how much to pay you once you deliver a product
or perform a service. You can also use a pro forma invoice to show the value of items you
give away, such as a gift.

Usually, a pro forma invoice estimates the work you will do and how much items will cost.
The pro forma invoice represents a commitment to provide something. The terms in a pro
forma invoice can change as the project proceeds.

2. Interim invoice

An interim invoice breaks down the value of a large project into multiple payments. You send
interim invoices as you complete the large project.

The larger the project, the more you spend on labour, materials, and other operating costs.
Interim invoices help you manage your small business cash flow for large jobs. You don’t have
to wait until the end of the project to receive payments. Instead, you can use money from
interim invoices to cover some of the costs.

3. Final invoice

As the name implies, you send a final invoice after you complete a project. The final invoice
lets the customer know the work is done. Unlike a pro forma invoice, the final invoice is a
demand for payment.
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Your final invoice should include an itemized list of the products and services you provided.
You should also note the total cost, due date, and payment methods.

Be sure to send final invoices immediately via mail or online after completing work. That way,
you can keep cash flowing into your business at a healthy rate and avoid collections
problems.

4. Past due invoice

Sometimes, your customers don’t pay you by the due date on the final invoice. When this
occurs, you need to send a past due invoice. Send past due invoices immediately after an
invoice becomes late.

A past due invoice reminds customers that their payment due dates have passed. Include all
the information from the final invoice on the past due invoice. Also, include any late fees or
interest penalizing the customer for paying late.

If past due invoices don’t work, you might have to take a different approach for customers
who won’t pay. Consider changing your payment terms, setting up a payment plan, or hiring
a collections agency.

5. Recurring invoice

Use recurring invoices to bill customers for on-going services. You charge the same amount
periodically, similar to some utility bills.

Using a recurring invoicing system works well for subscription-based businesses. And, you
could use recurring invoices if your customers have memberships to your company. For
example, if you own a gym and members pay a monthly fee, recurring invoices might be the
best billing option.

Entrepreneur Renzo Costarella explained recurring invoices in a Due.com article:

“When you have on-going projects with the same client, it’s often best to use a recurring
invoice. With these you and the client will agree upon a billing interval (usually weekly or

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monthly) and the invoices will automatically bill at the set interval. The client will eventually
make this part of their routine, which gets you paid quicker.”

6. Credit memo

Instead of charging a customer, you use a credit memo to acknowledge that you owe them
money. The credit memo will be equal to or less than the amount of the customer’s original
invoice.

You might send a credit memo because your customer returned goods, products you sent
were damaged, or you sent the wrong item. With a credit memo, you can refund the amount
the customer originally paid or offer credit to your customer on a future purchase.

7. MISCELLANEOUS INVOICE

8. ADVANCE INVOICE

Creating an invoice

Each type of invoice has its own unique purpose. But, usually, invoices contain the same key
information. Make sure your invoices include the following items:

Date of the invoice: Let customers know which day you created the invoice.

Customer contact information: Customers want to be sure the invoice is intended for them.
State the customer’s name, business, address, and phone number.

Your business’s information: Customers need to be able to reach you. Include your name,
business, address, email address, and phone number on the invoice.

Items purchased: Create an itemized list of each product and service you provided. Next to
each item, write the individual cost.

Total amount due: State the total payment amount you expect to receive from the customer.

Payment terms: Note the date you expect to be paid by. Also, detail how you want the
customer to pay you. For example, do you accept checks, credit cards, or cash? Is there a

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specific address where customers should send payments? Clear invoice payment terms make
it easy for customers to pay.

Invoice number: Number each invoice for your records. Make a note of the invoice number
so that you can match it to payments in the future.

Elements of an invoice

 Standout Header
 Invoice number
 Company’s information
 Date
 Goods or service sold
Item name or title of service
Price of the item/service
Amount or quantity of product or service

 Fees
 Total amount due
 Terms of transaction
 A unique message
 Due date

FUNCTION OF AN INVOICE

 Maintaining records
 Payment tracking
 Legal protection
 Easy tax filling
 Business analytic
 Facilitation of inspection
 Easy preparation of sold account

Example of an invoice

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 References:

1. Publishing. (2013). Good Small Business Guide 2013: How to start and grow your own
business,7th Edition. A & amp C Black
2. Sweeting J, (1997). Project Cost Estimating: Principles and Practices, I Chem E