ESTIMATION

DHARANI S PATIL harSHITha N KUMAR HEMAROOBAN P KANISHKA GANESH

1200100910 1200100917 1200100919 1200100931
CONTENTS:
● DEFINITION OF ESTIMATION
● PURPOSE OF ESTIMATION
● DATA REQUIRED TO PREPARE AN ESTIMATE
● PROCEDURE/METHOD OF ESTIMATION
 DEFINITION:
Put simply, cost estimating in construction is
the process of predicting the overall costs of a
new building project. Being able to accurately
forecast this is an essential area of the project.

Before going forward with a

project, you need to calculate
an accurate estimate of all the
costs involved. This will help
define the scope of the project,
the resources needed, the time
frame, labor requirements,
and, of course, the budget.
 PURPOSE OF ESTIMATION:
● Increased understanding of costs - The purpose of cost estimation is to give project
stakeholders accurate information concerning the related project costs. It is easier to
make lasting decisions if there is information to back them up. Cost estimation also
gives clients value-aided options and helps clients minimize expenses.

● For funding requirement - The cost estimates are essential in evaluating a project's feasibility.
Loan financers ask for construction cost estimates and use them as a criterion whether they
should issue loans or not. The loan financers also check whether the borrower can achieve
what they want to accomplish within the financial constraints set forth.
● To understand material requirements - Residential, industrial, and commercial projects
have unique material requirements. The estimator uses the project's drawings and
specifications to determine the necessary material quantities to get the project running.
Insight into the material requirements also helps in the proper management of the materials.
The procurement processes run smoothly, and resource gaps can be filled on time.

● To aid Preconstruction - Preconstruction is the stage in a project before actual construction

takes place. This process involves budgeting, planning, and scheduling activities. As the project
evolves from concept drawings to actual construction goals, cost estimates simplify identifying
cost and schedule goals. The team then checks the project's progress against the milestones
set up during preconstruction to ensure everything is on track.

● To pre-plan labor requirements - A project has several units that run concurrently
with each item in cost estimation having an associated labor unit. The labor
requirements are pre-planned depending on the project's specifications.
● Equipment and tooling requirements - The construction process requires a lot of equipment
such as cranes, forklifts, generators, and excavators. An estimate jumpstarts a contractor's
efficiency in a project. Most of the construction works take place simultaneously, and with a listing
of all the items necessary in a project, the owner will have all the equipment listings required. This
also improves the profit margins as the contractor's procurement process will be more
straightforward with accurate estimates available.

● Cost-Benefit ratio - A cost-benefit ratio is an indicator that shows the relationship between the
foreseeable relative costs and expected benefits. If a cost-benefit ratio is more than one, a
project is expected to deliver a high net value to its firm and investors. However, if the
cost-benefit ratio is less than one, the costs are more than the benefits, and thus the project
should be reconsidered. The cost-benefit ratios are determined during the estimation process to
make sure it's beneficial to the clients.
● Rebuilding costs - When you plan to take out insurance for your home, the insurer will likely ask
you for rebuilding costs. With the correct expenses, you will be able to get the best insurance cover.
To arrive at the rebuilding costs, you need to perform cost estimates on service installations,
demolitions, plumbing and electrics, and other associated costs.

● To compare rates during a tender - Before awarding a contract, a cost consultant must
evaluate the fair contract price. In most cases, the influencing factor is the lowest tendered
sum. However, the cost consultant must examine the individual estimates in the tender and
ensure that the quantities do not differ from the Bill of Quantities values.

● To control costs - Cost estimation provides a project baseline for measuring variances from the
initial costs. After measuring variances, stakeholders can then make decisions for corrective
action to attain minimal costs. Cost control also helps in scope change management. Any
changes to the initial costs are recorded to make it easy to continually forecast the expected final
costs.
DATA REQUIRED FOR AN ESTIMATE:
In order to prepare a detailed estimate of the proposed work, the following information is required:

i) The physical condition of the work site.

It is usual practice to enclose a brief report containing information about the proposed work i.e. project as
regards the following:
• The history and necessity of the proposed work.
• The exact location and condition of the work site.
• Details of soil strata at the site.
• The total cost of the proposed work.
• Source of the finance required for the completion of the work.
• Probable period of completion of the work.
(ii) Complete Set of Detailed Drawings:
In order to work out the quantities of various items of work, a complete set of detailed drawings consisting of
plan,profile, elevation, sections and foundation details etc. is required.The relevant dimensions i.e. length,
breadth, depth or height of the items, whose quantities are to be worked out, can be measured from such
drawings.

(iii)Specifications:
Specifications provide information regarding
● type of construction
● quality of materials
● proportion of mixes
● Workmanship
● methods of preparation and execution for different items of the work
(iv)Rates:
The rates per unit of various items of work, the rates of various materials to be used in the construction, the wages for various
categories of labors are required for cost estimate. Moreover the distance between location of work and source of materials and
cost of transportation of materials are required for calculating cost of materials at work site.
For the estimation purpose, the Govt. P.W.D. publishes a booklet called Schedule of Rates. The rates maybe obtained from this
booklet or for some items rate maybe worked out by rate analysis.

(v)Mode of measurement:
The units which are commonly used are:
(i) For length - metre
(ii) For area - square metre
(iii) For volume - cubic metre
(iv) For capacity-litre
(v) For mass- kg
(vi) – For voluminous works the length, breadth and height are measured and volume is calculated. The unit of measurement is
cubic metre.
– For thin works, the length and breadth are measured and area is calculated. The unit of measurement is square metre.
– For long and thin works only, the length is measured and unit of measurement is running metre.
TYPES OF ESTIMATION
A) Preliminary or Approximate or Rough Types of Estimates:
This type of estimate is also called the budget, a preliminary estimate. This preliminary estimate is prepared in the initial
stage of the project to give a clear idea to the client about the funds needed for the project and to get approval from
necessary sanctioning bodies (for example: to get loans from banks). Documents like project drawing plans, details about
the land including electricity & water supply system and sanitary system and a full clear report are necessary for the
previous experience.
1. Plinth Area Estimate
● Plinth is referred to as the external plinth area of the building at floor level. Simply it can be also stated as the roof–covered
area of the building.Documents such as a line plan with complete specifications & costs for services such as water, and
electricity should be attached with the plinth area estimate.
● The plinth area rate is derived by dividing the total cost of a previously constructed building by the plinth area.
❖ Plinth area = Total plinth Area minus area of lofts, open balconies/un–enclosed balconies, and fascia, towers that project
above terrace level, louvers & vertical sun breakers
❖ Plinth area estimate = Plinth area x Plinth area rate
❖ Plinth area rate = Total cost of a previously built building / Total plinth area of the building.
❖

2. Cubic Content Method

● Estimation is done by multiplying the volume of the unit cubic rate achieved from the previous (also recent) estimate.
● The cubic Content Method is a little bit more accurate than the above-mentioned methods and mostly suitable for multi-storied
buildings.
 ❖ Cubic content estimate = Volume of the building or structure x Unit cubic rate (original value)
❖ The volume of the building = Plinth area (length x breadth of the proposed building) x Height of the building (floor to
rooftop)
❖ Unit cubic rate = Total cost of the previously constructed building / Total volume of that building

3. Approximate quantities with bill:

In this method the total length of walls is calculated from the plant. Length of different sections of the wall like foundation
including plinth and superstructure and area of wood work, flooring and roofing is calculated separately. These items are then
multiplied by their cost per running meter length or area in sq. to obtain the total cost.

4. Service Unit Method

The Service Unit indicates the most important unit in a structure. The entire structure is divided into a number of service unit (ex -
in school - service units are classrooms; in hospital - no. of beds)
The total cost = Cost per service unit x no. of service units
5. Typical Bay Method
A bay is a space from the center to the center of two successive columns. A typical interior bay is selected and its total cost is
worked out.
Approximate cost of proposed building = numbers of bays x cost of one bay

6. Cost Comparison Method

This method is suitable for the estimate of the prototype structure. For example when prototype staff quarters or railway stations
etc, are required to be estimated approximately then the estimate for such prototype work is prepared by comparing the previous
cost with the present market rates, normally by increasing the past cost on a percentage basis.
(B) Detailed Estimate
This is the accurate method of estimating in which the entire building work is subdivided into individual items of work. The
quantities of each item of work are calculated from the complete set of drawings (i.e. plan, elevation, sections etc.)

The preparations of the detailed estimate can be done under 2 phases;

❖ Working out quantities of different works

❖ Calculating the cost of each work.

a) Work out with quantities of different work:

● The whole construction work procedure is divided into categories such as excavation and earthwork, concrete work,
formwork, reinforcement, masonry work, roof covering and roof plumbing, carpentry, painting and decorating, plumbing,
electrical installation, etc.
 ● The measurement-taking procedure is done with the help of drawings/plans and then they are entered into the
measurement.
● A measurement is a form that contains a number of columns to enter the respective measurements and descriptions of
the works. Finally, the measurement columns are multiplied to get the necessary quantity.

b) Calculation of the cost of each work:

● The already obtained quantities are used to get the cost of each work. Estimated costs of each work item are
summarized in ascending order and that document is called the Abstract sheet.
● Detailed types of estimates should include all the related documents such as reports, specifications, drawings & plans,
design charts, and schedule of rates (SOR).
● There are various factors that affect the cost of each work such as material quantity, transportation of materials, location
of the site, labor charges, cost of equipment (commonly allowed 2% of the estimated cost), overhead charges (commonly
allowed 2.5% of the estimated cost), contingencies and unforeseen (commonly allowed 4-5% of the estimated cost) items
are needed to consider well while preparing the detailed estimate. (Types of Estimates in construction)
C) ABSTRACT ESTIMATE:
It is created based on the detailed estimate. This includes quantities, rates, and amounts specific to each work.
In this estimate, Length, Width, and Depth are not specified. Direct quantities are compared with their
respective rates that are to be taken from the applicable schedule of rates documents. The Abstract estimate is
worked out by filling the following table: (the amount is obtained by multiplying the quantities with their
respective rates)
 D) QUANTITY ESTIMATE/QUANTITY SURVEY:
It is a part of a detailed estimate in which the list of quantities of all the items required to complete the project is
prepared. These quantities are worked out from the construction drawings provided by the architect. The purpose
of Quantity Estimation is to prepare bills of quantities.
● A bill of quantities (BOQ) is a document created by a quantity surveyor or cost consultant that contains
information on the quantity of materials, labor, and their costs in a construction project. The Bill of Quantities
is an essential part of the tender.
● Procedure of estimation:
❖ In the approximate quantity method cost estimate, the total wall length of the structure is measured
and this length is multiplied by the rate per running meter which gives the cost of the building. The
rate per running meter is calculated separately for the foundation and superstructure.
❖ In case of foundation, rate per running meter is decided by considering quantities such as excavation
cost, brick work cost up to plinth. While in case of superstructure quantities like brickwork for wall,
wood works, floor finishing etc. are considered for deciding rate per running meter.
E) REVISED ESTIMATE:

It is a detailed estimate for the revised quantities or revised rates of items of work originally provided in the estimate
without any deviation in original design and specifications approved for the project. It is required when:

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

The reason behind the revision of the estimate should be mentioned on the last page of the revised estimate.
F) SUPPLEMENTARY ESTIMATE:

● While a work is in progress, some changes or additional works due to material deviation of a structural
nature from the design originally approved may be thought necessary for the development of a project.
● An estimate is then prepared to include all such works.
● This is known as a supplementary estimate.
● The method of preparation of a supplementary estimate is the same as that of a detailed estimate and it
should be accompanied by a full report of the circumstances which render its necessity.
● The abstract must show the amount of the original estimate and the total of the sanction required
including the supplementary amount
 THANK YOU
DHARANI S PATIL harSHITha N KUMAR HEMAROOBAN P KANISHKA GANESH

1200100910 1200100917 1200100919 1200100931