[UNIT – II [ APPROXIMATE ESTIMATE ] Estimating, Costing and Valuation

UNIT – II APPROXIMATE ESTIMATE (5th Semester )

Approximate Estimate
It is the normal practice to work out the approximate estimate of a structure before its
detailed estimate is taken in hand. This is made to find out an approximate cost in a short
time. During preparation of this type of estimate detailed surveying, design, drawing etc. are
not required.

Purpose of Approximate Estimate

1. To investigate feasibility of the project,
2. To investigate benefit and comparison of cost with utility,
3. Adjustment of planning,
4. To obtain administrative approval,
5. To save time and money.

In general, approximate methods of estimating involves the following two operations :

a). Fix up the unit and count the number of such units in the proposed work.
b). Fix up the unit cost by studying the actual cost of similar existing structure constructed
in near past.

Methods of approximate estimate

The approximate cost of a building can be found out by the use of any one of the following six
methods :-
(i) Service-unit method
(ii) Square-metre method / Plinth area rate method
(iii) Cubic-metre method
(iv) Approximate quantity method
(v) Typical-bay method
(vi) Empirical equations for materials and Manpower.

(i). Service-unit method :- The unit indicates the most important in a structure. Before
comparing this method, it is very important the type of construction and standards of finish. A
structure or a building are constructed to serve a specific purpose. Such as :-
In a School Building, the unit is a Class Room
In a Hospital, the unit is a bed
In a Water Tank, the Unit is a litre
In a Cinema hall or Stadium, the Unit is a seat
In a Hotel, the Unit is a room etc.

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(ii). Square-metre method / Plinth area rate method :- In this method, the area of each
floor in the proposed building is worked out in square metres.
The approximate cost of the proposed building = Total area of all the floors x Cost per Sq.
M of a similar existing building.
The following factors affect the approximate cost in Sq.M method.
(a) Change of price level ( year of construction )
(b) Ceiling Height
(c) Type of construction (load bearing wall, non-load bearing wall, thickness of wall ),
General specification.
(d) Shape of the building
(e) Spacing of columns
(f) Nature of Soil.
(g) Location of the building/structure.

Following approximation may be provided in the calculation of the wall area:-

a) For R.C.C framed structures 8% of the floor area.
b) For ordinary building 15% to 17% of the floor area.
c) For thick walls with rectangular shaped buildings 25% of the floor area.

(iii). Cubic-metre method :- This method is more accurate than the square-metre method.
Because the depth of foundations and the height of the structure above the ground level
are the additional dimensions taken into consideration. In this method, the cubical
contents of the proposed building are worked out, then
Approximate cost of Proposed Building = Total cubical contents of the proposed building x
cost per cubic metre of a similar existing structure.
(iv). Approximate quantity method
In 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 this method the structure is divided into:
a). Foundation inclusive of Plinth
b). The 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.
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The cost per running meter of foundation inclusive of plinth is worked out and is multiplied
by the total length of foundation to determine the total cost of foundation inclusive of
plinth.
Similarly the cost per running meter of the super-structure is found out and is multiplied by
the total length of all the walls of superstructure to get the total cost of superstructure.
The total cost of the structure is then obtained by the addition of total cost of foundation
inclusive of plinth to the total cost of the superstructure.
The running meter cost for foundation and superstructure should be calculated first and
then running meter rate should be multiplied by total length of walls.
For this method plan of building must be available.

(v). Typical-bay method :- This method is useful in case of a building which have several
similar bays. A bay is a space (horizontal distance) from centre to centre of two successive
columns. A typical interior bay is selected and its total cost is worked out.
Approx. cost of Proposed building = Numbers of bays in the proposed building X cost of one
bay.
This method is useful for factories and such similar structures like boundary walls.

(vi). Empirical equations for materials and manpower :- The quantities of materials &
labour required for a particular residential building can be worked out with the help of
certain empirical equations developed by the C.B.R.I (Central Building Research Institute),
Roorkee, India.

The equations are for Single Storied Structure

1. Number of Bricks = 226 A + 6680
2. Cement in Tonnes = 0.153 A + 0.57
3. Steel in quintal = 0.213 A – 3.14
4. Sand in Cu.M = 0.47 A – 7
5. Primer in litres = 0.0682 A
6. Paint in litres = 0.1076 A + 0.27
7. Mason in Nos. = 1.335 A + 28
8. Mazdoor in nos. = 4.766 A – 32
9. Painter in nos. = 0.0893 A + 0.06
10. Blacksmith in nos. = 0.296 A – 4

Where, A = the plinth area of building in Sq.M

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Plinth Area
The Plinth Area is the built up covered area measured at the floor level or of any storey of a
building. Plinth area can be calculated by taking the external dimensions of the building
excluding plinth offsets. To calculate the plinth area from the carpet area add the area of wall
(15% to 17%) for load bearing structure and 8% for frame structure and horizontal circulation
area 10% to 15% to the carpet area.
The following shall not be included in the Plinth Area :-
(i) Area of loft, (ii). Balcony, (iii). Area of architectural features, band, cornice etc., (iv).
Cantilevered porch, (v). Spiral Staircase including landing, (vi). Open platform, (vi). Service
balcony, etc.

Floor Area
The floor area is the plinth area less the area of the walls.

Carpet Area:-
The Carpet Area is the floor area less the area of the following portions :- (a). Corridor &
Passage, (b). Entrance Porch, (c). Staircase, (d). Bathroom, (e) Kitchen, (f). Store, (g).Verandah,
Internal shaft for sanitary installation.

Circulation area or Free Space Area

A certain amount of free space area is required for movement & access to different bed room,
drawing room, kitchen, bath, verandah, etc. for those which area provided is known as
Circulation or Free space area. These are Verandas, Balconies, Passages, Corridors, Porches,
Staircase, Shaft for lifts.
The Circulation Area may be (a). Horizontal Circulation area and (b). Vertical Circulation area.

(a). Horizontal Circulation area

The horizontal circulation area of a building comprises of areas of verandah, balconies,
passages, corridors, porches, entrance hall, which are used for horizontal movement.
An amount of 10% to 15% of whole area of the building serve the horizontal circulation
purpose comfortably.

(b). Vertical Circulation area

The vertical circulation area of a building comprises of the areas of staircase, lift and the
adjacent space required to use the staircase and lift for vertical movement.
The area is kept within 4% to 5% of the whole area of the building.

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Approximate cost for internal Service

a) water Supply
For Water supply 4 to 5 % of the estimated cost of the building works.

b) Sanitary
For sanitary 4 to 5 % of the estimated cost of the building works.

c) Electrification
i) For electrification 9 % of the estimated cost of the building works.
ii) For electric Fans, Lights 3% of the estimated cost of the building works.

Problem 1
A person constructs a building of plinth area equal equal to 100 sq.m on a plot of land in a
certain locality at a cost of Rs. 95,000. The height of the building from ground level to the top
of roof is 3.5 m and a parapet wall of height equal to 80 cm is constructed on the terrace.
Determine the cost of a similar building of Plinth area equal to 135 sq.m to be constructed in
the same locality by plinth area rate and also by ‘Volume rate”.

Solution:
By Plinth area method
For 100 Sq.m Plinth area , cost = Rs.95,000.00
So, Plinth area rate = Rs.95,000 /100 = Rs. 950/- per Sq.m
For, 135 sq.m Plinth area, cost of the similar building = 135 x Rs. 950 = Rs. 1,28,250.00
By Volume rate method
Considering the height of the building from Ground level up to half of the height of parapet
wall, Cubic Volume of the existing building = 100 sq.m x (3.50 + 0.80 /2) = 390 cu.m
So, Cubic metre volume rate = Rs. 95,000 /390 = Rs. 243.59
Volume of the similar building = 135 sq.m x (3.50 + 0.80/2) = 526.50 cu.m
For 526.50 cu.m volume, Cost of the proposed building = 526.50 x Rs. 243.59
= Rs. 1,28,250.13 [Ans.]
Problem 2
Prepare a preliminary estimate for a framed four storied office building having a carpet area
300 sq.m for each floor. Assume areas occupied by corridor, verandah, lavatories, staircase
etc, as 25% of built up area and that occupied by walls and columns as 8.5% of the same.

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Given, (i) Built-up area rate for ground floor (excluding foundation) = Rs.1500/- per sq.m
(ii) Built-up area rate for 1st & 2nd floor = Rs. 1650/- per sq.m
(iii) Built-up area rate for 3rd floor = Rs. 1800/- per sq.m
(iv) Extra for foundation = 20% of super-structure
(v) Extra for special Architectural treatment = 1% of building cost.
(vi) Extra for Water supply and Sanitary = 7% of building cost.
(vii) Extra for Electrical Installation = 8% of building cost.
(viii) Extra for Contingencies = 4% of overall cost,
(ix) Extra for Work Charged establishment = 10% of overall cost,
(x) Extra for other sources = 5% of building cost.

Solution:
Built-up area (Plinth area)
= Carpet area + Circulation area + area occupied by walls and columns
Here, Carpet area = 300 sq.m
Let, Plinth area = x sq.m
so, x = 300 + 25% of Plinth area + 8.5% of Plinth area
or, x = 300 + 0.25 x + 0.085 x
or, x – 0.25x – 0.085x = 300, or, x = 451.13 sq.m
Cost of Ground Floor = 451.13 sq.m @ Rs.1500.00 = Rs. 6,76,695.00
Cost of 1st Floor and 2nd Floor = 2x 451.13 sq.m @ Rs.1650.00 = Rs. 14,88,729.00
Cost of 3rd Floor = 451.13 sq.m @ Rs.1800.00 = Rs. 8,12,034.00
----------------------------
Total cost for Super-structure Rs. 29,77,458.00
Extra for foundation @ 20% of Superstructure Rs. 5,95,491.60
----------------------------
Building Cost Rs. 35,72,949.60

Extra for special Architectural treatment @1% of building cost Rs. 35,729.50

Extra for Water supply and Sanitary @7% of building cost Rs. 2,50,106.47

Extra for Electrical Installation @ 8% of building cost Rs. 2,85,836.00

Extra for other sources @5% of building cost Rs. 1,78,647.48

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----------------------------
Overall Cost Rs. 43,23,269.05

Add Contingencies @4% of overall cost Rs. 1,72,930.75

Add Work- Charged establishment @10% of overall cost Rs. 4,32,326.90

----------------------------
Grand Total of Estimated Cost Rs. 49,28,526.00

Problem 3
Prepare an approximate estimate of building project with total Plinth area of all building is 80
sq.m and from following data:
Plinth area rate Rs. 40,000 per Sq.m
Cost of water supply @ 7.5% of cost of building
Cost of Sanitary and Electrical Installation each @ 15% of cost of building
Cost of architectural features @ 1% of building cost.
Cost of roads and lawns @ 5% of building cost.
Cost of contingencies @ 4% of building cost.
Determine the total cost of building project.

Solution:
Cost of the building = 80 sq.m x Rs.40,000/- = Rs. 32,00,000.00
[ Since, Plinth area = 80 Sq.m and Plinth area rate is @Rs.40,000 per Sq.m]
Add cost of water supply @ 7.5% of cost of building = Rs. 2,40,000.00
Add cost of Sanitary and Electrical Installation
each @ 7.5% of cost of building = Rs. 4,80,000.00
Add cost of architectural features @ 1% of building cost = Rs. 32,000.00
Add cost of roads and lawns @ 5% of building cost = Rs. 1,60,000.00
Add cost of contingencies @ 4% of building cost = Rs. 1,28,000.00
-----------------------------
Total Cost of the Building Rs. 42,40,000.00
Add Supervision charges @8% of Rs.42,40,000.00 Rs. 3,39,200.00
------------------------------
Grand Total Rs. 45,79,200.00

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Problem 4
Prepare the rough estimate for a Proposed complex for a Municipal Corporation for the
following data:
Plinth Area = 500 Sq.m, Height of each Story = 3.5 m, Number of Storey’s = G+2
Cubical content rate = Rs. 1000.00 per Cu.m
Provided the following as a percentage of structural cost
Water supply & Sanitary arrangement charges – 8%
Electrical Installation charges – 6%
Fluctuation of Rates – 5%
Contractors Profit – 10%
Supervision & contingencies – 3%
Solution:-
Cubical content of the commercial complex =
No. of Storey’s X Plinth area X Height of each storey.
= 3 x (3500 x 3) = 5250 cu.m
Structural Cost of the commercial complex = Cubical content x cubical content rate
= 5250 cu.m x Rs. 1000
= Rs. 52.50 lakhs
Structural Cost Rs. 52.50 Lakhs
Add Water supply & Sanitary arrangement charges @ 8% Rs. 4.20 Lakhs
Add Electrical Installation charges @ 6% Rs. 3.15 Lakhs
Add Fluctuation of Rates @ 5% Rs. 2.625 Lakhs
--------------------------------
Total Cost Rs. 62.475 Lakhs
Add Supervision & contingencies @ 3% Rs. 1.785 Lakhs
Add Contractors Profit @ 10% Rs. 6.247 Lakhs
____________________
Grand Total Rs. 70.596 Lakhs
Problem 5
Prepare an approximate estimate or rough cost estimate of a hospital building for 50 beds.
The cost of construction altogether for each bed is Rs. 60,000/-, Determine the total cost
of hospital building.
Solution:
Numbers of beds = 50
Cost of construction = Rs. 60,000.00
Total Cost of Hospital Building = 50 x Rs. 60,000 = Rs. 30,00,000.00 [Ans.]

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Problem 6
Prepare the rough estimate of a hostel building which accommodate 150 students. The
cost of construction including all provisions is Rs. Rs. 15,000/- per student. Determine total
cost of building.
Solution:
Numbers of students = 50
Cost of construction including all provisions is Rs. Rs. 15,000/-
Total cost of hostel building = 150 x Rs.15,000 = Rs. 22,50,000.00 [Ans.]

Revised Estimate
When the original sanctioned amount for a particular project is likely to exceed by more
than 5% during execution of work or there are changes of considerable differences in the
quantities of major items sanctioned and executed, a revised estimate is prepared and its
sanction is obtained in the usual way. The revised estimate is accompanied by a detailed
report containing the reasons for preparing such an estimate.
The increase may be due to sudden increase in cost of materials, cost of transportation etc.
The reason behind the revision of estimate should be mentioned on the last page of
revised estimate.
Supplementary Estimate
Sometimes some changes or additional works due to material deviation of a structural
nature from the originally approved design may be thought necessary when the work is in
progress. For all such items, a detailed estimate is prepared, which is known as a
Supplementary Estimate. It is to be attached with a report describing the reasons for new
additional work.
Supplementary cost estimate is a detailed estimate and it is prepared freshly when there is
a requirement of additional works during the progress of original work. The estimate sheet
should consists of cost of original estimate as well as the total cost of work including
supplementary cost of work for which sanction is required.
Maintenance & repair estimate
After completion of a work it is necessary to maintain the same for its proper function and
for the same, an estimate is prepared for the items which require renewal, replacement,
repairs etc. in the form of a detailed estimate.
The annual repair cost estimate is also called as annual maintenance estimate which is
prepared to know the maintenance costs of the building which will keep the structure in
safe condition. Whitewashing, painting, minor repairs, etc. are taken into consideration
while preparing annual repair estimate for a building.

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Renovation estimate
The term ‘renovation’ refers to the process of returning something to a good state
of repair. In the construction industry, renovation refers to the process of improving or
modernising an old, damaged or defective building. This is as opposed to 'retrofitting'
which is providing something with a component or feature not originally fitted, or
'refurbishment' which is a process of improvement by cleaning, decorating, or re-
equipping.

'Major renovation' means the renovation of a building where more than 25% of the
surface area of the building envelope undergoes renovation'.

Site Plan
Site Plan, is a general layout plan drawn for a particular construction showing its position
with respect to approaching roads, main bazars, markets and other permanent features in
a populated area. It shows the location of the area under construction with respect to the
other areas and on it generally the names of the owners of areas or property holders
adjoining to it are also denoted ‘North” line is also clearly marked on it. The position of
water and sewer lines etc. may be provided in the site plan. Site plan drawn to a small
scale, such as 1 cm = 5 m to 1 cm = 40m.

Line Plan
Line plan can be defined as the plan of a particular construction simply showing main
features with the help of the single lines of different portions of the constructions. Details
of construction are not generally shown on this plan. The inside and outside dimensions
shown on this plan should necessarily be corresponding to actual dimensions.

Key Plan
A building project may comprise of a number of buildings or blocks as in case of the
quarters and as the plans of all the buildings can not be accommodated on one sheet, a key
plan on a small scale is drawn. The particular building or block whose details on a separate
sheet is shown by shading on the key plan.

Service Plan
The service plans include all details of building and plumbing services and also plans,
elevation and sections of water supply and sewage disposal system.

A LITTLE PROGRESS EACH DAY ADDS UP TO BIG RESULTS

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