CEDC0212- Estimation, Costing and

Valuation
By:-
Dr. Arya Anuj Jee
(Ph.D.: IIT Guwahati)
Assistant Professor
CE-301, Department of Civil Engineering, NIT Jalandhar
Email: [email protected]
Mob: +91 9476589956

• INTRODUCTION
Detailed
syllabus:
Course Outcomes and Text and Reference Books :
At the end of the course, the student will be able to
• Accurately estimate materials and labor required for construction projects.
• Analyze and interpret data from various sources to develop estimates for RCC works.
• Understand specifications and rates for civil engineering projects, recognizing the importance of ethical issues
in civil engineering to society.
• apply appropriate valuation methods and understand PWD accounts and procedures of works.
Text and Reference Books :
1. Chakraborti, M., 2002. Estimating and costing, Calcutta.
2. Dutta, B. N., 1999. Estimating and costing in civil engineering. UBS Publishers’ Distributors Ltd., New Delhi.
3. Birdie, G. S., 1994. Estimating and costing, Dhanpat Rai & Sons, Delhi.
4. Kohli, D. and Kohli, R.C., 2004. Estimating and costing. S.Chand& Company, New Delhi.
5. Spence, G., 1950. Building and public works administration: estimating and costing. Newnes Publishers, London,
UK.
6. IS 1200 (Part 1-28): Methods of measurement of building and civil engineering works
7. SP 7, 2016: National Building Code of India - Bureau of Indian Standards
Evaluation criteria:
Class performance – 5M
Assignments – 5M
Quiz/class tests – 10 M
Mid exam – 30 M
End Exam – 50 M
Total – 100 M
Role of Estimation and Costing in Civil Engineering Projects:

•Conception: Identify the project’s purpose and outline

potential community benefits.
•Design: Develop layouts, feasibility studies, and
documents for approval.
•Pre-construction: Plan logistics, source materials, and
assign responsibilities.
•Procurement: Acquire materials, equipment, and
workforce for execution.
•Construction: Implement project plans while tracking
progress and ensuring efficiency.
•Post-construction: Inspect and verify compliance with
safety and building standards
Role of Estimation and Costing in Civil Engineering Projects:
•Project Planning:- Estimation and costing help in determining the financial feasibility of a project. It
provides an approximate idea of the funds required to complete the project.
•Budget Allocation:- It aids in allocating resources and setting up a budget to ensure that the project remains
financially viable.
•Decision Making:- Proper cost estimation assists stakeholders in making informed decisions, such as material
selection, construction techniques, and the scope of work.
•Tendering and Bidding:- Estimation is crucial for contractors when preparing tender documents. Accurate
costing ensures competitive yet profitable bids.
•Resource Management:- Helps in determining the quantities of materials, labor, and equipment required,
ensuring efficient resource allocation.
•Risk Mitigation:- Identifying potential financial risks and cost overruns early in the planning stage helps
mitigate risks.
•Monitoring and Control:- During construction, costing helps track expenses and ensures the project stays
within the allocated budget.
 Estimation and Costing
• It is a technique of calculating/ computing the various quantities and the expected expenditure
to be carried on a particular work/project.
• Need for Estimation and costing: It is carried out to fulfill the following needs
• Cost Requirement: It gives the idea of cost of the work, help in deciding the feasibility of
project.
• Time Requirement: It gives the idea of time required for completion of project.
• Resource Requirement: It gives the idea of quantity of materials and others resources
required for completion of work.
• Approval and Tendering Requirement: It helps to get approval from the authority and in
inviting the tenders for the project.
• To control: It helps to control the expenditure on project
• Benefits from Project: It helps to evaluate where there is any benefit to execute the project.

By: Dr. Arya Anuj Jee, NIT Jalandhar

Stages of Estimation and Costing in a Civil Engineering Project:

❖Preliminary Stage (Conceptual Estimation):- Conducted during the project idea or feasibility study phase.
Provides a rough estimate to decide whether the project is viable. Based on assumptions, preliminary designs, or past
project data.
❖Detailed Design Stage (Detailed Estimation):- Done after finalizing designs and specifications. Involves detailed
calculations for materials, labor, and machinery. Ensures accuracy and precision for budget preparation.
❖Tendering Stage (Costing for Bidding):- Focuses on preparing a bill of quantities (BOQ) for contractors to bid on.
Includes direct and indirect costs, profit margins, and contingencies.
❖Construction Stage (Control and Updates):- Monitoring actual costs against the estimated budget. Adjustments
are made for variations, escalations, or unforeseen expenses.
❖Post-Construction Stage (Final Costing):- Final reconciliation of project expenses. Used for audits, lessons
learned, and reference for future projects.
 An estimate is never the actual cost of the work:

❖An estimate is the probable cost of construction for a work, worked out from the dimensions on the
drawings and the standing rates at the time of preparation of the estimate.
❖The accuracy of an estimate depends on
❖Careful study of the various dimensions on the drawings, the method of estimating, consideration of rates,
❖Probable expenses which may be required for various unforeseen works and labourers and also quantity of tolerance
for wastages.
❖Skill and experience of the estimator.

❖The actual cost of construction can be known from the physical measurement of the dimensions for various
items of works at site and the actual rates of all such items of work during execution of the work.
❖So, it can be justified that whatever method is adopted for estimation, all estimates are approx., in nature and
the difference between the estimated cost and actual cost is a vital issue, which must me minimized.
 Types of estimates
• Approximate/ Rough/ Abstract/ Preliminary Estimate:- Required to take the
administrative approvals, determined on basic knowledge (known rate of similar work) and
experience. No details calculations.
• Plinth area or square-meter method
• Cubic rate cubic meter method
• Service unit or unit rate method
• Bay method
• Approximate quantities with bill method
• Cost comparison method
• Cost for materials and labour method

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• Approximate/ Rough/ Abstract/ Preliminary Estimate:-Purpose
• To investigate feasibility
• To save time and money
• To investigate benefit and comparison of cost with utility
• Adjustment of planning
• To obtain administrative Approval
• For insurance and tax schedule

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• Approximate/ Rough/ Abstract/ Preliminary
Estimate:-
• For calculating approximate estimates of a
work no detailed knowledge is required, it can
be done on the basis of practical knowledge.
• It is done to obtained administrative approval
of the project.
• It helps in deciding the financial aspect of the
project.
Ex. Cost of construction is 1300 Rs/Sq ft, with plot area of 3000 sq ft, no of storey =3, build up area 1st - floor
80 %, 2nd - 85%, 3rd - 90 %.

Cost of construction =1300*(0.8 + 0.85 + 0.9)*3000 = Rs. 99, 45,000/-

By: Dr. Arya Anuj Jee, NIT Jalandhar
 Types of estimates
• Detailed Estimate:-Details estimation is carried out after getting the administrative approvals.
• This include the detailed particulars for the quantities, rates and cost of all items involved for
satisfactory completion of a project.
• DATA required for preparing the detailed estimates
• DRAWINGS: - Plan, Section and Elevation with full Dimensions.
• SPECIFICATION: -
• General Specification- Nature, Class, and Quality of work and materials.
• Detailed Specification- Quantity, Proportions, Workmanship, Method of Working
• RATE:-
• Unit rate of all Items (Manpower, Materials, Machine) MMM
• METHODS OF MEASUREMENT
• Updated mode of measurement for standard deductions or additions is also necessary to determine the correct
quantities of work.
• STANDING CIRCULARS
• Taxes and insurance etc. are required to fix up rate of those items which are not in the schedule of rate

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• Quantity Estimate or Quantity Survey:-It is
a detailed estimates.
• This is a complete estimated list of
quantities for all items of work required
to complete the concerned project.
• The quantity of each individual item of
work is worked out from respective
dimensions on the drawing of the
structure.
• To find the cost of an item its quantity is
multiplied by the rate per unit for that
item.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• Revised Estimate:- It is a detailed estimated for revised quantities and rates of items of works
originally provided in the estimate without material deviations of a structural nature from the
design originally approved for the project.
• It is accompanied with a comparative statement abstract form showing the probable variations for
the quantity, rate and amount for each item of work of the project as compared with the original
estimate side by side stating the reasons of variations.
• When sanctioned estimate is likely to exceed by more than 5% either from the rates being
found insufficient or from any cause whatever except important structural alterations.
• When the expenditure of work exceeds or it likely to exceed by more than 10% of the
administrative approval (for work more than 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 sectioned estimate is more than the actual requirement.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• A supplementary Estimates:- While a work • Combination of revised and supplementary
is in progress, some changes or additional estimate
work due to material deviation of a structural • During execution of a project it may be necessary to revise
the original estimate due to increased volume of original
nature from the design originally approved proposed work and at the same time sanction of
may be thought necessary for the development supplementary work.
• For such cases a revised estimate is prepared for the
of a project.
increased volume of original work and a detailed estimate
• The method of preparation of supplementary for the supplementary work not included in the original
estimates are same as the details estimate and schedule.
• The amount of supplementary estimate is added to the
it should be accompanied by a full report of revised estimate, showing the amount separately.
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.

By: Dr. Arya Anuj Jee, NIT Jalandhar

Difference between revised and supplementary estimates
Aspect Revised Estimates Supplementary Estimates
To update the original budget estimates based on actual To seek additional funds beyond the original allocation for
Purpose
performance, changing needs, or unforeseen events. new or unforeseen expenditures.
Involves re-evaluating the entire budget or specific Focuses only on additional requirements and does not
Scope
components of it. revise existing allocations.
Prepared when it is evident that the original estimates Presented when extra funds are needed during the financial
Timing
are no longer realistic or adequate. year for specific purposes.
Approval Usually replaces the original budget for the remaining Requires separate approval by the legislative body or
Process period after government or departmental approval. governing authority.
Adjusts estimates due to cost variations, project delays, Covers unforeseen projects, emergencies, or inadequacies
Usage
or changes in priorities. in the original budget.
- An increase in the cost of an ongoing project due to - Allocating funds for disaster relief after a natural
Examples
inflation. calamity.
Key
Replaces or modifies the original budget. Adds to the original budget as an incremental request.
Document

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• Complete estimate
• Estimate of a structure not
include only the cost of
land and the cost of the
main contracts and labour,
materials and supervision.
In addition, there are many
cost items to be included.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Types of estimates
• Annual maintenance or repair estimate (A.M. and A. R 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, repair etc. in the form of a detailed
estimate.
• For building, white washing, colour washing and painting of doors and windows etc. – quantities
are based on the previous measurements recorded in the measurement book as standard
measurement books.
• For petty work such as replacement of glass panes, repair of floors, patch repairs to cement
plasters to walls and changing of roof tiles or similar nature of work whose repairs can not be
estimated in the beginning, only limp sum provision is made for different items in the estimate.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Approximate/ Rough/ Abstract/ Preliminary Estimate
(1) PLINTH AREA METHOD:
• Approximate cost = 𝑷𝒍𝒊𝒏𝒕𝒉 𝒂𝒓𝒆𝒂 ×
𝑹𝒂𝒕𝒆 𝒐𝒇 𝑷𝒍𝒊𝒏𝒕𝒉 𝒂𝒓𝒆𝒂
• Plinth Area = Plinth area is the total
covered area of a building, including
the walls, pillars, and other
architectural features. It's measured at
the floor level of a building's story.
• The plinth area is defined by the Indian
Standard (IS) 3861-2002 (old- 1966)
• The plinth area is also known as the
column pad area according to the
construction terms?

By: Dr. Arya Anuj Jee, NIT Jalandhar

Measurement of plinth area as per IS 3861-2002

By: Dr. Arya Anuj Jee, NIT Jalandhar

Various Components of the Buildings

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Various Components of the Buildings
Cladding is a material used to cover the A loft is a building's upper storey or elevated area in
exterior of a building or structure for both a room directly under the roof (American usage), or
aesthetic and functional purposes. just an attic: a storage space under the roof usually
accessed by a ladder (primarily British usage).

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Various Components of the Buildings
CORNICE: A decorative band across the top of a A terrace is an external, raised, open, flat area in
building that projects beyond the wall. In architecture, a either a landscape (such as a park or garden) near a
cornice is an ornamental molding or projection that runs building, or as a roof terrace on a flat roof.
along the top of a building or structure, typically just
below the roofline or at the transition between the wall
and roof.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Various Components of the Buildings
An alcove is a small recessed section of a room or an A shaft is an unbroken vertical passage through a
arched opening (as in a wall). The section is partially multi-story building, used for elevators, wiring,
enclosed by such vertical elements as walls, pillars and plumbing, ductwork, etc.
balustrades..

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Various Components of the Buildings
Balcony protected by projection above .
Open veranda with parapet.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Various Components of the Buildings
Mumty” or “stair cover” means a structure with a A dado is a horizontal groove or channel cut into a wall, panel,
covering roof over staircase and its landing built to or board
enclose only the stairs for the purpose of providing
protection from weather and not used for human
habitation

By: Dr. Arya Anuj Jee, NIT Jalandhar

Various Components of the Buildings

Rockery

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Carpet Area
• The covered area of the usable spaces of rooms at any floor is termed as carpet
area.
• It is measured between the walls to walls within the building.
• It is the sum of actual area which can be carpet.

By: Dr. Arya Anuj Jee, NIT Jalandhar

Measurement of
carpet Area as
per IS 3861-2002
Note:
• Plinth area is 10 to 20 % more
than carpet area
• Carpet area = plinth area- (X+Wall
Area)
• Type of building carpet area
• Office Building 60-75% of plot
area
• Residential Building – 50-65% of
plot area

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Floor Area

Floor Area:- Floor area is the plinth area less the area of the walls. In the calculation of wall area, the thickness of the wall
shall be inclusive of finishing and dado if the height of such finish is more than 1 meter from floor finish.
• 𝐹𝑙𝑜𝑜𝑟 𝑎𝑟𝑒𝑎 = 𝑃𝑙𝑖𝑛𝑡ℎ 𝑎𝑟𝑒𝑎 − 𝑤𝑎𝑙𝑙𝑠 𝑎𝑟𝑒𝑎
𝑇𝑜𝑡𝑎𝑙 𝑓𝑙𝑜𝑜𝑟 𝑎𝑟𝑒𝑎
• 𝐹𝑙𝑜𝑜𝑟 𝑎𝑟𝑒𝑎 𝑟𝑎𝑡𝑖𝑜 𝐹𝐴𝑅 =
𝑇𝑜𝑡𝑎𝑙 𝑃𝑙𝑜𝑡 𝐴𝑟𝑒𝑎

• Example: FA = 1000 Sqm, PA = 2000 Sq m

1000
• If building is single story, 𝐹𝐴𝑅 = 2000 = 0.5
4∗1000
• If building is four storey, 𝐹𝐴𝑅 = =2
2000

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Covered Area
Covered Area:-The covered area is the ground area covered by the building immediately above the plinth level.
(Covered area is the total area of a building or property that is under a roof, including walls, pillars, and balconies)
• The area covered by the following in the open space is excluded from the covered area
1. Watchmen’s booth, pumphouse, garbage shaft, electric cabin
2. Uncovered staircase, ramps, area covered by chajja and the like, compound wall, gate, unstoreyed porch and portico,
slide, swing
3. Garden, rockery, well and well structures, plant nursery, waterpool, swimming pool (if uncovered), platform round a
tree, tank, fountain, bench and the like
4. Drainage culvert, conduit, catch-pit, gully pit, chamber, gutter and the like.
5. Any such other utility structures meant for the service of the building under consideration.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Rentable Area
Rentable Area:-For residential buildings the area shall be the carpet area along with;
1. The carpet area of kitchen, pantry, store, lavatory (toilet), bathroom and
2. 50% of carpet area of unglazed and 100 % of glazed verandah.
The following should not considered in the rentable area
1. Storage space on the top, landings of staircase, under the first landing and waist slab on floor one
2. 50% of the area of balconies.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Set Back Area and Circulation Area
Set Back Area – The minimum open space required around any building or structure. Municipal regulations of a State
provide a specific distance that should be maintained between a building and the boundary of the plot on which the
building is being constructed.
• This distance is provided to keep the construction away from roads, water bodies and others buildings.

Circulation Area:- The total space in a building that's needed for people to access different areas, including areas that are
separated by partitions. It includes spaces for both vertical and horizontal movement:
• In other way, the area that id helpful in movement of people through the building around the building or between the
building is terms as circulation area.
• Ex – Lobbies, corridors, stairs, lift, landing etc.
• Vertical circulation area and horizontal circulation area depends on movement vertically or horizontally.
• Vertical circulation area is around 3 % of plinth area
• Horizontal circulation area is around 7% of plinth area

By: Dr. Arya Anuj Jee, NIT Jalandhar

 PLINTH AREA METHOD
(a) Plinth Area Calculation: In absence of details design
• Determine the floor area for all the rooms, circulation area, i.e. corridor, verandah, staircase etc. and area of
sanitary block, i.e. W.C., Bath etc., according to requirement of the owner or form the line plan. Add to this
area the area of the wall to get the approximate plinth area.
• The area of the wall to floor area is approximate and its depends on shape of the building. (The square
shaped building is more economical)
• To calculate plinth area from carpet area add the area of wall (15% to 17% but 8% for R.C.C. framed
structure) and horizontal circulation area (10% to 15%) to the carpet area.
• Area of the wall also depends on design and planning of the building. However, we can take approx.
• 8% of the floor area for RCC framed structure
• 15-17 % of floor area for ordinary buildings
• 25% of the floor area for thick walls with rectangular shaped buildings.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 PLINTH AREA METHOD
(a) Plinth Area Rate: The plinth area rate mainly depends on the following factors.
• General Specification:- Type of building, quality of materials, type of flooring and quality of wall
finishing etc.
• Price level:- Cost of construction of similar buildings from locality.
• Shape of the buildings:- A square buildings is more economical than rectangular one due to less wall to
floor area ratio.
• Design of building and provision made: - Design of foundation, the design of sections, spacing of RCC,
members, opening provided in walls, design and thickness of wall etc.
• Arrangement of rooms, circulation area and provision made for sanatory blocks: - If numbers of
walls within floor area be large then the plinth area rate will rise up in comparison to spacious planning
within same plinth area.
• Location: - The cost of construction varies from place to place due to variations in the prices of materials
and labour charges.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Cubical content method
• The method of estimating buildings cost by cubic meter volume is more accurate in general than the method of
estimation cost by plinth area, because the cost of a building depends not only on its plinth area but also on the volume of
the buildings. It is more suitable to be applied for multistorey building.
𝑨𝒑𝒑𝒓𝒐𝒙 𝑪𝒐𝒔𝒕 = 𝑽𝒐𝒍𝒖𝒎𝒆 × 𝑪𝒖𝒃𝒊𝒄𝒂𝒍 𝒓𝒂𝒕𝒆
𝑽𝒐𝒍𝒖𝒎𝒆 = 𝑷𝒍𝒊𝒏𝒕𝒉 𝒂𝒓𝒆𝒂 𝒆𝒙𝒕𝒆𝒓𝒏𝒂𝒍 𝒅𝒊𝒎𝒆𝒏𝒔𝒊𝒐𝒏𝒆𝒅 𝒂𝒃𝒐𝒗𝒆 𝒑𝒍𝒊𝒏𝒕𝒉 𝒍𝒆𝒗𝒆𝒍 × 𝑯𝒆𝒊𝒈𝒉𝒕
• For height measurement different rules are applied
• Bottom level may be considered from ground level or from the top of the foundation-concrete or from half the depth
of the foundation or up to plinth level or up to 15 cm below finished surface of the lowest floor.
• The cost of the building depends also on the depth of its foundation, but the cost of construction per meter depth from
ground level and per meter height above ground level is not same.
• So the rules to determine the height of a building from half the depth of the foundation should be more appropriate
and this is normally followed in INDIA
• The height of the building is measured from the top of the roof in case of flat roof without parapet, if there is parapet
on the roof, the height is measured from half of the height of parapet.
• In case of sloping roof or pitched roof, the height is taken from point midway between the ridge and the point of
intersection of the roof with the out plane of the wall.
• For multistorey building, height is measured from the floor of one storey to floor of other storey.
• Rate per cubic meter depends same as the rate per unit plinth stated in plinth area method.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Approximate Quantities with bill method
• Find out the estimated cost separately:
• Cost of wall including foundation and surface finished
• Cost of woodwork
• Cost of flooring
• Cost of roofing
• Adding all the sub-head of the work, the total amount of the approximate estimate should be closer to that of a
detailed estimate and this is the best form of approximate estimate because the rate adopted to prepare such an
estimate are current and realistic.
• This method of estimation required the plan, a tentative section of walls of the buildings, consideration of current rate
for different main items of works and knowledge on estimating.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Service Unit or Unit Rate Method
• In this method all costs of a unit quantity such as per km for a highway, per meter span for a bridge, per
classroom for school building, per bed for hospital, per litre for water tank. Etc.
𝑨𝒑𝒑𝒓𝒐𝒙 𝒄𝒐𝒔𝒕 = 𝑵𝒐 𝒐𝒇 𝒖𝒏𝒊𝒕 × 𝒖𝒏𝒊𝒕 𝒓𝒂𝒕𝒆
• This estimate can be prepared quickly, but it requires records of the unit current rates for similar designed
structure having the same specifications at that locality.
• Government work executed through different Engineering Department, each department is entrusted to
undertake particular categories of work and is used to maintain unit cost of those works.
• Mainly following consideration are made in the preparation of an estimate by this method.
• Variation of price level
• Change in specification and location of site
• Number of unit provided in the structure (more the unit less is the cost and vice versa)
• And soil condition etc

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Bay Method
𝑨𝒑𝒑𝒓𝒐𝒙 𝒄𝒐𝒔𝒕 = 𝑵𝒐 𝒐𝒇 𝒃𝒂𝒚𝒔 × 𝑪𝒐𝒔𝒕 𝒐𝒇 𝒐𝒏𝒆 𝒘𝒂𝒚

• Bays are components or similar portion of a structure. Such as Go-down, a railway platform, factory shades
etc. which have been built up with intermediate columns or with roof trusses on walls placed at equal
distances with the same roofing on the top of those supporting members, then the area may be divided from
centre to centre of the supports.

• This is most reliable approximate estimate that can be made by considering followings points
• End way should considered separately due to its end wall (Gable wall)
• Current rate per way should be worked out from the previous recorded rate
• The location, specifications and drawings should be same.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Cost comparison methods
• By this method approximate estimates are prepared for prototype structure or units consisting several works
after comparing with the past records of expenses for such works.
• The prototype work is prepared by comparing the previous cost with the present market rates, normally
by increasing the past cost on a percentage basis.
• Such an estimate can be prepared quickly even during meetings. But expert knowledge is necessary to
estimate the present cost of construction as compared to the previous cost.

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Cost for Materials
and Labour
• In this method approximate quantities
of materials and labour required per sq
m of the plinth area for a proposed
building are worked out arbitrarily or
with the help of empirical equations
developed by Central Building
Research Institute (CBRI) Roorkee
and multiplied by the total plinth area
of the buildings.

• Refer: Central Building Research

Institute (CBRI) report,

A is the Plinth Area in sqm

By: Dr. Arya Anuj Jee, NIT Jalandhar

 A is the Plinth Area in sqm

By: Dr. Arya Anuj Jee, NIT Jalandhar

 Lumpsum
• Lumpsum: - While preparing an estimate, it is not possible to workout the details of “Petty Items” (Insignificance
w.r.t. Civil Engineering) hence their lumpsum value is considered.
• (1) Contingency: - (3-5% of project cost)-it is unforeseen/incidental expenses which can not be predicted
prior to the execution of the project.
• Ex. Severe accident, specialist visit on site etc.
• (2) Work charge establishment: - (1.5 to 2% of project cost) During the execution of the project, certain
services are required, expense of which is paid from work charge establishment.
• Ex. additional watchman, additional supervision, security camera, worker accommodation etc.
• (3) Tools and plants: - (1-1.5% of project cost) It is the cost of tools and machines purchased/ hired for the
execution of project.
• (4) Departmental Cost (Engineering Cost):- (10-15% of project cost) It is cost of engineer required for
planning, design, supervision, testing etc.
• (5) Sanitary and water supply (8% of project cost)
• (6) Electrification (8% of project cost)

By: Dr. Arya Anuj Jee, NIT Jalandhar

Example: (1) - A person constructed a building of plinth area equal to 100 sq m on a plot
of land in a certain locality at a cost of 95,000. the height of the building from ground
level to the 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

Plinth area method = 128250/-

Volume rate method = 128250.13/-

By: Dr. Arya Anuj Jee, NIT Jalandhar

Example: (2) - In a block development meeting you are required to draw up a
preliminary estimate of a School building for 500 students in order to assess the amount
of fund. The following particulars are collected by you:- Carpet area required per students
= 1.20 sq m with an area of corridor, verandas, lavatories etc. be 20% and for walls 15%
to that of plinth area of the building.
Consider plinth area rate = Rs. 1100 per sq m.
Cost of water supply = 5% of the building cost
Cost of sanitation = 6% of the building cost
Cost of electrification = 10% of the building cost
Cost of approach road and boundary wall = 3% of the building cost
Contingency and work charge establishment shall be 5% and 2.5 % of the total cost
respectively.
By: Dr. Arya Anuj Jee, NIT Jalandhar
Solution: (2)-
Carpet area per students = 1.2 sq. m, so for 500 students carpet area = 500* 1.2 = 600 sq m
20 15
Plinth area (P) = 600 + 𝑃 × 100 + 𝑃 × 100 ,
P = 923.08 sq m

Items Cost
Cost of buildings (923.08*1100) 10,15,388/-
Cost of water supply @5% of building cost (1015388*5/100) 50769.40/-
Cost of Sanatory @ 6% of building cost 60,923.28/-
Cost of Electrification @ 10%of building cost 1,01,538.80/-
Cost of approach road and boundary wall @3%of building cost 30,461.64/-
Total C. O 12,59,081.12/-
Contingency 5% of total 62,954.05/-
Work charge 2.5 % of total 31,477.03/-
Grand Total 13,53,512.20/-

By: Dr. Arya Anuj Jee, NIT Jalandhar

Example: (3) – Prepare a preliminary estimate for a framed four storied office building
having a carpet area of 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
Given
1. Built-up area rate for ground floor (excluding foundation) = Rs. 1500/- per sq m
2. Built-up area rate for 1st and 2nd floor (excluding foundation) = Rs. 1650/- per sq m
3. Built-up area rate for 3rd floor (excluding foundation) = Rs. 1800/- per sq m
4. Extra for foundation = 20% of superstructure cost
5. Extra for special Architectural treatment = 1% of Building Cost
6. Extra for Water Supply= 7% of Building Cost
7. Extra for Electrical Installation = 8% of Building Cost
8. Extra for Contingencies= 4% of overall Cost
9. Extra for work charge establishment = 10% of overall Cost
10. Extra for other source = 5% of Building Cost

By: Dr. Arya Anuj Jee, NIT Jalandhar

Solution: (3)-
Built-up area i.e. Plinth Area = Carpet area + circulation area + area occupied by walls and column
25 8.5
Plinth area (P) = 300 + 𝑃 × 100 + 𝑃 × 100 , P = 451.13 sq m
Items Cost
Ground floor, 451.13 sq m, cost @1500 per sq m 6,76,695/-
1st and 2nd , 2*451.13 sq m, cost @1650 per sq m 14,88,729/-
3rd floor 451.13 sq m, cost @1800 per sq m 8,12,034/-
Total cost of superstructure 29,77,458/-
Extra for Foundation @20% of Super structure 5,95,491.60/-
Building Cost 35,72,949.60/-
Extra for Architectural treatment @1% of building cost 35,729.50/-
Extra for Water supply and sanitary@7% of building cost 2,50,106.47/-
Extra for Electrical Installation @8% of building cost 2,85,836.00
Extra for Other Sources @5% of building cost 1,78,647.48/-
Overall Cost 43,23,269.05/-
Add contingencies @4% of overall cost 1,72,930.75/-
Add Work-Charged Establishment @ 10% of overall cost 4,32,326.90/-
Grand Total Estimated Cost 49,28,526.00/-
By: Dr. Arya Anuj Jee, NIT Jalandhar