DEPARTMENT OF CIVIL ENGINEERING

CE8701-ESTIMATION, COSTING AND

VALUATION ENGINEERING

Prepared by
R.BALAMURUGAN
Assistant Professor
Department of Civil
Engineering
CE8701 ESTIMATION, COSTING AND VALUATION ENGINEERING LTPC
3003
OBJECTIVE:
 The students will acquire knowledge in estimation, tender practices, contract
procedures, and valuation and will be able to prepare estimates, call for tenders and
execute works.

UNIT I QUANTITY ESTIMATION 9

Philosophy – Purpose – Methods of estimation – Types of estimates – Approximate
estimates –Detailed estimate – Estimation of quantities for buildings, bituminous and
cement concrete roads, septic tank, soak pit, retaining walls – culverts (additional
practice in class room using computer softwares)

UNIT II RATE ANALYSIS AND COSTING 9

Standard Data – Observed Data – Schedule of rates – Market rates – Standard Data
for Man Hours and Machineries for common civil works – Rate Analysis for all
Building works, canals, and Roads– Cost Estimates (additional practice in class
room using Computer softwares) - (Analysis of rates for the item of work asked, the
data regarding labour, rates of material and rates of labour to be given in the
Examination Question Paper)
UNIT III SPECIFICATIONS, REPORTS AND TENDERS
9
Specifications – Detailed and general specifications – Constructions – Sources –
Types of specifications – Principles for report preparation – report on estimate of
residential building – Culvert – Roads – TTT Act 2000 – Tender notices – types –
tender procedures – Drafting model tenders , E-tendering-Digital signature
certificates- Encrypting -Decrypting – Reverse auctions.

UNIT IV CONTRACTS
9
Contract – Types of contracts – Formation of contract – Contract conditions –
Contract for labour, material, design, construction – Drafting of contract documents
based on IBRD / MORTH Standard bidding documents – Construction contracts –
Contract problems – Arbitration and legal requirements.

UNIT V VALUATION
9
Definitions – Various types of valuations – Valuation methods - Necessity –
Capitalised value – Depreciation – Escalation – Valuation of land – Buildings –
Calculation of Standard rent – Mortgage – Lease
 ESTIMATION
Estimation is the scientific way of working out the
approximate cost of an engineering project before
execution of the work.

 It may differ from the calculation of the exact cost

after completion of the project.

 Estimation requires a thorough Knowledge of the

construction procedures, cost of materials & labour
in addition to the skill, experience, foresight and
good judgment.

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 ESTIMATE
An estimate of the cost of a construction job is the
probable cost of that job as computed from plans
and specifications.

 For a good estimate the actual cost of the proposed

work after completion should not differ by more
than 5 to 10 % from its approximate cost estimate.

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Engineering
 UNITS OF MEASUREMENTS
The units of measurements are mainly categorized
for their nature, shape and size and for making
payments to the contractor.
a) Single units work like doors, windows etc, is expressed in numbers.
b) Works consists linear measurements involve length like cornice,
fencing, hand rail etc., are expressed in running meters (RM)
c) Works consists areal surface measurements like plastering, white
washing, partitions of specified thickness etc., are expressed in
square meters.
d) Works consists cubical contents which involve volume like earth
work, cement concrete, Masonry etc., are expressed in Cubic meters.

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Engineering
 NEED OF ESTIMATION & COSTING
1. It help to work out the approximate cost of the project in order
to decide its feasibility with respect to the cost and to ensure
the financial resources.

2. Requirements of controlled materials, such as cement and steel

can be estimated.

3. It is used for framing the tenders for the works and to check
contractor’s work during and after the its execution for the
purpose of making payments to the contractor.

4. From quantities of different items of work calculated in detailed

estimation, resources are allocated to different activities of the
project and ultimately their durations and whole planning and
scheduling of the project is carried out.
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 DATA REQUIRED TO PREPARE AN ESTIMATE
1) DRAWINGS
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.

2) SPECIFICATIONS
a) General Specifications:
This gives the nature, quality of work and materials in general terms
to be used in various parts of wok. It helps to form a general
idea of building.
• Detailed Specifications:
This 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.
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3) 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 labor, skilled or unskilled of masons, carpenters,
Amador, etc.,

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.
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Engineering
 Factors to be considered for estimation
1. Each type of work requires a different method of construction.
Construction may be of an ordinary house or office and it may
also be of a Dam, Tunnel, Multistory building, Airport, Bridge,
or a Road, already in operation. Each of these works requires
totally different construction techniques, type of machinery,
and formwork.
2. Quality of labour and labour output varies in different localities.

3. Weather conditions greatly affect the output and, hence, the

overall cost.

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Engineering
 Factors to be considered for estimation (-ctd-)
4. Ground conditions vary and change the method of
construction. For example, excavation may be dry, wet, hard,
soft, shallow or deep requiring different efforts.

5. The source of availability of a sufficient supply of materials of

good quality.

6. The availability of construction machinery also affects the

method of construction.

7. Access to the site must be reasonable. If the access is poor,

temporary roads may be constructed.

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Engineering
 TYPES OF ESTIMATES

There are two main types of estimates:-

 Rough (or) approximate estimate.

 Detailed estimate.

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 Rough (or) approximate 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 following are the methods used for preparation of
approximate estimates.
• Plinth area method
• Cubical contents methods
• Unit base method.
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1) Plinth area method
cost of construction = Plinth area x plinth area rate.
2) Cubical Contents Method
It is more accurate that the other two methods viz., plinth area method
and unit base method.
cost of construction = Total cubical contents x Local Cubic Rate.
• Unit Base Method
. For public buildings, cost. Per person (cost per capita) is used. For
example,
Students hostel - cost per student
Hospital - Cost per bed
Hotel - Cost per Guest

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Engineering
 EXAMPLE 1
• Prepare a Rough-cost Estimate of a residential building
project with a total plinth area of all building of 1500 sq.m.
given that:
•  Plinth Area Rate = Rs: 950.00 / sq. ft.
• Extra for special architectural treatment = 1.5 % of the
buiding cost.
• Extra for water supply and sanitary installations = 5 % of
the building cost.
• Extra for internal installations = 14 % of the buiding cost
• Extra for Electric & Sui gas services = 16 % of buiding cost
• Contigencies 3 % overall
• Supervision charges = 8 % overall
•Department
Design charges = 2 % overall
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Engineering
 EXAMPLE 2
• Prepare a Rough-cost Estimate based on unit costs of per unit plinth
area basis of a four storeyed office building having a carpet area of
2000 sq.m. for obtaining the administrative approval of the
Government. It may be assumed that 30 % of the built up area will be
taken by the corridors, verandas, lavatories, staircase, etc. and 10 % of
built up area will be occupied by walls. The following data is given:

• Plinth Area Rate = Rs: 1100.00 / sq. ft.

• Extra for special architectural treatment = 0.5 % of the buiding cost.
• Extra for water supply and sanitary installations = 6 % of the building
cost.

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Engineering
 Example 2 (ctd)

• Extra for internal installations = 14 % of the buiding cost

• Extra for electric services = 12.5 % of buiding cost
• Extra for sui gas services = 6 % of buiding cost
• Extra due to deep foundations at site = 1.0 % of buiding cost
• Contigencies = 2.5 % overall
• Supervision charges = 8 % overall
• Design charges = 2.5 % overall 

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 DETAILED ESTIMATE
• Detailed estimates are prepared by carefully and separately
calculating the costs of various item of the work that constitute
the whole project from the detailed working drawings after the
design has been finalized.

• The mistakes, if any, in the rough cost estimate are eliminated in

the detailed estimate.

• Detailed estimates are submitted to the competent authorities

for obtaining technical sanction.

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 DETAILED ESTIMATE

• The whole project is sub-divided into different items of work or

activities. The quantity for each item is then calculated
separately from the drawings as accurately as possible. The
procedure is known as "taking out of quantities".

• The quantities for each item may be estimated and shown in

the pattern which is called "Bill of quantities."

• The unit, in which each item of the wok is to be calculated,

should be according to the prevailing practice as followed in
various departments of the country.

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 BILL OF QUANTITIES
Description No Measurements Quantity Total Remarks
Sr. No
of item Quantity

Length Breadth Height

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 PRICED BILL OF QUANTITIES

Sr. No. Description of Item Unit Quantity Rate Cost Remarks

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 DETAILED ESTIMATE
• Each item of the work is then multiplied by its estimated current
rate calculated by a fixed procedure to find out cost of the item.

• At the end, a total of all items of the work are made to get the
total estimated cost.

• The rates are usually as per Schedule of Rates for the locality plus a
premium to allow for rise in labor and material rates over and
above the schedule of rates.

• A percentage, usually 5% is also provided on the total estimated

cost for the work to allow for the possible contingencies due to
unforeseen items or expenditure or other causes, besides 2%
establishment charges.

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Engineering
 DETAILED ESTIMATE
Besides drawings and details of measurements and calculation of quantities (Bill
of Quantities), the following documents are also usually submitted with the
detailed estimate for obtaining Technical Sanction:

1.A report explaining History, necessity, scope and main

features of the project, its design, and estimate, etc.

2.Specifications lying down the nature and class of work and

material to be used in various parts of the work.

3.The abstract of cost (priced Bill of Quantities) showing the

total quantities under each sub-head, rate per unit of
measurement, and cost.

4. Calculation sheets showing calculations for important

parts of the structure. In fact, in estimating the art and skill
lies only in the computation of details without any
omissions, of all parts of the building or work.

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Engineering
 METHODS OF DETAILED ESTIMATE
• The dimensions, length, breadth and height or depth are to be
taken out from the working drawings (plan, elevation and
section).

• Junctions of walls, corners and the meeting points of walls require

special attention.

• For symmetrical footings, which is the usual case, earthwork in

excavation in foundations, foundation concrete, brickwork in
foundation and plinth, and brickwork in superstructure may be
estimated by either of the two methods:

(1) LONG WALL & SHORT WALL METHOD

(2) CENTER LINE METHOD

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 LONG WALL & SHORT WALL METHOD (or)
SEPARATE WALL METHOD

• The walls running in one direction are termed as "long

walls” and the walls running in the transverse
direction, as "Short walls.

• Lengths of long walls are measured or found "Out-to

out" and those of short walls as "In-to-in".

• Different quantities are calculated by multiplying the

length by the breadth and the height of the wall.

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Engineering
 LONG WALL & SHORT WALL METHOD

• Long wall length out-to-out

= Center to center length + half breadth on one Side + half
breadth on other side.

= Center to center length + one breadth

• Short wall length in-to-in

= Center to Center length - one breadth.

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 CENTER LINE METHOD
• In this method, total length of center lines of walls, long and
short, has to be found out.

• In this method, the length will remain the same for

excavation in foundations, for concrete in foundations, for all
footings, and for superstructure (with slight difference when
there are cross walls or number of junctions).

• This method is quicker but requires special attention and

considerations at the junctions, meeting points of partition
or cross walls.

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Engineering
 CENTER LINE METHOD
For rectangular, circular polygonal (hexagonal, octagonal
etc.,) buildings having no inter or cross walls, this method is
quite simple.

For buildings having cross or partition walls, for every

junction, half breadth of the respective item or footing is to
be deducted from the total center length.

Thus in the case of a building with one partition wall or

cross wall having two junctions, deduct one breadth of the
respective item of work from the total center length.

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 Problem-1
Estimate in detail the quantities of following
items of work for a given plan and section as
shown in Fig.1 using Centre line method and
Long wall & short wall method.
Concrete in foundation
Brickwork in 1st step in foundation
First class brickwork in super structures

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Engineering
Department of Civil
Engineering
Estimation of Quantity of Concrete in
Foundation
Center Line method:
Total Length of Center Line = 5.3+5.3+4.3+4.3 = 19.2 m

width of foundation = 0.9 m Total quantity of concrete in foundation =19.2x0.9x0.3 cu.m

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Engineering
Long Wall & Short Wall method:

Length of Long wall = 5.3+0.9 = 6.2 m Length of Short wall = 4.3-0.9 = 3.4 m
Quantity of concrete in foundation = 2 x (6.2+3.4) x 0.9 x 0.3 cu.m
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 Estimation of Quantity of Brickwork in
1st step Foundation

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Engineering
Center Line method:
Total Length of Center Line = 5.3+5.3+4.3+4.3 = 19.2 m
width of foundation = 0.6 m
Total quantity of brickwork in 1st step foundation = 19.2 x 0.9 x 0.3 cu.m

Department of Civil
Engineering
Long Wall & Short Wall method:

Length of Long wall = 5.3+0.6 = 5.9 m Length of Short wall = 4.3-0.6 = 3.7 m
Quantity of brickwork in 1st step foundation = 2 x (5.9+3.7) x 0.6 x 0.3 cu.m
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Engineering
 Estimation of Quantity of
Brickwork in super structure

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Engineering
Center Line method:
Total Length of Center Line = 5.3+5.3+4.3+4.3 = 19.2 m

width of wall = 0.3 m Total quantity of brickwork in wall = 19.2 x 3.5 x 0.3 cu.m

Department of Civil
Engineering
Long Wall & Short Wall method:

Length of Long wall = 5.3+0.3 = 5.6 m Length of Short wall = 4.3-0.3 = 4.0 m
Quantity of brickwork in wall = 2 x (5.6+4.0) x 0.3 x 3.5 cu.m

Department of Civil
Engineering
 Problem-2
Estimate in detail the quantities of following items
of work for a given plan and section as shown in
Fig.2 using Centre line method and Long wall &
short wall method.
Concrete in foundation
Brickwork in 1st step in foundation
First class brickwork in super structures

Department of Civil
Engineering
Department of Civil
Engineering
Estimation of Quantity of Concrete in
Foundation
Center Line method:
Total Length of Center Line = (4 x 5.3) +(3 x 4.3) = 34.1 – 0.9 = 33.2 m
width of foundation = 0.9 m
Total quantity of concrete in foundation =33.2 x 0.9 x 0.3 cu.m
Department of Civil
Engineering
Long Wall & Short Wall method:

Length of Long wall = 5.3+5.3+0.9 = 11.5 m Length of Short wall = 4.3-0.9 = 3.4 m
Quantity of concrete in foundation= [ (2x11.5) + (3X3.4) ] x 0.9 x 0.3 cu.m
Department of Civil
Engineering
 References:

• Dutta, B.N., “Estimating and Costing in

Civil Engineering”, UBS Publishers &
Distributors Pvt. Ltd., New Delhi, 2003.

• https://www.wikipedia.org/
• https://nptel.ac.in/course.php
• https://www.vidyarthiplus.com/studymat
erials.php
 THANK YOU

Department of Civil
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