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CONTENTS (i)
INTRODUCTION 1
ABBREVIATIONS 2
ANNEXURES
(i)
First Edition - January 1993
Revised Edition - September 1998
Second Edition - June 2008
ICI- AD FORMULA ME,T110D Introduction
INTRODUCTION
The ICTAD Formula Method for reimbursement of price fluctuation of materials, labour and
equipment in construction projects was introduced in January 1993. The Revised Edition
which was published in September 1998 introduced the simplified Formula Method tbr
contract values less than Rs. 5 million. With this Second Edition — June 2008, the applicable
li mit of the Simplified Formula has been increased to Rs. 10 million from the original value of
Rs. 5 million.
As in the previous edition, this publication will also illustrate in details the method of
application of the formula method and example for using the formula.
The publication is divided into two sections and Section 1 covers the Formula Method
applicable to contracts exceeding Rs. 10 million. Section 2 describes the simplified method of
the Formula Method for contracts not exceeding Rs. 10 million.
Due to the varied size and complexity of large projects, when using the method described in
Section 1, the input proportions shall be computed by the Employer and included in the
bidding documents. The simplified formula described in Section 2, recommended to be used
for small contracts, is based on same concepts as that for major contracts, but the input
proportions are built into the formula itself.
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (lC'TAD)
ICTAD FORMULA METHOD Abbreviations
ABBREVIATIONS
Mc 80% of the cost of the materials delivered to the site, to be used for permanent
works on current valuation
Mp 80% of the cost of the materials delivered to the site, to be used for permanent
works on previous valuation
Its Current Composite Index for the type of work published by ICTAD
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (IC'TAD)
icrAp FORMULA METHOD Section I - The Formula Method for Contracts Exceeding Rs. 10 Million
SECTION 1
The Formula for the contracts above Rupees 10 m, when expressed mathematically
shall be as follows :
The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the preVious bill.
Hence,
Non-adjustable element shall be the items which will not be considered for price
adjustment and have been listed accordingly in the contract.
3
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I CTAD FORNIUI.A METHOD Section I - The Formula Method thr Contracts Fxceedint!. Rs. 10 Million
a. Items in the BOQ for which the expenditure will be fixed and will he
executed at early stages of the contract... Most of the preliminary items
fall under this category;
c. Extra works items for which the new rates are agreed or are priced at
Day-work rates.
The net Non- adjustable element for the current valuation is computed by deducting
the cumulative non adjustable element of the previous bill from the current cumulative
non adjustable element.
Hence,
if, Vnac cumulative value of work certified under items
specified as non-adjustable element up to the current
bill
then,
SEi: 'ON D EDIT!ON, .1l;NE 2008 Institute for Construction Training and Development (IC I Al))
ICTAD FORMULA METHOD Section 1- The Formula Method for Contracts Exceeding Rs. 10 Million
The percentage cost contribution of major materials, plant and labour to the contract
shall be listed in the bid document. It is suggested to exclude the less cost significant
items, in computing the input percentages, since the combined effect of such items will
be less than 10% of the cost of total inputs. Hence the total contribution of the major
inputs will be considered as 90%.
The computation of input proportions is based on the costing of major input items
required for the proposed construction. The costs will be calculated using the prices
that prevailed at the time of bidding. The cost of major inputs will be considered as
90% of the total cost. The total costs of all the inputs will be then derived by dividing
the cost of major inputs by 0.9. Input proportion of a particular input will be computed
as the ratio between the cost of the input and the cost of all inputs.
1.5 INDICES
The indices used in the formula shall be those published by the Institute for
Construction Training and Development (ICTAD). Monthly indices will be published
in Bulletin of Construction Statistics. The type of indices applicable to this Formula
shall be Materials (M indices), Labour (L indices) & Plant & Equipment (P indices).
When there are more than one index published for same input the appropriate index
shall be indicated in the bidding document. For example, four types of indices are
being published for cement: One based on ex-factory prices; one based on imported
cement; one for open market price; and the fourth for the weighted average.
5
SECOND EDITION,JUNE 2008 Institute for Construction Training and Development ( IC FAD)
ICTAD FORMULA METHOD Section 1 - The Formula Method for Contracts Exceeding Rs. 10 Million
Definition — Month;
For the purpose of base indices the month is defined as the time period between the
first and the last day of any month in the Gregorian calendar inclusive of the first and
the last day.
"Base Indices" shall be the indices for the inputs, prevailing for the Month, one Month
prior to the Month on which the last date for submission of Bids falls.
For example, if the bids were closed on any date of the month of September, the base
indices applicable shall be the indices published for the month of August of the same
year. If the relevant indices have been published at the time of preparation of the bid
document, the Employer may include same in the space provided in the Contract Data.
Definition — Month;
For the purpose of current indices the month is defined as the time period between the
first and the last day of any month in the Gregorian calendar inclusive of the first and
the last day.
The "current index" of a particular input shall be the index published by ICTAD for
that input for the Month applicable as described below.
In the case of first monthly statement the current indices shall be taken as the indices
prevailing on the Month where the Start Date / Commencement Date falls. For any
other monthly statement or for the statement at completion the current indices shall be
taken as the indices prevailing for the Month where the first date of the current
valuation period falls.
6
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
R TAD FORMULA METHOD Section I - The Formula Method for Contracts Execedina Rs 10 Million
0.966 (V - V„„)
100 as the first part
7
SECOND EDITION,JUNE 2008 Institute kir Construction Training and Development (I(' IAD I
IC'IAD FORMULA mrl'1iDD Section 1 - The Formula Method for Contracts Fxcecding Rs. 10 Million
The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the previous bill.
Hence
The net Non- adjustable element for the current valuation is computed by deducting
the cumulative non adjustable element of the previous bill from the current cumulative
non adjustable element.
Hence,
if, Vnac - Cumulative Value of work certified under items specified as non-
adjustable element up to current claim
8
SECOND EDITION, MINE 2008 Institute for Construction Training and Development (1CTAD)
ICTAD FORNIULA NIETHOD Section 1 - The Fonnirla Method Ibr Contracts I scced tnglts. NI ill ion
0.966 (V - Vim.)
100
The information relevant to columns 1 & 2 of Annex B (sheet 2 of 2) is given with the
contract. The appropriate base indices with respect to each input can be entered in
column 3. Once these columns are filled the sheet could be used repeatedly for
computing price adjustment for all future price fluctuation claims.
The appropriate current indices as described in Section 1.5.2 of this publication, can he
entered in column 4 of Annex B.
9
sEcoNn EnrrioN, RINE 2008 Institute for Construction Training and Development (ICI Al))
I( 71'21.D FORNT1'IA Section 1 - The PomoIn Method for Contracts Excmdina Rs. 10 Million
computed under Step 3, the price adjustment due for the current valuation could be
computed.
As in the case of any other payment made to the contractor the amount computed as
price adjustment shall be subjected to the VAT.
An example for computation of Price Fluctuation for Works exceeding Rupees 10 million is
given in Annex C.
10
SECOND EDITION„IUNE 2008 Institute for Construction Training and Development (ICTAD)
IC IAD FORMULA NI LTLIOD Section 2 - The Formula Method 14 Contracts not INecetlina Rs_ 10 Million
SECTION 2
The Formula for the category of contracts up to Rupees Ten million, when expressed
mathematically is as follows:
F = 0.869 (V - Vna) *
Itb/
Itb
The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the previous bill.
Non-adjustable element shall be the value of work done under the items which will be
not considered for price adjustment and have been listed accordingly in the contract.
SECOND EDITION„DINE 2008 Institute for Construction Training and Development (ICTAD)
ICTAD FORNHILA METHOD Section 2 - The Formula Method for Contracts not Fxceeding Rs. 10 Million
a. Items in the BOQ for which the expenditure will be fixed and will be executed
at early stages of the contract. Most of the preliminary items fall under this
category;
c. Extra works items for which the new rates are agreed or are priced at Day-work
rates.
The net Non- adjustable element for the current valuation is computed by deducting
the cumulative non adjustable element of the previous bill from the current cumulative
non adjustable element.
Hence,
Vnac cumulative value of work certified under items
specified as non-adjustable element up to the current
bill
then,
12
SECOND comoN, JIIINE 2008 Institute for Construction Training and Development (I(TAD)
ICTAD FORMULA METHOD Section 2 - The Formula Method for Contracts not Exceeding Rs. 10 Million
2.4 INDICES
The indices used in the formula shall be those published by Institute for Construction
Training and Development (ICTAD). Monthly indices will be published in Bulletin of
Construction Statistics. The type of indices applicable to this Formula shall be the
composite indices for type of work (T - indices)
Definition — Month;
For the purpose of base composite indices the month is defined as the time period
between the first and the last day of any month in the Gregorian calendar inclusive of
the first and the last day.
"Base Composite Indices" shall be the indices for the type of work, prevailing for the
Month, one Month prior to the Month on which the last date for submission of Bids
falls.
For example, if the bids were closed on any date of the month of September, the base
composite indices applicable shall be the indices published for the month of August
of the same year. If the relevant indices have been published at the time of
preparation of the bid document, the consultant may include same in the space
provided in the Contract Data Sheet.
Definition — Month;
For the purpose of current composite indices the month is defined as the time period
between the first and the last day of any month in the Gregorian calendar inclusive of
the first and the last day.
The "Current Composite Indices" shall be the indices for the type of work for the
Month applicable as described below;
In the case of first monthly statement the current composite indices shall be taken as
the indices prevailing on the Month where the Start Date / Commencement Date falls.
For any other monthly statement or for the statement at completion the current
composite indices shall be taken as the indices prevailing for the Month where the first
date of the current valuation period falls.
13
SECOND EDITION, JUNE 2008 institute for Construction Training and Development (ICTAD)
UTAD FORNWIA NIETIIOD Section 2 - The Formula Method for Contracts not FNeeedini.i. Rs. ID Million
The Contract Price need to be adjusted to accommodate the price variation payments.
To accommodate the price variation payments, it is necessary to include a Price
Contingencies item in the BOQ described as 'Allow for price contingencies'. The
amount can be worked out by studying the indices published by ICTAD on quarterly
basis for the type of work.
14
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development ( D
wrAD FORMULA nivriloo Section 2 - The Formula Mcihod for Contracts not Ixceeding Rs. I 0 Million
The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the previous bill.
Hence
The net Non- adjustable element for the current valuation can be computed by
deducting the cumulative non adjustable element of the previous bill from the current
cumulative non adjustable element.
Hence,
if, Vnac - Cumulative Value of work certified under items specified as non-
adjustable element up to current claim
then,
15
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I(TAD FORMULA NIETDOD Section 2 - The Formula Method 11)r Contraeh: tIOL I '%einclinia Its lo
0.869 (V - Vna)
Lb
c. By multiplying the results obtained from Step 'a' and Step `b' above the
price adjustment due for the current valuation can be computed.
As in the case of any other payment made to the contractor the amount computed as
price adjustment shall be subjected to the VAT.
An example for computation of Price Fluctuation for Works not exceeding Rupees 10 million
is given in Annex D.
16
SECOND EDITION„IUNE 2008 Institute for Construction Training and Development (ICTAD)
ICTAI) FORNIULA Nivriion Annex A
ANNEX A
PROPORTIONS
A suggested method for computing input proportions for the BOQ given in Sheet No Al of
this Annex is given below. The BOQ consist of 169 work items and two contingency items.
The total contract sum is Rs. 11,555,005.55. The value of work item (excluding the
contingency items) is Rs. 10,504,550.50. The first step in computing input proportions will
be the identification of non-adjustable element.
The following are specified as Non-adjustable element for the reasons explained.
17
SECOND EDITION. JUNE 21198 Institute Ibr Construction Training and Development ;ICIAD)
I CTAD FORMULA METHOD Annex A
Similar to Item A4
Similar to Item A4
Similar to A4
Since the item has to be done only if directed by the Engineer, the
risk is passed to the bidder.
When the non-adjustable element (which works out to about 5.7% in the example) is
reduced the total of the BOQ is adjusted to Rs. 9,767,815.50.
18
SECOND EDITION. MINE 2008 Institute for Construction Training and Development (1CTAD)
icrAn 1 01011;1A NW."1.110D Annex A
There may be some items in the BOQ, for which break down of inputs cannot be easily
worked out. Lump sum items is a good example for this. Due to the difficulty of estimating
the inputs for such items, they are disregarded in computing the input proportions. The
contribution from such items to price variation is considered as the weighted average of all
the other items. However, unlike the non-adjustable element these items are considered for
final computations of fluctuations.
The items disregarded for computation of inputs in the example selected are listed below
and are struck off from the BOQ in Sheet Al
A8, B9, F3, F4, Gl, G2, H21 - H24, H27 - 1129 and J1 - J5
The disregarded items in the BOQ contribute to about 3.6% of the value. This percentage
should not be a considerable amount. When the items are disregarded the total of the BOQ
reduces to Rs. 9,395,465.50.
When scrutinizing the balance items of the BOQ, it is seen that similar or marginally varied
items are listed separately. The inputs for these similar items will be either same or differs
marginally. Hence to facilitate the computations, those items are grouped together.
In some instances the same item when applying for different components is measured in
different units [example : RCC concrete in slab (CA8) and RCC concrete in beams (CA9)
measured in m2 and m3 respectively)]. These items were also grouped together by
converting the quantities in to a common unit.
19
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (IC'TAD)
I CFAD NIFFHOD Annex A
Sheet A2 indicate the grouped items, the common description, the quantity, the unit and the
amount against each group selected.
a. Marginally varied items are grouped together. (e.g. different in location, type of
finish)
c. Generally, inputs of the items grouped, should be similar [exception for that in the
example considered is in the case of DPC which needs an additional input (tar) but
is grouped under cement plaster due to the fact that only a small quantity of DPC is
involved].
d. Items, related to aluminium windows, PVC products and electrical installation are
grouped separately without indicating the quantity and the unit.
e. Since the input items of 1:2:4 (20 mm) concrete and 1:3:6 (40 mm) concrete differ
only from the aggregate size (apart from mixing proportions) and due to the reason
that a common index is being published for aggregate (metal) the two items are
considered as two sub-groups under the main group No. 3. Two sub-groups are
necessary due to the reason that vast variation of input proportions between the
items. Similarly cement plaster and lime plaster are also considered as sub-groups
under main group 8.
20
SECY)NIi EDITION, JUNE 2008 Institute ror Construction Training and Development (ICTAD)
icrAn FORMULA AW:11101) Annex A
24 main groups are identified. Sheet A2 indicate the main group no., the item numbers
allocated to the group, description, the cumulative quantity, unit selected, and the
cumulative amount under the each group.
The groups are re-arranged on the descending order against the amount and are shown in
Sheet A3 (The re-arranging is done purely for explanatory purpose and is not required in
actual computations). The 6th column represents the cumulative amount. The 7th and 8th
columns show the percentage of the cumulative amount and percentage of cumulative items
respectively.
d. To represent 90% of the cost about 60% of the items are needed.
The formula considered 90% of the inputs directly while the balance 10% of inputs are
considered indirectly.
Hence in the example under consideration the following are selected as cost significant
groups. (Falling around 90%)
a. Brick work
21
SECOND EDITION, JUNE 2908 Institute for Construction Trainine and Development (ICIAD)
wrAD FoRnitii.A Annex A
g. Rubble masonry
h Earth excavation
Plywood doors
j. Reinforcement
k. Emulsion paint
1. PVC products
n. Wall tiles
The groups selected represents 58.33% of the total and the cost contribution is 90.63%.
The next step in the process is to compute the quantities of inputs required for the selected
groups. This is done by using standard norms used in the industry. Sheet A5 (2 of 2)
indicates the quantity of inputs required for one unit of the representative items of the
groups.
Sheet A6 (Sheet 2 of 2) computes the quantity of inputs required for the items identified.
The total quantities'of each input are also shown at the bottom of the schedule.
22
SECOND EDrnON„.1 !LINE 2008 Institute ibr Construction Training and Development (ICTAD)
ICTAD FORMULA METHOD Annex A
The cost of inputs for the following items are calculated based on the percentage
contribution of each input to the respective item. The specimen calculations are given in
Sheet No. A7,
a. Aluminum windows
b. PVC products
c. Internal electricity supply
The inputs computed under Step 5 are costed based on the prices of inputs considered while
preparing the estimate. The costs of inputs are shown in Sheet No. A8. The input items are
listed in Sheet No. A9 showing the percentage cost of contribution. It should be noted that
the total cost of selected inputs (Rs. 7,212,665.31) represent about 85% of the cost of
significant items in Sheet A4 (Rs. 8,515,361.00). (This difference is due to the overheads
. and profits included in the cost). The contribution from four of the items is below 0.50%.
The less cost significant inputs (say less than 0.50% contribution) are eliminated from final
computations and the balance items only are shown in Sheet No. A10. The total amount of
cost significant inputs is computed as Rs. 7,154,670.51. According to the concepts of the
formula this should represent only 90% of the cost of inputs. Hence the total cost of inputs
is estimated as Rs. 7,949,633.90 by dividing the 90% of cost by 0.9.
The input percentages of each input is then computed in relation to the total cost of inputs.
The final input proportions together with the reference indices are shown in Sheet No. Al 1.
23
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I(:TAD FOIRNIULA NIETHOD Annex A
Sheet A I
1 of 6
C - CONCRETE WORKS
CA1 50mm thick conc. l:3:6-(40mm) under column footings 31.10 m2 450.00 13,995.00
CA2 100mm thick conc. 1:3:6-(40mm) under strip fdns 250.00 m2 900.00 225,000.00
CA3 75mm thick conc. 1:3:6 (25mm) for floors 431.10 m2 650.00 280,215.00
CA4 RCC 1:2:4 in column footings 2.50 m3 10,000.00 25,000.00
CA5 RCC 1:2:4 in ground beams 3.68 m3 10,000.00 36,800.00
25
SECOND EDITION, JtINE 2008 Institute for Construction Training and Development (ICI Al))
I CTAD FORMULA M Elmo!)
Annex A
Sheet Al
2 of 6
26
SECOND EDIT ION, JUNE 2008 Institute for ConstrUction Training and Development (ICTAD)
I( :TAD l'011:111.1„1 11.1L11101) Annex A
Sheet Al
3 of 6
F - ROOF WORK
Fl Corrugatted asbestos roof on timber frame in ground fir 842.50 rn2 1,400.00 1,179,500.00
F2 Corrugated asbestos roof on timber frame in 1st firroof 62.50 m2 1,500.00 93,750.00
, • . - t . - t I efiF
13 Layin. 842.50 m2 500.00 Rate-enly
1=4-- Laying half round tiles at I si r 62.50 m2 550.00 Rate-en-ly
F5 Ridge tiles for ground floor roof 123.00 m 250.00 30,750.00
st
F6 Ridge tiles for 1 floor roof 24.00 m 260.00 6,240.00
F7 900mm wide vally gutter 34.00 in 2,000.00 68,000.00
F8 225mmx25mm valance board for ground floor roof 202.00 m 350.00 70,700.00
st
F9 225mmx25mm valance board for 1 floor roof 39.00 m 400.00 15,600.00
FIO 150mm wide square type PVC gutters for ground floor 202.00 m , 400.00 80,800.00
st
Fl 1 150mm wide square type PVC gutters for 1 floor 39.00 in '450.00 17,550.00
F12 PVC down pipes 240.041 m 250.00 60,000.00
G - CARPENTRY WORKS --
C-1- Weeden4i-ialeteonnteF 2-. ilf 3-000,00 (4O00:00
G2 Wooden-seiTYle-e-E-ou-nief -1- Br 5T000700 -5-,004:00
,
G3 Allow provisional suttl:'fa_r p. thO!-IPboart4 • Sum 100,000.00
G4 Timber railing for the Stair case ` item 20,000.00 20,000.00
05 Wooden railing to balcony 28.00 m 1,000.00 28,000.00
06 Allow pr4viSiOnal sum 1"or t i stage sum 50,000.00
H - PLUMBING-WORKS
HI 1/2" dia PVC pipe (type 1000) 38.00 m 100.00 3,800.00
H2. 3/4" dia PVC pipe (type 1000) 25.00 m 150.00 3,750.00
H3 1" dia PVC pipe (type 1000) 50.00 in 200.00 10 000.00
H4 1 1/2" dia PVC pipe (type 1000) 10.00 m 250.00 2,500.00
1-15 2" dia PVC pipe (type 1000) 20.00 m 150.00 3,000.00
H6 1/2x3/4" PVC reducer 8 nr 40.00 320.00
H7 1/2x3/4" PVC tee 6 nr 50.00 300.00
H8 3/4"xl" PVC reducer 5 nr 65.00 325.00
H9 1/2x1" PVC reducer 5 nr 60.00 300.00
HIO 1/2x I " PVC tee 5 nr 100.00 500.00
H11 3/4x1" PVC tee 5 nr 120.00 600.00
H12 1/2 PVC elbow 20 nr 25.00 500.00
27
;E('ONIII EDI" !ON- 20('S Institute for Construction Training and Development (ICI AD)
ICIAD FORMULA INIETHOD Annex A
Sheet Al
4 of 6
28
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I C l'AD FORNIUIA NIEHIOD Annex A
Sheet Al
5 of 6
M - LANDSCAPING
MI Allow provisional sum for landscaping • sum 100,000.00
- .
!iiiii;Si•.:
N - ELECTRICAL INSTALLATION
NI D Board 24 way with isolator, ELCB, 2 Nr 15amp MCB, I nr 30,000.00 30,000.00
N2 D Board 36 way with isolator, ELCB, 3 Nr 15amp MCB, I nr 30,000.00 30,000.00
N3 D Board 36 way with isolator, ELCB, 3 Nr 15amp MCB, 1 nr 30,000.00 30,000.00
N4 100mmx2000mm GI earth electrode 1 nr 1,000.00 1,000.00
N5 4x7/1.044mm PVC cable 300.00 m 500.00 150,000.00
N6 Supply & fix spot light 23 nr 800.00 18,400.00
N7 4' long 40 watts single fluorescent fitting 83 nr 2,500.00 207,500.00
N8 Supply & fix pendant lamp 18 nr 1,000.00 18,000.00
29
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I(TAI) FORNIULA Annex A .
Sheet Al
6 of 6
72 - 4
- ' 'i '431,4; ' - • '''sl." - R*-4'O * - ''' '-'''Z'r:. J-I''' ';'114-°'-- C'11:'.4 t . r" * ' '''-''`'S 0 8 8•28
. ---- ' f-L',Z._
177.?
TOTAL 11,393,322.05
Total, less non-adjustable element 9,767,815.50
Total, less non-adjustahle element & dis-regarded items 9,395,465.50
• \
s
••,
\ \
• ,\ \\ !\
( \
30
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (1CTAD)
ICTAD FORMULA METHOD Annex A
Sheet A2
GROUPED BOQ
TOTAL 9,395,465.50
31
SECOND EDII ION, JUNE 2008 Institute for Construction Training and Development (10 AD)
Will:11V Y1111010:I (IV.L.)1
CONTRIBUTION FROM GROUPS TO THE TOTAL
'N;01.1.11(11 (IN;
% OF
SR. GROUP ITEMS DESCRIPTION AMOUNT CUMULATIVE CUMULATIVE CUMULATIVE GROUP
NO NO ' AMOUNT AMOUNT
1 7 D2 - D5 BriCkWork ,-' 1.362,848.00 1,362,848.00 14.51 % 4.17 % (1/24x 100)
2 12 Fl - F2 ASbestos roof ,with frame 1,273,250.00 2,636,098.00 28.06 % 8.33 % (2/24 x 100)
3 8 D6, K1-K7, K22-K23 Cement plaster-- 1,144,511.00 3,780,609.00 40.24 % 12.50 % (3/24 x 100)
4 11 E4 - Ell Alumihitin glazed Windows 797,500.00 4,578,109.00 48.73 % 16.67 % (4/24 x 100)
5 3 CA1 - CA3 Concrete 790,480.00 5,368,589.00 57.14 % 20.83 % (5/24 x 100)
6 24 N1 - N13 Internal elearical supply..:, 632,400.00 6,000,989.00 63.87 % 25.00 % (6/24 x 100)
7 6 D1 Rubble masonry ' 560,000.00 6,560,989.00 69.83 % 29,17 % (7/24 x 100)
8 1 B2-B6 Earth excavation-- \ 425,557.00 6,986,546.00 74.36 % 33.33 % (8/24 x 100)
9 10 El - E3 Plywood doors \ w..'' • 355,000.00 7,341,546.00 78.14 % 37.50 % (9/24 x 100)
10 5 CC1 - CC13 Reinforcement --' .-282,300.00 7,623,846.00 81.14 % 41.67 % (10/24 x 100)
11 22 L1 - L6 Emulsion paint - ..-263,753.00 7,887,599.00 83.95 % 45.83 % (11/24 x 100)
--4
12 16 F10-F12, H1-H16, J6-J PVC Products 224,070.00 8,111,669.00 86.34 % 50.00 % (12/24 x 100)
13 20 K8 - K12 Ceramic floor tiles ,2212900.00 8,333,569.00 88.70 % 54.17 % (13/24 x 100)
14 21 K20 - K21 Wall tiles - 181,800.00 8,515,369.00 90.63 % 58.33 % (14/24 x 100)
--=-=
15 4 CB1 - CB7 Fotrri Work :--
. 166-806.50
_ , 8,682,175,50 92.41 % 62.50 % (15124 x 100)
f
16 19 H17-H20, H25-H26 Sanitary fittings 138,400.130. 8,820,575.50 93.88 % 66.67 % (16/24 x 100)
- (17/24 x 100)
17 9 D7 Brick paving •:
, 102..000
. .00 , 8,922,575.50 94.97 % 70.83 %
.18 23 L7 - L8 Enamel paint 88,200.00 9,010,775.50 95.91 % 75.00 % (18/24 xx 100)
19 15 F8 - F9 Valance board 86,300.00 . 9,097,075.50 96.82 % 79.17 % (19/24 x 1001
-
20 2 B10 Earth filling 85-,406.00' 9,182,475.50 97.73 % 83.33 % (20/24 x 100)
21 14 F7 Valley gutters 68,000:00 9,250,475.50 98.46 % 87.50 % (21/24 100)
22 18 H30 Sum for water tank 60,000.30 9,310,475.50 99.10 % 91.67 % (22/24 x 100)
23 17 G4 - G5 Timber railing 48,000.00 9,358,475_50 99.61 % 95.83 % 23/24 x 100)
24 13 F5 - F6 Ridge tiles 36,990.00 9.395,465.50 100.00 % 100.00 % (24/24 x 100)
9,395,465.50
SECOND EDITION, MINE 2008
GROUP
NO ITEMS ' DESCRIPTION QTY UNIT AMOUNT
NO c .
-
/ 3
1 1 B2-B6 Earth excavation-'.. 882.57 m 425,557.00
--- 3
2 3 CA1 - CA3 1:2:4(:21) Concrete '1, 25.74 m 790,480.00
CA4 - CAll 1:3:6(40) Concrele 58.89
-
3 5 CC1 - CC13 Reinforcement 2420.00 kg 224,070.00
3
4 6 D1 Rubble maSonii - 200.00 m 560,000.00
3
\ 204.09 m 1,362,848.00
5 7 D2 - D5 Brick work ---
i _ 2
6 8 D6, K1-K7, K22-K23 Cement plaster \ cl \ . 596.00 m 1,273,250.00
. _
K13-K19 Lime plaster ,,,,,,,,,,,--\, 1655.80
2
7 10 El - E3 Plywood doors • ___. 25.00 m 355,000.00
.... ,,
8 11 E4 - Ell Aluminium glazed window - --- 797,500.00
2
9 12 Fl - F2 Asbestos roof with frame A
93,5.00 m 1,144,511.00
TOTAL 8,515,369.00
SECOND EDITION, JUNE 2008
(1011.1.31A V11:111i110:l
NORMS FOR COMMON ITEMS
Heavy equipment
.-- .
Small equipment
Unskilled labour
Skilled labour
Metal 20mm
Metal 40mm
SR
1 Cement
Group „„„„ _,-- „ -0 ,
c .0
0 0
no Description Unit 4.taritity':- `13
(0 cc 8
1
day . day hr hr 50kg m^ Md. Mj 0 nr
3 „.
1 1 Earth excavation m 1 .----- ' 0.40 \ 0.60 0.10
3
2 3 1:2:4(20) Concrete m 1 \._ „s \ 2:65 ,,,,,,6.20 0.83 7.00 0.20 0.97
\ ,,, „-
1:3:6(40) Concrete ,---0-.56
-
3,,40 0.12 5.10 0.55 1.02
': .------- \- -)
3 5 Reinforcement kg 1 \ 0:02\ _,„,0.02
3 --... ,"
4 6 Rubble masonry m 1 1.41 2:12 1.76 0.03 1.30
3 ----- ,„----
5 7 Brick work m 1 1.t0 _, --1:60 0.82 0.40 540
m2
6 8 Cement plaster 1 0.11 - ccfd _ , 0.15 0.02
.-
Lime plaster 0.11 ';- 0:13 -`"--
-,r- ', 0.09 0.02
2 . -- ' _ '
7 10 Plywood doors m 1 0.50 0.40 „-- - - - -
-- ,
8 11 Alumin. glazed windows . - ---
Wall paint
R/F steel
Pigment
Group
o
no Description Unit Quantity ,
_ m-4— ,, m 8
m' m-
I
_ kg m' kg IV kg nr
3 .
1 1 Earth excavation m
3
2 3 1:2:4(20) Concrete m 1 - .- -
1:3:6(40) Concrete
3 5 Reinforcement kg 1 N., ......,) - 1.16
3
4 6 Rubble masonry m 1
3
Brick work m 1 ,.. - , '\ .
f.7 5 7 _„
2
6 8 Cement plaster m 1 ■
Lime plaster 2.00
0
13 22 Emulsion paint m 1 0.25
0
14 24 Internal electrical supply
SECOND EDITION, JUNE 2008
I
QUANTITY OF INPUTS IVHOJ
I
VII
Heavy equipment
Small equipment
N
Unskilled labour
Skilled labour
Metal 20mm
Metal 40mm
SR RIA
-
No cu
Cement
DO
Group -- a3
Bricks
0 .0
-
no Description Unit
Quantity
day,,,, day day hr 50kg m4 m4 m4 m' nr
3 ...---
1 1 Earth excavation m 862:'51 35343 \ 529.54 88.26
3
2 3 1:2:4(20) Concrete m 2\74 \
65.64 159.59 21.36 180.18 5.15 24.97
-
1:3:6(40) Concrete 58.89 --32.98... --260.23 7.07 300.34 32.39 60.07
3 5 Reinforcement kg 2420.00 '' 8 : 1`...--41i.40
2
3
4 6 Rubble masonry m 200.00 282.00 __.424160`., 352.00 6.00 260.00
...- ... --
3
5 7 Brick work m 204.09 224.59- -106.14 167.35 81.64 110209
2
-
6 8 Cement plaster m 596.00 65.56 ,„ - 96'.36 \ 89.40 11.92
Lime plaster 1482.03 163.02 .,-,-492.66.7„ .- 133.38 29.64
2 .- ..,._
',..
7 10 Plywood doors m 25.00 12.50 1,0.00-- ,
8 11 Alumin. glazed windows
9 12 Asbestos roof with fram m2 905.00 90.50 135.70 \ -
10 16 PVC Products
2
11 20 Ceramic floor tiles m 117.00 50.31 44.46 ,, 15.21 2.34
2
12 21 Ceramic wall tiles m 121.20 52.12 55.75 29.09 2.42
m
m2
13 22 Emulsion paint 1595.10 159.51
14 24 Internal electrical supply .
TOTAL QUANTITY 1 1600.06 2201.88 28.43 88.26 1266.95 171.50 24.97 60.07 260.00 110209
fD
800Z :MN NO11103 (1X1033S
If110110:1 fly.
QUANTITY OF INPUTS ( .............. . contd.)
Wall paint
-0 TI.) a)
Floor tile
-0
Pigment
a)
Group 11) ....
L-
no Description Unit QuantOr•'.-.::-, a ug
' -1
m' m' kg m` kg It kg nr m`
3
1 1 Earth excavation m 882.5;
3 ,---- •
2 3 1:2:4(20) Concrete m 25,74-_ -\,.....=>
1:3:6(40) Concrete 58.89 .
-
3 5 Reinforcement kg 2420.00 i-, .:-, .:
c 2807.20
3
4 6 Rubble masonry m 200.00 N--
3 _-
5 7 Brick work m 204.09
2 ;...
Institute for Construction Training and Development (ICIAD)
TOTAL QUANTITY 22.50 11.36 1058.85 2964.06 129 84.00 398.78 2807.20 37.50 133.32
co
sooz aNtar Wonlaa amoaas
Group Description Total - Tolal - Cost of Al Cost of Cost of Cost of Cost of Cost of Remarks
No Amount —cost after work PVC elec. fittn. elec. Wire skilled lab. unsk. Lab.
Rs. s- ridiratH &p., -75% of cost * 70% of cost * 50% of cost * 20% of cost *
a b=ax75%_,--- bx75% c=bx70% cl =bx50% e=bx20%
_\__::,
lab 25% *
11 AluminiuM windows 797,500.00 598,125:00 448;693.75 119,625.00 29,906.25 sk:un = 4:1
lab 30% *
CI )
16 PVC Products 263,753.00 197,814. (------E 138,470.33 29,672.21 29,672.21 sk:un = 1:1
..--"\
lab 30% *
24 Internal electrical suppl 632,400.00 474,300.00 \--------- ---\ 237,150.00 94,860.00 94,860.00 47,430.00 sk:un = 2:1
V)
CD
CS'
TOTAL Rs. 448,W.75 _7:L138,470.33 237,150.00 94,860.00 244,157.21 107,00846
0
C
2 Note * These percentages were arrived using the experience and can bevaried-de\p_Oding on the nature of work
Or
a
G.
s7)
tc
(-3 co
X
6 00
ICTAD FORMULA METHOD Annex A
Sheet A8
COST OF INPUTS
TOTAL 7,212,665.31
39
SECOND EDITION„IUNE 2008 Institute for Construction Training and Development (ICTAD)
IC:l'AD1:012NIULA Num , Annex A
Sheet A9
40
SL('OND EDITION, JUNE 2008 Institute for Construction Training and Development (ICI Al))
IC.TADFoRA1111,1 Nivriion Annex A
Sheet A I 0
The Sub Total amount of Rs. 7,154,670.51 is considered as 90% of the cost
**
Hence, Grand Total is computed by multiplying the Sub Total by a factor of [100/90]
41
SECOND EDITION„IIIINE 2008 Institute for Construction Training and Development ( ICTAD)
1(:1',.■1) lq.)IZNIULA NIETIRM Annex A
Sheet A I 1
9 0. 0 0 %
42
SECOND EDITION, JUNE 2008 Institute for Construction Training and 1)evelopment (1(2.1 Al))
IC LAD FORNIMA N1ETDOD Annex B
ANNEX B
Sheet I of 2
a. Date
a. Date
4.0 Computation of V - V.
5.0
100
43
SECOND EDITION„D.INE 2008 Institute for Construction Training and Development (ICIAD)
ICTAD FORMULA METHOD Annex B
ANNEX B
Sheet 2 of 2
6.0 Computation of E
all
1)111 1
1j
71
Ixb (refer the table below)
inputs
Step 5 x Step 6
8.0 The above sum should be subjected to payment of VAT as any other payment made to
the contractor
1 2 3 4 5
Name of input Input percentage Base index Current Index Px (Iv; - lxb)
(Px) (Lb) (L,c) Ixb
Total Sum
44
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (IC FAD)
icrikh FORMULA NIETOOD Annex C
ANNEX C
Sheet C
The example given below illustrate the computation of price fluctuation for two interim
bills. The data given below includes the General Contract data required for computations
and the details of interim claim Nos. 1, 3 & 4.
CONTRACT DATA
CLAIM NO. 1
CLAIM NO. 3
CLAIM NO. 4
45
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development I AD1
I(' FAD 111:11101) Annex C
Sheet C2
2
.0 Previous Valuation
a. Date NA
a. Date 05-July-2007
6.0 Computation of
E Lb) • 2.40
Ixn
(See Sheet C3)
46
SECOND EDITION, JUNE 2098 Institute lor Construction Training and Development (ICI Al))
I("l'AI)1, 01tMULA NIE1'I101) A11110.\
Sheo C.;
Wall paint \
; 2,91 ' ,-3\
\:, ,\ 400 424.5 0.18
M27
\
\ -)
M32 Floor tile " \\- 1 1.48 \ -- 143.1 149.6 0.08
47
OND EDIT ION. JUNE20(18 institute !Ur Construction '! raininit. and 1)evelopment (I(' I \ I))
ICTAD FORNIULA METHOD Annex C
Sheet C4
a. Date 07-Aug-2007
a. Date 18-Dec-2007
6.0 Computation of
Px (1xc - [ N O 4.95
Ixb
(See Sheet C5)
48
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I(' l'AI)1:012.11U1,,■ Annex ('
Sheet C5
M35 ,._...._- /
coio,ur ..iiicinent
..., . . 0.57 225.6 227.1 0.00
7 \ ,,5---
, ,,-
M36 i -Aluminiutii works,, 5.64 291.4 296.0 0.09
M38 ,E16ict. Fitti:ngs 2.98 140.8 144.4 0.08
:
L1 skilled labour 16.15 290.1 299.2 0.51
L3 Unskilled labour 13.81 320.1 335.3 0.66
P2 Heavy equipment 1.11 238.4 264.6 0.12
49
Si (1)>;T.) 11)1-'10N, .11:NE 2003 Institu1 ,2 for Construction Trailing and Developmen1 (IC I-,\1)).
FORMULA NI El i101) Annex D
ANNEX D
Sheet D
The example given below illustrate the computation of price fluctuation for two interim bills
using simplified formula. The data given below includes the General Contract Data
required for computations and the details of interim claim Nos. 1, 3 & 4.
CONTRACT DATA
Total Contract Sum Rs. 4,327,355.33
Date of Closing Bids 13-Feb-2007
Date of commencement of Works 04-May-2007
Type of Work Average office building
CLAIM NO. 1
Date of Submission 05-July-2007
Value of Certified Work done (cumulative) Rs. 767.885.73
80% of Cost of Material at site Rs. 50,000.00
Value of Non-adjustable Element (cumulative) Rs. 15,000.00
CLAIM NO. 3
Date of Submission 07-Aug-2007
Value of Certified Work done (cumulative) Rs. 2,135,133.27
80% of Cost of Material at site Rs. 70,000.00
Value of Non-adjustable Element (cumulative) Rs. 15,000.00
CLAIM NO. 4
Date of Submission 08-Dec-2007
Value of Certified Work done (cumulative) Rs! 3,995,333.27
80% of Cost of Material at site Rs. 40,000.00
Value of Non-adjustable Element (cumulative) Rs. 15,000.00
Indices for Average office building — (Table 5 — "Non Residential Building" of ICTAD
Publication; Bulletin of Construction Statistics)
January 2007 - 366.5
May 2007 381.3
September 2007 - 399.0
5I
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
[(MAD FORNRIA NiFFIIOD Annex I)
Sheet D2
a. Date - NA
a. Date 05-July-2007
4.0 Computation of V -
6.0 Computation of
52
SECOND EDITION, Rm. 2008 Institute for Construction Training and Development (ICI AD)
icrAD FORNIULA NII:1110D Annex D
Sheet D3
a. Date 07-Aug-2007
a. Date 08-Dec-2007
6.0 Computation of
53
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (1C'TAD)