Introduction Quantity Surveying W.R.

Engineering

Ch. 1
Introduction
Estimation

Estimation is a process of calculating the quantities and costs of the various items required
for the work and expenditures likely to be incurred in the construction of a proposed work
and therefore to determine the final cost and the time required for the construction before
starting the work or taken up.

Purpose of estimation:

1. To determine the necessary amount of money required by the owner to complete the
proposed work.

2. To determine quantities of materials required in order to program their timely

procurement.

3. To calculate the number of different categories of workers those are to be employed to

complete the work within the scheduled time of completion.

4. To assess the requirements (tools, equipment) required to complete the work

according to a given program.

5. To fix the completion period from the size of works involved in the estimate.

6. To draw up a construction schedule and program and also to arrange the funds
required according to the program.

7. To invite tenders and prepare bills of quantities.

* Usually the estimating cost must be more than the actual cost.

Types of estimation:

Estimating can be done at different stages of project duration depending on the purpose of
estimation. First estimation is done before construction starts for the purpose of making
budget of the project or bidding the project as a contractor.

Estimation can be classified into many types:

1. Rough cost estimate (Approximate).

2. Detail estimate.

3. Project Comparison Estimate

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Approximate estimation (QUICK ESTIMATIOM):

 This type of estimation is simple, quick and rough.

 Estimator will determine the cost of the project roughly; depending on the entire area
or volume of the building and the unit rate of previous buildings have the same
conditions.

 The area or volume of the building is multiplied by the cost of one unit of
measurement

Methods of Approximate Estimation:

1- Area Method

2- Cubic Method

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Detailed estimation:

 This type of estimation is done after preparing all required plans, details,
specifications, prices of materials, fees of workers, equipment, additional fees and
expenditures, profits.

 The project works are divided into many activities, scheduled and the quantity and
rate of each activity (ITEM) is tabulated and finally the total cost (AMOUNT) of the
building will be calculated.

Terms used in engineering project

1- Quantity Surveyor (ESTIMATOR):

An Engineer who has a good knowledge and experience about the construction processes and
usually the estimator does not give a fixed number of estimation, but gives a number
between two edged may exceed one of theme the final cost.

The duties of the Estimator are as following:

1- Preparing the process of the estimation.

2- Establishing the prices and costs of all materials including their transportation, rent of
equipment, service costs.
3- Preparing the process of execution of the project.
4- Calculating the final time of the execution of the project.
5- To calculate the final cost of the works after completion.

2- Client (OWNER):

Is the first party in the contract, and can be one of the following:

1. A person or organization, who built the project, expends money and get benefits from
the project.

2. An organization built a project but doesn't get any benefits from the project like
service projects like (government offices, roads, etc.)

3- Contractor:

Means the person, company or institution and called the second party in the contract
document

4- Sub-contractor:

Means the person who is given a part of work through the main contractor

5- Engineer:

Is a person who has been nominated by the client to do the responsibilities of the engineer
with accordance to the contract.

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6- Contractor's engineer:

Means the person who has been nominated by the contractor and it is fully authorized to
mandate to do the limited responsibilities with accordance to the contract items.

7- Contract document:

Is the signed document by the two parties which proves the completion of the contract, its
date and total value of the work

8- Bill of quantity:

Is a document used in tendering in the construction industry in which materials, parts, and
labour (and their costs) are itemised.

9- Average fees:

There are many types of fees (wages) of workers, equipment, etc.

1- Ordinary fees

Daily fees : Like fees of workers

Weekly fees : Like fees of workers, builders, etc.

Monthly fees : Like salary of the employers, engineers, etc.

Hours fees : Like fees of equipment,

2- Additional fees

When the works require preparing at two or more stages, therefore, the owner must spend an
over times for the workers and equipment.

The amount of worker and equipment fees will be more than the ordinary fees.

Additional fees of one working hour =

Working days = 8 working hours

Additional hour fees may increase at the holidays or when the working hours exceeds the
limits.

Factors affect the cost of any engineering works

1- Site of the works and special conditions of the site.

2- Existence of skilled workers.
3- General economic conditions (Supply and demand).
4- Holidays and vacation days.
5- Weather conditions.

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6- Preparation works.
7- Additional and continuous expenses (salary, site office, etc.)
8- Availability of materials and equipment.
9- Time assigned or required for execution.

Profit:

Profit = {is an amount that is given to the contractor during the execution periodically – [cost
expended to the executed items + (salary, insurance, taxes...)]}

The profit depends on the following factors.

1- Condition of the work (weather, politic…)

2- Skills and experience of the Estimator.
3- Skills of the contractors and their efficiencies.
4- Size of the project.
5- Number of contractors enters the competition (tenders).
6- General economic conditions of the site.

** The profit usually ranges between 10-15 % and may reach 20% or more in some
times

Project

To execute any engineering project in accordance with technical and engineering works, it
requires from staff (engineers, technicians and workers) to condense together through the
stages of preparation and implementation of the project starting from designing idea until the
end of the project.

Stages of engineering projects

1- Preliminary studies, design and preparation of contract documents stage

2- Implementation stage
3- Operation and maintenance stage

Methods of Execution Projects

The existence of a specific timetable for the implementation of any engineering project is
essential to ensure the successful implementation of this project in a specific time and in the
scope of the budget earmarked for the project.

That is why some bidding stipulates provide scheduling for implementation by the
contractors in most engineering projects, notes that an efficient contractor who has extensive
experience in the implementation of the project planning and drawing time scheduling.

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Method of execution depends upon the following factors:

1. The owner
2. The condition of the work
3. The size of the work

Methods of the execution of the constructions:

1. Direct method.
2. Trust method.
3. Cost plus method (Commission Method).
4. Contract method.

Direct method:
In this method the work will be done by the owner if he has a sufficient time for working and
doing the followings activities, for instance, preparing labors, rent the equipment, supervising
them and buying the required materials, for work. This is applied for small projects.

Trust method:
The owner is usually an official directorate, organization.
Their engineers and staff supervise the works (financial, technical, administrative and also
supervise workers, buying materials.
The project cost will be high.
Apply this method when the work needs changing and farness of the site and administrative
problems.

Cost plus method (commission method):

The owner will agree with a person to be his representative on the work, there must have a
good confident between them.
The representative of the owner will supervise the work instead of the owner.
At the end of the project he will submit his statement of account and then he will receive a net
commission. That commission will be as follows:
1- In a percent of the total cost of the work.
2- Monthly salary or wages.
3- Fixed sum.
**This method is not desirable

Contract method:
It is the best method for execution of the engineering projects.
In this method, the contractor will work according to the bill of quantities, plans and
specifications which have been prepared by the owner.
The bill of quantities may be filled (rated) by the owner or will be filled by the contractor
If the bill of quantities has been rated by the owner then the contractor will add or subtract a
certain percent to each item, or according to a fixed sum of the contract. If bill of
quantities submitted by the owner is unrated or without the rates and costs of the items then
the contractor will submit the rate of all item and finally the total amount of the project.

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Contract Documents (TENDER)

Is the production and submission of a tender price for carrying out certain stated building
works based on a study of the contract documents.

Types of tendering

1- Open tender
2- Selective tender
3- Negotiated Tendering
4- Serial and continuity tendering

The contract documents contain the followings:

1- Announcement or declaration
2- Instructions for contractors
3- Bids or form of applying the bid
4- Agreement or contract.
5- Plans.
6- Specifications and provisions.
7- Special instructions about the project
8- Method of supplying materials and working
9- Commitment form.
10- Bill of quantities

Announcement or Declaration:
Must be short, clear and contain the followings:
1- We declare that there is an invitation to tender for constructing (Name of the project) in
(location and short description).
2- Anyone can obtain a form of the contract document from …………. two copies after paying
………. ID without any recapturing
3- Submitting bids to ………. after filling the bid forms and signed by contractor and also after
writing the cost of the bid in digits and in written and signed on all pages of the document.
4- The addition of any provision to the bid is not allowed only if submitted with separate form
and attached to the bid.

BID:
Bid is the form of submitting the contract usually is prepared by the owner.
Contain all the items of the work (bill of quantities).
The bid contain a form which clarify that the contractor agree to work in a suggested time,
when his bid is agreed and then he can’t withdraw from the work.

Documents attached with the bid

1- General provisions, specifications, bill of quantities and plans.

2- Certification of contractor’s membership to commerce room.
3- Certification from income tax office.

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4- Special documents about the contractors company.

5- List of similar works executed by the contractor previously showing the owner of each
work and time.
6- Primary insurance not less than ……..ID, in cash, bank guaranty or bank Cheque.
7- ID of the classification of contractors.

Calling contractors

Method of calling contractors:

1- Open competition.

 Any contractor who has the required qualifications can enter the competition.
 Low rates.
 Bad quality of the work.
 High deference between the submitted amount and the final amount.
 Usually the work will be delayed.

2-Selective competition

 Number of contractors is limited.

 Owner will invite several contractors who have a required efficiency
 Work will be executed with an amount of money and duration
 Work executed will be better than open competition.

3- Turnkey Job (complete contract)

4- Continuity tender (series contract)

Steps for execution engineering projects

1- Feasibility and determining estimated cost with the provision of financial allocations.
2- Preparing tender documents.
3- Tender announcement or an invitation to tender.
4- Create biddings by participants and submitted before the closing date.
5- Opening of tenders immediately after the closing date.
6- Analysing of tenders and recommending the best one.
7- Preparing contract document and signing by parties.
8- Contract execution by the contractor and follow-up by owner.
9- Preliminary acceptance of the project.
10- Final acceptance after maintenance period.