ESTIMATION

& ITS TYPES

SUBMITTED BY :ROOPAK WADHWA ROLL NO. :11025006003

CONTENTS
WHAT IS ESTIMATE ? INTRODUCTION ASPECTS OF ESTIMATION TYPES OF ESTIMATES NEED AND IMPORTANCE OF ESTIMATE ESTIMATED COST ACTUAL COST

WHAT IS ESTIMATE
AN ESTIMATE OF A PROJECT IS A FORECAST OF ITS PROBABLE COST . THE PROCESS OF PREPARING AN ESTIMATE IS KNOWN AS ESTIMATION. IT INCLUDES THE FOLLOWING 2 THINGS : 1. ABSTRACTING 2. TAKING OUT QUANTITIES

INTRODUCTION
ONE OF THE MOST IMPORTANT DUTY OF THE ENGINEER OR ARCHITECT IS TO PREPARE THE PROBABLE COST OF THE PROPOSED BUILDING. THE PROBLEM OF PREPARING ESTIMATES HAS BECOME COMPLEX BECAUSE OF VARIOUS FACTORS WHICH CAN BE ENUMERATED AS FOLLOWS : ADVANCEMENT IN TECHNOLOGY BYE-LAWS IN THE LOCAL BODIES

CHANGES IN THE LIVING STANDARDS OF PEOPLE DEMAND FOR IMPROVED SERVICES LABOUR LAWS HELP FROM FINANCIAL INSTITUTES FINISHINGS REQUIRED TO DEVELOP ARCHITECTURAL EFFECTS MARKET CONDITIONS OF BUILDING MATERIALS MULTI STOREYED BUILDINGS IN TOWNS AND CITIES WIDE RANGE OF BUILDING MATERIALS

 ACCURACY IN ESTIMATE IS VERY IMPORTANT NOWADAYS. THIS IS PARTLY DUE TO CHANGE IN DESIGNS, OMISSION OF CERTAIN UNSEEN ITEMS AND PARTLY TO THE INCREASE IN RATES. THE RATES FOR SUCH ITEM SHOULD BE REASONABLE MUST CONSIST OF COST OF MATERIAL, COST OF CARRIAGE , COST OF LABOUR AND COST OF OTHER PETTY ITEMS INCLUDING CONTRACTORS PROFIT.

ASPECTS OF ESTIMATES
IN ANY CONSTRUCTION ACTIVITY , TWO ASPECTS ARE INVOLVED : 1. QUANTITY ASPECTS 2. QUALITY ASPECTS

QUANTITY ASPECT
THE QUANTITY ASPECT IS GOVERNED BY THE STUDY AND ANALYSIS OF DRAWINGS WHICH ARE PREPARED WITH RESPECT TO DESIGN OF THE PROJECT.

QUALITY ASPECT
THE QUALITY ASPECT IS GOVERNED THROUGH SPECIFICATIONS
FOR MATERIALS AND WORKMANSHIP.

 Hence the two aspects lead to form the estimate of work . Thus, estimate is a tool for planning and controlling the construction activity of any project with respect to the quality ,time and finance. Quantity of aspect decides the quantum of work involved in the construction and helps in finding the quantities of various materials required as well as total labour force necessary for construction work.

TYPES OF ESTIMATES
1. 2. 3. 4. 5. 6. 7. 8. FOLLOWING ARE EIGHT DIFFERENT TYPES OF ESTIMATES : DETAILED ESTIMATE APPROXIMATE ESTIMATE PLINTH ESTIMATE REVISED ESTIMATE SUPPLEMENTARY ESTIMATE QUANTITY ESTIMATE COMPLETE ESTIMATE ANNUAL MAINTENANCE AND REPAIR ESTIMATE

DETAILED ESTIMATE
IN CASE OF DETAILED ESTIMATE, A COMPLETE SCHEDULE OF ALL THE POSSIBLE ITEMS WHICH ARE LIKELY TO OCCUR IS PREPARED AND PROPER UNIT COSTS ARE APPLIED TO THESE ITEMS. A DETAILED ESTIMATE PROVIDES AN AMOUNT WHICH IS NEAR TO THE FINAL AMOUNT OF THE STRUCTURE.

 THE DETAILED ESTIMATES ARE ACCURATE ESTIMATES AND THEY ARE PREPARED MAINLY FOR THE FOLLOWING TWO PURPOSES: 1. EXECUTION PURPOSES 2. OBTAINING TECHNICAL SANCTION
IN CASE OF DETAILED ESTIMATE OF A PROJECT THE WHOLE PROJECT IS SUBDIVIDED INTO VARIOUS STAGES AND THEN ENTIRE STAGE IS BROKEN UP INTO VARIOUS ITEMS OF WORK HAVING SAME SPECIFICATIONS AND RATES.

PREPARATION OF DETAILED ESTIMATE

UNIT QUANTITY METHOD IS ADOPTED. RATE PER UNIT WORK IS CONSIDERED FIRST AND THEN TOTAL COST IS FOUND OUT BY MULTIPLYING COST PER UNIT OF THE RATE BY THE NUMBER OF UNITS. TO PREPARE DETAILED ESTIMATE, FIRST OF ALL DETAILS OF MEASUREMENT AND CALCULATION OF QUANTITIES ARE WORKED OUT.

STANDARD MEASUREMENT FORM

ITEM NO. DESCRIPTION OF ITEM NO. LENGTH BREADTH HEIGHT QUANTITY TOTAL

THE ESTIMATED COST IS INCREASED BY 5% FOR ANY UNFORESEEN EXPENDITURE KNOWN AS CONTINGENCIES.

IMPORTANT FACTORS OF DETAILED ESTIMATE

AVAILABILITY OF LOCAL LABOUR :
DAILY WAGES OF SKILLED LOCAL LABOUR SHOULD BE CONSIDERED IN PREPARATION OF DETAILED ESTIMATE.

AVAILABILITY OF LOCAL MATERIALS:

IF THE MATERIALS REQUIRED FOR CERTAIN ITEMS ARE NOT EASILY AVAILABLE FROM THE MARKET THE RATES OF THESE ITEMS WILL BE HIGHER.

APPROXIMATE ESTIMATE
IT IS REQUIRED FOR PRELIMINARY STUDIES OF VARIOUS ASPECTS OF A WORK OR PROJECT TO DECIDE THE FINANCIAL POSITION AND POLICY FOR ADMINISTRATIVE SANCTION BY THE COMPETENT ADMINISTRATIVE AUTHORITY. IN CASE OF COMMERCIAL PROJECTS THE PROBABLE INCOME MAY BE WORKED OUT. FOR NON-COMMERCIAL PROJECTS IT MAY BE CONSIDERED BEFORE FINAL DECISION IS TAKEN . THE APPROXIMATE IS PREPARED FROM THE PRACTICAL KNOWLEDGE AND COST OF SIMILAR WORKS.

PLINTH AREA ESTIMATE

This is prepared on the basis of building , the rate being deducted from the cost of similar building having similar specifications, heights and construction in the locality. The plinth area should be calculated for the covered area by taking external dimension of the building at the floor level. Courtyard and open area should not be included in the plinth area.

 THE APPROXIMATE COST OF A BUILDING HAVING PLINTH AREA OF 100SQ.M.@RS.900/- PER SQ. M. WORKS. FOR STOREYED BUILDING THE PLINTH AREA ESTIMATE IS PREPARED FOR EACH STOREY SEPARATELY.

 THE APPROXIMATE IS PREPARED BY VARIOUS WAYS OF DIFFERENT WORKS : 1. IN CASE OF HOSPITALS PER BED 2. IN CASE OF SCHOOLS PER STUDENT 3. IN CASE OF CINEMA PER SEAT 4. IN CASE OF RESIDENTIAL BUILDING ON PLINTH AREA BASIS 5. IN CASE OF ROADS PER KILOMETER 6. IN CASE OF CHANNEL PER KILOMETER 7. IN CASE OF CULVERTS PER METER SPAN 8. IN CASE OF ROADS AND HIGHWAYS PER KM 9. IN CASE OF SEWERAGE PROJECT PER HEAD POPULATION 10. IN CASE OF WATER SUPPLY PER HEAD OF POPULATION 11. IN CASE OF OVER HEAD WATER TANK CAPACITY/LITRE OF TANK

REVISED ESTIMATE
REVISED ESTIMATE IS A DETAILED ESTIMATE AND IS REQUIRED TO BE PREPARED UNDER ANY ONE OF THE FOLLOWING CIRCUMSTANCES : (a) WHEN THE ORIGINAL SANCTIONED ESTIMATE IS EXCEEDED BY MORE THAN 5 %. (b) WHEN THE EXPENDITURE ON A WORK EXCEEDS THE AMOUNT OF ADMINISTRATIVE SANCTION BY MORE THAN 10 %.

(C ) WHEN THERE ARE MATERIAL DEVIATION FROM THE ORIGINAL PROPOSAL EVEN THOUGH THE COST MAY BE MET FROM THE SANCTIONED AMOUNT. THE REVISED ESTIMATE SHOULD BE ACCOMPANIED BY A COMPARATIVE STATEMENT SHOWING THE VARIATIONS OF EACH ITEM OF WORKS, ITS QUANTITY, RATE AND COST UNDER ORIGINAL AND REVISED VARIATIONS .

SUPPLEMENTARY ESTIMATE
SUPPLEMENTARY ESTIMATE IS A DETAILED ESTIMATE AND IS PREPARED WHEN ADDITIONAL WORKS ON REQUIRED TO SUPPLEMENT THE ORIGINAL WORKS OR WHEN DEVELOPMENT IS REQUIRED DURING THE PROGRESS OF WORK. THIS IS A FRESH DETAILED ESTIMATE OF THE ADDITIONAL WORKS IN ADDITION TO ORIGINAL ESTIMATE

QUANTITY ESTIMATE
IT IS A COMPLETE ESTIMATE SHOWING QUANTITIES OF ALL THE ITEMS REQUIRED TO COMPLETE THE PROJECT. THE QUANTITY OF EACH INDIVIDUAL ITEM IS WORKED OUT FROM THE DRAWING AND IT IS THEN MULTIPLIED WITH THE RATE PER UNIT FOR THAT ITEM TO FIND OUT THE COST. IN THIS TYPE OF ESTIMATE ONLY BILLS OF QUANTITIES ARE PREPARED FOR ALL NECESSARY ITEMS AND WHEN THEY ARE PRICED, GIVES THE COMPLETE ESTIMATE OF THE PROJECT.

COMPLETE ESTIMATE
A COMPLETE ESTIMATE IS PREPARED AFTER ADDING AN ESTIMATED COST OF ALL ITEMS OF THE PROJECT TO THE MAIN DETAILED ESTIMATE . IT INCLUDES THE COST OF LAND, COST OF LEGAL EXPENSES REQUIRED BETWEEN THE OWNER AND THE CONTRACTOR, ENGINEERING FEES, ARCHITECTS OFFICE, COST FOR SUPERVISION OF WORKS AND A DETAILED ESTIMATE WITH CONTINGENCIES.

ANNUAL MAINTENANCE AND REPAIR ESTIMATE

IT IS REQUIRED TO MAINTAIN THE COMPLETED PROJECT FOR ITS PROPER FUNCTION AND ESTIMATE IS PREPARED FOR THE SAME IN THE FORM OF A DETAILED ESTIMATE . THIS ESTIMATE INCLUDES ITEMS FOR RENEWAL,REPLACEMENT,REPAIRS ETC.

NEED AND IMPORTANCE OF ESTIMATING

IT IS VERY IMPORTANT TO HAVE THE COST ESTIMATOR INVOLVED RIGHT FROM THE START OF THE PROJECT TO ENSURE THAT THE PROJECT BUDGET REFLECTS THE DECISIONS MADE BY THE REST OF THE PROJECT TEAM THROUGHOUT THE INTEGRATED DESIGN PROCESS. ESTIMATION HELPS CLIENTS TO GET CLEAR IDEA ON ESTIMATION OF COST AND SCHEDULING TO ACCOMPLISH THE PROJECT. CONSTRUCTION COST ESTIMATION ALSO HELPS CLIENTS TO MARK UP TENDERS SO THAT THEY CAN ACCURATELY BID FOR TENDERS.

 CONTRACTORS AND SUB CONTRACTORS CAN GET CLEAR IDEA OF THE SCHEDULING AND MATERIAL ESTIMATION BUDGET SO THAT THEY CAN WORK ACCURATELY AND PROPERLY.

ESTIMATED COST
THE ESTIMATED COST MEANS AN ESTIMATE OF THE FINAL TOTAL COST OF EXECUTION OF A CONSTRUCTION PROJECT. THIS DEFINITION REQUIRES TWO IMPORTANT ISSUES, NAMELY A) THE ESTIMATE IS AN APPROXIMATE CALCULATION; B) ESTIMATE CONTAINS UNCERTAINTIES.

 A COST ESTIMATE IS OFTEN NEEDED TO SUPPORT EVALUATIONS OF PROJECT FEASIBILITY OR FUNDING REQUIREMENTS IN SUPPORT OF PLANNING. A COST ESTIMATE IS OFTEN USED TO ESTABLISH A BUDGET AS THE COST CONSTRAINT FOR A PROJECT OR OPERATION. MAIN PURPOSE OF ESTIMATING COSTS IS TO PROVIDE A SIZE REFERENCE FOR COST CONTROL, TO VERIFY THAT THE RESOURCES CONSUMED DURING THE EXECUTION OF THE PROJECT ARE KEPT IN THE COSTS ASSESSED IN FEASIBILITY PHASE OF THE PROJECT

ACTUAL COST
AN ACTUAL AMOUNT PAID OR INCURRED, AS OPPOSED TO ESTIMATED COST OR STANDARD COST. IN CONTRACTING, ACTUAL COSTS AMOUNT INCLUDES DIRECT LABOR, DIRECT MATERIAL, AND OTHER DIRECT CHARGES. PROJECTED COST IS THE COST THAT WAS ESTIMATED DURING BUDGETING. ON THE OTHER HAND, ACTUAL COST IS THE REAL COST THAT WAS INCURRED DURING EXECUTION OF A PROJECT.

IMPORTANT POINTS TO KEEP IN MIND

APPROXIMATE ESTIMATE, PIRELIMINARY ESTIMATE OR ROUGH COST ESTIMATE ARE ALL ROUGH COSTS OF ESTIMATES . APPROXIMATE ESTIMATE, PIRELIMINARY ESTIMATE OR ROUGH COST ESTIMATE I IS REQUIRED FOR OBTAINING ADMINISTRATIVE APPROVAL . DRAWING OF SITE PLAN AND LINE PLANE OF BUILDING SHOULD BE ATTACHED APPROXIMATE OR PRELIMINARY OR ROUGH COST ESTIMATE. ROUGH COST ESTIMATE CAN BE PREPARED FROM THE LINE PLAN OF THE BUILDING. NO DETAILED DRAWING IS REQUIRED FOR THE PREPARATION OF A ROUGH COST ESTIMATE PLINTH AREA ESTIMATE IS ALSO ROUGH COST ESTIMATE AND IS PREPARED ON THE BASIS OF PLINTH AREA OF THE BUILDING. PLINTH AREA ESTIMATE CAN BE PREPARED FROM THE LINE PLAN OF THE BUILDING CUBICAL CONTENT ESTIMATE IS ALSO A ROUGH COST ESTIMATE AND IS PREPARED ON THE BASIS OF CUBICAL CONTENTS OF THE BUILDING.

 DETAILED DRAWING SHOWING PLAN, SECTION ELEVATION AND DETAILING ALONG WITH REPORT AND SPECIFICATION ARE REQUIRED TO PREPARE DETAILED ESTIMATE. DETAILED ESTIMATE IS THE MOST ACCURATE ESTIMATE. REVISED ESTIMATE IS ALSO DETAILED ESTIMATE AND IS PREPARED ONLY WHEN THE ORIGINAL ESTIMATE HAS EXCEEDED BY MORE THAN 10% . SUPPLEMENTARY ESTIMATE IS A FRESH DETAILED ESTIMATE AND IS PREPARED WHEN ADDITIONAL WORK IS REQUIRED TO SUPPLEMENT THE ORIGINAL WORK OR WHEN FURTHER DEVELOPMENT IS REQUIRED DURING THE PROGRESS OF WORK. ANNUAL REPAIR ESTIMATE' IS DETAILED ESTIMATE AND PREPARED TO MAINTAIN THE STRUCTURE IN PROPER ORDER AND SAFE CONDITION. THE ESTIMATED AMOUNT SHOULD NOT EXCEED MORE THAN 1.5 % OF THE,CAPITAL COST OF THE BUILDING. REPLACEMENT OF A WINDOW AND PROVISION OF A DOOR IN ITS PLACE DOES NOT SOME UNDER SUPPLEMENTARY ESTIMATE. IT COMES UNDER EXTENSION AND IMPROVEMENT ESTIMATE OR ADDITION AND ALETRATION ESTIMATE

 A PERCENTAGE OF 3% TO 5% M6T'BE ADDED IN THE TOTAL COST. THEN THE GRAND TOTAL WILL GIVE THE ESTIMATED COST OF THE PROJECT . SPECIAL REPAIR ESTIMATE IS QUITE DIFFERENT FROM ANNUAL REPAIR ESTIMATE AND IS PREPARED TO REPAIR THE STRUCTURE DURINF MONSOON OR RAINY SEASON. SO SPECIAL REPAIR ESTIMATE DOES NOT REQUIRE THE SAME DRAWINGS AS REQUIRED FOR ANNUAL REPAIR