Quantity Surveying, Cost Estimation & Valuation

Unit – 1
Introduction

Dr. Sandeep Soni

(Assistant Professor)
Dept. of Civil Engg.
National Institute of Technology Raipur
CV106103CV Quantity Surveying, Cost Estimation & Valuation

UNIT-I INTRODUCTION

• Quantity surveying,
• Estimate, Purpose of Estimating,
• Units of Measurements,
• Rules and Methods of measurement of works,
• Different types of Estimates, Approximate Estimate.

General Terms

• Contingencies, Work-charged Establishment, Tools and Plants,

• Lump-sum, Departmental Charges, External Services,
• Administrative Approval, Expenditure Sanction, Technical Sanction,
• Measurement Book, Muster Roll, Imprest account, Indent of stores,
• Material at site account, Stock account.
Dept. of Civil Engg.
 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.

Dept. of Civil Engg.

 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.

Dept. of Civil Engg.

 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.

Dept. of Civil Engg.

 NEED OF ESTIMATION & COSTING
1. It helps 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 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.
Dept. of Civil Engg.
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 work. It helps to form a
general idea of building.
b) 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.
Dept. of Civil Engg.
 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.

Dept. of Civil Engg.

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.
Dept. of Civil Engg.
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.
Dept. of Civil Engg.
 TYPES OF ESTIMATES
There are two main types of estimates:-

 Rough (or) approximate estimate.

 Detailed estimate.

Dept. of Civil Engg.

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.
1) Plinth area method
2) Cubical contents methods
3) Unit base method.

Dept. of Civil Engg.

 1) Plinth area method
cost of construction = Plinth area x plinth area rate.
2) Cubical Contents Method
It is more accurate than the other two methods viz., plinth area
method and unit base method.
cost of construction = Total cubical contents x Local Cubic Rate.
3) 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

Dept. of Civil Engg.

General Terms
• Contingencies,
• Work-charged Establishment,
• Tools and Plants,
• Lump-sum,
• Departmental Charges,
• External Services,
• Administrative Approval,
• Expenditure Sanction,
• Technical Sanction,
• Measurement Book,
• Muster Roll,
• Imprest account,
• Indent of stores,
• Material at site account,
• Stock account.
Contingencies
 The term “contingencies” indicates the incidental
expenses of a miscellaneous character which can not be
reasonably predicted during preparation of the estimate;
and to meet such unforeseen expenses an additional
amount of 3% to 5% (3% according to the practice of
CPWD and 5% according to that of the PWD) of the
estimated cost of works is provided in the total estimate.

 The miscellaneous incidental expenses which cannot

approximately be classified under any distinct sub-head
may be debited to the sub-head “contingencies”.
Work-Charged Establishment
 An establishment where the pay and allowances of the
employees are charged to the item of work for which they
are employed.

 The work charged establishment will include such

temporary establishments as are employed for the
execution or the immediate technical supervision or
departmental stores and machinery in connection with a
specific work.

 Work-charged staff may be technical person, or an under

staff of the technical person to assist him at work site,
Guard etc.
Tools and Plants (T. & P.)
 For a large project it becomes necessary, to use special
type of tools and plants viz., special type of concrete
mixing machines called “Batching Plants”, special type of
mixed concrete transport vehicles called “Tripping wagons
or Dumpers”, Cranes etc.

 The cost of such special Tools and Plants which are not for
general use is borne by the work concerned.

 So, in order to purchase such type of special equipment's

an amount of 1% to 1½% of the estimated cost is provided
in the estimate.
Lump-Sum (L.S.) item
 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.

 This is the item of work which is very difficult to measure or

assess during its execution and a Lump-Sum rate is
provided in the estimate. The work of site cleaning, site
dressing, dewatering from a small diameter tube-well till
sand free water is obtained, removing roots of a tree etc.
are the instances of L.S. items.
Departmental charges
 When an Engineering department executes the work of
another department of Government or local bodies etc.,
a percentage amount 10% to 15% of the estimated cost is
charged for recovery of the cost of establishment,
planning, designing, supervision, pensionary, audit charges
etc.

 Local administration fixes up the percentage in

consultation with the Account General.

For work expenditure= Rs…………………….

For percentage charges= Rs…………….....

External Services
 The estimate of a building is prepared considering the cost
of the building structure, cost of internal water supply,
sanitation and electrical works.

 But allocation of cost for external services, if any, should be

provided in the total estimate.

 The External Services include:

1. Clearing site, including the demolishing of any old

building, damage of existing roads or adjacent property
that may occur due to construction of the building, or

2. Forming site approach roads or paths,

External Services
3. Fences, gates, boundary wall, sheds etc.

4. Laying of water supply, drainage, electric cables, gas

mains, fire mains lines from the property line to service main,

5. Turfing or planting trees etc.

Administrative Approval
 For every work (excluding petty works and repairs) it is
necessary to obtain, in the first instances the concurrence
of the competent authority of the administrative
department requiring the work. The formal acceptance of
the proposal by that authority is termed “administrative
approval” of the work.

 It is the duty of the engineering department requiring the

work by the administration to obtain the requisite approval
to it.

 An approximate estimate and such preliminary plans as are

necessary to explain the proposals are submitted by an
engineering department to the administration to obtain
administrative approval to take up the work within the
sanctioned amount.
Expenditure Sanction
 It means the concurrence of the Government in the
expenditure proposed.

 The expenditure is sanctioned by the Finance Department

on the basis of administrative approval and sanctioned
detailed estimate for the work.

 This is an allotment of fund to meet up the expenditure to

execute a work.

 No work can be executed without expenditure sanction.

Technical Sanction
 After receipt of administrative approval and expenditure
sanction a detailed estimate is further sanctioned by a
competent technical authority of the engineering
department empowered by the Government: which
ensures that the proposals are structurally sound, and the
estimate is accurately calculated based on adequate
data.

 Such sanction is known technical sanction and should be

taken before inviting tenders to execute the work.
Measurement Book
 Measurement for all works done and supplies received in
connection with a sanctioned estimate are recorded in a
special type of Note book (usually of size 15 cm x 10 cm)
known as Measurement Book (M.B., Form No. 23).

 It contains, besides instructions how to write up the

columns for particulars, details of actual measurements in
terms of number, length, and depth, and the contents of
area.

 The pages are machine numbered.

Measurement Book
 Each book is provided with extra leaves for index, for
review by the Divisional Accountant and for the review by
the Executive Officers.

 The columns of a Measurement Book in Form 23 is shown

below:

Particulars Details of actual measurements Contents or area

No. L. B. H. or D.
Measurement Book
 As this book is the basis of all account of quantities for work
done for which payment is made to contractors and
others; it is one of the very important initial records of the
Department and is preserved carefully. Its movement
between officers and persons is also watched continuously
till it is final recorded.

 The entries in M.B. are made in continuous chain in a

chronological order, no blank page being left or torn out.

 At the end of each set of measurements, the officer

recording them has to certify – “measured by me” and to
put his full signature with date.
Muster Roll
 Muster Roll is used for keeping a complete record of
attendance, payment made, unpaid wages, and work
done by daily labor engaged in the execution of works.
 The categories of skilled and unskilled workers employed on
works are daily rated Muster Roll labor whose daily
attendance and outturn are recorded for the purpose of
payment.
 The work is executed under direct supervision of the
Sectional Officer or Sub-Divisional Officer concerned and
may be inspected by higher Officers viz, Executive
Engineer and Superintending Engineer, depending on its
importance.
 The muster roll is a record of attendance, wages paid,
unpaid wages, and the quantity of work done by labor for
a specific period of time under form no 21.
Muster Roll
 Muster Roll consists of the following three parts:

Part-1 (Nominal Roll)

 In this part of the Muster Roll, full information about the

labor employed is recorded and daily attendance of the
labor is marked.

Part-2 (Register of arrears of wages due to Worked People)-

 This part of the muster group is used for keeping a record of

all unpaid wages.

Part-3 (Details of the measurement of work done by labor)-

 This part of the muster group is used for full particulars of the
work done and the reference to pages and nos. of the
measurement book are recorded.
Imprest account
 An Imprest is a standing advance of a fixed sum of money
given to Sub-Divisional Officer and Sub-Assistant Engineer to
enable them to make day to day petty payments for proper
discharge of their duties.

 The amount of the Imprest is kept in duplicate in Form-2 by the

Imprest holder. The original Form with supporting vouchers is
submitted to the Divisional Officer by him from time to time for
recovery to close the account together.

 The account should, in any case, be rendered to the officer

from whom the imprest is held, in time to enable him to
examine and incorporate the account in his Cash Book before
it is closed for the month on the date fixed for the purpose.
Imprest account
 The Imprest holder is responsible for the safe custody of the
money either in cash or in the form of voucher.
Indent for stores
 Issues of materials from stock should be made only on
receipt of an Indent (Form-7) in quadruplicate (consisting
of four parts) signed by Divisional or Sub-Divisional Officer.

 An entry of the quantity of stores is made in all the copies

of Indents received over the signature of the Store-Keeper
or S.O. and a corresponding entry is made in the Bin Card
simultaneously.

 One copy of the Indent is retained by the Store Keeper or

S.O., the second being returned at once to the Indenting
Officer, the third and the fourth copies are sent to
Divisional Officer for value accounting.
Indent for stores
Material at site account
 For major works a detailed account of materials issued to
or returned from the work is kept under the suspense head
‘Materials’. The detailed account of materials issued to the
work is known as the ‘materials at site accounts’ Form 35.

 The purpose of such account is to make recovery of the

cost of materials issued to a contractor and also to keep a
watch on the total issue of each kind of material against its
requirement.

 The suspense head ‘Materials’ should be cleared at the

end of the month through the register of ‘Materials at site
accounts’ by debiting the cost of the materials to the
respective sub-heads for which they have been issued by
credit to the suspense head materials.
Material at site account
Stock account
(a) Posting of Receipt and Issues: Day-to-day transactions of
receipt and issues of all materials are posted in the
“Register of Stock Receipt and Issues” in Form 8 in order of
occurrence and as soon as they take place.

Posting of Receipts: Before posting the materials in the register

these are entered in the Measurement Book with full
particulars and verified by the competent authority (A.E. or
E.E.). The materials are then recorded in the receipt side of
Form-8.

Posting of Issues: All issues are posted on the same day on the
issue side of the Register. For huge number of transactions the
Register of Stock Receipts and Issues may be separated
instead posting entries in the same Register.
Stock account
Form-8
Stock account
(b) Monthly abstract of Receipts and Issues: On closing of
monthly account abstract of “Abstract of Stock Receipts
and Abstract of Stock Issues” are prepared separately in
Form 9 and Form 10 respectively by the Store-Keeper and
submitted to Divisional Officer by the Sub-Divisional Officer
in-charge as a monthly return of stock of receipt and
issues.

(c) Half Yearly Balance Return of Stock: The half yearly return
of stock ending every six month interval on 30th September
and 31st March of a year are prepared after compiling the
“Monthly abstract of Receipts and Issues” in Form 11 by the
S.D.O. or A.E. in charge showing monthly total receipts and
issues.
References:

 Dutta, B.N., “Estimating and Costing in Civil Engineering”,

Twenty-Seventh Revised Edition, UBS Publishers &
Distributors Pvt. Ltd., New Delhi, 2012.
 Chakraborti, M., “Estimating, Costing, Specification &
Valuation in Civil Engineering”, Twenty Third Edition, 2010.

 https://www.wikipedia.org/
 https://nptel.ac.in/course.php
 https://www.vidyarthiplus.com/studymaterials.php
THANK
YOU
Dept. of Civil Engg.