Table of Contents
1. Preface……………………………………………………… 1
2. Project Specification………………………………………..
2
3. Project Drawing ……………………………………………
4
4. Cost Summary………………………………………………
5
5. Cost Break Down ………………………………………….
6
Annexure A- Direct Material…………………………
Annexure B- Direct Labor……………………………
Annexure C- Factory Overhead………………………
6. General Consideration and Calculations.…………………
7
7. Acknowledgment ……………………………………………
7
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Preface
Report writing is one of the many things with which management
students are confronted. We may have the feeling that this is a
nuisance; however, for future prospectus these reports are of great
importance for us.
The assigned term of Cost Accounting is particularly related to
construction estimation. Construction business would most likely
accumulate costs in a system very similar to the job order costing, that
is project costing. The projects are more challenging than jobs that are
unique, non-repetitive, have more uncertainties, involve more skills
and specialties, and require more coordination over a longer time span.
Construction Companies usually has to engage in a complex job that
often takes months or years to complete and required the work of
many different departments or subcontractors.
In our under review report we remain bonded on estimation of the cost
of construction, in which we have tried our best possible efforts to
cover all relevant cost elements with tested and verified calculation
methods and original rates.
At the end, we conclude that, to build even a single pillar top of an
existing structure, the need of expertise for an architect or contractor
is imperative. It takes a professional to judge the capacity of the
structure to withstand the additional weight and to determine where
and how it needs to be strengthened. In the long run, it is probably
most economical to let a contractor build the shell for any exterior
addition, and to confine your efforts to whatever interior work you feel
equipped to handle.
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In simple words unless you have had considerable previous experience
with such work, it is advisable to let a contractor handle the job of
building the floor, walls and roof of the addition, once this part of the
job has been accomplished, you can take over as much of the light
construction and interior finishing as you feel that your skills will
permit.
Project Specification
1st Floor Plan
Total Covered Area in Square Feet: 4500 (500 Yards)
Width: 65’-0” Length 75’-0”
Project Duration: 240 Days (6 Months)
4 Bedrooms:
1 25’-3”X34’-1” (900 Square Feet)
1 20’-4”X34’-6” (738 Square Feet)
1 25’-3”X24’-9” (658 Square Feet)
1 15’-7”X18’-5” (303 Square Feet)
4 Bathrooms:
1 9’-0”X12’-0” (118 Square Feet)
1 7’-8”X9’-8” (82 Square Feet)
1 8’X6’-9” (61 Square Feet)
1 8’-2”X6’-6” (63 Square Feet)
1 Lounge
1 17’-6”X29’-10” (522 Square Feet)
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1 Study Room
1 16’-2”X18’-5” (321 Square Feet)
1 Storage
1 5’-7”X20’-6” (125 Square Feet)
1 Kitchen
1 13’-0”X23’-6” (372 Square Feet)
1 Dress
1 15’-7”X18’-5” (70 Square Feet)
House features used in this estimate:
Construction quality: Standard
Exterior:
Roof Type: Flat
Roof Material: 100% Concrete/Iron
Wall Material: 100% Masonry (Block/Mortar)
Interior:
Average Wall Height: 9’
Wall Material: 100% Masonry (1:4 Plaster Mix)
Wall Finish: 100% Paint (Matt Finish)
Floor Material: 10% Bathroom Tile 90% Ceramic Tile
Ceiling Finish: 100% Paint
Important Note:
Actual construction costs for the 1st floor of this house may differ from
the values shown above due to changes in economic conditions,
building contractor availability and specific building contractor
attributes. The subject cost estimate does not include costs for such
items as excavation, land value or detached structures. This
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information is to be used for analytical purposes only and it represents
only an estimate.
Cost Summary
Product Cost Elements
Direct Material Rs: 825,210.00
Direct Labor Rs: 369,675.00
Factory Overheads Rs: 92,600.00
Total Cost Rs: 1,287,485.00
===========
Production Cost Elements
Prime Cost Rs: 825,210.00
Conversion Cost Rs: 462,275.00
Total Cost Rs: 1,287,485.00
===========
Traceable/Untraceable Cost Elements
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Direct Cost Rs: 825,210.00
Indirect Cost Rs: 462,275.00
Total Cost Rs: 1,287,485.00
===========
Cost Break Down
Direct Materials Amount
Annexure
Roofing (Includes Beams & Pillers) Rs: 353,000.00
“A”
Flooring Rs: 145,120.00 “A”
Walls (Exterior & Interior) Rs: 148,360.00
“A”
Plumbing Rs: 28,005.00 “A”
Electric Fitting & Equipments Rs: 37,185.00
“A”
Contingency Rs: 165,000.00
“A”
Sub Total Rs: 876,670.00
Direct Labor
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Roofing (Includes Beams & Pillers) Rs: 63,000.00
“B”
Flooring Rs: 15,675.00 “B”
Walls (Exterior & Interior) Rs: 183,000.00
“B”
Plumbing Rs: 27,000.00 “B”
Electric Fitting & Equipments Rs: 27,000.00
“B”
Contingency Rs: 86,000.00
“B”
Sub Total Rs: 342,675.00
Factory Overheads
Roofing (Includes Beams & Pillers) Rs: 26,000.00
“C”
Flooring Rs: 14,000.00 “C”
Walls (Exterior & Interior) Rs: 52,000.00
“C”
Plumbing Rs: 300.00 “C”
Electric Fitting & Equipments Rs: 300.00
“C”
Contingency Rs: 23,000.00“C”
Sub Total Rs: 92,600.00
GRAND TOTAL Rs: 1,287,485.00
===========
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General Consideration and Calculations
1. Concrete is one of the least expensive of all
building materials, till the recent cement price
hike. Concrete prove to be very durable when
concrete work is properly done. Concrete is a
mixture of Portland cement, fine aggregate (Sand),
Coarse aggregate (Gravel or crushed stone) and
water. These ingredients are carefully
proportioned and the proportions of the resulting
mix expressed in three number i.e. 1:3:4 means 1
part Portland cement 3 part sand and 4 part
gravel/crushed.
In over cost estimation we have used 1:1:1 mix,
and our per square feet proportions of concrete is
as under:
Portland Cement Sand Crushed
200 Kg 200 Kg 200 Kg
4 Sack 0.2 Tone 0.2 Tone
*1/2 Sack to compensate wastage.
2. Iron Bar available in Market as per following:
Size 1000 KG in Fts Price per 1000 Kg
¼” 1320 Rs.37,000
3/8” 5860 Rs.37,000
7/16” 4320 Rs.37,000
½” 3300 Rs.37,000
5/8” 2120 Rs.37,000
¾” 1460 Rs.37,000
7/8” 1080 Rs.37,500
1” 820 Rs.38,000
We have determined that 6 Tone Iron Bar of 1”
required in our project.1”
3. Crush (Rati & Bajri) fine aggregate (Sand), Coarse
aggregate (Gravel or crushed stone) available in
Market as per following:
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Suzuki Rs: 400/=
Small Truck Rs: 1,000/=
Large Truck Rs: 2,000/=
We have taken 10 Large Truck of Crush etc.
Acknowledgment
We are indebted to many for their valuable guidance and assistance,
our primary obligation is to our course facilitator Mr. Mazhar Amjad
who guided us at all session he was conducted. After him our
obligation goes to Mr. Syed Ali of M/s. Al-Syed Construction, Nazimabad
who aided us immensely at all stages with his sound professional
knowledge.
A special note of gratitude is extended to Mr. Nizafatullah for their
usefull contribution regarding electrical, plumbing, and general
installations.
Ejaz Hussain __________________
MEN-2200367
Ahmed Amanatullah __________________
MEN-2200451
Syed Asad Mehmood __________________
MEN-2200475
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