FINAL YEAR MINI PROJECT REPORT , NIET COLLEGE , GREATER NOIDA

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CERTIFICATE
This is to certify that mini project on “VETTING OF COST ESTIMATES FOR AN UNDERCONSTRUCTION NH
PROJECT” is submitted by SANDEEP KUMAR, Roll No. XXXXXXXXXXXX in partial fulfillment of the
requirements for the award of Bachelor of Technology, degree in Civil Engineering at the Noida Institute of
Engineering and Technology, Greater Noida is an authentic work carried out by him under my supervision and
guidance.
To the best of my knowledge, the matter embodied in this project has not been submitted to any other
University/Institute for the award of any Degree or Diploma.
Mr. RAJESH MEENA
Assistant professor
Civil Engineering Department

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ACKNOWLEDGEMENT
I feel very proud to say that due to keen knowledge of the faculty of the Civil Department of the Noida Institute Of
Engineering and technology . It was very easy for me to learn a lot of knowledge regarding the “VETTING OF COST
ESTIMATES FOR AN UNDERCONSTRUCTION NH PROJECT”
I am greatly thankful to our guide Mr. RAJESH MEENA SIR (ASS. PROF) for his kind support and guidance to
successfully complete my Project. I have highly benefitted by this Project and have gained a lot of knowledge.
Finally I would like to thanks all the faculty members and senior teachers who have helped me and co-operated with
me during my project work.

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ABSTRACT
Vetting of cost estimates the process of checking the approximation of the cost of a program, project or operation.
Estimates for the cost of construction are a major part of the cost estimate domain. Earlier estimates were prepared
by differing methods of estimators and others to support the planning process and to compare with the bids. One
way to make those estimates is by determining the resources needed (e.g. the amount of construction material
quantities that are required) and then multiplying the estimated construction material quantities by the corresponding
unit cost. One advantage of making estimates in this way is that it allows for the segregation of quantities and costs.
This way they can be tracked separately allowing decision makers to make better decisions about the project during
its conceptual phase.
The Government of India had entrusted to the National Highways Authority of India the development,
maintenance and management of NH. The Authority in turn has entrusted the execution and completion of the
Project under NHDP Phase IV to a private developer on “Design Build Finance Operate and Transfer basis”.
The project road starts in Pune District and passes through Ahmednagar District and ends in Nashik District.
The existing road is of single carriageway comprising of two lanes with hard shoulders on either side. In order
to provide better level of service to the vehicular traffic, it has been decided to augment the capacity by widening
the existing 2 lanes to 4–lane divided carriageway facility, including strengthening of the existing 2– lanes on
Design, Build, Finance, Operate and Transfer (DBFOT) on Toll basis. During the construction phase, the
developer is looking for infusion of additional debt by financial institution. The financial institution before
approving the additional debt wants to ascertain the reasonableness of the cost of the project. The role of the
consultants is to assess the cost of the project and vet the same for the financial institution.

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Table of Contents
CERTIFICATE......................................................................................................................................................1
ACKNOWLEDGEMENT.....................................................................................................................................2
ABSTRACT..........................................................................................................................................................3
INTRODUCTION................................................................................................................................................5
DOCUMENTS USED IN VETTING OF COSTS............................................................................................6
PROJECT MEHTODOLOGY. ......................................................................................................................... 7
COLLECTION OF DATA..................................................................................................................................8
BILL OF QUANTITY........................................................................................................................................9
LIST OF FIGURES...........................................................................................................................................10
COMPARING OF BILL OF QUANTITIES ................................................................................................... 11
ILLUSTRATIONS........................................................................................................................................... 12
CONCLUSION................................................................................................................................................19
REFRENCES...................................................................................................................................................20

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INTRODUCTION
The Government of India has entrusted to the National Highway Authority of India the development, maintenance
and management of NH (National Highways) in the state of Maharashtra. The authority in turn has entrusted the
execution and completion of the Project under NHDP Phase IV to private developer on Design Build Finance
Operate and Transfer basis. The project starts from Pune District and passes through Ahmednagar District and
end in Nasik District. The existing road is of single carriageway comprising of two lanes with hard shoulders on
either side. In order to provide better level of service to the vehicular traffic, it has been decided to augment the
capacity by widening the existing 2 lane to 4-lane divided carriageway facility, including strengthening of the
existing of the 2- lane on Design, Build, Finance, Operate and Transfer (DBFOT) basis. The Client, who has been
entrusted with the task of constructing this stretch, has asked the Consultant (FEEDBACK INFRA Pvt. Ltd.) to
do Vetting of Cost estimates of concerned with the various components of the project in-order to determine
whether the costs are correct or not. Also, during the construction phase, the developer is looking for infusion of
additional debt by a financial institution. The financial institution before approving the additional debt wants to
ascertain the reasonableness of the cost estimated by the concessionaire of the project. The role of the consultants
is to assess the cost of the project and vet the same for the financial institution on an independent basis.
SCOPE OF WORK:
 Review the quantities provided in the EPC Contracts and tender documents including the cost estimation
for the construction, routine and periodic maintenance of the proposed project viz-a-viz project work to
be carried out as per Concession Agreement.
 Cost reconciliation with NHAI DPR/ feasibility report, Client’s cost and comment on reasonableness or
variations thereon. Provide justification/ clarification of the cost estimation.
 Highlight the major variances in rates and quantities, likely physical contingencies, price escalations and
the total construction cost.
 Comparing the cost of construction of the project with that of similar other projects. The comparison has
to be suitably justified with proper scientific methodology and data.
 Compare the O&M cost with that of similar projects and reasonable of the same.
PROJECT APPROACH:
The vetting of cost estimates is done in order to check the approximation of costs of projects, etc. for feasibility
or financial purposes. The main approach of the project (or the role of consultant) is to assess the cost of the
project and vet the same for the financial institution before the financial institution approves the additional debt
for the construction of the highway by the developer.

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DOCUMENTS USED IN VETTING OF PROJECTS
CONCESSION AGREEMENT:
A concession agreement is a negotiated contract between a company and a government that gives the company
the right to operate a specific business within the government’s jurisdiction, subject to certain conditions. A
concession agreement may also refer to an agreement between the owner of a facility and the concession owner
or concessionaire that grants the latter exclusive rights to operate a specified business in the facility under
specified conditions. Regardless of the type of concession, the concessionaire usually has to pay the party that
grants it the concession ongoing fees that may either be a fixed amount or a percentage of revenues.
BILL OF QUANTITIES:
The bill of quantities (sometimes referred to as ‘BoQ’) is a document prepared by the consultant (often a
quantity surveyor) that provides project specific measured quantities of the items of work identified by the
design drawings and specifications in the tender documentation. The quantities may be measured in number,
length, area, volume, weight or time. Preparing a bill of quantities requires that the design is complete and
specification has been prepared.
1. This helps to avoid any ambiguities or misunderstandings and so helps avoid disputes arising through
different interpretations of what has been priced. In India, bill of quantities for general roads construction
works are prepared in accordance with the Standard Data Book (2001:2002), MORTH codes, IS codes,
Schedule of Rates of the State(Maharashtra in this case), IRC Specifications.
2. The Concession Agreement, Schedules to the Concession Agreement and Bill of Quantities (BoQ) are the
main documents needed to be present for the vetting of cost estimates. While the Concession Agreement,
Schedule to the Concession Agreement and Client’s BoQ are provided by the Client, the Consultant need
to prepare its own BoQ for comparison purposes.

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PROJECT METHODOLOGY
STUDYING OF THE CONCESSION AGREEMENT:
Whenever a vetting of cost estimates is done, whether to determine the feasibility of the project or for getting
additional debt from a financial institution (as in this case), a study of concession agreement is done in order to
get an idea of what the project(of whose the vetting is to be done) is, what is its terrain, what is its cost, what is
the topography of the surrounding area, what type of materials are being used for the construction of road, what
will be the traffic density after the construction, etc.
The Concession Agreement is generally divided in to two parts viz. Main Agreement and Schedules to the
Concession Agreement. The Consultants have to peruse the entire Concession Agreement and generally
following schedules to determine the extent of work involved in the Project:
 Schedule A: Location of the Project Site
 Schedule B: Scope of Work
 Schedule C: Aligned Works
 Schedule D: Specification and Standards
These schedules are further divided into Annexure for each stage (Stage 1 and Stage 2 generally).
SCHEDULE A:
The Schedule A of the Concession Agreement contains the description about the site of the project, i.e., the land,
carriageway and structures comprising the Site. It shows the existing condition of the road and the area as in
what is the length of the existing road, what type of road it is, etc.
SCHEDULE B:
The Schedule B of the Concession Agreement shows the proposed changes that are needed to be made in the
road. In this project, it has been proposed to increase the width of the road and to change it from two-lane
carriageway to four-lane carriageway. The various subsections of this Schedule are: The Schedule B of the
project is further divided in Stage I and Stage 2 in order to show different stages of the project.
SCHEDULE C:
The Schedule C of the Concession Agreement consists of the Project Facilities that are needed to be constructed
along the project highway. According to the Schedule of the Concession Agreement of this particular project, the
project facilities that are needed to be constructed are: Toll plazas , street lights etc.
SCHEDULE D:
The Schedule D of the Concession Agreement contains the Specifications and Standards that have been set forth
for the construction of the Project Highway.
The Specifications and Standards mentioned in the Schedule D of this project are according to the Manual of
Specifications and Standards for DBFOT Road Projects published by IRC: SP: 84: 2009.

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COLLECTION OF REQUIRED DATA
After studying the Concession Agreement, we asked the Client to provide us the following data:
 BOQ (Bill of Quantities) of the Client;
 Abstract Cost as estimated by the Client;
 Quantity packages related to the project highway;
 Monthly Progress Report;
 Quarterly Progress Report;
 Cost estimates regarding earthwork, PCC quantity, Rate Analysis, etc.
 Structure Quantities,
 Lead Chart.
The above helped us, the Consultants in preparing our own Bill of Quantities for comparison purposes with
respect to the Client’s Bill of Quantities.

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BILL OF QUANTITIES
Step1-Calculating of quantities according to the Schedules:
The materials used for the construction of roads are found out by studying the Schedules A, B, C, D of
the concession agreement and their description are taken from the MORTH Road Specification and IRC
specifications. For this particular project the Manual of Specifications and Standards for DBFOT Road
Projects published by IRC: SP: 84: 2009 was used. This document gives us specifications regarding the
4-lane roads. In order to find out the quantity for the structures constructed along the highway, the
General Drawings given along with Concession Agreement are studied.
Step2-Finding out the Rates of Materials:
In order to find out rate of materials used in construction of highway, the schedule of rates for the state
where the project is being carried out is consulted. For this project, the Schedule of rates of Maharashtra
was consulted and the rates were taken.
Step3-Finding out the Amount/Quote Price :
To find out the amount/quote price of each material/work, the following formula is used
Step4-The amount for each material/work is found out and tabulated along with its description,
quantity, unit and rate of the concerned item(material/work)
Step5-The final step involves comparing of the BoQ of the Client and BoQ of the Consultant.
A BoQ look likes given below in the diagram (fig 3.0)
QUANTITY OF MATERIAL (from standard data book) X RATE
OFMATERIAL (from Schedule of Rates)= AMOUNT

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LIST OF FIGURES
Fig- 1.0
Fig 2.0
Fig 3.0

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COMPARING OF BILL OF QUANTITIES
The Bill of Quantities of both the Consultant and Client are compared in order to determine whether the cost
estimates are feasible or not. If there are any changes in the price of any item, a suitable justification was given
against that quantity. The comparison is done in such a manner that none of the quantities is left out. The unit
rate analysis for this project is based on MORTH’s standard data book format. The quantification of Road works
was done based on typical cross-sections provided in the CA (Concession Agreement) document, site
information collected and the pavement design adopted by the Client. In regard to structural works, the quantities
have been worked out based on tentative GAD’s based on Schedules of CA, site information and Consultant’s
experience in similar projects.
The recommendation given by the Consultant regarding pavement design is that flexible pavement should be
provided. However, rigid pavement should be provided for toll plaza area.
The recommendations given with respect to drainage and protection works is that the line covered drains should
be constructed on both sides of the road. Drainage chutes with pitching should be provided for embankment with
height more than 6m.

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ILLUSTRATIONS
BILL OFQUANTITIES OF CLIENT:
Item MoRT&H
Spec Ref
Description Unit Quantity Unit Amount
Design Length KM 0.920
0
0
0
BILL No. 1 SITE CLEARANCE AND DISMANTLING
0
1.01 201& 305
Cutting of trees, including cutting of trunks, branches and removal of
stumps,
roots, stacking of serviceable material with all lead & lifts and refilling the
pits with approved soil and compaction in layers as per Technical
Specification Clause 201 and 305
0
i) Girth size above 300mm upto 600mm Nos. 42.15 5 34,565.73
ii) Girth size above 600mm upto 900mm Nos. 25.29 8 30,908.45
iii) Girth size above 900mm up to 1800mm Nos. 8.43 17 21,639.93
iv) Girth size more than 1800mm Nos. 8.43 24 30,975.63
1.02 201
Clearing and grubbing road land including uprooting rank vegetation,
grass, bushes, shrubs, saplings and trees girth up to 300 mm, removal of
stumps of trees cut earlier and disposal of unserviceable materials and
stacking of serviceable material to be used or auctioned, including all leads
and lifts and removal and disposal of top organic soil not exceeding 150 mm
in thickness complete as per Technical Specifications Clause 201.
Ha. 5.02 246 185,361.00
1.03 202
Dismantling structures including disposal of resulting material
and/or
salvaging useful materials with all lifts and leads complete as per Technical
Specifications Clause 202.
0 0 0
i) PCC Structures Cum 4.33 4 2,747.33
ii) RCC Structures Cum 23.33 7 24,033.33
iii) Stone / Brick Masonry Cum 66.67 2 16,866.67
iv) Stone pitching/Dry stone spalls Cum 2.37 1 418.90
v) Hume Pipes Rmt 2.15 2 639.71
vi) W Beam Crash Barrier Rmt - 0 -
1.04 202
Dismantling of pavements and disposal of dismantled materials, stacking
serviceable and unserviceable materials separately at approved
locations
0 0 0
i) Bituminous Courses Cum 30.36 4 17,152.65
ii) Granular courses Cum 64.30 3 26,233.04
iii) Dry Lean Concrete Cum - 0 -
iv) Pavement Quality Concrete Cum - 0 -
1.05 202
Dismantling of kilometre stone including cutting of earth, foundation and
disposal of dismantled material with all lifts and leads and back filling of
pit.
0 0 0
i) 5th Kilometre Stone Nos. 0.10 2 31.00
ii) Ordinary Kilometre Stone Nos. 0.43 1 75.52
iii) Hectometre Stone Nos. 2.04 1 306.00
iv) Boundray stones/ guard stones Nos. - 0 -
1.06
305.4.3 &
501
Scarifying existing BT surface without disturbing the base including
carrying and disposal of waste material with all lifts and leads, as per
Technical Specification and as directed by the Engineer
Sqm 1,089.20 0 246.89
1.07
Milling of the existing BT surface in layers of 50 mm thickness without
disturbing the base including carryig,processing,laying and disposal of
waste material with all lifts and leads, as per Technical spefifications and as
directed by the Engineer
Sqm 363.07 0 169.43

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1.08 Rebate for extracted material 0
a. Steel MT - -
b. Hume Pipe Rmt - -
c. Aggregate extracted from milling & scarification to be used in Base/Sub
base after extracting bitumen, fulfilling all properties required for the layer
in which it is used
Cum - -
d. Aggregate obtained from dismantling of granular courses, fulfilling all
properties required for the layer in which it is used
Cum - -
Total Carried to Summary 454,402
COST COMPARISON:
Particulars
Amount (ITNL)-2012/13
Including Escalation
during construction
Amount (FIPL)-
2012/13
Amount (FIPL) -2012/13
including Inflation during
construction @ 7.125%
Difference in
%age
Site Clearance 454,402
416,055
2,774 -0.66%
Earthwork 24,368,533
23,021,723
153,478 -0.66%
RE wall Filling 791,643
865,381
5,769 -0.66%
Granular Pavement Courses 16,358,816
13,842,084
92,281 -0.66%
Bituminous Courses 21,320,338
20,199,921
134,666 -0.66%
Rigid Pavement 735,745
822,393
5,483 -0.66%
0
- -
- 0.00%
CD Works ( Pipe,Slab,Box
Culverts)
4,269,961
3,481,560
23,210 -0.66%
Road Marking 356,616
318,790
2,125 -0.66%
Drainage and Protection works - - - 0.00%
Lined and Unlined Drains 3,644,577
3,503,483
23,357 -0.66%
Retaining Wall/Toe Wall 5,858,305
6,362,886
42,419 -0.66%
Pitching/Turfing 1,010,037
1,277,002
8,513 -0.66%
Crash Barier/Guard Stones 2,895,049
2,160,138
14,401 -0.66%
Miscellaneous 726,008
695,440
4,636 -0.66%
RE Wall 4,590,582
3,620,482
24,137 -0.66%
Minor/Major Bridges 15,878,096 16,852,537 112,350 -0.66%
Rehabilitation and Repair of
Existing
- - - 0.00%

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Bridges
218,504 223,099 1,487
-0.66%
Traffic Signages
389,633 376,298 2,509
-0.66%
Miscellaneous
538,205 543,696 3,625
-0.66%
Toll Plaza
1,721,930 1,486,167 9,908
-0.66%
HTMS -
- -
0.00%
Electrical Items
873,020 834,693 5,565
-0.66%
Total
107,000,000 672,692 4,485
-0.67%
Detail Design and Drawing
1,600,000
0.01%
10,667
0.00%
Project Management
Consultancy 3,733,333
0.0%
24,889
-0.66%
Establishment Cost
2,133,333
0.0%
14,222
-0.66%
Safety
800,000
0.00%
5,333
-0.66%
Administration Charges
1,066,667
0.01%
7,111
-0.66%
Pre Construction Activities
1,333,333
0.01%
8,889
-0.66%
Quality Assurance &
Quality Control 1,066,667
0.01%
7,111
-0.66%
Environmental Charges
266,667
0.00%
1,778
-0.66%
Total
119,000,000 4,485 563
-0.67%
Difference. -0.667% 0.00 0.00% 0.00%
Escalation During Construction
Work 0% 0% 0% 0%
0% 0% 0% 0%
Period (Years) 0.01 0.01 0.00 0.00
Inflation Rate per Year 0.0% 0.033% 0.03% 0.00%
effective escalation 0.0% 0.0% 0.0% 0.000%

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BILLS OF QUANTITIES (CONSULTANT):
Item
MoRT&
H Spec
Ref
Description
Quantity
Unit(FIPL) Unit Rate Amount
Total
Design
Length
KM
I CONTRACTOR SCOPE OF WORK
BILL
No. 1
SITE CLEARANCE AND
DISMANTLING
1.01 201&
305
Cutting of trees, including cutting of trunks,
branches and removal of stumps, roots,
stacking of serviceable material with all
lead & lifts and refilling the pits with
i) Girth size above 300mm upto 600mm Nos. 8,966.0 246.0 2,205,636
ii) Girth size above 600mm upto 900mm No
s.
4,138.0 1,841,410
iii) Girth size above 900mm up to 1800mm Nos. 552.0 473,616
iv) Girth size more than 1800mm Nos. 138.0 1,629 224,802
1.02 201
Clearing and grubbing road land including
uprooting rank vegetation, grass, bushes,
shrubs, saplings and trees girth up to 300
mm, removal of stumps of trees cut earlier
and disposal of unserviceable materials
and stacking of serviceable material to be
Ha. 486.2 29,463 14,325,230
1.03 202
Dismantling structures including
disposal of resulting material and/or
salvaging usefulmaterials with all lifts and
leads complete as per Technical

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i) PCC Structures Cum 437.0
ii) RCC Structures Cum 162.9 1,113.0 181,350
iii) Stone / Brick Masonry Cum 303.0
iv) Stone pitching/Dry stone spalls Cum 200.0 210.0 42,000
v) Hume Pipes Rmt 100.0 235.0 23,500
vi) Hand rail/PGR Rmt 100.0 500.0 50,000
vii) Kerb Rmt 100.0 15.0 1,500
viii) Dismentling of footpath Sqm 100.0 50.0 5,000
1.04 202
Dismantling of pavements and disposal of
dismantled materials, stacking serviceable
and unserviceable materials separately at
approved locations
i) Bituminous Courses Cum 24,381.0 289.0 7,046,109
ii) Granular courses Cum 73,143.0 491.0 35,913,213
iii) Dry Lean Concrete Cum
iv) Pavement Quality Concrete Cum
1.05 202
Dismantling of kilometre stone including
cutting of earth, foundation and disposal of
dismantled material with all lifts and leads
and back filling of pit.
i) 5th Kilometre Stone Nos. 27.0 363.0 9,801
ii) Ordinary Kilometre Stone Nos. 110.0 214.0 23,540

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iii) Hectometre Stone Nos. 1,233.0 58.0 71,514
iv) Boundary stones/ guard stones Nos.
1.06
305.4.3
& 501
Scarifying existing BT surface in layers of
50 mm thickness, without disturbing the
base including carrying and disposal of
waste material, as per Technical
Sqm 14.0
1.07
Milling of the existing BT surface in layers
of 50 mm thickness without disturbing the
base including carrying, processing, laying
and disposal of waste material as per
Sqm
1.08 Rebate for extracted material
a. Steel MT
b. Hume Pipe Rmt
c. Aggregate extracted from milling &
scarification to be used in Base/Sub base
after extracting bitumen, fulfilling all
properties required for the layer in which
Cum
d. Aggregate obtained from dismantling of
granular courses, fulfilling all properties
required for the layer in which it is used
Cum
e. PGR/ Hand Rail Rmt 1,00
0.0
(30.0) (30,000)
Total Carried to Summary 62,408,221
BILL
No 2
EARTH WORK
2.01 301
Roadway excavation including removal of
unsuitable soil for construction of roadway
including shoulders and median to
designated widths and depths in existing
roadway embankment for purpose of
pavement construction including trimming
of bottom and side slopes in accordance with
requirements of lines, grades and
301 i) All types of soil Cum 1,318,268.9 63,276,908
301 ii) Excavation for roadway in Soft Rock Cum 322,267.2 57,363,567

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301 iii) Excavation in hard rock requiring Open
blasting, by drilling & blasting
Cum
301 iv) Excavation for roadway in hard rock Cum 1,111,15 546,688,
(blasting prohibited) with rock breakers 4.7 108
301
v) Excavation for roadway in hard rock
(controlled blasting) by drilling, blasting
and breaking,
Cum 476,209.2 229,056,603
Embankment Construction with Fly
ash/Pond ash available from coal or
Cum 57.0
lignite burning Thermal Plants as waste
2.02 IRC
SP:58
material.
Construction of embankment with fly
ash conforming to table 1 of IRC: SP:
58 obtained from coal or lignite burning
thermal power stations as waste
Note: The following data is for representational purposes only. The actual data cannot be revealed due to
confidentiality agreement between the Client and the Consultant.

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CONCLUSION
1. As per the analysis conducted by us, it is evident that estimated Client cost (2012-13) is 25.32% above
the estimated cost at Feasibility Stage (2010-11).
2. The major reason for the same is escalation in rates from 2010-11 to 2012-13.
3. After adjusting Major material rates which are provided in feasibility report, difference of Client and
Feasibility cost is ~6.61%.
4. Since feasibility report contains only major items we can compare only those. However if we compare it
with a similar project it seems that the estimated cost is below than 11.29%. Client’s cost is 1.22% below
than Consultant’s estimated cost.
5. Keeping in view of above points since the difference is marginal and hence the data provided to us by
the Client is accepted.

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REFRENCES
1. Standard Data Book (2001:2002),
2. MORTH codes
3. IS codes, Schedule of Rates of the State (Maharashtra in this case)
4. IRC Specifications
5. NHAI
6. NPTEL